The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
This Practice Note explains the statutory regime underpinning the personal injury (PI) referral fee ban—the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012).
Not all PI referrals are prohibited. This Practice Note will help you understand the statutory regime. It should be read in conjunction with Practice Note: Personal injury referral arrangements—SRA requirements completes the regulatory picture.
See also Practice Note: Personal injury referrals—SRA examples, flowchart and guidance, which pulls together examples given by the SRA of prohibited and permitted PI referral arrangements. It is illustrative only.
LASPO 2012 introduced a high-level statutory framework for the PI referral fee ban, which was implemented in April 2013. 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), the Bar Council and Solicitors Regulation Authority (SRA).
LASPO 2012 relates to prescribed legal business, ie PI claims and any claim that is ancillary to a PI claim. This is defined as a business that involves providing legal services to a client relating to:
any claim or
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