Law Society Council Backs Clementi's Proposed Split Of Core Functions

by Robin Pilgrim, LawAndTax-News.com, London

27 May 2004

Following a recent meeting of the UK's Law Society Council, the industry body acknowledged "the desirability" of a splitting of the Law Society's regulatory and representative functions, as recommended in David Clementi's review of the legal services sector, but chose to delay until December any moves in this direction.

The government-commissioned review put forward three proposed models for reform: one which would see the creation of an overarching regulator equivalent to the finance industry's Financial Services Authority (FSA), and another model which would involve the creation of an umbrella legal services board, which would oversee the various legal services sector bodies in the exercise of their functions.

A third proposal would see the industry bodies separate their representative and regulatory functions in addition to being overseen by the legal services board.

Although the creation of an overarching regulator was quickly ruled out by the Law Society Council, it expressed concern with regard to the lack of differentiation between the second and third models in the government's consultation on the matter, arguing that without further detail, it could not confidently choose between the two options.

However, according to reports in the UK legal media, the draft response submitted by the Council came out tentatively in favour of the third proposal.

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