The Solicitors Regulation Authority (SRA) has updated its guidance on offering inducements in order to reflect the government ban on their use to attract clients in personal injury cases.
The Criminal Justice and Courts Act 2015 introduces the ban which comes into effect today (Monday 13 April). It is in response to concerns that inducements for handling personal injury cases fuel a “compensation culture”.
The Claims Management Regulator had already implemented a ban for claims management companies (CMCs) in April 2013.
Crispin Passmore, SRA Executive Director for Policy, said: “Our revised guidance on handling personal injury cases will help firms to ensure they remain compliant with the new law. Past experience suggests the profession has always prioritised making successful claims on behalf of their clients and our guidance underpins that approach.”
The SRA’s guidance on offering inducements was originally published in June 2013 following a review by Lord Young in 2012. The review set out what solicitors could or could not do when offering inducements, and reminded them of their obligations in the Code of Conduct around publicity.
The new ban is limited to personal injury claims only. The SRA guidance also covers other areas where inducements to make a claim or seek legal services are not prohibited.
The updated guidance is available here: