In this edited extract from his speech to the Law Society's annual conference, Desmond Hudson argues that the representative arm must engage the profession and deliver value for money
Bodies such as the Law Society survive and thrive precisely because they adapt to changing times and circumstances, whilst maintaining enduring values.
By adapting our regulatory approach, the Law Society remains a frontline regulator for the profession. The Law Society Council and our members have shown that we are not afraid to embrace the changes that the Clementi review and the Legal Services Bill represent. Indeed, we have been in the vanguard on many aspects of the modernisation agenda.
Now for us it’s about making the arrangements work for the benefit of the profession and the public. The Legal Services Bill will undoubtedly impact upon this.
We have nothing to fear from separating representation from regulation within the Law Society, nor from oversight from a light-touch legal services board (LSB), acting in partnership with the professional bodies. We have to recognise the demand for such oversight scrutiny as a reality for professionals and their professional bodies in the 21st century.
But more than ever that means light-touch regulation of the legal profession is of critical importance. This is necessary to allow the frontline regulator to get on with regulating. Otherwise our members, those who through their endeavour generate the wealth to pay for the regulators, could be burdened by delay and additional cost – or by the disproportionate application of regulation to the detriment of their competitive position.
At the moment, we have a state of affairs where the Legal Services Consultative Panel have been busying themselves with the new solicitors’ rule book for the last two years. Many might say this is bad regulation – that this level of interference, second-guessing and delay is disproportionate and unnecessary. Modern regulation must move us away from this kind of cumbersome mechanism. It must be enabling – supporting firms rather than seeking to undermine. Slow and unresponsive, heavy-handed regulation is in no one’s interest.
We are encouraged that the government has said the LSB should act in partnership with the approved regulators, and should exercise its powers only where they are clearly failing. Regulation in practice must work in consensus with the thoughtful and responsible members of our influential profession.
As far as representation is concerned, the separation of our responsibilities allows the Law Society to act in a purely representative capacity for our members. Our purpose is supporting solicitors. But the Law Society is, and will continue to be, a good public citizen. We will not forget the public interest. It will do none of us any credit to be blinkered by what is in the profession’s short-term interest, without any regard to the common good.
We are all about supporting solicitors, their firms and the profession as a whole. It’s our job at the Law Society to speak up for the profession, to celebrate its achievements and to defend its values. We intend to speak up for solicitors – forcefully and thoughtfully with government, the regulator and the wider community.
There are, however, still obstacles to overcome with the perception of the Law Society amongst the profession; 75% of solicitors see us as the regulator. We clearly have not yet done enough to communicate what separation of regulation from representation means. We must listen more carefully and communicate more clearly if we are to deliver for the profession in the way that it demands. And we must work collaboratively if we are to succeed. The Law Society cannot work in isolation from those it seeks to serve.
I intend to deliver a representative body that understands, reflects and champions its members’ needs. For that I need our members to be engaged.
In 2006, we have begun to shape the new representative arm to deliver on the needs and expectations of our members. Much of this is about value for money – reducing cost and bureaucracy, investing in new activities that you have identified as priorities, refocusing our work, looking for efficiencies, building a representative body that works within existing budgets.
We know there is a genuine desire from solicitors to have the support of a strong national representative organisation fighting their corner, because we asked each and every one of them in our ‘Have Your Say’ consultation. An unprecedented 19,000 solicitors responded. These solicitors wanted a lean, responsive and member-focused national representative body, one that represents their interests to the regulator, government and other stakeholders, provides services and promotes the profession.
We are delivering new services to meet the requirements of the modern profession, and developing our services so they meet the needs of practitioners at each stage of their careers, wherever they have chosen to practise.
A regulatory affairs service has just opened, which will look for ways to reduce the cost and burden of regulation and ensure that the issues that matter to the profession are taken up with the regulators – because solicitors want proportionate and clear regulation that supports the profession’s values.
They also want a level playing field when competing with non-solicitor providers of legal services. The regulatory affairs service will look to influence regulation from the profession’s point of view; to target obvious regulatory issues that for solicitors are anachronistic, rules that do not add value or that impose disproportionate costs.
