SRA consults on referral fee changes

The Solicitors Regulation Authority (SRA) has launched a consultation on how it plans to enforce the ban on referral fees in personal injury cases.

The ban comes into force in April 2013 as part of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). The SRA is consulting on proposed changes to the regulatory structure to ensure it complies with the Act.

The consultation lays out the SRA’s two suggested changes to its code of conduct for its members, namely that law firms do not pay or accept prohibited referral fees.

The SRA consultation also outlines the proposed definition of referral fees and how law firms can stick to the new rules.

SRA regulatory policy manager David Hackett said: “We’ve already been listening clearly to all those with an interest in this matter as we develop a workable regulatory framework that ensures the integrity of legal services is protected and the rule of law upheld. We’d therefore urge as many possible as possible to take part in the consultation and continue to help shape our work.

“The document should bring a lot more clarity to the issue so that the profession can adapt their practices accordingly. It gives them a clear steer on our thinking and nearly six months to work this into their business models if needed.”

The consultation paper is on the SRA website and will close on 18 December this year.