5.—(1) Where a collective conditional fee agreement provides for a success fee the agreement must provide that, when accepting instructions in relation to any specific proceedings the legal representative must prepare and retain a written statement containing—
(a)his assessment of the probability of the circumstances arising in which the percentage increase will become payable in relation to those proceedings (“the risk assessment”);
(b)his assessment of the amount of the percentage increase in relation to those proceedings, having regard to the risk assessment; and
(c)the reasons, by reference to the risk assessment, for setting the percentage increase at that level.
(2) If the agreement relates to court proceedings it must provide that where the success fee becomes payable as a result of those proceedings, then—
(a)if—
(i)any fees subject to the increase are assessed, and
(ii)the legal representative or the client is required by the court to disclose to the court or any other person the reasons for setting the percentage increase at the level assessed by the legal representative,
he may do so,
(b)if—
(i)any such fees are assessed by the court, and
(ii)any amount in respect of the percentage increase is disallowed on the assessment on the ground that the level at which the increase was set was unreasonable in view of facts which were or should have been known to the legal representative at the time it was set
that amount ceases to be payable under the agreement, unless the court is satisfied that it should continue to be so payable, and
(c)if—
(i)sub-paragraph (b) does not apply, and
(ii)the legal representative agrees with any person liable as a result of the proceedings to pay fees subject to the percentage increase that a lower amount than the amount payable in accordance with the conditional fee agreement is to be paid instead,
the amount payable under the collective conditional fee agreement in respect of those fees shall be reduced accordingly, unless the court is satisfied that the full amount should continue to be payable under it.
(3) In this regulation “percentage increase” means the percentage by which the amount of the fees which would have been payable if the agreement were not a conditional fee agreement is to be increased under the agreement.