Society plans legal challenge if GISC fails to relax rules

The Law Society will consider legal action against the General Insurance Standards Council (GISC) if an application to remove solicitors from its regulatory ambit is refused, the Society's council was told last week.The GISC has power to regulate all 'general insurance activities'.

It announced last week that the date from which GISC members are only allowed to deal with other members has been extended from 1 September to 15 October, giving solicitors more breathing space.The Society is seeking a waiver for solicitors who sell certain legal indemnity products such as defective title or missing beneficiary insurance.

It also wants firms which sell after-the-event insurance to be exempt, though this is proving the trickiest area.The Society has argued that solicitors do not require GISC regulation as its own regulation is adequate.