Referral fees ban in personal injury cases
The Government has implemented the primary recommendations contained in Lord Justice Jackson’s Review of Civil Litigation Costs, including in particular a fundamental reform of ‘no win no fee’ conditional fee agreements and a ban on the payment and receipt of referral fees in personal injury cases.
Ban on referral fees
Civil Justice ReformsThe implementation of the referral fee ban is part of the Civil Justice Reforms which is intended to reform civil litigation funding and costs to restore balance to the system. See further details in respect to the civil justice reforms.
The reforms were implemented in April 2013 through Part 2 of LASPO, associated regulations and changes to the Civil Procedure Rules.
Full details regarding the reforms can also be found in the document Civil Justice Reforms - full package of reforms
Information for businessesThe Claims Management Regulator recognises that businesses will want to ensure their compliance with the referral fee ban. We will continue to develop guidance to assist affected businesses in assessing their own compliance. However, we will not provide practical examples of what will be compliant with the ban.
The Claims Management Regulator has detailed emerging issues and considered its ongoing approach to enforcing the ban.
Claims Management Regulation – Approach and enforcement of the referral fee ban (PDF 0.22mb)
Working with our Partners
The Claims Management Regulator continues to work with the Solicitors Regulatory Authority and the Financial Conduct Authority to ensure a consistent approach to enforcement of the ban and have released a joint statement. Referral Fee Ban Joint Statement (PDF 0.16mb)
The Solicitors Regulation Authority publically consulted on its proposals for implementing the ban and has developed a regulatory framework. For more information visit: www.sra.org.uk/sra/policy/referral-fees-ban.page
The Financial Conduct Authority has also provided a guide to how it will supervise enforcement of the ban.
For more information visit: www.fca.org.uk/firms/being-regulated/meeting-your-obligations/firm-guides/insurance-intermediaries/banning-referral-fees-for-personal-injury-cases