Bar Standards Board’s (BSB) change of heart

December 12th, 2011 by Marie-Claire Clinton

If I didn’t know better, I would think that the BSB had stumbled upon my blog.

Not many of you will remember my post from May (http://www.lawadvice.uk.com/2011/05/alternative-business-structures/) where I commented that I would not be choosing the BSB as my practice’s regulator because they would not permit the holding of client money.

Lo and behold I read in the Gazette this week that they have had an about face on this issue and are setting up a scheme where their regulated practices will be able to hold client money after all.

http://www.lawgazette.co.uk/news/barristers-plan-escrow-scheme-holding-client-money

I am still no clearer on the whole regulator issue but did see in the SRA’s small print in the indemnity insurance rules that they would consider a practice to be “ceasing” such that it would have to have run-off insurance in place if that practice was no longer going to be regulated by the SRA.

Why is that problematic, you may ask.  Because run-off insurance costs 3-4 times the annual premium!

So quite a disincentive to switching regulator, and probably an unfair term to be honest provided that indemnity insurance required under another regulator’s rules was in place.

Now there’s an idea if I ever get bored!

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