Legal Services Groups Respond To Clementi Consultation

by Robin Pilgrim, LawAndTax-News.com, London

17 June 2004

Responding recently to the now-closed consultation on reform of the UK legal sector, the Legal Services Commission, the Legal Services Ombudsman, and the Consumers Association all expressed their views on the separation of regulation and representation in the various professional bodies.

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.

Speaking in support of a separation of the dual roles held by professional bodies within the legal sector, the Legal Services Commission suggested that the combined role "does not act effectively in the public interest", citing concerns over conflicts of interest in certain types of dispute.

According to the Law Gazette news service, Legal Services Ombudsman, Zahida Manzoor suggested that an independent regulatory body, supported by an independent complaints handling organisation, is necessary to stand "at the apex of a new regulatory regime".

Meanwhile, the Consumers Association expressed firm support for the creation of an overarching regulatory body for the entire legal services sector.

"There are many examples of bodies that support maintaining restrictive practices that favour the interests of their members while arguing that they are in the public interest," the Association explained in its submission.

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