Legal Services Act

Widespread doubts exist among barristers over aspects of the Bar Standards Board’s equality and diversity reforms, it emerged last week at a consultation event on proposed code of conduct rule changes, where concerns were raised over details of proposed monitoring requirements.

Some 342 law firms have applied to join the Conveyancing Quality Scheme (CQS) since it opened last month, the Law Society has revealed to Legal Futures. A spokesman said the number is growing rapidly, with around 20 new applications a day at the moment.

A director of the Office of Fair Trading is heading a new committee to oversee the Legal Services Board’s contingency planning to regulate alternative business structures directly, Legal Futures can reveal.

The Legal Services Board (LSB) believes that medium-sized City law firms are likely to be the primary targets for external investors, Legal Futures can reveal. It is one of the predictions in a draft impact assessment of alternative business structures that is still being worked on at the LSB.

Implementation of the Jackson reforms could have an impact on the number of complaints against solicitors, the Legal Ombudsman has told the government. It said ending recoverability could cause consumers “to take more of an interest in their lawyers’ fees”.

Lord Falconer, who as Lord Chancellor steered the Legal Services Act through Parliament, last week warned about the challenges alternative business structures provide for “the preservation of legal ethics”.

Four out of ten barristers’ chambers have flouted a regulatory requirement to notify lay clients of their rights to complain about poor service, amid a continuing furore over difficulties in complying with the scheme, it has emerged. Meanwhile, the Solicitors Regulation Authority has confirmed that solicitors are under no obligation to assist barristers in contacting clients directly in order to meet their obligations.

The Legal Ombudsman (LeO) is to show its claws for the first time by seeking a court order to force a solicitor to provide access to documents, it has emerged. It will be the first use of LeO’s powers under the Legal Services Act.

QualitySolicitors chief executive Craig Holt explains why lawyers need their eyes testing if they underestimate the impact of the Legal Services Act, and how QS aims to build a 30-40% market share.

A bid to create the first solicitors franchise was launched this week. Face2Face Solicitors is initially aimed at small private client law firms and will provide franchisee solicitors with centralised back-office systems – including accounts, IT and regulatory compliance – and central marketing and business development, to enable them to focus on the legal work.

Former Law Society president Ed Nally was today appointed to the Legal Services Board (LSB) to fill a vacancy that has been open for more than a year. Meanwhile, the Solicitors Regulation Authority is to cut around 80 jobs as it prepares for outcomes-focused regulation and the licensing of alternative business structures from 6 October 2011.

The Council for Licensed Conveyancers (CLC) is on course to become the first body licensed to regulate alternative business structures, after submitting its application to the Legal Services Board. The CLC, which oversees 10-15% of the conveyancing market, has also applied to extend the range of reserved activities it regulates from conveyancing and probate to awarding rights of audience and the right to conduct litigation.

Our weekly round-up of other news takes in further expansion at Co-operative Legal Services, two innovations on the paralegal front, “virtual” firms piloting the SRA’s relationship management, and a tricky decision for LSB chairman David Edmonds

Smaller law firms have bucked the downward trend in fees income recorded by the biggest practices in the last couple of years, taking gross fees to a new record level, research released today has suggested. The report by TheCityUK found that the contribution of the legal services sector to the UK’s GDP has doubled in a decade to 1.8%.

Conveyancing, immigration advice, preparing wills and powers of attorney, and estate administration should all become reserved legal activities, a leading thinktank has recommended. However, the report from the Legal Services Institute – headed by Professor Stephen Mayson – says this work should not be the sole preserve of the legally qualified.