News In Focus
1 October 2009
Legal Services Bill published
The Scottish Government today published its Legal Services (Scotland) Bill, which introduces a new framework for providers of legal services.
The bill removes restrictions on solicitors entering into business relationships with non-solicitors, and allows them to secure external investment and business expertise. It also provides for approval of potentially competing regulatory bodies for providers of legal services, to be approved by the Scottish Government.
It follows the consultation processes begun following the Which? super-complaint in 2007, which argued for liberalisation of the legal services market in Scotland, in the same way as had then just been enacted for England & Wales – in a scheme still being prepared for full implementation.
The proposed Scottish model is less complex, with no "umbrella" regulator such as the Legal Service Board in England & Wales.
It also has limited effect on the operation of the Faculty of Advocates, although the Which? initiative strongly focused on the workings of the bar.
Global market
Justice Secretary Kenny MacAskill said:
"This new legislation will help Scotland's legal profession to grow and compete both in the UK and internationally.
"In developing these proposals, we have worked closely with the profession to ensure that we protect the profession's core values, at the same time as freeing solicitors to offer new services in new ways.
"Our proportionate and flexible approach will allow the profession to move quickly to respond to changes in the market by removing outdated restrictions on business models."
Welcome
The Law Society of Scotland has backed the reform process. Ian Smart, President of the Society, said today: “The Society has been active in driving the debate on alternative business structures (ABSs) and I am very pleased that the Legal Services (Scotland) Bill has been introduced into Parliament.
“The Society believes that Scotland’s legal profession should be able to adapt to best meet the needs of modern society and a global economy. Scots lawyers are well respected around the world and we want to ensure that our members have access to the opportunities that ABSs could present to adopt new practices, to deliver the services their clients expect and develop their businesses in Scotland, as well as elsewhere in the UK and overseas."
He added that it would be vitally important that the bill ensured the independence of the legal profession, promoted access to justice and maintained robust consumer protections and high standards among those delivering legal services. "Effective regulation will be key to any plans for change.”
Consumer Focus Scotland also welcomed the bill. Sarah O’Neill, solicitor and head of policy said: “We have long campaigned for a more open market in legal services in Scotland and the creation of new ways of delivering them. The Legal Services Bill paves the way to open up competition in the market and widen choice for users of legal services.”
John Campbell QC and John Carruthers of Oracle Chambers, advocates who have campaigned for less restrictive rules at the Faculty of Advocates, said the bill was welcome but contained a serious defect in failing to address the "uncompetitive and restrictive business model" required by Faculty rules, which would place advocates at a serious economic disadvantage.
Click here to access the bill.