Referral agreements

Referral agreements

The SRA’s core regulatory requirements in relation to referral and fee sharing arrangements are found in the two Codes of Conduct (the Code for Solicitors and Code for Firms), which should be read in the context of the SRA Principles.

SRA Standards and Regulations

There is no definition of ‘referral’. Instead the SRA defines the person or entity making the referral, ie the ‘introducer’.

Introducer

An introducer is any person, business or organisation that:

•
introduces or refers clients to your business
•
recommends your business to clients, or
•
otherwise puts you and clients in touch with each other

This is an extremely wide definition, no doubt to provide maximum flexibility to the SRA when interpreting firms’ arrangements.

There is no requirement for the introduction or referral etc to be made in return for money or other consideration.

Referral fee

‘Referral fee’ is defined by reference to section 57(7) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012), meaning that when the SRA talks about a ‘referral fee’, it means a fee paid for the referral

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 Management News

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.

EHRC issues guidance for employers on new sexual harassment law and workplace Christmas parties

The Equality and Human Rights Commission (EHRC) has published guidance on what employers need to know about the new sexual harassment law and Christmas parties. The EHRC identifies the following steps that employers should take as this year’s festivities begin: (1) think ahead to prevent problems, eg about alcohol, overnight stays and travel, and power imbalances, (2) set expectations early and remind employees of company policies, and (3) consider the risk of third party harassment.

Employment Law—looking back at 2024 and ahead to 2025

Employment analysis: The Lexis+® Employment team have put together a round-up of the key employment law developments in 2024 as well as a look ahead to the key things to look out for in 2025, including upcoming developments on the Employment Rights Bill, the new employer duty to prevent sexual harassment, the Equality (Race and Disability) Bill and upcoming legislation and cases of interest.

New labour regulator more than sum of parts, creators say

Law360: The UK's proposed Fair Work Agency will be 'more than the sum of its parts', the heads of the labour enforcement bodies being absorbed to form the new super-regulator say.

View Practice Management by content type :

News