UK SRA confirmed an increase in contributions to the compensation fund for the first time in five years, owing to rising pressures from interventions and claims.
Individual contributions to rise from £30 to £90; firms' contributions £660 to £2,220.
Adjustment necessary to rebuild the fund's reserves, which have been depleted by interventions, including £35mn in claims re closure of Axiom Ince (see #186939).
Despite increase, practicing fees for 2024/25 remain unchanged; individual fees £307 and firm fees aligned with previous year, only changing if firm's turnover increases.
Measures have been implemented to limit the impact on firms, such as extending the reserve rebuilding period and negotiating a banking facility for large interventions.
UK SRA also reviewing compensation fund's future operation, including potential changes to how contributions are apportioned; feedback on consultation emphasized fund's critical role in consumer protection and need to manage contributions carefully.
UK SRA is reviewing and consulting on potential changes for consumer protection.
Final approval for these changes is pending from the Legal Services Board.
