The introduction of third-party managed accounts as an alternative to traditional client accounts will be postponed by at least a year to the end of 2016, the Solicitors Regulation Authority board decided yesterday. However, the board approved a mixed bag of deregulatory rule changes on other issues.
Removing the ban on referral fees in criminal cases could lead to “arrest chasing” by solicitors, the Bar Council has warned, and result in “as much public opprobrium” as ambulance chasing. However, the Bar Council backed third-party accounts for solicitors.
Only 5% of solicitors would be interested in transferring their client accounts to a third party, a survey of firms in the south east has suggested. The SRA is consulting on whether to allow the move.