A handful of law firms are under investigation for possible improper referral arrangements as the Solicitors Regulation Authority's clampdown starts to bite.


A report before the SRA board said that of 41 firms visited in recent months on a targeted or control basis as part of the referral arrangement compliance project, evidence from three suggests the existence of improper arrangements, with one more under suspicion at the time of writing the report.



The visits have also found two firms whose relationships and processes may constitute 'model' arrangements. The SRA is planning to issue the profession with examples of both good and bad practice in relation to referral arrangements.



A public information campaign is planned, such as displaying information at hospitals, and advertising in the property and financial press. The SRA is contacting organisations with a public interest remit, such as consumer and regulatory bodies.



Introducers and their trade associations are also being targeted to ensure compliance at the other end of the arrangement. 'We are warning that if particular schemes are likely to cause solicitors to breach the rules, we may need to "name

and shame" such schemes,' the report said.



The SRA will decide later this year if its enforcement campaign has worked, or whether it should consider a return to the referral fee ban.