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UK Law Society Sounds Warning On Legal Services Reforms

by Robin Pilgrim, LawAndTax-News.com, London

02 June 2006

Responding to the publication late last month of the government's Legal Services Bill, the UK's Law Society has warned that legislation intended to create a flexible, modern and consumer-focused framework for legal services must not be undermined by unnecessary regulatory burdens on law firms.

Under the terms of the proposals, which must now be studied by a joint committee of both houses of Parliament, a Legal Services Board will be established to oversee and regulate the legal sector, and a complaints handling body, to be known as the Office for Legal Complaints (OLC), will also be put in place.

In addition, multi-disciplinary partnerships (MDPs) have been given the nod, and non-lawyers will be permitted to manage law firms, according to reports.

According to the Law Society:

"The Legal Services Bill contains measures which should strengthen consumer confidence in legal services – especially changes to the system for dealing with consumer complaints and plans to permit new business structures to provide legal services."

"However, the Society is warning that the independence of the legal profession must be protected and that the legislation must not create a regulatory quicksand riddled with duplication, delay and unnecessary burdens which could harm the competitiveness of our legal services market and add to costs for consumers."

Kevin Martin, Law Society president, went on to explain that:

”The proposals in the bill to allow solicitors to form partnerships with other professionals and to attract external investment in their firms are far too cumbersome. Consumers will only benefit from these new freedoms if the legal services market is not inhibited by excessive regulation and remains free from government control."

”The legislation should make clear that primary responsibility for regulation rests with the independent, professional bodies with the government appointed Legal Services Board acting as a supervisory guardian. The Legal Services Board should seek to carry out its supervisory work primarily through dialogue with front-line regulators. The regulatory burden on the legal services industry can be minimised by ensuring that the board adopts a proportionate approach. Consumers and the international competitiveness of law firms will suffer if the regulatory burden and the cost of compliance are increased unnecessarily."

He concluded:

”An independent legal profession free from government interference is non-negotiable. The bill provides for members of the Legal Services Board to be appointed by the Secretary of State. The Law Society believes that the board should be appointed by an independent selection panel, chaired by a figure such as the Commissioner for Public Appointments and including a senior judge, as was the case with the Judicial Appointments Commission.”

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