The Legal Services Complaints Commissioner (LSCC) should be able to fine the Law Society up to 5 million if it fails to improve complaints-handling to her satisfaction, the government has suggested.

The development came as the Society unveiled a 'clearer, more appropriate public identity' for its complaints-handling arm.

The Consumer Complaints Service will replace the Office for the Supervision of Solicitors from 19 April.

A Department for Constitutional Affairs spokeswoman said it has written to the Society for comments on the maximum level of fine, ahead of parliamentary debates in May or June to approve it.

The move follows the formal appointment last month of Zahida Manzoor, the Legal Services Ombudsman, to the separate post of LSCC, which has stronger oversight powers (see [2004] Gazette, 4 March, 5).

The LSCC will be able to fine the Society if it fails to handle complaints in accordance with a plan the LSCC can require it to submit.

Ms Manzoor told the Gazette she would consider fines at the point where the Society cannot deliver the step changes to raise performance.

Law Society chief executive Janet Paraskeva said: 'We have never believed that fining powers are appropriate.

The Law Society is not a commercial organisation and we do not receive public money.

We know of no other regulator that is itself subject to being fined.

We will be making a robust response.'

Ms Manzoor said she would ask for a draft plan for May, and would look to set targets.

'I see my role very much as a dialogue,' she stressed.

The Law Society has closed more cases than it has received in each of the last six months.

However, it has also failed to meet most of the 2003 complaints-handling targets.

Ms Paraskeva said: 'Since last May, complaints handling has improved steadily and consistently.

The number of live complaints fell from 8,773 to 7,417 at the end of February 2004.

Some 21% of cases are now conciliated, avoiding unnecessary bureaucracy and achieving higher levels of customer satisfaction.'

The Consumer Complaints Service will receive all complaints, but will only process service complaints.

The Society's compliance directorate will handle conduct matters.

Ms Paraskeva said: 'This is nothing like other rebranding exercises that have made headlines in recent years.

Instead of dreaming up a fancy name, we have adopted an unambiguous title which neatly sums up the service we are providing.'

By Neil Rose