SRA Handbook

Power to require contributions

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Rule 16: Power to require contributions

16.1

The Society shall have power to require principals to make contributions of such amount and on such basis as the Society may from time to time determine. Value Added Tax, to the extent chargeable on any relevant supply which takes or may be treated as taking place under or by virtue of these Rules, will be charged and payable in addition to and at the same time as any contributions payable hereunder.

16.2

Solicitors Indemnity Fund Limited may at any time give to any practice written notice correcting any inaccuracy in the calculation of any contribution under these Rules. Any reimbursement or any payment of contribution hereby required shall be made forthwith upon, respectively, issue or receipt of such a notice, together with any Value Added Tax applicable and (in the case of any amount payable to Solicitors Indemnity Fund Limited upon correction of an inaccuracy in calculation) interest at a rate of 4% above Barclays Bank base rate with quarterly rests or at such other rate as the Society may from time to time determine and publish in the Law Society's Gazette.

16.3

Solicitors Indemnity Fund Limited may at any time, to the extent that it is reasonably practicable for it to do so, recalculate any claims adjustment applicable to any practice under the Solicitors' Indemnity Rules 2006 (or any earlier corresponding Rules) as a result of the receipt by Solicitors Indemnity Fund Limited of any sum from any third party relating to any indemnity provided to that practice out of the fund under these Rules or any earlier corresponding Rules, after deduction of the reasonable costs and expenses incurred by Solicitors Indemnity Fund Limited.

16.4

Solicitors Indemnity Fund Limited shall not be entitled, at any time after 30 September 2008, to require any practice to make any contribution under the Solicitors' Indemnity Rules 2006 (or any earlier corresponding Rules) which would otherwise be payable by reason of an inaccuracy in calculation, unless that inaccuracy is attributable to a failure to provide information or to a material inaccuracy in information provided by or on behalf of that practice under Part III of the Solicitors' Indemnity Rules 2006 (or any earlier corresponding Rules).

16.5

The Society's decision shall be final and binding on all affected on any question arising as to:

(a)

any obligation to make a contribution; or

(b)

any sum due to any person out of the fund;

under this Rule 16.