UK Solicitors Vote For Ban On Referral Fees

by Robin Pilgrim, LawAndTax-News.com, London

13 October 2004

It emerged last week that solicitors in the United Kingdom have voted in favour of reinstating the ban on referral fees which was lifted by the Law Society Council in January.

Under the regime created by the Council's decision, solicitors would be permitted to enter into agreements with other businesses such as estate agents, banks, and marketing companies for the introduction of new business.

However, a group of 45 Law Society members, led by council member for sole practitioners, Tim Readman signed a motion earlier this year condemning the lifting of the ban, and calling for a postal ballot in order "to test the profession's acceptance of these decisions".

Following the recent completion of the postal ballot, in which just over 20,000 Law Society members participated, it emerged that 73.5% had voted in favour of reinstating the ban.

According to the Law Society's Law Gazette, although the voting figures are persuasive, they are not binding on the Council.

Speaking with regard to the results of the ballot, president of the Law Society, Edward Nally announced that:

"The council will consider the result of the ballot at its December meeting and decide the way forward then. The Society has in any event undertaken to review the workings of the new referral fee rule after a year of operation, in the spring of next year."

He added, however, that:

"When the council makes or changes rules, it has to decide the matter on the basis of the public interest and for that reason the council cannot be bound on regulatory issues by any ballot of members."

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