News In Focus
31 July 2007
OFT supports legal services shakeup
The Office of Fair Trading has agreed with the consumers' organisation Which? that the current regulatory regime for the legal profession in Scotland is restrictive and harmful to consumers.
In its response to the "super-complaint" lodged by Which? under the Enterprise Act 2002, the OFT has charged the Scottish Executive to outline its approach to relaxing the rules. The Executive has agreed to provide a formal response within 90 days.
The Which? move was intended to drive Scotland down the same road as the profession in England & Wales, where the Legal Services Bill will make it possible for other commercial interests to provide legal services in competition with solicitors and barristers, and will remove current restrictions on barristers forming partnerships, and solicitors entering parterships with non-solicitors.
In a newspaper article yesterday, Justice Secretary Kenny MacAskill said the Executive would not be "pushed into blindly following an English approach". The different nature of the Scottish legal market, due to the geographical factors, he said required a different approach.
Mr MacAskill said he had met with the Law Society of Scotland and Faculty of Advocates and called on them in turn to come forward with their proposals for change as a matter of urgency.
The Society has also stated that it believes in Scottish solutions to Scottish problems. It is to hold a special conference in September to promote ideas for different forms of business structures to enable firms with English offices to compete with newly-deregulated English firms, while protecting the ability of smaller firms to continue to serve local communities.
Douglas Mill, chief executive of the Law Society of Scotland, said: “The Society wants to see Scotland’s legal profession thrive in today’s global market. What we must ensure though is that Scotland seeks its own solutions and that access to justice and protection of the public remain core to any plans for reform.
“The Society welcomes the OFT’s recommendations, which endorse the work going on including consultations with the Scottish Executive, profession and other stakeholders.
“The Society is keenly aware of the competing interests involved, which include ensuring access to justice, competition in the legal services market and consumer protection, and has been actively engaged in the debate on the provision of legal services both in Scotland and south of the border.
“We have been working to bring the debate to the profession and other stakeholders, most recently at a conference for Scots solicitors in London on how the proposed reforms in England and Wales will impact on them and their businesses."
Mr Mill said the September conference would explore the opportunities which the creation of alternative business structures could bring to Scottish law firms, while also examining the regulatory issues presented. "We intend to bring forward our ideas on these issues later this year."
He added: “We have continued our discussions with the Scottish Executive on the future of legal services in Scotland, and Justice Secretary Kenny MacAskill has already spoken in the press about Scotland’s law firms being able to compete ‘outwith their borders as well as within’ and that change is necessary.”