The collapse of Sheffield-based SSB Law has led to significant financial repercussions for its clients, primarily due to unresolved legal costs.
- The Solicitors Regulation Authority (SRA) is conducting an investigation into the practices of SSB Law, focusing on potential breaches of professional standards.
- A major concern is the failure of After the Event (ATE) insurance to cover defendants’ costs, leaving clients unexpectedly liable.
- The SRA’s probe includes examining the firm’s claims assessment processes and its communication with clients regarding liabilities and insurance.
- The investigation extends to discussions with financial regulators to address consumer protection gaps in legal services.
The unexpected collapse of SSB Law, headquartered in Sheffield, has sent shockwaves through its client base, leaving many facing unexpected financial burdens due to outstanding legal fees. This situation has prompted the Solicitors Regulation Authority (SRA) to scrutinise the firm’s operations and practices, particularly in relation to adherence to professional standards.
In this intricate investigation, one critical issue under examination is the role of After the Event (ATE) insurance. Typically designed to safeguard clients from the financial implications of unsuccessful claims, the ATE insurance in connection with SSB Law failed to cover defendants’ costs, leading to significant liabilities for many clients.
The SRA’s thorough inquiry involves a comprehensive review of SSB Law’s assessment of claim merits, its disclosures to clients about potential liabilities, and the information it provided regarding ATE insurance policies. Key personnel, including directors and employees, are being interviewed to shed light on these matters.
Furthermore, the investigation has broadened its scope to include talks with regulatory authorities such as the Financial Conduct Authority (FCA) and the Royal Institution of Chartered Surveyors (RICS). This collaboration aims to investigate broader industry issues concerning ATE insurance and the responsibilities of surveyors within legal services, with a focus on enhancing consumer protections.
The gravity and complexity of this regulatory investigation underscore the significant challenges within the legal services market, particularly regarding the integration and reliability of insurance products designed to protect consumers.
The SRA’s ongoing investigation into SSB Law underscores a pressing need for greater regulatory oversight and enhanced consumer protections in the legal sector.
