A total of 141 law firms are set to shut down if they cannot secure professional indemnity insurance, according to the Solicitors Regulatory Authority (SRA).
As of 3 December 2013, only 26 days remain in which the firms in question can comply with the deadlines.
With “time being of the essence,” Dean Nelson, a partner and head of business recovery & insolvency at Smith Cooper expressed his belief that this time should be used “to deal with matters head on.”
Nelson said: “it is naturally difficult to receive correspondence, which in effect can not only impact your own life but those of colleagues that you have worked with and employed for a number of years.
“However, the 141 in question have a duty of care to their clients and staff to take the appropriate strategic advice with a view to maximising what asset value remains and to make alternative arrangements, if an insurer has not been found.”
Nelson warned clients and solicitors alike, as he continued: “anyone identified by the SRA and placed in the Extended Policy Period is at risk until an insurer has been found and cannot take on any new instructions.”
These law firms have been advised to seek advice from an insolvency practitioner.