Seamus Gates, Director, MHA Broomfield Alexander
Following on from the MHA submission to the recent SRA consultation on regulatory reform we have today received an update from the SRA.
The below is an update on the discussions had by the SRA Board:
The majority of responses to the consultations agreed with the aim of reducing the burden of regulation. However, some disagreed with the proposals made. This feedback has been taken on board and, where it is felt that respondents have a valid point it has been decided that a fresh look should be made at the proposals or look for more information.
Minimum terms and conditions for indemnity insurance
The Board is introducing a requirement on all firms to ensure they have an appropriate level of indemnity insurance cover, but reducing the minimum level of compulsory cover to £500,000. These proposals will ensure consumers are better protected by, for the first time, requiring firms to ensure appropriate cover rather than simply relying on meeting the minimum requirements and, at the same time, ensure the very many firms undertaking primarily low value transactions are not forced to obtain higher levels of insurance than they and their clients require.