The Law Society has voiced renewed concern about the prospect of ‘dual regulation’ for solicitors who conduct consumer credit work.
Chancery Lane this morning welcomed yesterday’s further postponement of the transfer of regulatory responsibility to City watchdogs, but warned of increased costs if the switch does eventually go ahead.
Law Society president Andrew Caplen said: ‘The Law Society remains concerned about the impact dual regulation would have had on both the public and the profession.
‘We will continue to work with the SRA over the coming months as it considers the way ahead and will encourage the SRA and Financial Conduct Authority to avoid costs and potential confusion by having the work of solicitors covered as far as possible by a single regulator.’
Following a board meeting yesterday, the SRA announced it had secured a further seven-month stay for reforms that had been due to take effect on 1 April, adding that it remains committed to finding the ‘best possible solution’ for law firms.
But fears remain that the switch could affect thousands of practices, because the FCA could require that firms that offer clients time to pay or charge interest on outstanding bills may have to register with the City regulator.