Lawyers warn of loophole in referral fee ban
Global law firm Kennedys has warned there is a significant loophole in the government’s proposed ban on referral fees.
According to Kennedys, law firms may pay insurance companies for services, such as training, risk management assistance or business consultancy, and have cases referred to them in return.
Law firms could also make payments towards a referrer’s marketing costs, or provide funds for the running of the new jointly owned business as set out under the Legal Services Act 2007.
Richard West, head of the liability division at Kennedys, said: “Whilst we welcome the intention of the ban on referral fees
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