In recent times three core institutions of society have been rocked by crises.

In 2007, the banking system came to the brink of collapse.

In 2009, parliament was shaken to its foundations when countless members were shown to have falsified expenses.

This year the tabloid press, in the quest for higher sales, has thrown ethics to the wind and is now paying the price in the phone-hacking scandal.

Ethical and regulatory failure run as common themes through each.

Recently, the controversy of referral fees, both those paid by solicitors and received by insurers, has been brought to the attention of the public – and the ensuing debate is overdue.

The government is hopelessly off the pace. It must seize the initiative and amend the Legal Aid, Sentencing and Punishment of Offenders Bill to introduce a ban.

If it fails to act decisively now, I fear the legal profession will find itself embroiled in the next chapter of the book which tells the story of ethical collapse in once-respected institutions of society.

And this government, as well as the last, will be blamed for failing to act.

Richard Edwards,E Rex Makin & Co, Liverpool