SRA Handbook

Losses outside the remit of the Fund

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Version 12 of the Handbook was published on 31/10/2014. For more information, please click 'History' Above

Rule 8: Losses outside the remit of the Fund

8.1

For the avoidance of doubt, a grant will not be made in respect of the following:

(a)

Losses arising solely by reason of professional negligence by a defaulting practitioner, or the employee or manager of a defaulting practitioner.

(b)

Losses which are the personal debts of a defaulting practitioner and where the facts would not otherwise give rise to a claim on the Fund.

(c)

The loss results from, but does not form part of, any misappropriation of, or failure to account for, money or money's worth.

(d)

The loss results from the trading debts or liabilities of the defaulting practitioner.

(e)

The loss amounts to a claim for contractually agreed interest between the applicant and the defaulting practitioner.

(f)

The SRA was not notified of the applicant's loss in accordance with rule 11.

(g)

The loss occurred in relation to an overseas partnership which does not fall within rule 50.1(c) or 50.2(b) of the SRA Accounts Rules, unless:

(i)

the loss occurred as a result of a solicitor's dishonesty; or

(ii)

the loss occurred as a result of failure to account by a solicitor acting as a named trustee.

(h)

The application is by the Legal Aid Agency for loss occasioned through making regular payments under the Agency's contracting schemes for civil and/or criminal work.

(i)

In the case of a defaulting licensed body, losses incurred other than in the course of performance of a regulated activity.

8.2

For the avoidance of doubt, a grant will not be made under rule 5 in respect of the following:

(a)

Where there is a policy or policies of qualifying insurance against which a claim could be or has been made in respect of the civil liability of the defaulting practitioner or the defaulting practitioner's employee or manager.

(b)

Any losses that would not be covered under the terms, conditions and exclusions of the MTC had the loss been subject to a claim under a policy of qualifying insurance.