Editors Blog
Hopes and fears on ABS
2 Apr 10
Is it taking the plunge or jumping off a cliff?
A few days to go in the ABS referendum poll, and the arguments continue. Would the reforms create new opportunities in the legal services market, or simply open the way to profiteers and criminals? Is it possible to regulate the proposed new entities effectively? Will the public be better served by greater choice, or left at the mercy of the unscrupulous? Can the profession afford to ignore the changing market in the UK and beyond, or is that simply irrelevant?
Let us not pretend that there is a clearly right or wrong way forward. It is a judgment call, and I genuinely believe that the leaders on both sides of the debate have the best interests of the profession at heart. Why would it be otherwise? So the debate should be about issues rather than personalities.
There is no doubt that the above questions reflect legitimate concerns about ABS. But it would be wrong to pretend that everything in the garden at present is rosy. It is widely agreed that there is huge unmet legal need in the country, a problem aggravated by low legal aid rates. Whether ABS can do much to help that is not obvious at first sight, but it is at least significant that advice agencies want to have the flexibility to employ solicitors themselves (and want the bill to be amended so that legal services providers clearly include the non-profit making sector). Not much preying on the public there, I would have thought.
And what will the public think if solicitors seem to be circling the wagons in defence of their exclusive rights? It's not as if the public image of the profession is so great that we can expect much support or sympathy for that stance. If the bill were to go ahead despite a No vote from the profession, where would the public choose to shop?
As for letting in the criminals, it is unfortunately the case that some of the major mortgage frauds uncovered in England appear to have involved corrupt firms of solicitors – and ABS has yet to take effect there although a date has now been set for next year. In Scotland too, a few solicitors have been uncovered as facilitating similar activities. Is the problem suddenly going to mushroom if others are allowed to employ solicitors under a regulatory framework that reflects what is currently operated by the Law Society?
And on professional independence, if this will be seriously compromised by an ABS method of operation, what a marketing platform it would present to firms who retain the conventional structure to present themselves as the gold standard for legal advice. Threat, or opportunity? Those in favour of ABS see opportunity, but why not the high street too?
We can't say for sure on any of these points. It is in the nature of things for major changes to pose more questions than answers. But there are both possible risks and potential gains to be weighed up when we decide how to vote, and the fear factor alone is not a reliable guide to progress. If you haven't yet voted, don't duck out.