SRA Handbook

Establishment and maintenance of fund

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

Rule 4: Establishment and maintenance of fund

4.1

The Society shall maintain the fund in accordance with these Rules.

4.2

The purpose of the fund is to provide indemnity against loss as mentioned in section 37 of the SA as extended by section 9 of the AJA, Schedule 4 paragraph 1(3) of the European Communities (Lawyer's Practice) Regulations 2000 and section 89 of the Courts and Legal Services Act 1990 in the circumstances, to the extent and subject to the conditions and exclusions specified by the Solicitors' Indemnity Rules 1987 as the same have been and are in force and amended and applied from time to time and by any future Rules continuing, amending, adding to, applying or re-enacting such or other Rules to provide such indemnity in respect of annual indemnity periods (starting in 1987) unless and until otherwise determined by future Rules.

4.3

The fund shall be maintained by contributions previously made by or on behalf of solicitors, recognised bodies, RELs and RFLs in respect of each indemnity period in accordance with Part III of the SRA Indemnity Rules 2011 (or any earlier corresponding provisions), and by any additional contributions in accordance with Rule 16.

4.4

The Society may maintain the fund as a single continuous fund, and any deficiency in respect of one indemnity period may be met in whole or part from contributions in respect of another indemnity period or indemnity periods and any balance in respect of one indemnity period may be applied to the benefit of any other indemnity period or indemnity periods.

4.5

The fund shall be held, managed and administered in accordance with Part IV of these Rules by Solicitors Indemnity Fund Limited, a company set up by the Society for this purpose, or by such other person or persons (including the Society itself) as the Society may designate for such purpose, in place of Solicitors Indemnity Fund Limited. References in these Rules to Solicitors Indemnity Fund Limited shall include any such other person or persons.