Legal services set for shake-up

The constitutional affairs secretary has outlined plans to liberalise the legal services market.

Lord Falconer wants to abolish rules restricting the ownership of law firms, allowing large, outside companies to enter the industry.

The so-called 'Tesco-law' reforms were at the heart of a new legal services white paper published on Monday.

The government claims the move will allow easier access to justice, including solicitors being on hand 24 hours per day, seven days per week.

Constitutional affairs minister Bridget Prentice said: "I don't see why consumers should not be able to get legal services as easily as they can buy a tin of beans."

Lord Falconer has said in the past that the current regulations are "restrictive".

The white paper also included provisions for reform of the system of redress against lawyers.

Ministers want to take the investigation of complaints against solicitors and barristers away from their respective trade bodies, the Law Society and Bar Council.

"There has got to be proper regulatory arrangements and we have got to deal effectively with the potential for a conflict of interest," Lord Falconer said.

Regulation

The plans are set to propose the creation of a new Legal Services Board regulator and an Office for Legal Complaints.

The regulator will aim to clamp down on general malpractice, including the culture of 'ambulance chasing' lawyers exploiting compensation claims.

"Our proposals will ensure that consumers get a better deal," Lord Falconer said.

"We need to reform the legal services market to put consumers first.

"People can be confident where they do have a complaint against a lawyer, then it will be looked at independently and not by other lawyers.

"We hope that over time it will change the ethos of the way lawyers operate."

Reaction

Law Society president Kevin Martin said he was sympathetic to the ideas, but that the proposals should respect the Clementi report they are based on.

"The Law Society supports the aim of creating a more flexible, consumer-focused legal services market," he said.

"The new regulatory arrangements need to respect the importance of having an independent legal profession as recommended by Sir David Clementi in his report.

"This means that if an oversight body is established to supervise the regulation of the legal profession, it should be demonstrably independent of government, and should operate with a light touch."