Solicitor’s regulator wants to “deter” their use.
See analysis: Referral fees a joke
Referral fees paid to solicitors could be all but scrapped under a regulatory review due to start in the next few months.
The Solicitors Regulation Authority confirmed to Insurance Times this morning that its board wants to reduce the number and amount paid out in referral fees.
“The board is going to consider ways of regulating referral fees more closely. They are looking into ways of deterring solicitors from using referral fees,” a spokeswoman said.
The authority’s board next meets in December and the proposals may be ready for discussion then.
The Times today claims to have seen evidence that one third of solicitors are breaking the rules on transparency covering referral fees paid by clams management companies, trade unions, and insurers.
The controversial fees will come under the spotlight in a high-profile disciplinary case concerning fees charged by lawyers representing miners with industrial diseases.
Next week’s case involves allegations against solicitors James Rhodes Beresford and Douglas Harold Smith.
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