SLCC praise for Law Society Client Protection Fund

A report has praised an important protection for legal services consumers provided by the Law Society of Scotland.

The Scottish Legal Complaints Commission (SLCC) has stated that the Law Society’s Client Protection Fund is well run in its report published last month. The SLCC, which has powers to monitor the effectiveness of the fund and make recommendations, also praised the clarity and accessibility of information about the fund, saying it was clear and easy to understand and that guidance was also available to support those making claims.

The Client Protection Fund, originally established by legislation in 1980 as the Scottish Solicitors' Guarantee Fund, exists to protect clients who have lost money because of the dishonesty of a solicitor or a member of their staff. The fund is paid for entirely by solicitor firms without taxpayer money from government. The Law Society’s Client Protection Sub-Committee oversees the fulfilment of the Society’s statutory obligations in relation to the fund as well as monitoring Client Protection Fund claims and financial compliance activity more widely.

The SLCC made three recommendations which included providing additional updates for claimants to keep them informed of progress on their claim, alongside seeking feedback from claimants and considering changes which could improve understanding and accessibility. The Law Society had already acted to recruit new lay members to the committee to make up for the current shortfall which had been highlighted in the report. Law Society regulatory committees have equal numbers of solicitor and non-solicitor members and there are currently seven solicitors and five lay members on the committee.

Ken Dalling, Convener of the Law Society’s Client Protection Sub-Committee, said: “The vast majority of our work on the committee focuses on preventing issues arising through ongoing monitoring of compliance by solicitors with our accounts rules relating to the safeguarding of client money, which is indicative of the committee’s proactive approach to regulation. Alongside that work, the Client Protection Fund remains a vital consumer protection which allows clients to address loss suffered because of dishonesty on the part of a solicitor or a staff member at the firm. While such incidents are rare, we as a committee take these cases very seriously and work to ensure that clients are appropriately compensated for any loss.

“The SLCC’s report is very positive about the fund and how it is run in ensuring consumers have access to this important protection. We have reviewed the report’s recommendations and are working on how they can best be implemented.”

David Gordon, lay convener of the Law Society of Scotland Regulatory Committee, said: “The Client Protection Fund is a key part of the range of protections the Law Society has in place for consumers of legal services, from the setting of high professional standards, to taking action when things go wrong.

“People seek legal advice from solicitors at critical moments in their lives, whether that’s the excitement of buying a new home or when they face more difficult issues such as family breakdown or a workplace dispute. It’s vital therefore that people can place their trust in the solicitor profession and ensuring robust consumer protections is an essential part of that.”