The SRA has recently updated its guidance on claims management activity, highlighting its ongoing focus on standards in high-volume consumer claims work.
The updated guidance can be accessed here.
Why the guidance has been updated
The SRA has been paying increasing attention to practices within the high-volume consumer claims market, particularly following a surge in claims relating to financial products and motor finance commission arrangements. The updated guidance is intended to reinforce the regulator’s expectations and to build on recent warning notices issued to firms involved in claims work.
Key changes highlighted by the SRA
The update focuses primarily on client protection and clarity around representation. Key points include:
- Checks for duplicate representation: Firms should have processes in place to confirm whether a client has already instructed another representative before taking on a claim.
- Managing duplicate claims: If a firm becomes aware that a client has instructed more than one representative, it should notify the client promptly and address the issue appropriately.
- Clear and informed client instructions: Firms should ensure clients have sufficient information about the service and must not continue to act without the client’s informed consent.
- Avoiding unfair advantage: Solicitors must not take advantage of situations where clients may have inadvertently instructed multiple representatives.
The updated guidance also places greater emphasis on documenting instructions and maintaining clear records demonstrating that the firm has acted in the client’s best interests.
What this means for law firms
For firms involved in consumer claims or claims management work, the update is a timely reminder to review onboarding processes, client engagement procedures and supervision arrangements. Ensuring that proper checks are carried out at the outset of a matter – and that clients fully understand their options – will be essential to meeting regulatory expectations.
Firms undertaking high-volume claims work should consider reviewing the updated guidance carefully to ensure their internal processes remain compliant.
