Revised date for new feeing arrangements

Query over rules gives Table of Fees a stay of execution to 1 August

News, 16 June 2005

A query over the Law Society of Scotland’s powers to make the proposed Client Communication Rules with the amendment passed at the Society's AGM, has resulted in the withdrawal of the Recommended Table of Fees being postponed by a month.

In a statement today the Society explained that the decision to withdraw the Table was made by Council in February following legal advice and a review following the recommendations of the former EU Commissioner Monti, and was influenced by the Belgian Architects Association case. The Society consulted as promised with all the relevant organisations and individuals including the OFT and the Lord President, all of whom are satisfied with the Society’s actions.

The withdrawal of the Table impacts on the new Client Communications Rules, which convert the guideline on letters of engagement into a rule. "Although it is clear that the table of fees should be withdrawn, there is also a requirement to ensure clarity of fee charging in all circumstances", the statement continues.

The rules were passed at the AGM in March subject to an amendment that breach of the rules should be a service matter rather than possible misconduct. This was voted through notwithstanding that there might be difficulties concerning the vires of the amendment.

The Society had hoped to introduce the Client Communication Rules with effect from 1 July 2005 and simultaneously to abolish the recommended Table of Fees. The draft rules were submitted to the Lord President, who has now asked the Society to reconsider the vires of the rule as changed by the amendment. This will be done at the next Council meeting, on 1 July. "It is likely that the new rule will now take effect on 1 August 2005 and the Table will be withdrawn on the day the rule comes into force", says the Society.

The Society has undertaken to keep the profession informed of progress.