The Law Society of Scotland has issued a much-heralded consultation document seeking views on whether and how the nation's £1.2 billion legal services market should be opened up to greater competition.


This follows an investigation by the Office of Fair Trading (OFT) earlier this year, which placed the Scottish government on notice to come up with concrete proposals after upholding calls by consumer watchdog Which? for reform.



A 'super complaint' lodged with the OFT in May by Which? had recommended the watchdog address fears that the current regulation of Scottish legal firms is hindering competition in the market, restricting choice and pushing up prices.



The question of whether Scotland should follow England and Wales and introduce Clementi-style reforms remains a deeply divisive issue.



Firms such as Dundas & Wilson and McGrigors are seeking a level playing field, claiming that they will be at a disadvantage when competing with firms in England and Wales if they are not allowed to raise external capital or appoint non-lawyer partners.



Their regulator has appeared less enthusiastic, however, amid fears that alternative business structures could wipe out small Scots firms and reduce access to justice.



During a Scottish government-sponsored consultation on legal services two years ago, the Scottish society made plain its scepticism about Clementi, stating, for example, that it 'could see no circumstances in which the ownership and control of law firms by non-lawyers could be permitted, without surrendering the prime objectives of maintaining independence and public protection'. It also said that there was no evidence of consumer demand for 'legal disciplinary practices'.



The society is to publish firm recommendations next spring. President Richard Henderson acknowledged growing calls for change, but warned that the body had to accomplish a 'careful balancing act'. He added: 'This is one of the most important issues to arise in the history of the Scottish legal profession and could result in far-reaching changes.'



Paul Rogerson