The Law Society today
welcomed the Government's decision to pass responsibility for the
regulation of claims management companies to the Justice Secretary,
Ken Clarke. The move follows a review by the Cabinet Secretary
which identified potential for perceived conflicts of interest for
Justice Minister Jonathan Djanogly, due to his family involvement
in claims management companies.
The Law Society also
called for a pause in the passage of the legislation currently
before Parliament to ensure that it does not wreak havoc on access
to justice. Despite the Cabinet Secretary's findings, Mr Djanogly
retains responsibility for steering the Legal Aid, Sentencing and
Punishment of Offenders Bill through the House of Commons,
notwithstanding its impact on claims management companies and the
insurance sector, the very financial interests identified in the
Cabinet Secretary's report.
Law Society Chief
Executive, Desmond Hudson said:
'It is important that
political noise concerning the Minister's perceived potential
conflicts of interest should not distract attention from the
vitally important task of improving the Bill.
“The decision for
the Cabinet Secretary to insulate the Minister from regulation of
the claims management sector appeared to be a straightforward one.
The Justice Secretary on the other hand has a bigger decision to
make. Does he press on regardless with this substantially flawed
legislation or does he take the opportunity for a pause to examine
the evidence which indicates that, unless substantially amended, it
will fail to deliver the hoped-for savings and may wreak havoc on
access to justice for thousands each year.