The need for change

One message is clear from the Office of Fair Trading's report into competitiveness in the legal professions: the Law Society, through its regulation review working party, has impressed the director-general enough to prevent him recommending government intervention for the time being.

On one specific point, Chancery Lane appears to have scored a significant victory.

The OFT has been swayed from its earlier desire to allow solicitors to practise 'cold-calling' on individual prospective clients.

It now agrees with the Society's firm view that cold-calling of individuals is wrong, would damage solicitors' esteem, and may be detrimental to the public.

It is reassuring to see Chancery Lane's view accepted, as cold-calling - especially in personal injury cases - could be viewed as the worst kind of ambulance-chasing.

However, there are areas that the Law Society must continue to address.

The bans on fee-sharing and on payments for referrals will potentially be forced back onto the ruling council's agenda by the OFT.

The bar, too, will be facing tough questions regarding some of its more cherished principles and structures.

Its ban on barristers conducting litigation has come in for heavy fire from the report.

And the QC system seemed particularly to stick in the OFTs craw.

The crucial question is how far the OFT will push, and how much power it has.

By proposing to remove the professions' exemption from the scope of the Competition Act, the government has made it clear that it expects change - that this is not an academic exercise.

Ultimately, it could be suggested that this OFT report will be looked back on in several years as the first major step towards a fused profession, in practice if not in name.