SRA Update
Referrals of business – new guidance
SRA Update Issue 11 – December 2009
New guidance to rule 9 (referrals of business) of the Solicitors' Code of Conduct has been issued.
The SRA's Rules and Ethics Committee has added guidance to rule 9 (referrals of business). The additional wording provides guidance on a number of queries which have arisen in recent years.
In particular, additional guidance is provided on complying with the rule 1 core duties when receiving referrals of clients. The importance of acting in the best interests of the client, for example, has been highlighted in a number of recent Solicitors Disciplinary Tribunal cases.
Additional guidance is provided in other areas, including
- how to ensure that referral arrangements are transparent to the client, and
- referring the client to third parties.
Read the new guidance on rule 9
Over the past few months, members of the our Practice Standards Unit have been visiting firms involved in referral arrangements in order to help them with compliance and collect data to guide future policy making.
Antony Townsend, SRA chief executive, said: "The SRA Board considered the issue of referrals last December and has already expressed support for a cross-sector review of referrals by the Legal Services Board."
"In the meantime we believe that the new guidance will help firms to ensure compliance with rule 9."