Money

Question 1

• Legal fee agreements

Answer 1

rC9.7

Question 2

• Referral fees

Answer 2

Must not pay or receive referral fees (rC10). Guidance: breaches several core duties (gC29). Also prohibited by LAA and could constitute a bribe under the Bribery Act (gC30). gC31 explains that rC10 does not prohibit proper expenses that are not a reward for referring work, such as genuine and reasonable payments for clerking and administrative services or advertising and publicity payable whether or not any work referred. The fact that a fee varies with the amount of work referred does not necessarily mean that it’s a referral fee.

Question 3

• Code Guidance on referral and marketing arrangements

Answer 3

o Factors which indicate something is a referral fee: is a bribe under the Bribery Act; made in connection with personal injury work and prohibited under LASPO
o Factors which are likely to indicate something is a referral fee:
 Made to a professional person acting for the lay client who has a duty to act in their best interests
 Linked to specific referrals
 Linked to the number of referrals
 Fee to barrister less than LAA fee
 Payment a condition of receiving a referral
 Payment for marketing higher than marketing rates
o Factors which may suggest payment is is a not referral fee:
 Payment to clerk in return for services
 Payment to advertising agency not depending on whether any instructions received
 Amount not dependent on number of referrals
o BSB will consider underlying nature and purpose of arrangements and whether they were in the best interests of clients in allowing them to access legal services that they otherwise wouldn’t be able to.

Question 4

Handling client money

Answer 4

rC73, except for where you are acting in your capacity as a manager or employee of an authorised body, you must not receive, control or handle client money apart from what the client pays you for services. 74-75 and guidance up to gC111 deals with third party services and when you have your client’s implied consent for withdrawals.

Question 5

Fixed fee paid in advance

Answer 5

is not client money (gC106)

Question 6

• Principles in relation to taking an ‘upfront’ fixed fee

Answer 6

gC107. Should take care to accurately estimate the time commitment and that it is a reasonable payment and that it’s appropriate for you to take the case. rC22 requires you to confirm in writing the acceptance of any instructions and the terms or basis on which you are acting, including the basis of charging.

Question 7

Insurance

Answer 7

rC76, must ensure that you have adequate insurance which covers all legal services you supply to the public. When no longer a pupil, must be a member of BMIF.