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The Legal Services Bill received Royal Assent on 30 October. The Law Society has welcomed the many concessions made by ministers in the final stages of the bill, which will greatly strengthen the legislation.

Read the Law Society’s comments

Legal Services Bill – overview of changes

The Legal Services Bill has gone through many changes for the better since it was first published in December 2006. The Act now makes it clearer that the primary responsibility for regulation rests with the approved regulators and that the Legal Services Board should only interfere when their actions are deemed unreasonable. The government also now accepts that the Lord Chancellor should consult with the Lord Chief Justice in appointments to the Board.

Complaints handling

Ministers were finally persuaded that lawyers should not be required to pay charges where a complaint has not been upheld and has been dealt with properly in house. This is the so-called 'polluter pays' principle, and we are pleased to see it enshrined in the bill.

Alternative business structures

We are pleased that the government has accepted that access to justice has to be properly considered when new licences are issued. This will be vital in ensuring that the public has access to a wide range of legal services, and that ABSs do not simply cherry-pick the most lucrative.

Legal disciplinary practices

We are also pleased that the Law Society will be allowed to regulate legal disciplinary practices – practices including up to 25 per cent on non-lawyers partners - in advance of the introduction of the ABS regime from 2011. This will enable real benefits for the profession and the public to be realised significantly earlier than would have otherwise have been the case.

These amendments will help to ensure the independence of the legal profession and its regulation from government, which is a key constitutional principle underpinning the rule of law. It now provides a workable basis for achieving Sir David Clementi's aims of modernising the regulatory structure without threatening the independence of the profession, or adding to the costs and complexity of that regulation.

Read a detailed briefing on the Act (PDF, 81kb)

Read previous press releases
Read the background to the review below
Read the parliamentary briefings
E-mail us your comments

Press releases

• Press release on publication of the bill - 24 November 2006
• Legal Services Bill must preserve independence of legal profession - 15 November 2006
• Concerns emphasised about heavy-handed Legal Services Board - 20 June 2006
• Important reforms must not increase cost, complexity of legal services - 24 May 2006
• New regulation strategy aims to raise performance by solicitors - 24 March 2006
• Law Society announces new Chief Executive Regulation - 1 March 2006
• Complaints body wants to reach disadvantaged consumers - 6 February 2006
• Legal profession must be truly independent - 23 January 2006
• Lord Chancellor unveils White Paper - 17 October 2005
• The future of legal services - 22 March 2005
• Champions of the changing face of regulation - 25 February 2005
• Law Society to set up separate bodies for regulation and consumer complaints - 20 January 2005

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Background information

• Legal Services Bill – further progress - 26 June 2007
• Second Reading in the House of Commons – Law Society comment - 4 June 2007
• Third Reading in the Lords – peers make welcome changes - May 2007
• Law Society concerns - January 2007
• Queen's Speech 2006: Law Society commentary - 15 November 2006
• Joint Committee report - July 2006
• Regulation Board press release: Separate powers for regulation and representation sides of Law Society - 19 June 2006
• Joint Committee on the Draft Legal Services Bill - written submissions 19 June 2006
• Joint Committee on the Draft Legal Services Bill - transcripts of oral evidence on the Parliament website.
• Draft Legal Services Bill on the DCA website - 24 May 2006
• Draft Legal Services Bill - May 2006
• Time to speak up - Gazette article - 30 June 2005
• Speech by the Lord Chancellor on Legal Services Reform - DCA website - 08 June 2005
• All systems go - Article by Edward Nally, Law Society president - 1 May 2005
• Clementi and alternative business structures - 31 January 2005
• Good news from Clementi - Article from In Progress magazine, Jan/Feb 2005 issue, by the Law Society - 31 December 2004
• Seizing the day - Gazette article -17 December 2004
• Counting the cost - Gazette article - 17 December 2004
• A better deal for consumers - press release - 15 December 2004
• Clementi Report - 15 December 2004
• Clementi Review - December 2004
• Law Society president heralds new beginning for solicitors - 15 October 2004
• Innovation, best practice and new regulations focus of flagship legal event - 5 October 2004
• Independence and Quality - The Law Society’s response to Sir David Clementi's consultation paper - 1 June 2004
  

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