Lord Chancellor unveils 'Tesco Law' reforms - Says President of Law Society of England
The Law Society of England & Wales, in its reaction to the UK Government White Paper of 17 October 2005, welcomes plans for the implementation of the Clementi reforms to enable new forms of legal practice and external investment in law firms.
Kevin Martin, Law Society President, is quoted as saying:
"We are pleased that the Government is finally taking steps to implement reforms. We have long promoted the need for a more flexible, consumer-focussed, legal services market and new business structures for delivering legal services. We recognise that the proposed oversight body ? the Legal Services Board - could reinforce public confidence in the way lawyers are regulated. But if the Government is serious about light touch regulation, it would be better for regulatory powers to be vested directly in the front line regulators such as the Law Society, the Bar Council and ILEX. .... The legal profession has an important role in standing up for individuals against the State and defending the rule of law generally. The new regulatory arrangements need to respect the importance of having an independent legal profession. This means that the composition of the Legal Services Board should be demonstrably independent of Government and the Board should operate with a light touch."
Unveiling the white paper produced in response to the 2004 report from Sir David Clementi, Lord Chancellor Lord Falconer confirmed that the Government will press ahead with the recommendations.
Lord Falconer said: "It is all about creating a system that is entirely consumer-driven."
The reforms, which promise to make the UK by far the most liberal legal market in the world, will allow outside investors to own law firms entirely, subject to a new vetting procedure.
The Government is working on plans to set up a special board to vet the sale of law firms, in a move that is expected to encourage supermarkets, banks and accountants to acquire legal practices.
In addition, law firms will be able to attract minority outside investors.
As expected, the Government will hand responsibility for regulation to a new over-arching body, dubbed the Legal Services Board (LSB), which is expected to cost £ 4m to create.
The body will delegate most regulation to bodies such as the Law Society.
Kevin Martin, Law Society President, is quoted as saying:
"We are pleased that the Government is finally taking steps to implement reforms. We have long promoted the need for a more flexible, consumer-focussed, legal services market and new business structures for delivering legal services. We recognise that the proposed oversight body ? the Legal Services Board - could reinforce public confidence in the way lawyers are regulated. But if the Government is serious about light touch regulation, it would be better for regulatory powers to be vested directly in the front line regulators such as the Law Society, the Bar Council and ILEX. .... The legal profession has an important role in standing up for individuals against the State and defending the rule of law generally. The new regulatory arrangements need to respect the importance of having an independent legal profession. This means that the composition of the Legal Services Board should be demonstrably independent of Government and the Board should operate with a light touch."
Unveiling the white paper produced in response to the 2004 report from Sir David Clementi, Lord Chancellor Lord Falconer confirmed that the Government will press ahead with the recommendations.
Lord Falconer said: "It is all about creating a system that is entirely consumer-driven."
The reforms, which promise to make the UK by far the most liberal legal market in the world, will allow outside investors to own law firms entirely, subject to a new vetting procedure.
The Government is working on plans to set up a special board to vet the sale of law firms, in a move that is expected to encourage supermarkets, banks and accountants to acquire legal practices.
In addition, law firms will be able to attract minority outside investors.
As expected, the Government will hand responsibility for regulation to a new over-arching body, dubbed the Legal Services Board (LSB), which is expected to cost £ 4m to create.
The body will delegate most regulation to bodies such as the Law Society.
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