Legal Services Act

The Legal Services Board has invoked its statutory power to set performance targets for the Office for Legal Complaints – the body that oversees the Legal Ombudsman – because of concerns that current targets are at risk of not being met and there are “inherent structural features [that] are likely to prevent significant improvements in performance being made”.

Legal regulators need to justify the continuing existence of their rules, and not wait for others to argue that they are not needed, the chief executive of the Legal Services Board has said. Richard Moriarty also urged the legal profession to “redouble” its efforts to innovate.

The prospect of a single regulator for the legal market has dimmed after the new chief executive of the Legal Services Board distanced himself from the idea. Richard Moriarty was giving his first interview since taking over from Chris Kenny in February.

The new legal business set up by the founder of Compass Costs – who became head of Quindell Legal Services after it bought Compass – is set to buy two law firms as it expands rapidly as part of a strategy to “take the greed out of the market” by going head to head with claims management companies and other work providers.

Staff working for the Legal Ombudsman will not have to repay hundreds of thousands of pounds of “irregular” benefits they received from their employer, it has been decided. Having sought advice from the Treasury Solicitor, its board agreed that “repayment should not be pursued”.

The Legal Ombudsman is set to consult on allowing third parties to complain about lawyers in certain circumstances, it has emerged. It will also consult on establishing a voluntary scheme that enables unregulated providers to give their customers access to redress

The second alternative business structure to be set up by a US firm in the UK is considering a merger with a firm of forensic accountants, Legal Futures can reveal. Foran Glennon (UK) specialises in insurance work.

Partners in newly listed law firm Gateley will be able to sell 10% of their shares each year from next June as part of their five-year lock-in, it has emerged. The admission document that Gateley published as trading began in its shares this week revealed a plethora of detail about its operation.

The Legal Services Board has urged the frontline regulators to keep a close eye on ‘price transparency’ among lawyers in the wake of a Legal Ombudsman report that said a quarter of complaints it received were triggered by a lack of clarity over fees.

The price of shares in Gateley rose in early trading today as it broke historic new ground as the first UK law firm to list on the stock exchange. The AIM-listed business, which listed at 95p, saw its shares reach 110p initially before easing back to 99p by close of trading.