Conclusive evidence that referral fees benefit the legal market


Press Release - May 2010

A report* out today commissioned by the Legal Services Board, the independent body responsible for overseeing the regulation of lawyers in England and Wales, states that referral fees benefit consumers and the legal market.

Comments Dan Watkins, Director of Caven, the UK’s leading provider of client introductions to a network of over 500 UK law firms: “This report gives conclusive evidence that consumers actually benefit from a system that allows companies to refer consumers to the right law firms.”

“It chimes with the extensive consumer research that Caven gathers from the thousands of client referrals it makes to UK law firms each month.”

“The reality is that many businesses and consumers find it difficult to select the best solicitor for their situation, so getting expert advice on which are the right legal advisers for them is enormously beneficial.”

“A clear indication that there is consumer demand for referral services is that the number of client enquiries Caven has received has more than doubled over the last 12 months.”

“It is in the consumers’ interest that referral fees remain legal and regulated in order to stimulate competition between law firms and provide transparency to consumers.”

According to the Legal Services Board’s report, the use of referrals and referral fees helps deliver the following benefits for consumers to the legal market:

  • Lower price
  • Better use of technology
  • High standard of quality

Additionally, the report found that law firms themselves also benefit from referral fees which have proved to be a genuine win-win for all participants in the UK legal industry.

Says Dan Watkins: “Law firms also benefit a great deal from referral networks because they allow them to compete for work without having to invest heavily in their own advertising budget. Because consumers can find them under a referral system, law firms can rely on the quality and value of their service offering to win them business.”

The report, entitled “Cost benefit analysis of policy options related to referral fees in legal services”, was commissioned by the Legal Services Board and prepared by Charles River Associates (CRA).


Press enquiries:

Tamara Smith
Marketing Manager
Tel:020 8971 0235

Jonathan Stevens
Rhizome PR
T + 44 (0)020 8971 0235
M + 44 (0)020 8971 023579

020 8971 0235
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