Referral fee ban 'not in consumer interest'

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Banning referral arrangements between conveyancers and introducers, such as mortgage advisers, is not in consumers' interest, according to a report from the Legal Services Board Consumer Panel.

Nevertheless, the panel has recommended disclosure arrangements must be tightened, including the potential requirement to obtain written client consent prior to a referral. The Consumer Panel said there was no evidence to suggest referral fees compromise the independence of legal advice or result in more expensive or poorer quality service. It concluded referral arrangements should be allowed to remain in place. Eddie Goldsmith, senior partner at Goldsmith Williams, says: "The recommendations made by the Legal Services Board are both sensible and proportionate and they are right to...

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