Legal Services Act

Will writers have become the first practitioners to sign up to a new register of paralegals, which is set to be launched next month as part of an effort to set standards for the non-authorised legal professionals.

Slater & Gordon’s shares collapsed by 25% today after it confirmed that its audit process was under scrutiny by the Australian Securities and Investments Commission (ASIC) and that it had made errors in the accounts for its UK arm.

Slater & Gordon has fought back hard against continuing questions about its £637m acquisition of Quindell’s professional services division – which have hit its share price – revealing it expects PSD to handle 95,000 road traffic cases next year. It said there have been “no material negative surprises” since formally taking over last month.

The barrister acting for shareholders suing RBS and Tesco has been appointed as lead counsel for the potential group action being brought against Quindell. Your Legal Friend – the consumer brand of Liverpool firm Camps – has already registered more than 500 shareholders interested in joining the action

Clerksroom Direct, the online service matching direct access barristers to members of the public, has had 170 approaches so far this month, with half converting to paid work at higher average rates than expected, it has emerged.

The Quality Assurance Scheme for Advocates (QASA) is finally set to go ahead after the Supreme Court ruled that it was “the only way” to protect all members of the public involved in criminal proceedings “at an upper level”. But it has been claimed that the decision will make it harder for similar schemes to be introduced for other areas of law.

The Financial Conduct Authority (FCA) has launched an investigation into public statements made by Quindell about its accounts during 2013 and 2014, it was announced this morning. Separately Quindell has requested a temporary suspension of its shares, while also starting a review of “a number of the company’s historic transactions and acquisitions”.

An alternative business structure (ABS) set up by well-known legal expenses insurer ULR Additions has been closed down as part of a shift in business strategy by its new owners. Our round-up of ABS news also reports on expansion at Knights, a strategic move by Ascent and new partnership for Co-op Legal Services.

A team of legal executives who were once a debt recovery arm of Eversheds, has launched an alternative business structure to bring litigation in-house under the supervision of its FILEx head of legal practice.

Consumers are being misled by dubious practices in online reviews and endorsements, while more than half of buyers of services are swayed by them, according to an investigation by the Competition and Markets Authority.

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”.