RWA does not want to become involved in your relationship with SSP although if you feel you are threatened by the situation, please let us know and we will do what we can.
However, there are compliance and trading issues we would like to address.
We would suggest to all our clients that they consider the following:
1) Tell your PI insurers that you are affected and ask if they have any suggestions. If you have a good PI insurance broker you should be able to refer to them as you would expect one of your clients to be able to refer to you if there was a problem
2) Make sure clients are covered OR tell them they are not covered and discuss a solution. We think a competent solicitor would tell you that the client expects to be covered and if they are not you should tell them and not hope the problem will go away
3) Consider any work around available for MTA problem and make sure you keep the client advised at all times.
4) Advise insurers by registered mail if a claim needs to be notified.
SSP is not a party to the insurance transaction and the policy requirements for notification still stand unless the insurer deems otherwise.
There are also some other regulatory issues to face, the lack of access to client money systems, for instance.
One of the causal effects of SSP's failings may be your inability to conduct client account / insurer account reconciliations or calculations. This would obviously represent a serious breach and therefore notifiable.
Also, you might not be able to complete your next GABRIEL return. Late returns are subject to an administration fee from the FCA.
Please contact Terence Clark if you have any concerns, otherwise perhaps send an email to the FCA Contact Centre advising them of the difficulties the SSP issues may cause and the consequences of this insofar as your client / insurer money calculations are concerned and of course GABRIEL.
By doing this you will be keeping the regulator informed of matters that they should be notified of and of course you will be satisfying Principle 11 - see here: https://www.handbook.fca.org.uk/handbook/PRIN/2/1.html
Above all, go back to writing notes about everything, including what you tried to do, things you failed to do, who you spoke to, who spoke to you, who agreed to do what and by when and so on.
Write your notes clearly and sign them and date them. If they are electronic then the system should identify the writer but don't cut corners because it is an electronic note.
The FCA will know that something has gone wrong and they will be interested about how you are dealing with things, whether you have a disaster plan and are using it and, in particular, how you are caring for your clients.
If there is a hint of a difficulty with a claim, you can always contact us via www.theinsuranceact.com.
