All law firms to face regular inspections

Every firm in England and Wales will be inspected regularly in a major expansion of the Law Society's regulatory efforts, its ruling Council decided last week.

The multi-million pound plan will expand the practice standards unit (PSU) from eight staff to 50.

Also, 30 new caseworkers will help deal with the growing number of complaints, while there will be more resources for the unit which investigates suspected frauds.

In 2003, the PSU - which will make 100 visits this year - will inspect the 1,100 firms that have three or more outstanding complaints against them; these will also receive visits in subsequent years.

It is intended that 2,000 two-day inspections will be made from 2004, and chief executive Janet Paraskeva said this week that every firm would routinely receive a visit every three to four years.

Recognising that such visits may not be the most appropriate way to deal with the largest firms, she said the Society would discuss with them the most effective form of regulation.

Ms Paraskeva said firms would be given advance warning of visits.

'Our aim is to improve practices, not to go around the country frightening people,' she explained.

The unit has the power to insist that firms meet certain standards, which are checked on follow-up visits.

She said the Society wanted to tackle the causes of complaints.

'We want to encourage solicitors to focus more on addressing client's concerns and handling complaints if they arise.

That requires us to target solicitors who have a track record of complaints,' she said.

'All this will cost money, but being tougher on ourselves is the best way to maintain the public's trust in solicitors.'

The package was backed by council members by more than two to one.

It has been costed at 21 million over the next three years.

Next year's extra costs, equivalent to 85 on the practising certificate fee, will be met by reserves.

Future funds will come from planned PC fee increases of 100 in 2004 and 65 annually thereafter.

The growth in complaints was unexpected.

They have risen by 37% on the first nine months of last year to 11,188.

An LCD spokesman said it would closely monitor progress.

He said: 'The government is pleased that the Law Society has acknowledged that self-regulation is a privilege, not a right, and therefore is considering improved ways to root out bad practice with a view to ensuring that clients get the high-quality service they should be able to expect when dealing with the legal profession.'

Paula Rohan