Changes to regulations for Irish law society

New rules following OFT investigation will result in "greater competition"

News, 25 November 2005

The Law Society of Northern Ireland (LSNI) has amended its practice regulations following an OFT investigation.

The OFT began an investigation into the LSNI regulations under Chapter I of the Competition Act 1998 and article 81 of the EC Treaty in June 2004.

The amendments will see prohibitions revoked on fee advertising and comparative fee advertising; charging uneconomic fees; and soliciting, including all direct and unsolicited approaches to existing or potential clients.

The lifting of the prohibitions relating to fees will encourage competition on price and enable prospective clients to compare the rates charged by solicitors in Northern Ireland more easily. Relaxing the restrictions on soliciting (subject to safeguards) will, say the OFT, allow solicitors and small firms in particular to compete more effectively for clients.

The OFT also investigated practice regulations of the LSNI which prohibit the payment by solicitors of referral fees to non-lawyers. This prohibition appears to have its origin in a statutory prohibition on fee sharing and has been raised directly with the Northern Ireland Executive.

Vincent Smith, the OFT's Director of Competition Enforcement, said: "We welcome the Law Society of Northern Ireland's changes to their practice regulations. The introduction of greater competition between solicitors in Northern Ireland will bring benefits to consumers and innovative business."