While recognising the case for the proposed legal services board, Kevin Martin argues that it should be free from government influence and that new business entities should be strongly regulated
Last month’s Law Society Council meeting was timely. Not only did members have a first opportunity to get their teeth into the detail of the government’s White Paper, Putting consumers first: the future of legal services, but they also had the chance to hear the initial findings from the first phase of research commissioned by the Law Society, as part of the review of our representative functions.
The council’s debate on the paper was of the highest quality, examining many of the issues.
One of the Law Society’s key objectives is to ensure that any new arrangements for the regulation of legal services fully maintain the independence of the profession from government control, or from the appearance of government control. The council is concerned that the proposals in the paper allow too much government influence in the proposed legal services board (LSB), and will be lobbying strenuously for appropriate independence for the board from government.
We recognise the case for an overarching LSB, bringing together in a consistent way the oversight functions currently carried out by a number of different bodies, in respect of individual parts of the legal profession. We consider it essential – both to ensure the independence of the profession, and to avoid the substantial costs that duplication of regulation would involve – that the LSB operates with a light touch, and that it should be clear that the primary responsibility for regulation rests with the front-line regulators.
Our main concern about the paper is that the arrangements it proposes for the relationship between the LSB and the front-line regulators do not clearly secure that objective. Our view is that regulatory powers should be vested in the front-line regulators – such as the Law Society and the Bar Council – and that the LSB’s powers should fall short of the ability to remove the regulatory powers of long-established regulators, except through fresh primary legislation.
In looking at alternative business structures, the Law Society will strive to ensure that the detail of the proposals are workable and beneficial for both consumers and practitioners, bringing with it real opportunities. However, what really came across at the council meeting was that new business entities entering the market must be strongly and effectively regulated to the same standards as solicitors.
The regulation of will writers was also the focus of a good deal of the council’s attention. We welcome the fact that, at last, the government has recognised the need to regulate claims managers and has taken steps accordingly, introducing the Compensation Bill earlier this session. However, the need to tackle the problem of unqualified will writers is equally urgent and we are disappointed that the government does not share this view. This issue will feature prominently in our response to the government.
The Law Society will fully respond to the White Paper before the deadline of 20 January 2006. All of these issues and more will go into our response.
The council spent much of the remainder of the afternoon considering the preliminary findings of the first-stage research, examining what solicitors want from their professional body in future. The market research company, GFK, conducted a series of focus groups, in which a representative random sample of solicitors took part.
The message heard loud and clear is that many solicitors do want a national representative organisation – the Law Society – and that they would be willing to pay for it. But the Society of the future has to be a different outfit from the one that exists now. Going forward, we must aim to be leaner, more responsive, decisive, ‘e-enabled’, and member-focused. The outcome of this initial research will inform and shape further wider consultation with the profession in the new year.
We shall be seeking the views of all solicitors on the future shape of the Law Society. Understanding what the profession wants from the Society is vital. We will want to know what solicitors are looking for in a representative body, how they see the future of the Society, and how the Society can work to serve them better. This will be solicitors’ opportunity to have their say and make the Law Society work for them as they want it to.
Looking back it has been an incredibly busy year for the Law Society. We have already gone some way down the challenging road of modernisation, establishing the new regulation and consumer complaints boards, which will take full effect next month.
This year has also seen a glut of achievements by the Law Society – changes to the stamp duty land tax regime, improvements in complaints handling, the launch of the Law Society solicitor-led home information pack, and the introduction of the Compensation Bill.
And 2006 looks set to be another busy year – we can expect to see the results of the consultation with the whole profession and, it is hoped, draft legislation following the White Paper. It is my hope that in 2006 we can look to the future with renewed direction and purpose and begin to build the foundations of a new Law Society.
Kevin Martin is the Law Society President
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