A solicitor has been admonished by the Solicitors Regulation Authority (SRA) for continuing to manage client affairs without the necessary insurance cover.
Gareth Walford Williams, who previously operated Gareth Williams Solicitors in Birkenhead, found himself in breach of regulations when he failed to renew his firm’s professional indemnity insurance for the 2022/23 period. Consequently, his firm entered an extended policy period (EPP) starting on 1 October 2022, which required closure before 29 December 2022 if insurance was not secured.
Despite this deadline, Mr Williams did not close the firm as mandated and continued to manage two active client cases beyond this date. Furthermore, he accepted seven damage payments into the firm’s client account, culminating in a total of £21,269 across four separate matters. The firm ultimately ceased operations on 22 March 2023.
In a regulatory settlement agreement with the SRA, Mr Williams conceded to breaching various rules. He argued that he ‘wrongly believed that the run-off cover which the firm had obtained would allow him to deal with live client files and monies after 29 December 2022’. He also contended that these breaches were of a limited duration and did not negatively impact clients.
Mr Williams collaborated with the SRA throughout the investigation and has indicated his intention to retire soon. He is presently employed at KLS Law in Warrington.
The SRA justified the reprimand by emphasising that public trust in solicitors and the legal services they provide would be compromised if a solicitor were allowed to continue operations without professional indemnity insurance. It was highlighted that as an experienced solicitor, Mr Williams should have been aware of the limitations on handling active client matters and funds following the expiration of the EPP.
The incident underscores the crucial importance of maintaining valid insurance coverage to uphold public trust and regulatory compliance in legal practice.
