Legal services proposals pull back from Roberton reform

The Law Society of Scotland and Faculty of Advocates should retain their existing regulatory functions; a more risk based and proportionate system for legal complaints should be implemented; and protection should be given to the use of the term "lawyer".

These are among the headline conclusions in the Scottish Government's response, published today, to the consultation analysis on reforms to the regulation of legal services.

The Society described the announcement as "good news, both for consumers and for the Scottish legal sector". The Scottish Legal Complaints Commission, which had strongly backed the recommendation in the Roberton report for a new independent regulator for legal services, said it welcomed the proposals for the complaints system but "had hoped to see more fundamental reform".

The revised model put forward by the Government involves:

• First, "a modern, forward-looking model for legal services regulation, which will build on the existing framework". Existing regulators should retain their regulatory functions, with a greater statutory requirement to incorporate "independence, transparency and proportionate and risk-based accountability". Evidence of improvements must be gathered.
• Secondly, reforms in key areas to bring a "more risk-based and proportionate system for legal complaints"; greater protections for consumers, particularly through entity and title regulation; and reduced restrictions in respect of legal business structures, to place them on an equal footing with counterparts within the UK and other jurisdictions – all placing consumer interests "at the heart of regulation, while incorporating appropriate checks and balances that deliver a balance between the independence of the legal profession with their duty to work in the public interest".

The Lord President should maintain responsibility for prescribing the criteria and procedure for admission to the legal professions, the approval of changes to practice rules and an overarching role in the regulatory framework, protecting the independence of the legal profession.

Further, a modern set of regulatory objectives and professional principles should apply to all branches of the legal profession, supporting an increased focus on quality assurance, continuous improvement and proportionate risk-based regulation.

Community Safety Minister Elena Whitham said: "The Scottish Government wants a modern, forward-looking regulatory framework that will promote competition, innovation and public and consumer interests in an efficient, effective and independent legal sector.

"Measures that instil greater consumer confidence, such as preventing people struck off from referring to themselves as lawyers will give consumers and members of the legal profession greater protection.

"The Scottish Government is committed to reform, and will continue to engage with stakeholders representing the consumer and legal perspective taking that forward."

Murray Etherington, President of the Law Society of Scotland, said the announcement was "good news, both for consumers and for the Scottish legal sector". 

He added: "After years of reviews and consultation, next year’s bill offers the chance to deliver many of the changes we need and have pushed for."

David Gordon, the non-solicitor convener of the Society's Regulatory Committee said: "We are proud of our track record in maintaining professional standards and protecting the public. This is why we are so pleased to get confirmation from ministers that the Law Society will continue as the regulator of Scottish solicitors and do so independently from the state.  This is a big and important vote of confidence in the work we do."

Neil Stevenson, chief executive of the SLCC, responded: "We had hoped to see more fundamental reform to better reflect the legal services sector of today and of the future. We also saw opportunities to drive efficiency by reducing existing duplication of processes, functions and back-office systems across multiple bodies which have not been delivered. 

"However, we do believe these proposals could help to create a more efficient and proportionate complaints system, one that resolves complaints swiftly and draws learning from them to drive improvement. Proposals to improve transparency and accountability across the regulatory system are also very welcome."

Read the Government's full response.