What does "self-referral" mean in the context of legal ethics?

In the context of legal ethics, "self-referral" specifically refers to a situation where a lawyer refers a client to a service in which the lawyer has a financial interest. This concept raises ethical concerns because it can lead to conflicts of interest where the lawyer may prioritize their financial benefit over the best interests of the client. The ethical implications are significant, as lawyers are expected to act in their clients' best interests without any undue influence from personal financial stakes.

Self-referral can create a bias in the recommendation process, potentially affecting the quality of service that the client receives. Legal ethics guidelines often require that lawyers disclose any financial interests in referrals and ensure that such referrals do not compromise their duty of loyalty and care to their clients. This promotes transparency and trust in the attorney-client relationship.