UK Law Society To Lift Ban On Referral Fees

by Robin Pilgrim, LawAndTax-News.com, London

09 January 2004

The UK's Law Society voted by a 43-34 majority in a council meeting held last month to allow the payment of referral fees by solicitors.

This represents a significant victory for advocates of reform within the legal profession, and has been welcomed by many, who argue that the Law Society is more likely to be allowed to continue in a recognisable role following the government's review of the legal sector now that it has approved this modernising proposal.

Under the new regime, which must now be approved by the Master of the Rolls, solicitors will be permitted to enter into agreements with other businesses such as estate agents, banks, and marketing companies for the introduction of new business.

However, Law Society chief executive, Janet Paraskeva explained that the new rule would be subject to safeguards, in order to protect the public interest.

"For example, the introducer must not cold call clients, must tell the client of the payment and must not influence how the solicitor advises the client," she announced.

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