Legal Services Act

Kent County Council, which tendered for a joint venture partner to set up alternative business structure last autumn, has narrowed the list of potential candidates to one, it has emerged. The bidder will make a presentation to Kent’s commissioning advisory board in early September.

There is a “compelling case to introduce a new regulatory settlement” for the legal market in the medium term, the Legal Services Board told the government today. A report said it was “increasingly clear” that the absence of full separation between the representative bodies and legal regulators is proving “a strong impediment to progress”.

The agreement between Slater & Gordon’s professional services division (PSD) and the country’s biggest high street insurance broker has come to an end just months after it signed a multi-year renewal.

The Bar Standards Board is to dispense with its ‘list of defaulting solicitors’ and replace it with a new rule allowing barristers to refuse work under the cab-rank rule where there is an “unacceptable risk” that they will not get paid.

The Legal Services Board has approved radical reforms of the separate business rule for solicitors, while noting that the changes “carry some risks to consumers”. Information on the difference between regulated and unregulated services is to be tested with consumers before the change comes into force.

A former high-flying banker, who worked at Lehman Brothers before the crash, has told Legal Futures how he developed a plan to set up a pioneering alternative business structure while travelling in Vietnam. Zahid Hussein said he wants Z Group to be an integrated one-stop shop for SMEs.

Legal regulators have called on the government to make a series of changes to the Legal Services Act that will make it easier to approve and regulate alternative business structures. The move is part of the first output from joint work being done by all of the legal regulators to identify opportunities for deregulation.

Legal Services Board chief executive Richard Moriarty is to leave the post next February after just a year in the role, it was announced today. Mr Moriarty is returning to the Civil Aviation Authority as its deputy chief executive and group director for consumers and markets.

Banks may charge law firms more for borrowing if they abandon their client accounts, the legal regulators have warned. A report submitted to justice minister Shailesh Vara highlighted both the dangers and benefits of allowing choice on whether to handle client money directly.

The need to extend access to justice to those who cannot afford legal services is “already resulting in less involvement by lawyers in many of the tasks that previously made up their staple diet”, the chair of the Legal Services Consumer Panel has said. Elisabeth Davies also suggested that the emergence of professional McKenzie Friends “may repeat itself in other sections of the market”.