Scottish Government
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Legal Services Bill published

A new bill which will assist Scotland's legal profession to grow and compete both in the UK and internationally was published today.

The Legal Services (Scotland) Bill will:

  • Allow solicitors to secure external investment and business expertise and to combine with other professionals to offer legal services to the public in new ways
  • Remove restrictions on solicitors entering into business relationships with non-solicitors
  • Make it easier for Scotland's leading commercial law firms to compete effectively with other UK firms and internationally
  • Create a robust regulatory framework in which the Scottish Government will appoint approved regulators who will regulate the new business structures

Justice Secretary Kenny MacAskill said:

"A strong and independent legal profession is part of the institutional framework of a modern democracy. The legal profession also contributes to the Scottish economy with an estimated turnover of over one billion pounds per annum.

"This new legislation will help Scotland's legal profession to grow and compete both in the UK and internationally.

"In developing these proposals, we have worked closely with the profession to ensure that we protect the profession's core values,at the same time as freeing solicitors to offer new services in new ways.

"Our proportionate and flexible approach will allow the profession to move quickly to respond to changes in the market by removing outdated restrictions on business models."

In Scotland, only solicitors can own law firms and only solicitors can form partnerships with other solicitors under the terms of the Solicitors (Scotland) Act 1980.

A research working group into the legal profession reported in May 2006 and one of the issues it raised was the restrictions on business structures.

In May 2007, Which? submitted a "super-complaint" to the OFT arguing for liberalisation of the Scottish legal services market as in England and Wales.

The need for reform was accepted by Scottish Government in its policy statement on the OFT response of December 2007 which recognised a need for alternative business structures to enable Scottish legal practitioners to deliver a more modern and competitive legal service.

The consultation paper "Wider choice and better protection - a consultation paper on the regulation of legal services in Scotland" was published January 7, 2009. It sought views on the proposed regulation of ABS for the delivery of legal services in Scotland. Responses were invited by April 3, 2009. 47 responses were received, including responses from the Law Society of Scotland and the Faculty of Advocates. The independent analysis of the responses will be published on the Scottish Government website in the next few weeks.

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