Industry reacts to referral fee report

Nick Starling

Lawyers and insurers have slammed the recommendation by the Legal Services Board (LSB) to retain referral fees in the personal injury marketplace.

As part of its wider consultation on Lord Justice Jackson's proposals, the government had stalled on the issue of referral fees claiming it was waiting for the LSB's report to inform its decision.

Rather than a ban, the LSB has recommended steps to "manage the impact of referral fees and prevent abuses by strengthening transparency obligations." It also cited the fact that "the legal services market is on the threshold of substantial structural change" as a result of the Legal Services Act as a

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