Legislation squeeze may halt employed solicitors reform

A lack of parliamentary time may thwart efforts to allow employed solicitors to provide their services to third parties, it emerged last week.

The Law Society is seeking an amendment to section 9 of the Administration of Justice Act 1985, which governs solicitors' incorporated practices.

It appears that a simple change could both allow outside investment in law firms and provide a vehicle for commercial entities to provide legal services to the public.

A paper before the council said that while the Lord Chancellor's Department has expressed sympathy with the approach, it was 'pessimistic about the prospects of securing primary legislation in the near future'.

The Society plans to examine, with the department, whether changes could be made via the Regulatory Reform Act 2001, which provides ministers with a wide power to use orders to reform primary legislation.

More complex work on how commercial entities could offer legal services other than through an incorporated practice is continuing.

The regulation review working party is also to redefine the ban on referral fees, to make it enforceable.

Genuine marketing schemes will be excluded from the ban.