OFT threat to push legal reform

Claim that Scots lagging behind rest of UK in promoting competition

News, 5 May 2006

Reforms of the Scottish legal system may be pushed through by the Office of Fair Trading (OFT).

The OFT feels that the Scottish legal profession has resisted attempts to make provision of legal services more consumer-friendly and to carry out reforms such as those taking place particularly in England and Wales.

It has warned that it may use its own powers to bring about change, should politicians not pass legislation forcing change.

The OFT's head of professional services, Grahame Horgan said the Executive working group's paper on legal services published this week highlighted the need for reform. Scotland lagged behind the rest of the UK because reforms recommended by the OFT were well advanced in England and Wales.

The OFT proposes that lawyers should be allowed to pay accident helplines, mortgage brokers and estate agents to refer clients to their firm. This, the OFT feels, would enhance competition among solicitors and reduce the costs and inconvenience to clients searching for legal aid lawyers.

It has also called for the business structure of firms to be reformed so that solicitors, barristers and advocates can practise in the same firm.

However, the Law Society of Scotland's chief executive Douglas Mill, said the OFT's proposals were not suitable for Scotland.

Referral fees are forbidden by the Society's code of conduct and it believes they would result in business going to the highest bidder, rather than the most qualified solicitor. There is also a prohibition on solicitors, barristers and advocates practising in the same office.

The Society claims it has already moved towards modernisation because it has reviewed its professional practice rules and adopted five key reforms recommended by the European Commission in 2004.

Deputy Justice Minister Hugh Henry said the Scottish Executive would be carefully considering the best way to take the matter forward.