Legal Services Act

Friday’s Competition and Markets Authority report on legal services has reignited the debate over independent regulation, with both the Solicitors Regulation Authority and Bar Standards Board welcoming the call for separation from their representative bodies.

The government is today laying out plans to remove restrictions on alternative business structures (ABSs) on the basis that they have proven no more risky than traditional law firms. However, it has delayed publication of the consultation on the independence of legal regulators from representative bodies.

The Legal Services Act 2007 has improved quality and, to some extent, competition in legal services, but further legislative reform is necessary to complete the liberalisation of the market, the Legal Services Board said today in its triennial evaluation of the Act.

Redde plc – the AIM-listed accident management company that owns NewLaw Solicitors – has seen its share price bounce back following the post-referendum stock market falls, with the help of a positive trading statement.

A solicitor who failed in his attempt to challenge the Solicitors Regulation Authority’s closure of his alternative business structure is now to face a disciplinary tribunal, it has emerged. Michael John Elsdon is facing 15 charges, largely in relation to his conduct of probate matters.

Making law firms publish details of complaints and average prices on their websites will significantly improve the legal market for clients, the Legal Services Consumer Panel has argued. Its newly published annual report renews the panel’s push for open data, even though the Legal Services Board recently cast doubt on some of its key recommendations.

Unregulated legal services providers are generally cheaper and more innovative than regulated law firms, but consumers need to understand the risks of using them, Legal Services Board research has found. The small scale of the problems they cause is such that the oversight regulator said it would not take steps to introduce regulation.

The Law Society has told MPs that plans to give the Solicitors Regulation Authority (SRA) and other regulators full independence should be shelved because of the uncertainty caused by the EU Referendum. The society and SRA also clashed on the former’s bid to take over control of setting professional standards.

The stock market falls on the back of the EU Referendum has hit an ABS-owning property company the most, as well AIM-listed legal businesses with a personal injury (PI) element, a Legal Futures analysis has shown. The PI hit looks surprising given that the current state of political uncertainty is likely to be good news for the claimant market.

People with complaints about claims management companies (CMCs) are more likely to receive a financial remedy from their credit card provider than the Legal Ombudsman, it has emerged. The most three most complained-about CMCs have since surrendered their authorisation, leaving questions about whether consumers actually receive the compensation ordered.