Banning of referral fees - More details released

[T.C]

The Solicitors Regulation Authority has warned it may not grant licences to alternative business structures set up solely to get round the referral fee ban.

The organisation promised to look carefully at ABS (Alternative Business Solutions which applies to many claims management firms as well as law forms) applicants’ proposed referral arrangements and block business models not truly operating as one entity. In a consultation paper published ahead of next April’s ban, the SRA said there were concerns about law firms and claims management companies coming together under the umbrella of an ABS.

Breaches of the referral fee ban will not be a criminal matter, but will be dealt with by the regulator with action that will be ‘fair, targeted, proportionate and transparent’.

Law firms that do breach the ban can be fined up to £2,000, or £250m for ABSs. Their authorisation or licence may also be revoked in certain circumstances. Individuals or entity can also be referred to the Solicitors Disciplinary Tribunal, which has the power to issue an unlimited fine or strike them from the roll

It will be for practitioners themselves to ensure their own compliance. A regulated person will be in breach of LASPO if they pay for or receive payment for a referral.

As an example, an insurance company that provides details of an accident victim to a law firm for money will be in breach of the ban.

But a website that receives a fixed annual fee from law firms in exchange for potential – and willing – clients’ details is not considered as a referral. A group of firms that each pay to set up a not-for-profit company to gather potential clients’ details would not be in breach of the ban.

But if the advertising was carried out by a commercial entity, and the fees paid by law firms depending on the number of clients referred, that would be unlawful
____________________
It is better to arrive 30 seconds late in this world, than 30 years early in the next

[Pete.]

Hard to believe that insurance companies sell details to law firms who will then help people claim money from the insurance companies. Might as well just open a window and chuck the money out into the street.
____________________
a.k.a 'Geri'

132.9mph off and walked away. Gear is good, gear is good, gear is very very good

[Rogerborg]

Broker ≠ underwriter.

What do brokers care if underwriters start quoting more because of ambulance chasers? All the brokers are using the same underwriters, and we're the ones paying for premium increases, not them.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[stinkwheel]

So what about the police officers who sell details of accident victims to ambulance chasers?

I've known of several people who were involved in an accident and they had received phone calls from claims management companies before they'd even told their insurance about it.
____________________
“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.