Officials from the Solicitors Regulation Authority are to visit firms in person to check if they are complying with the referral fee ban, it emerged today.
Chief executive Antony Townsend revealed the planned visits in his report ahead of the regulator’s monthly board meeting this week.
The regulator is responsible for policing the ban, which came into force in April, on solicitors paying third parties for personal injury claims.
The Ministry of Justice has already started a written audit on claims management companies and their links with law firms.
Townsend said supervision officers will assess how firms have approached the changes and whether their practices are compliant with the new legislation.
He added: ‘This will include visits to a variety of sizes and types of firms, covering a range of referral schemes, and we will particularly focus on how firms obtain personal injury work, and what information and advice is given to clients about any referral arrangements.’
In advance of the visits, the SRA will write to a ‘large number’ of personal injury firms to say they are being inspected.
A spokesman for the SRA told the Gazette it has not been confirmed how many firms will receive visits and when they will happen.
The regulator will be keen to show its commitment to enforcing the ban after the Ministry of Justice opted to hand it the responsibility.
Penalties for breach of the ban can range from a £2,000 fine to referral to the Solicitors Disciplinary Tribunal and revocation of authorisation to practise.
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