Brokers told to check their facts or face FSA backlash

The Solicitors Regulation Authority (SRA) is investigating claims that the selling of legal expenses insurance by certain providers has created a conflict of interest for solicitors and, by extension, has exposed brokers to the risk of falling foul of the Financial Services Authority (FSA).

The investigation focuses on the use of 'hold harmless agreements', which protect insurance providers in the event of an unsuccessful court case, and place all responsibility for claims costs on solicitors.


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