Solicitors representing some of the most vulnerable clients say they are ‘utterly dismayed’ by the decision not to give those people more protection from unregulated lawyers.

The Legal Services Board (LSB) decided earlier this month that there was no ‘compelling reason’ for opening a statutory review of the sector, despite unregulated providers accounting for one in 10 services sold to individual consumers.

Michael Culver, chair of membership group Solicitors for the Elderly, said the current system leaves people ‘wide open’ to those offering advice on life-changing decisions without the protection of regulation in place. Unregulated providers can still offer services in wills, estate administration and lasting power of attorney, despite efforts in the last 10 years to bring them into scope.

Culver said: ‘We are utterly dismayed at the LSB’s decision not to carry out a full statutory review of the unregulated sector. Whilst not surprised at the announcement, to say the findings do not provide a “compelling case” for review is misguided.

‘Older and vulnerable people are being financially and emotionally impacted by unqualified salespeople with no specialist expertise, without the right training and qualifications or the right levels of insurance in place.’ 

Michael Culver

Culver: Older and vulnerable people are being financially and emotionally impacted

The LSB said it would focus its efforts on increasing voluntary regulation, such as providers signing up to appear on a register or committing to offering redress where there has been poor service.

Culver said this relies on the goodwill of providers asking to be held to account, adding: ‘Other countries have put greater regulation in place for important transactions on property, wills, litigation, and succession but it seems we are determined to make our legal system open to anyone willing to advise rather than those qualified to do so.’

The Law Society said the LSB’s research showed the benefits of using regulated lawyers but there was still widespread confusion about the difference between regulated and unregulated providers.

President I. Stephanie Boyce said the Society supports the existing system of ‘reserved legal activities’ that only qualified professionals can offer, and wants this extended to include ‘high-risk’ areas such as will-writing, estate administration, lasting powers of attorney and trusts.

Boyce added: ‘With an increasingly aging population, these areas call for regulatory attention to ensure that vulnerable people – particularly those with mental incapacity – are sufficiently protected.

‘The priority must be to enlighten consumers about the limitations through public legal education initiatives alongside addressing gaps in client protections.’

 

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