The coalition government is reviewing key reforms to legal complaints handling and the introduction of alternative business structures, as part of a wider review of regulatory measures inherited from the previous administration.

Plans for a Legal Ombudsman service and ABSs have fallen under the scrutiny of business secretary Vince Cable’s (pictured) Reducing Regulation Committee, formed last week to ‘bring an end to the excessive regulation that is stifling business growth’. The measures could remain unchanged, be modified, or be scrapped completely.

It is understood that the Legal Ombudsman, due to be opened by the Office for Legal Complaints (OLC) in October, had not been given final ministerial approval before Cable’s committee was formed. Ministerial sign-off is not now expected to be given until the committee has completed its review.

Cable’s committee also ­halted pending regulation stemming from the Third Parties (Rights against Insurers) Act, aimed at simplifying the procedure for claimants to claim directly against the insurer of an insolvent wrongdoer.

A Ministry of Justice spokesman said: ‘We are in the middle of productive discussions with the [Department for] Business, Innovation and Skills and the Cabinet Office about whether and how the recent announcements of a government recruitment freeze and review of regulatory projects affect the Legal Services Act.

‘It is important for the legal services industry to have an efficient and independent public complaints system. The Legal Ombudsman is on schedule to open for business in October 2010. Offices have been secured, senior posts have been filled and recruitment of more than 200 staff is under way.’

The spokesman said she could not comment further on whether ABSs could be delayed as a result of the review.