Minister announces Legal Sevices (Scotland) Bill amendment at Law Society roadshow
Fergus Ewing MSP, Minister for Community Safety, announced to solicitors at a Law Society event tonight, Thursday, 18 March that a contentious aspect of the Legal Services (Scotland) Bill is to be dropped following the strength of concern expressed by the Law Society of Scotland that it could compromise independence of the legal profession.
Mr Ewing said that an amendment removing the ability for ministers to set the criteria and proportion of non-solicitor members of the Society’s governing Council, would be brought forward.
The Minister said that it was no longer felt necessary to include this ‘fall back power’ and there would be ‘no ministerial power whatsoever to appoint lay members to the Council of the Law Society of Scotland’.
He also stressed that the Bill was progressing with cross-party support and there would be further amendments brought forward during stages 2 and 3 of the Bill. Amendments relating to McKenzie friends supporting those appearing in court and to unregulated, non solicitor will writers would be considered.
Ian Smart, president of the Law Society of Scotland, said: "This is an important concession and very good news for the profession.
"The government promised to listen to the Society and the profession’s representations and they have done so. We, along with others, have pressed hard for changes to key aspects of the Bill and I am very pleased that the first of these have been taken on board and that amendments will be made.
"We’ve had a constructive working relationship with the government which we want to continue, and we will be seeking further amendments.
"Independence of the legal profession is essential and we have stressed throughout the ABS debate that, along with the profession’s core values and principles, it cannot be compromised. We have also maintained that consumers must be protected and that access to justice is a priority – legal services is not and cannot be seen as a purely commercial activity.
"Tonight’s announcement follows last week’s stage 1 report from the Justice Committee, which recommended strengthening the role of the Lord President to protect the independence of the profession and of prospective approved regulators.
"We also said a Guarantee Fund equivalent for ABSs was required to ensure that there were equivalent consumer protections, which again has been taken on board and the Justice Committee has recommended amendments at stage 2 regarding a compensation fund and fidelity insurance."
The Law Society of Scotland has held a series of events across Scotland to inform solicitors about the Bill. It is currently consulting its members on the detail of the types of new business models that could be permitted and how they should be regulated. Members will also be able to vote on whether the Society should continue to support the plans for reform in a referendum (23 March – 7 April) and at an SGM on 25 March.
Mr Smart added: "We want to see improved access to legal services for the public, one of the stated aims of the Bill, and for the Scottish legal profession to be able to adapt to meet the demands of their clients and continue to grow and thrive in the fast moving and increasingly competitive Scottish, UK and global legal services markets.
"Neither the government or the Society has all the answers and it’s important that the profession has a say in shaping its future. We are currently asking our members what kinds of business options they think should be permitted – from appointing non-solicitor partners to seeking external capital or allowing external ownership – the hotly debated ‘Tesco Law’ option - and, crucially, how they should be regulated to maintain the high standards we expect from solicitors and that would have to apply to other providers of legal services.
"I would urge all of our members to respond to the consultation as well as vote in the upcoming referendum and SGM on alternative business structures."
18 March 2010
NOTES TO EDITORS:
Currently solicitors can only set up in partnership with other solicitors. The Legal Services (Scotland) Bill would allow alternative business models to provide legal services which are currently restricted to solicitors’ practices. E.g. it could allow solicitors to potentially bring in non-solicitors partner or opt to seek external capital to invest in their businesses. It would also potentially permit non-solicitor owners of law firms. All new business models would employ at least one solicitor and would have a solicitor as a head of legal practice to ensure compliance with regulations.
Under the Bill, the Law Society of Scotland would continue to regulate all individual solicitors.
Concerns were expressed that section 92 of the Bill would compromise the independence of the profession as it would allow ministers to set the proportion and criteria for non-solicitor members of the Society’s governing council. This could only happen if the Society failed to make appropriate lay member appointments and after consultation with both the Society’s council and the Lord President.
The Law Society is to hold a referendum of its members on whether it should continue to support the introduction of alternative business structures in Scotland. Its current policy in favour of ABSs, was voted for by members at its AGM in 2008.
The referendum will be a private ballot, one member;one vote, run by the Electoral Reform Services from 23 March to 7 April.
http://www.lawscot.org.uk/Members_Information/abs/referendum.aspx
The Society will also hold an SGM, called by the Scottish Law Agents Society, on ABSs on 25 March at Murrayfield Stadium, Edinburgh.
The Society is currently consulting its members on the types of new business models that could be permitted by the Legal Services (Scotland) Bill and on those businesses that the Society should seek to regulate.
http://www.lawscot.org.uk/Members_Information/abs/
FOR FURTHER INFORMATION:
Please contact Val McEwan on 0131 226 8884 or 07825 206468.
Email:
valeriemcewan@lawscot.org.uk
