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08 February 2007
Issue: 7259 / Categories: Legal News , Procedure & practice , Profession
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Referral crackdown begins

News

Solicitors caught breaking their professional rules on referrals of business face disciplinary action as the Solicitors Regulation Authority’s (SRA’s) get-tough policy kicks in.

The SRA is sending a warning card to every solicitor in England and Wales, reminding them of their duties and warning of the disciplinary consequences if they don’t follow the professional rules.

The disciplinary body has warned that unless solicitors toe the line, a blanket ban on referral  fees cannot be ruled out.

Referral arrangements, including those where solicitors pay fees to people like claims managers and estate agents for introducing work, are allowed under certain conditions.

However, they must not undermine the solicitor’s duty to act independently in the client’s best interests, and clients must be told about any referral fee. The SRA has found that in many cases solicitors are not complying with the rules.

Peter Williamson, chair of the SRA board, says: “We are telling solicitors to live up to their professional standards and be open about referral arrangements. The consumer needs to be able to make an informed choice about instructing a solicitor, and needs to know about any referral fees that are being paid.”

Issue: 7259 / Categories: Legal News , Procedure & practice , Profession
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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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