There is improving compliance with the rules on referral fees, but also serious concern over some firms' dependency on introducers, the board of the Solicitors Regulation Authority (SRA) was told last week.


In his monthly report, chief executive Antony Townsend said the referral fee compliance project and other visits to law firms were still unearthing referral fee arrangements giving rise to concern. However, 'the preliminary conclusion is that there is improving compliance with detailed regulatory rules but with plenty of room for further improvement'.



The report said the SRA had uncovered 'some serious cases' of firms that rely on introducers, creating a risk that clients' interests would be compromised, as well as economic risks for the firms involved.



Among the SRA's latest information and education initiatives is the inclusion of an updated referral fee warning card in the induction pack sent to newly qualified solicitors.



The board will decide in December whether the regime is working, and, if not, what action it should take.



Neil Rose