Unbundled services

Unbundled services

This subtopic provides key information for law firms on what they need to consider when offering advice services to clients on an unbundled or Pay As You Go (PAYG) retainer. Where you are considering unbundling legal services to (or from) a separate business, see also Practice Note: Separate business and unbundling legal services 2019.

Risks of unbundling services

The risks of unbundled services, and in particular with a PAYG system, stem largely from misunderstandings between the client and the firm as to the scope of the retainer.

There can be an increased risk of professional negligence and/or misconduct arising from the fee earner:

•
having an insufficient knowledge of the client’s position
•
failing to ensure the client is fully aware of the limitations of the services being offered, and/or
•
unwittingly, by their actions or omissions, creating a full retainer with the client (and thereby accepting the level of liability that would necessarily be implied in that retainer)

Key considerations

Offering limited scope retainer work does not differ substantially from the other work a firm provides but, given the level of risk, there

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Practice Compliance News

New Practice Compliance forecast as at 18 December 2024

Our new Practice Compliance forecast (as at 18 December 2024) is now live. This month we report on items including: (1) publication of Guidelines 02/2024 on Article 48 GDPR by the European Data Protection Board (EDPB) for consultation; (2) expectations for the Legal Ombudsman (LeO) to publish its final budget and business plan in Spring 2025; (3) expectations for the Data (Use and Access) Bill to be enacted in early spring 2025, and (4) a statement by the ICO that it would update its existing AI guidance in due course.

House of Lords conclude committee stage of Data (Use and Access) Bill

The House of Lords has completed the committee stage of the Data (Use and Access) Bill, the final day of scrutiny took place on 18 December 2024 and focused on amendments related to children and AI, national security and data privacy risks and AI compliance with UK copyright law. The bill, aimed at harnessing data for economic growth and improving digital governance, has undergone thorough examination over multiple sessions, addressing issues such as protection of children, misuse of AI rules, data mining and processing of personal data. The next stage, report stage, is scheduled for 21 January 2025.

Businesses should expect a role in tackling fraud next year

Law360, London: If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, specifically consumer fraud.

SRA issues warning on unsolicited approaches and cold calling in legal marketing

The Solicitors Regulation Authority (SRA) has issued a warning notice to law firms, particularly those engaged in high-volume claims work, regarding prohibited marketing practices such as cold calling and unsolicited approaches. The notice addresses concerns about firms' recruitment of clients through potentially unethical means, including the use of third-party introducers. The SRA emphasises the need for firms to ensure compliance with regulatory requirements when marketing to potential clients, especially in relation to 'no win, no fee' agreements. To support this, the SRA has published a consumer guide on 'no win, no fee' arrangements. The regulator warns that it will take action against firms found to be in breach of SRA principles.

View Practice Compliance by content type :

News