Solicitors Compensation Fund payments frozen as practising certificate fee rises

COUNCIL: moves to double contributions rejected but PC increased to 'balance the books'

Contributions to the Solicitors Compensation Fund (SCF) are to be frozen after the Law Society's ruling council last week rejected proposals to double them.At the same meeting, the council approved increasing the practising certificate fee by 155 to 650.The decision to freeze contributions to the SCF at 200 for solicitors of seven or more years' qualification and 100 for four to six years' qualified solicitors followed an amendment laid by former president Robert Sayer.He said that at the existing levels, there was 'nothing on earth that could make this fund insolvent this year'.

The rise had been proposed with the aim of ensuring the fund's reserves were 40 million in the light of increasingly novel frauds.The council approved the amendment by 26 votes to 25.Law Society treasurer Ken Byass said after the meeting that 'in all probability we shall manage without difficulty during the year'.

If the SCF does run short, the Society has the power to levy an extra contribution.

Mr Byass warned the council that the profession would not be happy were that to happen.Mr Byass told the council that the rise in the PC fee was necessary to 'balance the books' and also to ensure the Society has the resources to discharge its regulatory responsibilities properly.The Society has run to deficit in the last two years; to have avoided this would have meant the PC fee being 62 and 70 higher respectively in those years.

Mr Byass said that as a rule of thumb, every 12.50 on the PC fee raises 1 million.Also going up is the registration fee for incorporated practices (from 150 to 500), the fee for non-practising solicitors retaining their names on the Roll (from 15 to 25), and the fee paid by solicitors who deliver a late accountant's report (from 50 to 200).

These rises should bring in almost 1 million extra next year.The Society has set an 80 million budget for 2002, an 11 million rise on this year.

The Office for the Supervision of Solicitors will account for 12.4 million of this.Society chief executive Janet Paraskeva said afterwards: 'I am pleased that the council strongly supported the need to invest in the future of the Law Society.'Neil Rose