I wonder what the reaction would have been if those firms that were asked to make contributions to the SIF in each of the 2001/02 and 2002/03 indemnity years had been told that if the money was not, in the event, needed £25 million would be paid towards the Law Society's staff pension scheme, with a further sum of up to £25 million being contributed by way of a second instalment.

On what basis was the money paid back by the SIF to the Law Society? Whose money is it?


All of the money overpaid should go back to those who made the SIF contributions.


Hugh Berridge, Clapham & Collinge, Norwich




Law Society response: While it is easy to have sympathy with those who have queried this decision, the Solicitors Indemnity Fund is not a mutual fund and contributors have no legal right to a return of contributions. Nevertheless, having obtained comprehensive legal advice, the Law Society Council decided to return the 2001/02 and 2002/03 contributions, because they turned out not to have been necessary at all. The remainder of the surplus was available for the Society's other purposes. The council decided it was best to use the money to meet a legally binding demand made by the Society's pension trustees. If that had not been done, the practising certificate fee would have needed to be increased substantially above its present level.


Kevin Martin, Law Society President, London