Scottish Government
 Printable version
|
 E-mail this to a friend
|
Reform of the legal profession
Proposals for alternative business structures (ABS) for the legal profession in Scotland were today published for consultation.
Some of the main proposals for inclusion in the forthcoming Legal Profession Bill include:
- Reform of the regulatory framework for legal services, and removal of the restrictions on the types of business models under which a solicitor can offer such services, while allowing the traditional business model to remain an option for those who choose to carry on practising within that structure
- Regulation of ABS to apply to any other form of business where a legal professional is involved in the provision of legal services to third parties
- ABS to be regulated by an approved regulator, authorised to regulate that form of business by Scottish Ministers, with the agreement of the Lord President
- Professionals within that ABS to continue to be regulated by their own professional bodies
- ABS and professionals working in them to continue to be subject to any subject-specific regulation (such as financial services and immigration advice)
- Outside ownership to be permitted where those holding an interest in a legal practice pass a "fit to own" test and comply with an appropriate code of conduct
- The Governance of the Law Society to be reviewed and the regulatory arrangements for the Faculty of Advocates to be made clear
Justice Secretary Kenny MacAskill said:
"This is a once-in-a-generation opportunity to create a more flexible and modern regulatory framework for Scotland's legal services. A flourishing legal profession is a crucial part of the supportive environment for our businesses.
"The proposals put forward by the Law Society and Faculty of Advocates earlier this year made clear that the regulatory framework must be proportionate to the size and scope of the legal services market in Scotland. We want to avoid having too many bodies and unnecessary tiers of regulation. Instead we should concentrate on developing a robust system of regulation to protect the profession's core values and enshrine the profession's commitments to service, probity and excellence.
"We also want to avoid any confusion or disadvantage to consumers where there are new structures which may bring together different professions.
"I believe the proposals published today for consultation will help the profession to remain successful and innovative in the face of increased competition and in the difficult economic climate that we are all currently going through.
"I would encourage anyone with an interest in this important issue to have their say on the future of Scotland's legal services."
Which? submitted a super-complaint to the Office of Fair Trading (OFT) asserting that the current regulation of Scottish legal forms restricts choice to consumers and prevents the formation of alternative business structures (ABS). In its response the OFT did not assume that the changes being proposed in England and Wales at that time, and subsequently enshrined in the Legal Services Act 2007, would be automatically suitable for the Scottish market but it recommended that by the end of 2007 the Government should publish a statement detailing its policy views in response.
On November 1, 2007, the Law Society of Scotland published a consultation paper entitled 'The Public Interest: Delivering Scottish Legal Services - A Consultation on Alternative Business Structures".
Later that month Justice Secretary Kenny MacAskill outlined the Government's approach to Parliament which was unanimously endorsed. He asked Scotland's legal profession to meet the challenge of change in the light of a changing marketplace, both nationally and globally, and invited them to come forward with a Scottish solution.
The Scottish Government published its response to the OFT in December 2007 which detailed its policy views on lifting restrictions on ABS, where considered appropriate, for the Scottish legal services market.
The Society published detailed proposals and the Faculty of Advocates published their response in spring 2008. Kenny MacAskill welcomed these responses in Parliament on June 11, 2008.
To help inform the Government's proposals Kenny MacAskill set up a consultative group to explore these issues. Some of the country's leading legal and consumer experts were represented on it.
The Scottish Government today brings forward proposals for the Legal Profession Bill which the First Minister announced as part of the legislative programme on September 3, 2008. The proposals in this paper for a robust regulatory regime will allow alternative business structures to operate in an open, transparent and accessible way in Scotland's legal services market.
Related Information
