The Solicitors Regulation Authority (SRA)have been advised by The Law Society that in order to cut down the costs associated with interventions, it should invite firms to bid for caseloads from failed firms.
Desmond Hudson, chief executive of The Law Society, told the Conveyancing Association that the change would have to take place as the SRA was well on its way to overspending on interventions concerning failed firms.
Last week the SRA revealed that 10% of its annual budget had already been used intervening in failed firms and a change in attitude must take place because otherwise the SRA will have overspent its intervention budget by the middle of the year.
Hudson has advised the SRA to look for alternatives, and instead of paying other firms to handle the caseloads of practices which have buckled under the economic strain the sector finds itself in, they should instead be inviting firms to bid on the caseloads of each failed firm.
Details of the overspent budget by the SRA included £1 million being spent on Atteys, and £800,000 on Blakemores after the firms failed to find buyers.
If the SRA continue to intervene in failed firms the overall cost to the sector will be a bleak one; a new way of giving failed firms or those looking for a way out of the industry voluntarily is something that Recovery First offers as a viable alternative.
Recovery First offers firms a structured exit from the personal injury industry through a unique process that allows for maximum return on your work in progress. To speak to a member of our team contact 0151 949 5195 for a no obligation discussion.