Personal injury referral arrangements—SRA requirements
Personal injury referral arrangements—SRA requirements

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Personal injury referral arrangements—SRA requirements
  • Statutory regime
  • The SRA's role in implementing the statutory regime
  • What does the SRA prohibit and permit?
  • Transparency
  • Systems and controls
  • SRA warning notice
  • Will the SRA approve arrangements?

This Practice Note explains the Solicitors Regulation Authority’s (SRA’s) requirements regarding personal injury referral arrangements. It reflects the SRA Handbook 2011 and the SRA Standards and Regulations 2019, together with SRA guidance and the underlying statutory regime.

Not all personal injury referral arrangements are unlawful. See Practice Note: Personal injury referral fee—the statutory regime for an explanation of the underlying statutory regime. See also Practice Note: Personal injury referrals—SRA examples, flowchart and guidance.

For guidance on generic SRA requirements relating to referral arrangements (including personal injury referral arrangements), see Practice Notes: Referral and fee sharing arrangements 2019 and Referral and fee sharing—SRA 2011 regime and SRA 2019 regime compared.

If you believe that your personal injury referral arrangement may involve an unlawful referral fee you should:

  1. terminate the arrangement, or

  2. change the arrangement, to exclude the unlawful fee and ensure you comply with all relevant SRA requirements

Statutory regime

The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) introduced a high-level statutory framework for a ban on personal injury referral fees. The statutory framework is implemented by front-line regulators such as the SRA and Financial Conduct Authority. Certain powers are reserved to the Lord Chancellor to make secondary regulations.

LASPO 2012 applies to regulated persons. This includes persons authorised by the Financial Conduct Authority (which regulates claims management companies),