David Clementi this week set out the priorities for his regulatory review of legal services, focusing on five 'architectural issues' which will form the bedrock of the new shape of regulation.

Telling reporters that 'it would be surprising if I were to conclude the status quo is perfect', the Prudential chairman also introduced a new acronym to the legal world - SDPs, or similar disciplinary practices.

These are partnerships between different legal professionals, such as solicitors, barristers and licensed conveyancers.

Mr Clementi - an accountant by qualification and the former deputy governor of the Bank of England - said SDPs 'are an important part of the alternative business structure question'.

The five issues at the heart of his review are: institutional structures and the regulatory maze; the level of self-regulation and professionalism within the legal services industry; the handling of complaints against lawyers; unregulated providers and regulatory gaps; and new business structures, including employed lawyers and multi-disciplinary partnerships.

Mr Clementi stressed that he has 'no fixed views about the right approach to regulation' and said he will look at the medical and accountancy professions, and the financial services industry, during the consultation process.

He will issue a consultation paper which 'will set out some of the possible answers' in the first quarter of 2004.

He said his proposals on business structures would be enabling rather than prescriptive and it will be up to the market to determine whether they flourish.

He also said the regulation of currently unregulated providers is a matter of policy for ministers.

His intention is to create a regulatory regime that could accommodate them if required.

Mr Clementi has until the end of 2004 to report.

See Editorial, page 14 ( see [2003] Gazette, 23 October)

Neil Rose