UK Law Soc Gazette
The Solicitors Regulation Authority today cranked up the pressure on high-volume claims firms amid continued concerns that clients are being treated unfairly. The regulator issued a formal warning on so-called no win, no fee agreements after inspections of firms revealed worrying signs of poor behaviour.
The warning does not materially change how the SRA will regulate such firms, but any suggestion that it has been ignored will be taken into account in disciplinary proceedings.
As of the end of December, the SRA had 83 open investigations relating to 72 firms working in the claims market. Six more have been shut down in the past two years.
Chief executive Sarah Rapson said: ‘This is a priority area for the SRA and a topic stakeholders consistently raise with us. The expectations set out in this warning notice should therefore not be a surprise. Some firms are not fulfilling their obligations to always act in their clients’ best interests and follow our rules and standards. We are using all the tools at our disposal to take action against these, highlighting known issues and promoting compliance in order to protect the public and help the sector to comply with the rules.’
The SRA has already contacted some firms requiring them to complete a declaration that they understand – and are following – the rules.
