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The Solicitors Regulation Authority has launched “forensic investigations” into 10 law firms that may have breached the personal injury referral fee ban, in a move that will be seen as a warning to the profession. Meanwhile, 141 firms without indemnity insurance are heading for closure.

The number of claims management companies has fallen by nearly a quarter since the introduction of the referral fee ban and prohibition on offering inducements, new figures have shown.

The Solicitors Regulation Authority’s recent guidance on the referral fee ban is “extremely unhelpful” and only aimed at extremes of behaviour, regulatory expert Andrew Hopper QC has argued.

The Solicitors Regulation Authority has issued its first warning notice over the way personal injury firms are dealing with the referral fee ban. It highlights concerns that some solicitors are so busy ensuring they do not breach the ban that they are failing to consider their wider professional duties.

Leading claims management company First4lawyers yesterday launched a £10m year-long marketing campaign with a new television commercial featuring tennis player-turned-commentator Andrew Castle.