The Law Society is currently asking you to identify the specific regulatory issues the Society should focus on in 2007. Through our on-line survey, launched earlier this month, we are asking solicitors to prioritise a number of regulatory issues that need urgent attention in the interests of solicitors and their clients. We’ll then be taking your concerns to the independent Regulation Board with the weight of the profession behind us.
This is just the first of a series of on-line consultations, which we will use to inform the Law Society’s programme of work over the next 12 months.
I also believe we are set up to offer practical support in response to the needs of solicitors. Take small claims, for instance. The current system is in need of a makeover. Legal costs of lower-value claims must be proportionate and claims dealt with quickly. But any reforms must still enable people to get representation.
But increasing the small-claims limit threshold for personal injury cases would mean that individuals will either have to represent themselves or pay their own legal fees. Many people – perhaps most – would do neither. They would let their entitlement to compensation for injury they have suffered go by default. Insurance company directors up and down the country are sure to be popping champagne corks at the prospect.
Solicitors are the guardians of the justice system. As it stands, the current system is fair. Consumers have access to the legal advice and the compensation they deserve. The current system is not, however, fast. This is where we should look to direct change.
Today we launch ‘Fast and Fair’ – the Law Society’s proposals to modernise the small-claims process for the benefit of the justice system, and the public it is there to serve. Our proposals would strip away delay and unnecessarily bureaucratic procedure.
Firstly, we are suggesting early notification – submitted to the insurance company within seven days of receiving instruction, to allow it to consider the claim. Secondly, the use of a simplified claims form for ease of use. And also we suggest early offers to settle, with sanctions if the offer is not accepted in some circumstances. Every personal injury firm in the country will receive a copy of our proposals.
On another no less vital front, the Law Society is fighting hard to ensure a sustainable future for the legal aid system. Legal aid is a vital public service – but it finds itself facing an uncertain future. Some of the most vulnerable members of society cannot get legal help and assistance in time of need and of crisis.
We are taking every opportunity to tell government that the legal aid reforms devised by the Carter review team will only succeed if the levels of fee are viable; the present proposals are hopelessly inadequate. The rates on the table are unacceptable and more importantly risk, with a breakneck timetable, damaging the already fragile supplier base and access to justice for those who most desperately need it.
Solicitors do legal aid work in large part from a sense of public duty. But that commitment to serving the public has been exploited by the government. Despite their commitment and dedication to legal aid work, there is a real risk that many more legal aid solicitors will not be able to afford to do legal aid work any more.
Hundreds of our legal aid solicitors responded to the Law Society’s on-line surveys – giving us their assessment of the impact of the government’s proposals. More than eight out of ten family practitioners believe that their firms were less likely to undertake publicly funded work in the future. This wasn’t just limited to family law – seven out of ten mental health and immigration lawyers told us they felt the same. If that happens, it is the most vulnerable people in society who will ultimately pay the price.
As we move into a new phase in the Law Society’s history, so must we consider how best we can provide real value to the maximum number of solicitors, delivering what they want in the way they want it. We are all in the business of supporting solicitors. And we can achieve so much more for our members by working collaboratively. I have written to the presidents of each local law society, asking them to meet with me. I also will be writing to the chairs of the Law Society recognised groups about how we can best move our relationship on in the future. I will also be speaking to our sections, and aim to engage with the specialist practitioner associations.
I intend to make my priority to get out there and meet with all our important stakeholders and most importantly you, our members – to hear about your experiences and needs.
The profession we all worked hard to join is as important to society now as it ever was. Many of you are thriving and with the support of a new Law Society – a thoroughly modern professional services organisation, unified in its purpose, promoting the value of solicitors and confidently supporting its members – the future is brighter for those who continue to deliver excellent service to their clients.
As chief executive, my focus is on listening to what your needs of the Law Society are and on delivering. To deliver to you a Law Society that works in partnership with the profession, helping solicitors to offer the highest standards to the public. The transformation in structure and focus that we have brought about in the last year or so is just the beginning. You will now start seeing some real changes and we’ll keep them coming.
It is important to think, listen and consider carefully where we go from here. What I am certain of is that we need to be clear about organisation change, to be open and transparent and deliver real value for money to the profession.
Desmond Hudson is the chief executive of Law Society Representation. For a full transcript of his conference speech, visit: www.annualconference.lawsociety.org.uk
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