Regulation of Legal Services (Scotland) Bill approved by Parliament after decade of work

One of the longest legislative processes in Scottish parliamentary history has concluded with new powers which regulators say will better protect clients and the wider legal sector.

The Law Society of Scotland last week commended the approval of the Regulation of Legal Services (Scotland) Bill as it passed the final hurdle at the Scottish Parliament.

A decade of work has gone into developing and honing a Bill which has undergone one of the longest legislative processes ever seen under the devolved Scottish government.

Society President Susan Murray said the new regulations are finally "fit for the 21st century".

The Bill means the Law Society will continue as the independent regulator of Scottish solicitors, as well as gaining new powers to act in the public interest.

What does the Bill mean for Scottish solicitors?

New powers granted to the Law Society will regulate legal businesses and allow officials to investigate complaints against solicitors more quickly. Furthermore, there will be increased powers to suspend solicitors from practice.

A crucial area of reform — welcomed by the Law Society — is the new offence of pretending to be a lawyer, which is comparable to the existing but narrower offence of holding oneself to be a solicitor.

This new offence should, once implemented, give consumers and clients confidence that those they seek advice from will have the necessary knowledge and qualifications.

'Open to political abuse' — Why was the Bill so controversial?

The Bill was born of work undertaken by the Law Society of Scotland back in 2015 and recommendations made by Esther Roberton in her 2018 report: Fit for the Future – Report of the Independent Review of Legal Services Regulation in Scotland

The reporter recommended, against the objections of both the Faculty of Advocates and the Law Society, an independent regular for the legal profession. The Government did not pick up the recommendation and instead focused on building on the existing framework.

Further disagreement followed when concerns were raised about ministerial overreach, giving Scottish Ministers too much power over regulation. The Senators of the College of Justice, in written evidence to the Equalities, Human Rights and Civil Justice Committee, said:

"These proposals are a threat to the independence of the legal profession and the judiciary. It is of critical constitutional importance that there is a legal profession which is willing and able to stand up for the citizen against the government of the day … If the Bill is passed in its current form, Scotland will be viewed internationally as a country whose legal system is open to political abuse."

Lady Dorrian, then Lord Justice Clerk, did not hold back and branded the proposals "constitutionally inept".

At Stage 2, Ministerial powers were removed and there was a focus on the complaints system.

How has the Scottish legal profession reacted?

David Gordon, lay convener of the Law Society of Scotland’s Regulatory Committee, said: “It has taken a decade of campaigning by the Law Society to reach this point. The legislation delivers long overdue changes that allow us to be a faster and more effective regulator and provides for more robust consumer protections.

“The existing regulatory framework, governed largely by legislation over 40 years old, has quite simply not kept pace with the huge changes in the legal services sector and consumers’ expectations. We have an overly complex system, but one that leaves the Law Society without powers that many other regulators have to take action to protect the public interest when needed.

“The new legislation will provide increased clarity and assurance for consumers. Currently anyone, even those with no legal training or qualifications, could call themselves a lawyer and charge for legal advice. This unrestricted use of the title ‘lawyer’ poses a significant risk to consumers who may not differentiate between a ‘solicitor’ and a ‘lawyer’ and could potentially be misled and, if something goes wrong, may have no proper course to redress.

“Of course there is a huge amount of work ahead, but today marks a major milestone in our journey towards a modern, responsive regulatory system that not only boosts public protections, but enhances the reputation of Scottish solicitors and other professionals working within a well-regulated Scottish legal sector.”

The new legislation will assure a regulatory system that is fit for the 21st century, delivering tangible benefits for our clients and creating new opportunities for our members to thrive.

Susan Murray added: “This legislative development is progressive, both for the profession and for consumers of legal services. My thanks go to our Society colleagues, for their significant work on the Bill since its publication early last year.

“The new legislation will assure a regulatory system that is fit for the 21st century, delivering tangible benefits for our clients and creating new opportunities for our members to thrive. We look forward to working with government colleagues and other stakeholders, to ensure that these significant regulatory changes are successfully implemented.”

The Scottish Legal Complaints Commission has similarly welcomed the development.

Neil Stevenson, Chief Executive said, “Since 2016 the SLCC has been calling for improvements to the legal complaints and regulatory system to make it more person-centred and proportionate.

“While we supported proposals for more fundamental reform, we believe these changes are still a significant step forward. We’ve worked with government, MSPs and other stakeholders to make them as strong and effective as possible.

“The SLCC has delivered important improvements in complaint handling within the confines of the existing legislation. We know we could do more to deliver a complaints process that meets the public, the profession and Parliament’s expectations of an efficient and effective system for managing complaints and delivering consumer redress. These reforms give us greater flexibility to achieve that.

“The Bill also makes significant changes to other parts of the SLCC’s role. We become the only regulator with an overview of the whole legal services market.

“The role of the independent consumer panel is enhanced, and we will provide registration for unregulated legal services providers who wish to show their commitment to consumer standards.

“There is a greater focus on prevention and continuous improvement to ensure that lessons from complaints help to improve legal services and reduce the chance of future consumer harm or detriment.

“Ultimately by resolving complaints, raising standards, using insight to support improvement, and driving confidence in legal services, the SLCC will have a vital role in making legal services work for everyone."