CONDUCT: regulator tells SRA of solicitors with connections to companies breaching rules


The names of solicitors who have connections with claims-handling companies found to be in breach of newly imposed rules have been passed on to the Solicitors Regulation Authority (SRA) by the government regulator, the Gazette can reveal.



Mark Boleat, outgoing head of claims management regulation at the Ministry of Justice, said: 'Where we find a claims management company is significantly breaking the rules of conduct and we know they have passed claims to the solicitor, we will tell the SRA. We have mentioned a handful of solicitors' names to the SRA.'



He stressed that the solicitors may be entirely innocent of any misconduct themselves.



From 23 April this year, any business providing regulated claims management services must be authorised or exempt. Solicitors have been warned they must not deal with unauthorised firms or they could face disciplinary sanctions. They are also responsible for ensuring that business is acquired in a way that complies with the code of conduct.



Speaking at a conference hosted by Devon law firm Veitch Penny last week, Mr Boleat reiterated that solicitors were the linchpin that would make regulation work. He told delegates: 'If solicitors don't break the rules, nobody will. If you are selling cases, you need people to buy cases, and if solicitors don't buy them, they can't sell them.'



He went on to warn that 'ignorance is really not an excuse' and that 'if I were a partner in a solicitors' firm dealing with divorce, I would want to know how we were getting business in personal injury'.



Mr Boleat also confirmed around 90% of all applications for authorisation from claims management firms had problems.



An SRA spokesman said it would investigate any allegation of misconduct in relation to solicitors' dealings with claims introducers, and said 'solicitor relationships with claims introducers is high on our agenda'.



The authority was already, he added, 'looking at a very significant number of firms in this context because, of course, a number of the miners' compensation cases relate to solicitors' dealings or relationships with claims farmers'.



Anita Rice