SRA reforms compensation fund levy
The Solicitors Regulation Authority today confirmed plans to impose a hefty increase in the compensation fund levy, but is moving to ease the relative burden on smaller firms.
During its draft 2026-27 business plan consultation, the regulator said one of the main concerns raised was the potentially disproportionate impact that increases in fees or compensation fund contributions would have on smaller firms. It is therefore changing how fund contribution levels are calculated, moving from the present 50/50 split between individual and firm contributions to a 70/30 divide. A 70/30 split was floated by the regulator last year but not pursued. More