As the law society prepares for change after Clementi, Janet Paraskeva calls on solicitors to keep on top of developments and have their say in the future of the profession

At its meeting on 20 January, the Law Society’s Council made what are perhaps the most far-reaching decisions about the future structure of the Society for many decades. They will help to ensure that it is seen as a modern and responsible regulator fit for purpose for the 21st century.


In December, Sir David Clementi published his review of the regulation of legal services. He proposed that a legal services board (LSB) should be established to oversee the front-line regulators such as the Law Society and Bar Council.


Within the professional bodies, he recommended that there should be a separation between the regulatory and representative arms. Indeed, without that separation, he said, it would be difficult to leave regulation in the hands of the profession.


But the Law Society was ahead of the game. Its own governance review group had recommended the establishment of a regulatory board ring-fenced from the elected representative council, a model Sir David complimented in his report. Sir David’s report also proposed the establishment of an office of legal complaints (OLC) to deal with consumer complaints about all lawyers. But conduct and disciplinary issues for solicitors, he concluded, should continue to be handled by the Law Society. The Society has, in any case, already separated its consumer redress activities as part of its successful route to recovery from a history of poor complaints handling.


Sir David’s proposals will require legislation to become a reality. Speaking to the council, the Lord Chancellor confirmed the government’s enthusiasm, promising a White Paper later this year and the necessary legislation as soon afterwards as possible.


The Law Society’s work in reforming itself has put it into the best possible position to meet the challenges and take advantage of the opportunities the Clementi report now presents. In putting into effect the separation of regulation and representation, the council decided to follow, and in some cases go further than, the recommendations on the separation of the governance of regulation and representation made by the governance review group. In governance terms, the council has put us ahead of other regulators. First and foremost, the council decided to establish two separate and independent boards – one for regulation and one for complaints. The regulatory board will have a solicitor chairman, a solicitor majority and a substantial proportion of lay members.


The complaints board of 12 will have a lay majority and a lay chairman, as befits a body that must act in the consumer interest. All members of both boards will be appointed under the Nolan principles (the seven principles of public life) and no individual will be able to serve simultaneously as a member of the representative Council of the Law Society and either of the boards.


The new boards will take on their formal responsibilities in January 2006, following a period of shadow running from this September. Advertisements for the chairmen and members of the boards will soon appear in the press. The boards will be established under the existing legislation – the Solicitors Act 1974 – and the subsequent legislation that sets the framework for the Law Society’s regulatory activity. This means that, in the short term, the regulatory board will make recommendations to the council on regulatory policy that the council will have to confirm. It will also advise the council on the resources it needs to carry out its work effectively and the council will set the practising certificate fee accordingly. The legislation implementing Sir David’s recommendations will enable the regulatory board to carry out its work without any reference to the representative council, which is what Sir David says the proposed legal services board will require. In the meantime, the council will act under a self-denying ordinance to ensure that decisions on the regulation of the profession are not affected by the council’s representational concerns, demonstrating its commitment to the way ahead. These are important reforms, but there are others, equally significant, now underway.


The Law Society wants to reshape its non-regulatory arm, the structure of its representative and law reform work. We want to emerge better able to meet the different needs of solicitors in the 21st century. Last autumn we hosted 22 reference group meetings with different sectors of the profession to help us identify exactly what the profession is looking for from its professional body. We also consulted local law societies and undertook a survey of the profession’s views of the national Law Society. These surveys, together with a benchmark study on other modern membership organisations and other law society models, will lead to the development of a number of possible models for the future – both for the operational structure of the new Law Society but also, importantly, for its governance. When we have these models we will need to consult widely, so look out for that and don’t forget to register on the Law Society’s Web site for updates.


The separation of regulation and representation within the Law Society is a vital and bold first step in the modernisation of the Society’s governance and for the regulation of the profession. We hope it will help to ensure public confidence in the solicitors’ profession in the years ahead.


Janet Paraskeva is the Law Society chief executive