A spokesperson for the Law Society said: “The compliance committee will be looking at how the existing referral rules can be better implemented as well as looking in principle as to whether referral fees should be allowed at all, before it meets again in November.”
The Compliance Committee will consult the Rules and Ethics Committee to oversee a program of enforcement activity to improve compliance with the existing rules, and report back to the board.
Caroline Havers, partner at law firm Salens, commented: “There is no doubt the Law Society wants to find people it can jump down on. Personally I don’t think it will get any applause for trying to get rid of referral fees especially from our side, who deal with intermediaries, introducers and estate agents. For brokers and estate agents, referral fees are an accepted part of the industry.”
The Law Society said it would consult with consumer, professional groups and regulators, before deciding if any changes to the rules were needed.
Martin Wade, director at Mortgage Options, added: “The practice of recommending a solicitor by either a mortgage broker or an estate agent is the logical next step to offer a client as part of a complete package. However, the fee paid must be declared openly and must be reasonable. If the cost of the conveyancing solution is not competitive then you are risking your existing relationship with your client. Any sensible client would get more than one quote anyway.”
