The British government has definitly ruled out the reform of the Legal Services Act .
Justice minister Lord Keen of Elie QC has said that no commitment will be given for holding a formal review of the regulatory framework right now, stating that it was not the right time for initiating legislative change.
The Competition and Markets Authority had recommended last year that the Ministry of Justice review the independence of regulators in the immediate future and in the long term, review the overall system of regulation of legal services.
However these proposals are now not likely to go forward with Elie rejecting them in his formal response to the CMA report.
Review Can Be Done Within Current Framework
In his response, the minister said that the sector can bring in changes within the existing framework, itself, highlighting the role of the overseeing regulator Legal Services Board which is currently reviewing governance rules between the Law Society and Solicitors Regulation Authority and also if the Legal Services Act is working as desired.
Elie noted that with the LSB moving forward on its review, there could be “further clarity around regulatory independence” within the current framework. He added that the ministry will monitor developments and take further action if needed.
In regards to the long term review of the regulatory framework, Elie reported that the government will “continue to reflect” on the need for such a review but highlighted that improvements can be effect with “incremental change”.
The government response is not surprising since the LSB stated this month the UK government’s focus for the next three years would be primarily on managing the UK’s exit from the European Union.
Uncertainty For Trade And Business Must Be Avoided
Law Society president Joe Egan supported the stance that a total overhaul was not needed
He stated that with the UK facing “one of the biggest constitutional challenges in living memory”, uncertainty for business should be reduced. He added that “unnecessary disruption of the legal sector” would not be in national interest.
Provisions Involving Use of Unauthorised Legal Services Providers To be Reviewed
Elie’s response however noted that the government had accepted the recommendation that a review must be done regarding redress available to consumers who have used unauthorised providers of legal services.
Under current rules, clients who have used such providers are not allowed to file complaints with the Legal Ombudsman, while clients of regulated firms can do so.
Elie noted that currently there was a disparity with respect to the redress available to consumers related to their choice of service provider which must be addressed.
