Modern and effective regulation

Licenced Legal Services Providers
We will commence the licensing of new legal service providers with alternative business structures.

While we finalised the processes and policies required to commence licensing, the Law Society’s Regulatory Committee decided that this project should be paused, due to workload relating to the Regulation of Legal Services (Scotland) Bill (the “Bill”) and to provide time to consider both the outcome of relevant motions tabled at the Society’s AGM in June 2024 and potential amendments to the Bill.

Reform complaints handling
We will improve our own processes so conduct complaints are dealt with as efficiently and effectively as possible under the existing legislation.

The Society’s Regulation Directorate undertook extensive work to improve conduct complaint handling and address the SLCCs s36 recommendations. This work included introducing a more proportionate approach to quality assurance work.

Communications to parties and the wider public about timescales were revised and improved. The data sharing agreement with the SLCC was reviewed and updated. The process for new complaints was updated to reflect corporate changes made to the Code of Conduct for Committee members. The resulting improvements were welcomed by the SLCC.

Due to limitations in the existing legislation in dealing with conduct complaints where health is an issue, we worked successfully with internal stakeholders and the Scottish Government to obtain more permissive, flexible, modern and proportionate legislative provisions which would allow us to more effectively deal with conduct complaints where health is an issue.

We updated internal processes following new SSDT rules coming into effect and also completed work on our Case Management System initiation documentation project. Further work as part of our ongoing digital transformation will continue into the next operating year. Budget has also been secured to ensure that first tier complaint work will commence in the next operational year.

Complete

Judicial Factors (Scotland) Bill
We will work to deliver a modernised statutory regime for Judicial Factors in Scotland as the Judicial Factors (Scotland) Bill progresses through the Scottish Parliament.

Extensive work was undertaken in relation to the progress of this Bill though Scottish Parliament. The Bill concluded on 19 November 2024, into the Society’s next operating year, with process changes therefore postponed until after the Bill is enacted.

Complete

Public trust/public interest
We will promote and protect the public interest and ensure public trust in our regulation

We carried out several initiatives under this action to improve regulatory processes and develop new procedures which will better protect consumers.

Proposed new anti-money laundering (AML) and Incidental Financial Business rules were developed and endorsed by the relevant committees in readiness for further work prior to implementation in 2025/2026.  A needs assessment confirmed that a proposed accounts rule on firm cessation was unnecessary given other existing processes. 

No new memorandum of understanding was issued by the Financial Conduct Authority (FCA) regarding Incidental Financial Business regulation and we continued to work effectively within the existing framework. 

We took the decision not to revise the existing IFB certificate until the proposed new IFB rule on certificate frequency has been approved and embedded.

 We also reviewed and updated the process under Section 17 of our rules relating to a solicitor’s duty to co-operate with the Scottish Legal Complaints Commission.

We delivered a joint training event to Police Scotland serious organised crime teams at the Scottish Crime Campus as part of the process of embedding the information sharing agreement between the two bodies.

Reviews were conducted on the operation of the information sharing agreements with Police Scotland and HMRC.

The Society reviewed and monitored the Post Office/Horizon enquiry throughout the year. It was premature to consider if regulatory action was necessary as the inquiry is not yet complete and more information is required. This work will continue in the next operational year.

The Society’s Terms of Business Guidance was updated and came into force on 1 November 2024.

Research on impact of Price Transparency Guidance was concluded, including relevant liaison with SLCC. The findings will be shared with members in the next operating year.

Complete

Proportionate and effective AML supervision
We will communicate and begin the process of implementing the decision of the UK Government regarding the Society's status as an AML supervisor, while continuing to improve AML supervisory processes

The UK Government had not issued its decision on the future of UK AML supervision by the end of our operating year 2023-24. Successful recruitment within the period ensures business continuity and AML supervisory processes continue on a business-as-usual basis while the team await a decision from the UK Government on the future of AML Supervision. 

Our beneficial owners, officers and managers (BOOMS) project plan has been revised in line with legislative change brought into effect in April 2025. The implementation period will be the 2025 calendar year, and the focus remains on the high priority work undertaken by the Society.

Not complete

Route to qualification review
We will continue to work with the profession to explore viable alternative routes to qualification

We undertook work to explore viable alternative routes to qualification which resulted in a proposed route which would require a change to the Admissions Regulations. We were not successful in obtaining approval from the Lord President on the proposals and the Society’s Education and Training (Standards Setting) Sub-committee will reconsider viable alternative routes to qualification in 2024-25.

Not complete