Risk should be focus of regulation change, SLCC claims

Proposed changes to the regulation of solicitors in Scotland should focus on risk to clients and the public, the Scottish Legal Complaints Commission (SLCC) said today.

The comments come in the SLCC's responses to the two Law Society of Scotland consultations on the future of regulation of the solicitor profession in Scotland, covering entity regulation as opposed to the regulation of individual solicitors, and the future of the Guarantee Fund, to be renamed the Client Protection Fund.

The response, formulated with the assistance of the SLCC's independent legal services consumer panel, supports the Society considering entity regulation, but argues that a more effective approach might be to target the areas of work that generate the most complaints, and claims on the Guarantee Fund, such as conveyancing, along with the issues that most affect clients – failures to communicate, delays, and solicitors not following instructions.

"This approach is most likely to result in proportionate and effective interventions which work for the consumer, the client and the providers of services", it states.

Describing the proposals as “a big opportunity for the Law Society of Scotland and also for the Scottish Government”, as they will require legislative change, the SLCC argues that both bodies should consider a risk based approach that starts with a focus on risk to clients and the public.

It is important, it adds, that any new regulatory regime is “fully evolved, proportionate and targeted”. It should be subject to detailed consultation before any legislative changes are made, and this should also include considering how the other bodies in the sector – itself included – would play their part and what additional powers may be needed. “This could include new ways of working to assist consumer choice and ensure that complaints are addressed effectively”, the SLCC states.

It also observes: "Any decision to introduce regulation must be proportionate and deliver value to clients who ultimately fund all the costs of legal regulation through their fees."

Chief executive Neil Stevenson commented: “The regulation of legal services has developed piecemeal over the last century with each new piece of legislation or regulation building on the last, often with reactive changes to particular problems that had been encountered.

“We support the discussion of entity regulation, but would want to ensure any new legislation delivered real results for users of legal services, results that justify the cost of legislation and of the sector adapting to a new model.

“As an organisation we have a unique insight into the service standards delivered to clients. Analysing over 5,000 cases, we have identified key trends, and use that data in our response to suggest that targeting the areas that lead to greatest regulatory cost across complaints, insurance, and the Guarantee Fund (such as conveyancing), and the issues that most affect clients (like failure to communicate, delays, and failure to follow instructions) might be more appropriate, proportionate and effective than a focus on business models.”

Click here to access the full responses.