The last-chance crackdown on solicitors who are breaking the rules on referrals of business began this week.


The Solicitors Regulation Authority (SRA) is sending a strongly worded warning card to every solicitor in England and Wales, reminding them that they risk facing disciplinary action if they do not follow the rules.



The card, entitled 'SRA crackdown on improper referrals', is illustrated by newspaper headlines such as 'Secret cash scandal of injury lawyers' and 'Vulture solicitors lambasted'. It is endorsed by Law Society President Fiona Woolf.



The move follows research by the SRA's practice standards unit, which found that many solicitors are not complying with the rules. These require, among other things, that referral arrangements must not undermine the solicitor's duty to act independently in the client's best interests, and that clients must be told about any referral fee.



The card says public confidence in the profession has been damaged by a number of recent cases in which solicitors have placed their own advantage above their clients' interests.



'We are telling solicitors to live up to their professional standards and be open about referral arrangements,' said SRA board chairman Peter Williamson. 'The consumer needs to be able to make an informed choice about instructing a solicitor, and needs to know about any referral fees that are being paid. I hope the warning card will reassure those solicitors who are following the rules, but will alert those who aren't that disciplinary action is likely.'



Claims management firms will come under a new government-appointed regulator from March 2007 and solicitors will then only be able to deal with regulated companies in personal injury cases.



The enforcement and information campaign will be assessed during the year. If it does not succeed, the board will consider whether to reintroduce the ban on referral fees.



Neil Rose