Law Society moves to ban referral fees
18 November 2009The Law Society has started lobbying the Government and the Legal Services Board to ban the payment of referral fees by the legal profession.
If successful, this move may bring an end to the payment of fees for referring any type of legal work including conveyancing, will writing and claims management cases.
The Law Society Council, which represents all UK solicitors, has adopted a motion to 'make representations to government and the Legal Services Board that referral fees do not have a place in markets for legal services' and that they should be banned.
However, it is the Solicitors Regulatory Authority and not the Law Society which has the power to change the rules and the motion will therefore be subject to a period of consultation over the coming months.
Eddie Goldsmith, Senior Partner at Goldsmith Williams, said:
“It's difficult to understand why the Law Society wants to ban the payment of referral fees, when it made a policy decision to allow them just 5 years ago. The existing rules governing fees are clear, require full transparency and in our experience at Goldsmith Williams, which spans 25 years, we have not received a single client complaint regarding referral fees.
“Clearly, the most important issue is ensuring clients understand that fees are being paid and that they do not disadvantage clients in any way or restrict their choice of legal representation. I have no doubt the SRA will consider this issue very carefully.”
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