Law firms face increased financial scrutiny
We have seen an increase in the number of firms closing down or going into administration in recent years. The combined pressures of:
- increased competition for work
- pressure on fees
- high fixed costs
- increases in PII claims and the cost of Professional Indemnity Insurance
- reduced availability of capital from banks
has created a 'perfect storm' for many firms.
Our webinar highlights the warning signs that you should look out for, as a partner, or manager, in a practice.
Having identified some key metrics to consider, we will provide practical advice on how to manage a business away from danger.
Finally, we will examine how to manage an insolvency situation, where it becomes inevitable.
To register for our webinar
Click here to sign up for our webinar online.
The webinar runs from 1pm - 2pm on Thursday 26th February, with the opportunity to ask qeuestions at the end of the session.
All you need is a computer with internet connection and headphones/speaker, to participate from the comfort of your desk.
Slides and guidance notes will be made available following the webinar.
SRA & Insurers' concerns
In our 2015 Solicitors PII report we discuss the increased regulatory scrutiny firms face, and insurers' concern regarding firms' financial stability. We have seen this manifest itself in the number of both 'light-touch' checks and more forensic investigations undertaken by the SRA over the last 24 months, and in the increased focus on financial questions in the PII proposal form.
A key concern for the SRA and insurers alike is that practices in financial difficulty tend to have a higher incidence of fraud, complaints, and claims. For insurers, there is the added worry that they might be left with any claims arising during the six-year period of run-off - quite probably without any premium, or excesses, having been paid.
Related Content
SRA & Insurers focus on the financial stability of law firms - 2014