Solicitors Financial Centres (SFCs) are no longer regulated by the Law Society and will change their names in the new year because they were unable to find professional indemnity insurance (PII) which complied with both the Financial Services Authority's and the Law Society's minimum terms and conditions, it has emerged.


The four SFCs - in Devon, Lincolnshire, Exeter and the Thames Valley - have been covered by insurance for financial services since the solicitors' PII renewal date this year, 31 August.



Along with a new Cornwall office scheduled to open shortly, they will all re-name themselves Professional Financial Centres for 2004.



Newcastle and Teesside SFCs quit the SFCs' federation at the end of August because of the organisation's failure to find indemnity cover.



Ian Muirhead, director of Solicitors for Independent Financial Advice (SIFA) and the force behind the SFC concept, said SIFA embarked on a three-month search to obtain insurance. When that failed, the SFCs tried to change their name to Lawyers Financial Centres, but this fell foul of the Solicitors separate business code.



A statement form the SFCs said: 'The centres will continue to specialise in serving the profession, by providing an external financial services resource to solicitors, but the change will enable accountants and financial advisers to hold shares in the centres and to be directors.' Solicitors and/or accountants will retain majority control of the centres.



Stephen Gibbens, the managing director of Trustlaw Services (formerly Teesside SFC) and director of Stockton-based incorporated law firm Gibbens & Co, said the new centres would now be no different from any independent financial advisors.



'This is a change in the inherent structure of the SFCs,' he said.