Reform: Netherlands Competition Authority set to investigate legal profession's rules


The Dutch government has rejected proposals for an independent regulator of the legal profession in the Netherlands - but lawyers there still face the prospect of a legal services ombudsman and a shake-up of the market designed to boost competition.



The Ministry of Justice last month ruled out the creation of a lay-majority advocacy regulatory council, which was recommended by a committee - the Van Wijmen committee - it set up in May 2005 to review the structure of the country's legal services market.

In a report issued in April this year, the committee called for such a council to take over the exercise of regulatory powers regarding admission and ethics from the Dutch Bar Association, which would have retained only an advisory role (see [2006] Gazette, 18 May, 6).



The association and the Dutch parliament opposed the plan on the ground that it threatened the independence of the profession. The Council of Bars and Law Societies of Europe (CCBE) warned that it would make the Dutch the only profession in Europe with no self-regulation.



Although this proposal has now been ditched, the association will be required to set up an advisory council - comprising a majority of non-lawyers - to advise it on all draft regulations.



The Van Wijmen committee also looked at remodelling complaints and disciplinary procedures in the interests of consumers and recommended a new ombudsman for the profession, a proposal also opposed by the bar because it may make the system more complex. However, many of the proposals on the disciplinary and complaints side are likely to be taken forward.



The association accepted most of the other recommendations of the report, which included the continuation of the existing advocates monopoly in criminal and civil court proceedings and the requirement that law firms should not be managed or owned by a majority of non-lawyers.



The Netherlands Competition Authority has also set up a consultation on the effect the current regulatory practices of the legal profession have on competition and whether they are necessary for the adequate functioning of the profession and the protection of those buying legal services.



One of the proposals under consideration is whether multi-disciplinary practices could be permitted to allow advocates to join forces with other professionals.



Speaking for the 14,000-strong Dutch bar, Dan de Snoo, said: 'We already have a very liberal system here. The most likely outcome will be new regulations on quality of service within law firms.'



Catherine Baksi