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The SRA Handbook is no longer in effect. It was replaced by the SRA Standards and Regulations on 25 November 2019.

SRA Handbook

Special measures

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Version 1 of the Handbook was published on 16/09/2011. For more information, please click 'History' Above

Rule 11: Special measures

11.1

An eligible firm that has applied to enter the ARP in accordance with the procedure set out in Rule 10 will be issued with an ARP policy by the ARP manager.

Commentary:

A copy of the standard-form ARP policy is available on the website of the SRA at www.sra.org.uk and is also available from the SRA. Contact details appear at the end of the introductory commentary.

11.2

A firm in the ARP must if and to the extent required by the Council submit to investigation and monitoring by the Society and/or its agents, including investigation and monitoring:

(a)

to determine the reasons why qualifying insurance outside the ARP was not obtained;

(b)

to ascertain what special measures should be taken by the firm.

The Society's costs and expenses of the investigation and monitoring and the Society's costs and expenses of ascertaining what special measures should be taken and of monitoring them shall be met by the firm and by any person who is a principal of that firm. The amount of such costs and expenses shall be determined by the Society which shall not be required to give any detailed breakdown thereof.

Commentary:

The appointed inspectors (in the first instance, the Forensic Investigations Department of the Inspection & Investigation Directorate) will visit a firm insured through the ARP to carry out investigation and monitoring. This is in order to determine what special measures should be taken and are appropriate for that firm, and to ensure that those measures are fully implemented. It should be noted that the costs and expenses of investigation and monitoring by the Inspection & Investigation Directorate and the implementation of the special measures (together with VAT if applicable) will be payable by the firm concerned (including each principal of that firm), in addition to paying the ARP premium.

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