A strong and independent legal services sector
In a society built on the rule of law, the legal profession plays an essential part in assisting the public to make the best use of the law and to stay true to its terms. Founded on the core values of integrity, honesty and professionalism, the legal profession is also the defender of the rule of law. In doing so, law firms form a central part of the UK economy.
Competitiveness
The legal profession in England and Wales enjoys an unrivalled international reputation. This reputation is based upon the competence and the quality of service provided by its lawyers and a robust system of regulation which helps them to uphold their core values, while remaining both independent and internationally competitive. All of these qualities must be maintained in order to preserve the high standing of English and Welsh law and its value to the UK exchequer.
The burden of regulation is a continuing concern for many law firms. Whilst the right amount of regulation is essential to protect consumers and to maintain trust in the legal profession, the wrong amount can create excessive constraints and disincentives. The current anti-money laundering regime in particular places significant burdens and costs on the profession which appear disproportionate to the benefits it achieves. It is the client who inevitably has to bear the impact of these costs.
New business models
The legal profession, through the Law Society, supports the development of new business models. There is concern that the imminence of the Legal Services Board's target date for the creation of the first Alternative Business Structures means that potentially significant problems may be overlooked. In particular, there needs to be greater consideration of the implications for access to justice if highly capitalised firms offering a commoditised legal service make it uneconomical for smaller firms to undertake publicly-funded work. There must also be a proper level playing field to ensure that the regulatory regime applying to all firms is fair and provides the right level of protection for clients and for the integrity of the legal system.
Concerns about a level playing field apply also to the unregulated providers of legal services. These providers, often less competent than solicitors and without the protections that regulation provides, can be a danger to the public. Similarly, the growth of referral fees provides a lack of transparency for the public and a real disadvantage in the market place for regulated practitioners.
The Law Society calls on all parties to commit to:
- Maintaining an independent legal profession governed by duties which match the international norms applying to lawyers;
- Accepting the recent House of Lords' recommendations in respect of the anti-money laundering regime;
- Ensuring that the implementation of Alternative Business Structures has a beneficial effect on access to justice and that a level playing field is achieved;
- Supporting a proportionate regulatory regime which will maintain the competitiveness of the legal profession of England and Wales and its global pre-eminence;
- Reviewing the use of referral fees and actively considering their abolition;
- Engaging in a debate about the future of Home Information Packs.