Investigation into referral arrangements

Citation

(2010), "Investigation into referral arrangements", Structural Survey, Vol. 28 No. 3. https://doi.org/10.1108/ss.2010.11028cab.009

Investigation into referral arrangements

Article Type: Newsbriefs From: Structural Survey, Volume 28, Issue 3

Keywords: Legal profession, Referral

The Legal Services Consumer Panel defines referral arrangements as any arrangement under which business is received from, or referred to, a third party. In the legal services sector, the third party may be another lawyer, but it may also involve introducers such as claims management companies, insurance companies and estate agents. Referral arrangements are often characterised by payment in return for referral of business, but fees do not need to be involved. The Consumer Panel will be examining the use of referral arrangements by authorised persons across the whole legal profession, although they will prioritise areas that have the greatest consumer impact. In considering different types of referral arrangements, the Panel will be looking at both the payment and the receipt of referral fees by lawyers under a number of different models, as well as non-monetary arrangements that are linked to the introduction of clients, such as the provision of free or below-cost services in exchange for the referral of other business.