SRA Handbook

Maintenance of and contributions to the Fund

Back to version 21

Version 5 of the Handbook was published on 01/10/2012. For more information, please click 'History' Above

Rule 2: Maintenance of and contributions to the Fund

2.1

The Society shall establish and maintain the fund called the Solicitors' Compensation Fund ("the Fund") for making grants in respect of compensation claims.

2.2

The Society may hold monies raised for the purposes of the Fund in a single fund, and may distribute any monies, pursuant to the provisions of the SA, LSA and these rules, out of such fund.

2.3

Rule 2.2 shall remain in force until 31 December 2012 when it shall, unless renewed, cease to have effect.

2.4

The Society may after the Transitional Period hold, apportion and distribute the funds held by the Society as it considers appropriate and in accordance with the statutory purposes for which the funds were received. In so doing the Society will have regard to (i) the sources from which the funds were received; (ii) the contributions made; and (iii) the anticipated level of claims and demands upon the Fund.

2.5

The termination of the single fund will not affect the lawfulness of any steps taken by the Society with regard to it, nor will it prevent the Society from raising contributions which the Society considers may be required in order to meet claims, or discharge any of the Society's obligations with regard to the Fund.

2.6

Every solicitor, REL, RFL and recognised body shall make contributions to the Fund in such amounts, at such times and in such circumstances, as may be prescribed from time to time by the SRA. Any unpaid contributions may be recovered as a debt due to the Society.

2.7

Every licensed body shall be required under these rules, to make contributions to the Fund in such amounts, at such times and in such circumstances, as may be prescribed from time to time by the SRA. Any unpaid contributions may be recovered as a debt due to the Society. The Society may recover unpaid contributions from licensed bodies after the Transitional Period, and may require licensed bodies to make such further contributions as the Society considers necessary after the Transitional Period in order to maintain a fund with sufficient resources to meet claims and discharge the Society's obligations with regard to the Fund.

2.8

Rule 2.6 shall not apply to a solicitor, REL or RFL who is a Crown Prosecutor.

2.9

The Society may invest any money which forms part of the Fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

2.10

The Society may insure with authorised insurers, in relation to the Fund, for such purposes and on such terms as it considers appropriate.

2.11

The Society may

(a)

borrow for the purposes of the Fund;

(b)

charge investments which form part of the Fund as security for borrowing by the Society for the purposes of the Fund.

2.12

The Fund may be applied by the SRA for the following purposes (in addition to the making of grants in respect of compensation claims):

(a)

payment of premiums on insurance policies effected under rule 2.10;

(b)

repayment of money borrowed by the Society for the purposes of the Fund and payment of interest on any money so borrowed under rule 2.11;

(c)

payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting, administering or applying the Fund;

(d)

payment of any costs, charges or expenses incurred by the SRA in exercising its powers under Part 2 of Schedule 1 to the SA or Schedule 14 to the LSA (intervention powers);

(e)

payment of any costs or damages incurred by the Society, the SRA, their employees or agents as a result of proceedings against any or either of them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers.