SRA Changes Rule 9 - You must tell client if CMC is charging a contingency fee!
with effect from 13 November 2009 the Solicitors Regulation Authority has changed the "Guidance to rule 9 - Referrals of business" to say the following:
"If a client is entering into or has already entered into a scheme or arrangement with an introducer which is not in their best interests then you must advise the client accordingly. Schemes or arrangements which involve the client paying unnecessary or unreasonable fees will not normally be in the client's best interests."
Solicitors must be very careful to know the arrangements the client has entered into with a work source or CMC, or they could fall foul of this rule. This rule also seems to suggest that if a solicitor is taking a financial irregularity case, as an example, and the CMC charges the client 25% of the award the solicitor appears to be duty bound to have to advise the client to break the agreement with the CMC and come to them directly - does it not? You decide but be aware of the consequences!