PART 3Referral fees

Certain payments to be treated as referral fees

9.—(1) Paragraph (2) applies where—

(a)a referral of prescribed legal business has been made by or to a referral fees authorised person, or

(b)a referral fees authorised person has made an arrangement as mentioned in section 56(2)(a) of the Act,

and it appears to the FCA that a payment made to or by the referral fees authorised person may be a payment for the referral or for making the arrangement (a “referral fee”).

(2) The payment made to or by the authorised person is to be treated as a referral fee unless the referral fees authorised person can show the payment was made—

(a)as consideration for the provision of services, or

(b)for another reason,

and not as a referral fee.