Solicitors are currently prohibited from paying referral fees to third parties who have introduced new clients but this is set to change, with industry insiders claiming the ruling is likely to be introduced in the near future.
Richard Barnett, senior partner at Barnetts Solicitors claimed the move is one of the best things to happen to the legal industry. He said:
“I am delighted that the Law Society’s ruling Council has voted to move away from the current ban. The ruling is excellent news for our firm as it means greater freedom to search even higher levels of conveyancing work - mainly because we will be able to enter into proper commercial relationships with other parties, which we have been prohibited in so doing in the past
“It signals a new stage in the legal industry creating level playing field in which law firms such as mine can operate and I am positive the ruling will also help increase the viability and competitiveness of Solicitors in general, whilst still protecting fully the interests of the client.
However, Richard Barnett believes that not all law firms will greet the move with open arms. He said:
“As with all business developments not everyone will welcome this modernisation. Some firms may dislike the concept of entering into direct business relationships with other organisations. Consequently these types of firms may find the coming years very hard. But this is a tremendous opportunity for the legal industry and will bring us in line with the other professions.’’
