5. Business Requirements Flashcards
5.1
In respect of any referral of a client by you to another person, or of any third party who introduces business to you or with whom you share your fees, you ensure that:
A) clients are informed of any financial interest which you or your business or employer has in referring the client to another person or which an introducer has in referring the client you;
B) clients are informed of any fee sharing agreement that is relevant to their matter
C) the fee sharing agreement is in writing
D) You do not receive payments relating to a referral or make payments to an introducer has not been acquired in a way which would breach the SRA’s regulatory arrangements if the person acquiring the client were regulated by the SRA
5.2
Where it appears to the SRA that you have made or received a referral fee, the payment will be treated as a referral fee unless you show that the payment was not made as such.
5.3
You only:
a) refer, recommend or introduce a client a separate business; or
b) divide, or allow to be divided, a client’s matter between you and a separate business where the client has given informed consent to your doing so
5.4
You must not be a manager, employee, member or interest holder of a business that:
a) has a name which includes the word “solicitors”; or
b) describes its work in a way that suggests it is a solicitor firm;
Unless it is an authorised body
5.5
If you are a solicitor who holds a practicing certificate, an REL or RFL, you must complete and deliver to the SRA an annual return in the prescribed form.
5.6
If you are a solicitor, or an REL carrying on reserved legal activities for the public of a section of the public in a non-commercial body, you must ensure that:
a) the body takes out and maintains indemnity insurance
b) this insurance provides adequate and appropriate cover respect of the services that you provide wether or not they compromise reserved legal activities, taking into account any alternative arrangements the body or its clients may make
