Solicitor challenges notary 'monopoly'

FREE MARKET: European Commission may declare that restrictions on notaries are illegal across Continental Europe

English lawyers may be able to enter the lucrative European notarial market if the European Commission upholds a challenge to the system by a solicitor in Kent.

The Commission is expected next month to declare that countries such as France, Germany, Belgium, Holland, Italy and Spain are acting illegally by restricting entry to their notarial professions to nationals alone.

Under the current rules, if the work of a notary is needed in France, the notary who acts must be French, even if the matter does not concern French nationals or French law.

Notaries have a far more important role in continental Europe than in the UK, working on convey-ancing, company formations, powers of attorney and divorce settlements.

They work alone and are numerically limited, with one covering a particular area.

This could be the next restriction challenged.

Notaries have also pushed to play a pivotal role in e-commerce, suggesting that so-called cybernotaries should have sole responsibility for authenticating electronic signatures.The countries affected are thought likely to fight the Commission, perhaps all the way to the European Court of Justice.

Mark Kober-Smith, a solicitor and notary public with Tunbridge Wells firm Thomson Snell & Passmore, complained about the restrictions to the Commission after leading a successful campaign to end the Scrivener Notaries' monopoly in the City of London.

Mr Kober-Smith argued that EU law gives a right for notaries qualified in one EU state to move to any other and practise giving advice on their home state law.

He said they should also be able to pass additional examinations and qualify as a notary in another EU state.

Jonathan Goldsmith, the Law Society's international director, said Commission backing for reform of notaries would be 'an important step in treating notaries like other legal service providers in the free market of Europe'.

As well as the possibility of new work, an end to the restrictions would allow large law firms with offices in the affected countries to bring notaries in-house and offer a one-stop shop in company work.

'For centuries, notaries have been one of the most powerful legal professions in Europe, and its richest,' said Mr Kober-Smith.

'Since they effectively have local monopolies, this means that notaries can become very rich.'

Neil Rose