Council to revisit ban on paying referral fees

The Law Society's ruling Council will be asked in December to consider once again scrapping the introduction and referral code.

The issue has returned to the agenda after the standards board decided that a compromise solution of retaining the ban on paying referral fees, while exempting marketing schemes, was unworkable.

Back in March, the council voted narrowly to retain the ban, with many members saying they did not have enough detail to approve abolition.

However, there was a suggested exception for marketing schemes.

The December council meeting will be given two options: to introduce a complete ban on payments for referrals or to repeal the code - subject to exceptions - and replace it with a rule requiring solicitors to inform clients of any payments, and to avoid arrangements which impair solicitors' independence.

The risk to independence, rather than the payments, is the mischief the ban is aimed at addressing.

The March meeting also decided to retain the ban on fee-sharing.

It is likely that this too will return for reconsideration at a later date.

Neil Rose