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  1. Home
  2. For members
  3. Rules and guidance
  4. Table of contents
  5. Section D
  6. Rule D9
  7. Rules
  8. D9.2: Prohibition on the sharing of fees

D9.2: Prohibition on the sharing of fees

9.2.1 In this rule 9.2, unless the context otherwise requires, terms listed in the first column of rule 9.2.1 shall have the meanings respectively ascribed to them in the second column of that rule:

Term

Definition

 

citizens advice body

 

as defined in s65(1) of the 1980 Act

 

 

law centre

 

as defined in s65(1) of the 1980 Act

 

 

lawyer

an advocate, a law centre, a citizens advice body, a licensed provider (or a member, director or employee of, or partner or investor in, a licensed provider) or a legal practitioner offering legal services to the public who is qualified and licensed to practise in accordance with the law of a legal jurisdiction other than that of Scotland, and includes a firm of lawyers,  a European Economic Interest Group the membership of which is exclusively lawyers, an incorporated practice of lawyers and any association (whether corporate or unincorporate) consisting exclusively of lawyers or exclusively of lawyers and regulated persons

 

overheads

costs and expenses incurred by a practice unit in the running of its business which may include the costs of services provided to the practice unit (including services in relation to the advertisement and promotion of the practice unit) but shall exclude any payment purely for the introduction or referral of clients or business to the practice unit or any of its directors, members or employees save for any fee paid by the practice unit for its inclusion on a panel of legal advisers to whom referrals of business may be made provided that such fee is not expressed as a proportion of the fees generated from the business so referred

 

unqualified person

as defined in s65(1) of the 1980 Act

 

9.2.2 You shall not share with any unqualified person any profits or
fees or fee derived from any business transacted by you of a kind which is commonly carried on by regulated persons in Scotland in the course of or in connection with their practice; provided always that:

(a) a practice unit may pay its overheads out of income from fees; and

(b) the provisions of this rule shall not apply to the sharing of profits or fees where:

(i) a person who has ceased to practise as a regulated person shall receive from any regulated person a share of the profits or fees of the latter, as a price or value of the business which he has transferred to the latter or shall receive a share of such profits as a voluntary or other allowance out of the profits or fees of a business in which he had been a manager; or

(ii) the widow, widower, civil partner, heirs, executors, representatives, next of kin or dependants of any deceased regulated person receive from any regulated person who has purchased or succeeded to the business of such deceased regulated person or from any practice unit of which such deceased regulated person was a manager at his death any share of the profits of such business; or

(iii) the salary of any employee of a regulated person is partly or wholly paid in the form of a percentage on the profits of such regulated person's business or any part thereof; or

(iv) such profits or fees are received by any public officer in respect of work done in the course of his duty; or

(v) an agreement for sharing such profits or fees is made between a regulated person and a lawyer; or

(vi) such profits or fees are received by an officer of a public body who is a regulated person or by the public body and are dealt with in accordance with statutory provisions.

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Additional

Related Guidance
  • D9.2: Prohibition on the sharing of fees
Related Alerts
  • C3: Reminder

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