Law Society clampdown on referral fee breaches: Legal Risk launches health check
Following the Law Society’s announcement last week of a clampdown on solicitors’ failure to comply with referral fee rules, Legal Risk, solicitors, warned firms that they need to review their arrangements before they are visited by the Law Society.
Frank Maher, partner in Legal Risk, explained: ‘The Law Society’s action follows an investigation into 135 firms which found only six per cent complying fully. Enforcement action poses a real threat to thousands of firms. The package combines our experience of advising firms on referral fee issues in The Accident Group litigation and on conduct issues we are offering firms the opportunity to check their house is in order in advance of regulatory inspections.’
Maher added, ‘Many firms are now so heavily dependent on referral work that it is critical they get the detail of the arrangements right. This is a major issue for thousands of firms, particularly those involved in personal injury and conveyancing but the Law Society’s investigation shows that most areas of practice are affected. Nobody wants disciplinary action, and the fines are steep with one recent example of £9,000 plus £25,000 costs. The rules appear simple on paper, but it is the application of them to particular facts which is complex.’
Story Credit: Legal Risk press release