News releases

Warning cards hit desks of profession

27 February 2007

More than 130,000 warning cards have been sent out to solicitors in England and Wales this week reminding them that they face disciplinary action if they make unethical referral arrangements.

The strongly worded card highlights the damage to public confidence that improper referrals have caused. It warns solicitors of the need for transparency and disclosure when they are making payments to introducers of work.

The card carries a checklist of questions that solicitors should ask themselves about their referral arrangements, such as "Am I being up-front with my clients about the nature of these payments?" and "Am I able to advise my client independently without fear of offending the introducer and at the risk of losing a valuable stream of work?"

"Solicitors who allow referral arrangements to undermine their role as independent advisers let down their clients and the profession. Public confidence in solicitors has been damaged by a number of recent cases in which solicitors have placed their own advantage above their clients' interests. The Solicitors Regulation Authority is determined to stamp this out", said Peter Williamson, chair of the Solicitors Regulation Authority (SRA) Board.

The Law Society is supporting the campaign. "It is vital that solicitors are clear on the operation of the referral fees rule. It is useful that the SRA is providing this reminder to help solicitors ensure their practices meet the requirements of the code", said Fiona Woolf, president of the Law Society.

The warning card is part of the SRA's information campaign to protect clients by boosting compliance with the rules. A programme of investigation and enforcement, including visits to firms known to operate referral arrangements, is also under way. Information about the rules on referrals can be found at www.referrals.sra.org.uk.