The Law Society moved closer to a historic separation of its regulatory and representative functions last week, ahead of the publication of Sir David Clementi's report into the legal services market in December.

Meeting in Bristol, the Society's council passed a motion setting out a handful of statements of principle, including a vow to ensure that regulation of the legal profession continues to operate 'fully independently' of government.


The council also insisted that regulation should remain profession-led, and again stated its outright opposition to the establishment of a legal services authority.


However, it chose not to make any final decisions at the meeting on how to implement the principle of greater separation of its key functions. Instead, it was 'minded to conclude' that this could be achieved through one of two potential structures.


The first - based on a model outlined by the governance review group (GRG) led by non-lawyer Baroness Prashar - would see the establishment of a regulatory body with delegated decision-making authority under the auspices of the council. This body would have 20 to 30 members, a third to a half of whom would be independent lay members.


Non-solicitor members of legal disciplinary practices - which have been suggested by Sir David - would be eligible for membership, while professional members would be partly elected and partly appointed.


The second structure, proposed by council members Edward Solomons and Peter Farthing, calls for the delegation of non-regulatory activity to a new, entirely separate body known as the representation and law reform council (RLRC) on the grounds that the current council cannot in law delegate its rule-making powers.


The RLRC would be entirely drawn from solicitors, elected geographically and by sectors, and would be presided over by the President of the Law Society. The existing council would then be known as the regulation council or regulation board, and would be reduced in size, with up to 50% of its members being independent.


Law Society President Edward Nally said: 'We have demonstrated the Society is willing to make the necessary changes to modernise its governance arrangements to become a more consumer-focused regulator.'


Mr Farthing said: 'Our proposal would avoid the tension between a regulatory body lacking the power to make regulations or to finance itself on the one hand, and on the other a representative body without regulatory responsibility but retaining the power to make regulations and control the finances of the regulator.'



The council has asked the GRG to prepare a paper assessing the options for its meeting in December.