News In Focus
16 December 2009
Independence must be protected in bill - Society
Legislation to reform the legal services marketplace should be amended to ensure a level playing field for Scottish firms and to protect the independence of the solicitors’ profession, senior representatives of the Law Society of Scotland told the Scottish Parliament's Justice Committee yesterday.
President Ian Smart, Chief Executive Lorna Jack, Law Reform Director Michael Clancy and law reform officer Katie Hay were giving the Society's oral evidence to the committee in its hearings on the Legal Services (Scotland) Bill.
Following the meeting, Mr Clancy said that the bill could be improved by more explicitly protecting the independence of the profession.
Among other points, he explained: “At the moment, the draft bill says that approval of regulators of the proposed licensed legal services providers [LLSPs] would happen with the consultation of the Lord President, but we think it should require his consent. We hope to have persuaded the committee of the importance of this.”
Threat from the south
Mr Smart said the Society broadly supported the bill, since without the reforms there was a danger that the existence of a liberalised legal services market in England & Wales and a restricted market in Scotland would lead to "encroachment" from south of the border.
"Likewise, the big English firms could be capitalised to such an extent that they took over the marketplace of our firms. Alternatively, cross-border firms with a smaller presence south of the border could choose to be regulated from England if they believed they were at a competitive disadvantage.
“The bill would provide a new business model for the delivery of legal services which firms could adopt in the future, though it would not be compulsory. Having the option would ensure a level playing field in the legal services market.”
It was also important to ensure that consumers were protected, and access to legal services across Scotland was a priority.
Effective model
Lorna Jack added that the bill should be amended to ensure that LLSPs had a compensation scheme equivalent to the Scottish Solicitors’ Guarantee Fund.
She also insisted, in the wake of questions raised by members of the profession, that maintaining both regulatory and representative functions within the Society was not just tenable, but essential. She said: "The dual role is practical and cost-effective and leads to a co-ordinated, professional approach that promotes high standards and supports members."
She added: “I am glad the committee took some time exploring this issue. The dual model is the best way to represent the interests of members and protect the public interest. It has stood the test of time and is used by professional bodies around the world.
“It avoids additional bureaucratic and financial burdens, and a recent Society survey showed that members are broadly satisfied with the representative and support services the Society provides.”
The Society is currently reforming its structures and processes to ensure it can operate as a modern and effective regulator in a reformed marketplace.