The outcome of the government's review of the QC system has been branded "unsatisfactory" by the Conservatives.
In a statement on Wednesday, the lord chancellor said a consultation process had produced "no consensus" on how the system might be reformed.
Lord Falconer said, however, that he would no longer play a role in assessing the candidates being considered for QC status.
"None of the consultees could demonstrate that such involvement in the selection process is fundamental to the Silk mark's value; nor does it add value for consumers of legal services. I will, therefore, not continue that role," the Cabinet minister said.
The government has now invited the Bar Council and the Law Society to replace the existing QC arrangements with new schemes for accrediting leading advocates.
"I do have a responsibility, however, for ensuring that the resultant scheme is fair and in the interests of the public and the consumers of legal services," said Lord Falconer.
"My intention is to work with the professions to ensure that the replacement schemes meet as many as possible of the objections that have been raised over the Silk appointments process.
"Kitemarking must be designed to serve the interests of consumers by identifying genuine excellence.
"It must provide fairness for members of the professions. I would also want it to encourage diversity within the professions, with a continually widening range of backgrounds and experience represented amongst those the professions recognise as leaders in advocacy."
There will also be a wider review of the information available to consumers "in relation to the whole spectrum of legal services".
"It will be based on the principles that we are already establishing for the advocacy scheme - fairness, diversity, and a stronger focus on consumer interests," said the lord chancellor.
"In particular, it will take full account of the wider context of competition law and the free market."
He also said the reformed kitemark would be "an interim measure".
"We have adopted it to provide continuity and to maintain the advantages that the consultation process has identified, in the international market for example," he added.
"It will be reviewed when the results of the long-term market study are available, to confirm first whether legal services customers need it, and - if they do - that it is still compatible with the principles that will be established in the study."
Use of the title QC will continue, but will be reviewed when a permanent scheme has been implemented.
Commenting on the statement, Alan Duncan said it "leaves everybody in the dark".
"This temporary reprieve will only prolong the uncertainty in the legal profession," said the shadow constitutional affairs secretary.
"QC has been an internationally recognised kite mark for the calibre and reputation of senior advocates.
"When will they learn to leave well alone? The quality of our justice system and its reputation in the world is at stake here. If it ain't broke, don't fix it."
