ETHICS Q & A

Q My nominee company is required to carry top-up insurance under the Incorporated Practice Rules.

My insurers say the company can be included within the current top-up of my practice.

Is this sufficient for the Law Society's requirements?

A Yes, provided your insurers certify that the company is included under your practice's indemnity policy and confirm the amount of cover provided.

The amount of cover would have to meet the requirements of rule 13(2) of the Incorporated Practice Rules.

Currently the top-up amount required over and above the maximum indemnity provided by the Solicitors Indemnity Fund is a minimum of 500,000 on an each and every claim basis or 2,000,000 per annum on an aggregate basis.

You may also wish to consider the possibility of obtaining exemption from the top-up requirement - see rule 13(5) of the Incorporated Practice Rules.

An information pack on Incorporated Practices is available from Professional Ethics.

Aide MemoireX The Establishment of Lawyers Directive 98/5/EC will be implemented in England and Wales on 22 May.

Lawyers from other EU states who are EU nationals and established in the UK will have to register with one of the UK Law Societies or Bars.

Lawyers already practising in the UK will have until 21 November to apply, unless they wish to take advantage of their new rights under the Directive at an earlier date.X Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 0171 242 1222.