New Rules for Referral Fees

  • April 28, 2017

Please be advised that new rules adopted at Convocation yesterday regarding referral fees take effect today, April 28.

The Law Society of Upper Canada now requires that all referral agreements entered into on or after April 28, 2017 conform to a standard LSUC form, which can be found here.

Convocation has also adopted a referral fee cap of 15% of the first $50,000 of legal fees and 5% of all additional fees, to an absolute cap of $25,000. Referral fees are prohibited altogether in certain limited circumstances, such as in the case of up-front referral fees and referral fees to licensees whose licenses are suspended. Licensees are also required to record referral fees, both paid and received, in their books and records, and to report on referral fee practices in their Annual Reports.  

Further information may be found in this news release and FAQ document. As always, if you have any questions or comments, please direct them to us at Advocacy@OBA.org.