Law Weblog

Making legal services consumer friendly

Monday 21 March 2005 at 9:22 pm | In News | Post Comment

Reforms proposed for the regulation of legal services will be based on Sir David Clementi’s recommendations in his ‘Report of the Review of the Regulatory Framework for Legal Services in England and Wales’ published 15 December 2004.  

Professional bodies of lawyers are:
The Law Society
Bar Council
Institute of Legal Executives
Institute of Trade Mark Attorneys
Chartered Institute of Patent Agents
Council for Licensed Conveyancers
Immigration Services Commissioner and Court of Faculties.

New measures will introduce a regulatory framework covering all legal professionals, create a new complaints process and permit new arrangements for setting up legal businesses.

It is hoped that he reforms will introduce value for money together with accessible, consistent, responsive legal services, which are designed to suit the consumer and not the convenience or interest of the supplier.

A Consumer Panel will be set up to advise the Government on implementing the reforms. 

Regulation
A new Legal Services Board (LSB) will oversee aspects of the legal services industry.
The LSB will have a chair and majority membership made up from people drawn from outside the legal profession. Appointment to the Board will be made on merit by the Secretary of State for Constitutional Affairs
Regulatory powers will be invested in the LSB, with powers to devolve regulatory functions to frontline bodies subject to their competence and governance arrangements
The LSB will determine whether these bodies are fit for purpose and will have a range of powers such as the power to set targets, issue guidance and impose fines and, in the final analysis, to de-recognise a professional body if it fails in its duties
The regulatory and representative functions of all front-line regulatory bodies should be separated. They will have to demonstrate to the LSB that their regulatory processes are robust, transparent and independent

New Complaints Body
A single and fully independent body, the Office for Legal Complaints, will be set up to handle all consumer complaints against regulated legal service providers where the complaint cannot be resolved at the local level. A single point of entry will be easier to access, providing consistent, fair and professional handling of cases for all complainants.

Most importantly, it will be demonstrably independent, while providing quick and fair redress for consumers. The Office for Legal Complaints will be headed by a board with a Chair and majority membership appointed from outside the legal profession. Appointments are to be made on merit.

New Business Structures
The Government will make it possible for legal services to be delivered in new ways. Proposed measures will include:
Non-lawyers will be able to be managers or partners in legal practices as well as owners and investors, for the first time
Robust safeguards for the consumer and a licensing arrangement for new businesses to ensure their fitness to act on behalf of clients.

Regulatory Gaps
The Legal Services Board will identify regulatory gaps and advise the Government. Where significant gaps are already evident, the Government will evaluate whether early moves to regulate are in the public interest. Work has already begun to determine whether consumers will benefit from the regulation of claims managers and will-writers.