THIS YEAR’S figures for the renewal of solicitors’ practising certificates show that the impact of the recession on the profession is not as great as many feared.
The number of practising certificates issued or renewed for 2010 shows a slight increase on 2009, though this contrasts with greater increases in other recent years.
Figures just released to its members by the Law Society also shows that more than 99 per cent of solicitors’ firms have obtained professional indemnity insurance, though this proved to be a very difficult, expensive and long-drawn out process for many.
February 1st is the annual renewal date for practising certificates, and the number just issued by the society is 7,457, an increase of 30 on last year.
This is a percentage increase of 0.4 per cent, compared with an increase of 2 per cent last year, 4 per cent the year before and 5 per cent in 2007.
The president of the Law Society said in his letter to members that “the depth and persistence of the economic recession” had caused this reduction in the annual rate of increase. However, Gerry Doherty added that many solicitors had expected a substantial decrease in practising certificates, which had not occurred.
While the increase in the total number of practising solicitors has slowed, it would appear that the collapse in conveyancing work has been compensated by additional work in areas associated with Nama. Solicitors who are working short weeks, or taking career breaks, may still be keeping their practising certificates.
Mr Doherty also said that there had been widespread fears that many solicitors would be unable to obtain professional indemnity insurance, following increased claims on the insurance. This arose as a result of losses incurred through the activities of Michael Lynn and others, as well as problems in the insurance industry.
While there had been delays in getting insurance, only 18 of the 2,249 firms that the society had on record had indicated that they had not succeeded in renewing it for the coming year. That was 0.8 per cent of all firms.
He added that this was on par with previous years, as there was never 100 per cent insurance cover of all firms as, for a variety of reasons, some solicitors every year decided not to continue to practise. Under the statutory regime regulating solicitors, a solicitor cannot practise without professional indemnity insurance.
Mr Doherty said the society would be acting against any firm that practised without insurance, by asking it to regularise its situation or face disciplinary action.
“It is very much in the interests of the overwhelming majority of compliant members of the profession, as well as in the public interest, that it does so,” he said.