Personal injury referral arrangements—the statutory regime
Personal injury referral arrangements—the statutory regime

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

  • Personal injury referral arrangements—the statutory regime
  • Statutory regime
  • How is the ban implemented?
  • Potential exceptions to the ban
  • SRA implementation and exceptions

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.

Statutory regime

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.

To whom does LASPO 2012 apply?

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).

What sort of claims are covered by LASPO 2012?

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:

  1. any claim or