Warning to Law Firms On Unsolicited Approaches Issued by SRA

On 19th December 2024, the SRA published a warning notice to regulated law firms and professionals entitled, “Marketing your services to members of the public”. It concerns prohibited marketing practices, including cold calling, door knocking, and directly targeted online messaging, especially for firms undertaking high-volume claims services. The aim of the warning is to remind solicitors and law firms of their regulatory responsibilities and obligations when marketing legal services to the public.

Why Has The SRA Issued A Warning On Unsolicited Approaches And Cold Calling?

According to the news release accompanying the warning notice, the SRA has taken action following concerns raised with them and through their proactive work regarding how some law firms are seeking to recruit new clients using unsolicited approaches, including cold calling and door knocking.

The SRA is also concerned that some firms use the services of third parties (e.g. claims management companies or lead-generating companies) and use marketing methods that do not comply with the SRA’s principles and codes of conduct. Further, there are concerns that clients are receiving marketing materials that may be misleading. As the SRA explains, “We are concerned by recent cases where consumers have been faced with large, unexpected costs – for instance, where the firm has not fulfilled the terms of the after-the-event insurance policies and the insurance has then not covered the costs of bringing the claim”.

Importance Of Complying With SRA Standards And Regulations (Including Third Parties)

The warning reminds solicitors and law firms of their obligation to comply with the SRA’s standards and regulations when marketing to new clients. The Principles it emphasises in regard to unsolicited approaches and marketing material include:

  • Principle 1: To act in a way that upholds the constitutional principle of the rule of law and the proper administration of justice.
  • Principle 2: To act in a way that upholds public trust and confidence in the solicitors’ profession and in legal services provided by authorised persons.
  • Principle 3: To act with independence
  • Principle 5: To act with integrity.
  • Principle 7: To act in the best interests of each client.

Solicitors are also reminded to comply with the SRA Code of Conduct for Solicitors, RELs and RFLs, in particular that:

  • 5.1: In respect of any referral of a client by you to another person, or of any third party who introduces business to you or with whom you share your fees, you ensure that:

e    Any client referred by an introducer has not been acquired in a way which would breach the SRA’s regulatory arrangements if the person acquiring the client were regulated by the SRA.

  • 8.8: You ensure that any publicity in relation to your practice is accurate and not misleading, including that relating to your charges and the circumstances in which interest is payable by or to clients.
  • 8.9: You do not make unsolicited approaches to members of the public, with the exception of current or former clients, in order to advertise legal services provided by you, or your business or employer.

Firms are also reminded of their obligations to comply with the SRA Code of Conduct for Firms, in particular in relation to marketing that:

2.1: You have effective governance structures, arrangements, systems and controls in place that ensure:

a) You comply with all the SRA’s regulatory arrangements, as well as with other regulatory and legislative requirements, which apply to you;

2.2: You keep and maintain records to demonstrate compliance with your obligations under the SRA’s regulatory arrangements.

2.5 You identify, monitor and manage all material risks to your business, including those which may arise from your connected practices.

7.1 The following paragraphs in the SRA Code of Conduct for Solicitors, RELs and RFLs apply to you in their entirety as though references to ‘you’ were references to you as a firm:

a) dispute resolution and proceedings before courts, tribunals and inquiries (2.1 to 2.7)
b) referrals, introductions and separate businesses (5.1 to 5.3)
c) standards which apply when providing services to the public or a section of the public, namely client identification (8.1), complaints handling (8.2 to 8.5) and publicity (8.6 to 8.11)

Warning Against Unsolicited Approaches

Solicitors are reminded not to market their services by making unsolicited approaches to members of the public (with the exception of current or former clients), including approaching people in person, by phone, online by cold calling or door knocking as this is prohibited by the SRA. This includes ensuring that any third-party companies used, such as lead generators and claims management companies, are adhering to regulatory requirements when marketing to potential clients.

Solicitors and firms should:

  • Be satisfied with the extent of any informed consent given by a customer via a third party.
  • Have effective systems and controls in place to ensure that they comply with all SRA regulatory requirements
  • Keep and maintain records to demonstrate their compliance with their obligations.
  • Be able to demonstrate that a third party who makes a referral did not use cold calling, door-knocking, or other targeted or unsolicited approaches.
  • Ensure third-party introducers understand the regulatory duties they need to comply with and how those duties affect the way they can work and
  • Carry out spot checks on new clients and ask them how and by whom they were contacted to confirm that the approach to them was not unsolicited. Failure to do so may result in firms being in breach of their regulatory duties.

Warning Against Inaccurate Or Misleading Publicity Or Promotional Material

The new warning reminds solicitors and law firms that any publicity and promotional material must be clear, transparent and accurate. This also applies to third parties. In particular, marketing material must not make misleading or inaccurate statements about:

  • The prospects of success of any claim
  • The level of any award likely to be made
  • Feedback provided by other claimants about your firm
  • Awards or other credentials held by your firm or
  • Established ombudsman or compensation schemes that consumers can approach directly themselves for free.

It is imperative that firms check any publicity or promotional material used by third parties they have instructed to make sure they comply with these rules. The SRA has also warned that any mention of ‘no win, no fee’ arrangements should include a clear explanation of what it means.

Final Words

In light of this new warning, all SRA-regulated solicitors and law firms should now take the time to review the warning to ensure their compliance with the rules and to assure themselves that third party introducers are adhering to regulatory requirements when marketing to potential clients. The SRA’s complete guidance on Unsolicited approaches (advertising) to members of the public can be found on the SRA website.

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