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SRA issues consultation on referral fee ban

The Solicitors Regulation Authority (SRA) has launched its official consultation on its approach to enforcing the ban on referral fees in personal injury cases.

The paper – published on 23 October 2012 – sets out draft measures to clarify how the regulator intends to monitor and enforce compliance with the ban introduced by s56 of the Legal Aid Sentencing and Punishment of Offenders Act (LASPO) 2012, which will come into force on 1 April 2013.

The SRA has suggested two new “mandatory outcomes” be added to its code of conduct, stating in Chapter 6 that law firms are not paid a prohibited referral fee, and in Chapter 9 that they do not pay a prohibited referral fee.