The SRA is planning to carry out a review of the personal injury market this year
The Solicitors Regulation Authority (SRA) has warned lawyers about the consequences of breaching the ban on referral fees.
In a warning notice issued this week to solicitors on potential fraud in personal injury cases, the SRA said it was concerned that some firms were failing in their duties and breaking the rules by:
- Cold calling
- Breaching the ban on referral fees
- Acting on instructions without client approval
- Paying damages to third parties
- Bringing claims without clients’ knowledge
The notice has been published following recommendations from the Insurance Fraud Task Force in January, calling for more to be done to ensure solicitors are not involved in bogus insurance claims.
The SRA is also planning to carry out a review of the personal injury market this year.
SRA chief executive Paul Philip said: “As we said in January, insurance fraud is a serious matter and we welcome the Task Force’s report and its recommendations. We have made good progress on combating financial crime, but we know we have more to do.
“In particular, we want to remind solicitors of their responsibilities when conducting personal injury work. The consequences of failing to adhere to the Code of Conduct could be severe both for the client and to the profession.”