From 6 December 2018, new transparency rules set out by the Solicitors Regulation Authority (SRA) mean that firms must display more detailed price and service information if they work in specific areas. To help legal service professions remain compliant, the SRA has now published additional guidance and a handy infographic on these rules.
The instructions apply to firms that are regulated by the SRA and that work in any of the following areas:
- Conveyancing (residential)
- Probate (uncontested)
- Motoring offences (summary offences)
- Immigration (excluding asylum)
- Employment tribunals (unfair/wrongful dismissal)
- Debt recovery (up to £100,000)
- Licensing applications (business premises).
The new rules are being introduced to ensure that private clients and business customers have accurate and relevant information when it comes to purchasing legal services. It is hoped that the additional information will enable these customers to make more informed choices and improve competition in the legal market.
For the majority of firms, it is expected that they will deliver this information via their websites. It must be published in a prominent location, be accessible, clearly signposted and easy for visitors to find.
Any firms that do not have a website must make this information available upon request in other formats.
What information is required?
When it comes to pricing, solicitors must provide the following information:
- A total cost for services. Where this is not possible legal firms can provide an average or range of costs
- An explanation on the basis of any charges. This should include details on any hourly rates and/or fixed fees
- Likely disbursements, and their costs
- Whether VAT is included
- An explanation on when clients may have to make payments for any conditional or damages-based fee arrangements.
Solicitors operating in the named areas of law must also provide more comprehensive service information. This includes:
- What services are included for the quoted price
- A list of any services not included within the price, which a client may reasonably expect to be
- Key stages and typical timescales for the services that will be provided
- The qualifications and experience of anyone carrying out the work and of their supervisors.
Crucially, such pricing and service information must be presented in a clear and easy to understand format.
See the latest SRA guidance on its new transparency rules here.
Paul Philip, SRA Chief Executive, said: “Publishing information on price, services, and protections will not only benefit the public but will also help law firms win new business. Research shows that people struggle to find clear information about the services firms offer and think using a solicitor is more expensive than it actually is.
“We are providing guidance and support for firms to help them meet the new requirements and make the most of the opportunities they bring.”
Andrew Lloyd, CEO of Search Acumen, says: “The bare minimum you’ll see is a list of hourly rates plus typical timescales and additional costs and fees.
“Best practice will be an online calculator where you can put in your address and get a fairly final estimate of the amount you’ll have to pay.”
As we enter the final week until the deadline passes, it is imperative that your business is ready to comply with the new regulations in order to maximise your business potential and offer your product to suit the needs of the modern consumer.
Are you ready for price and service transparency? Are you concerned with any elements of the new amendments?
