SRA issues warning on fee arrangements

The Solicitors Regulation Authority (SRA) has issued a new warning notice regarding ‘no win, no fee’ arrangements. This notice serves as a restatement of solicitors’ existing obligations and aims to remind members of their responsibilities to clients. Mark Evans, president of the Law Society of England and Wales, emphasised the importance of clear communication about these agreements, stating “Consumers need better information about what ‘no win, no fee’ means in practice.”

In response to an earlier discussion paper from the SRA concerning high-volume consumer claims, the Law Society made recommendations that aimed at enhancing consumer protection. “We recommended that the regulator could better protect consumers involved in high-volume consumer claims, for example by exploring standardised protocols and clearer guidance and by ensuring consumers are not misled by the term ‘no win, no fee.’ The new warning notice is broadly in line with our suggestions,” Evans said.

Furthermore, Evans noted the need for the SRA to learn from past regulatory failures, especially following a review of SSB Group Limited by the Legal Services Board. “We made it clear that before any changes to processes are made, the SRA should focus on learning from the regulatory failures identified in the Legal Services Board’s review of SSB Group Limited,” he added. The Law Society intends to continue collaborating with the SRA to advocate for both their members and consumers, ensuring that practices in the legal field remain transparent and equitable.

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