A review of the way that legal services are provided and regulated in the United Kingdom could lead to the creation of legal 'one-stop shops', and may also mean that large corporations such as supermarket chains are able to offer legal services, according to reports in the UK media last week.
The study is being led by Prudential chairman, David Clementi, and was launched on Thursday. As a first step, Mr Clementi has been asked to consider how such businesses would be regulated.
Speaking last week, the UK's Lord Chancellor, Lord Falconer revealed that banks, building societies, and insurance firms are to be permitted to compete with solicitors for probate business, as part of the government's drive to increase competition in the industry. Speaking with regard to the proposals for the expansion of legal service provision to other sectors, he announced that:
'There will need to be quality control, but if we can get to the point where there is 'Tesco law' we think that's probably something of interest to the consumer.'
However, speaking to the Guardian on Friday, Matthias Kelly, chairman of the Bar Council, vowed to fight the government's proposals 'tooth and claw' arguing that they will lead to the 'Enronisation' of the legal profession.
Law Society chief executive, Janet Paraskeva was also opposed to the proposals, explaining that:
'Our concern is that new entrants might cherry-pick the more profitable and less complex areas of work, threatening the viability of established local firms that offer a full range of services at the heart of their communities. If that happened, where would consumers go for advice on complex matters?'
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