UK Government To Implement Clementi Reforms

by Robin Pilgrim, LawAndTax-News.com, London

23 March 2005

Speaking at a conference on Monday, the UK's Lord Chancellor, Lord Falconer announced that the government plans to publish a white paper this year formally adopting the proposals put forward by Prudential chairman, Sir David Clementi in his review of the country's legal services sector.

Lord Falconer observed of the planned changes that:

"Providing the system is properly regulated, competition is a good thing. We want to foster innovation not stagnation."

Under the new regime, a new Legal Services Board will be created "to provide consistent oversight of the front-line bodies, such as the Law Society and the Bar Council", Legal Disciplinary Partnerships (LDPs) will be permitted, in order to allow barristers and solicitors to work together, and an Office for Legal Complaints (OLC) will be put in place in order to examine complaints made against legal professionals.

Outside investment in law firms will also be permitted, a provision which has caused concern, which Sir David sought to play down earlier this month, observing at the Law Society's law management section annual conference that:

"The idea that outside ownership (of law firms) would introduce a commercial element that is not already there is fanciful."

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