Law Society Of Scotland Facing New OFT Probe

by Robin Pilgrim, LawAndTax-News.com, London

28 September 2004

The Law Society of Scotland's refusal to allow the payment of referral fees by solicitors is likely to come under the scrutiny of the Office of Fair Trading, it has emerged.

Speaking to The Herald last week, an OFT spokeswoman confirmed this, explaining that:

"We are currently investigating the Law Society of Northern Ireland and a rule which restricts the payment of referral fees by solicitors to third parties. Subsequent to the outcome of that inquiry, we shall look at the Law Society of Scotland."

Bruce Ritchie, director of professional practice with the Scottish Law Society, revealed that the organisation had received a letter from the OFT in January suggesting that its insistence on maintaining the ban may restrict competition.

"We don't agree with its interpretation of what is an anti-competitive practice. It takes too narrow a view of what's right and proper and in the wider public interest," he told The Herald.

Separately, the OFT is also conducting a probe into the professional indemnity insurance Master Policy operated by the Law Society of Scotland on behalf of its members.

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