The government is reforming the regulatory framework for legal services in order to put the consumer first. We want a framework that promotes competition, innovation and protects the consumer. To this effect, The Legal Services Bill was introduced to Parliament on the 23 November 2006. You can read the Bill, its associated documents and monitor its progress
In July 2003, Sir David Clementi was appointed to carry out an independent review of the regulatory framework for legal services in England and Wales. In December 2004, Sir David published a Report following his Review. The government broadly accepted the main recommendations of the review.
By Rob Baldwin, Julia Black, Martin Cave, Richard Brealey, Julian R Franks, Paul A. Grout, James Dow and Carlos Lapuerto, Jordi Blanes i Vidal, Ian Jewitt, Clare Leaver and Stephen Davies.
Following publication of Sir David's report a number of stakeholders saw a need for further analysis to underpin some of Sir David's main recommendations. The Department therefore commissioned leading academics to carry out independent investigations of issues around the recommendations.
Specifically, the Department asked for investigations around:
The academics presented their work to the Department in July 2005.
The Government is now taking forward the full Bill and legislation will follow as soon as Parliamentary time allows.
| 25 September 2006 |
On 25 September 2006, the Government published its response to the Joint Committee's report on the draft Legal Services Bill. The Government is now taking forward the full Bill and legislation will follow as soon as Parliamentary time allows.
| 25 July 2006 |
On 25 July 2006, the Government confirmed it was considering the Joint Committee's recommendations on the
draft Legal Services Bill.
| 26 June 2006 |
On 26 June 2006, the Secretary of State for Constitutional Affairs made a written ministerial statement announcing that the preferred location for the proposed Office for Legal Complaints as set out in the draft Legal Services Bill, is the West Midlands.
| 24 May 2006 |
On Wednesday 24 May 2006 the Government published the draft Legal Services
Bill. This builds on the proposals laid out in the White Paper and is the
first step in delivery of those reforms of the regulation of legal services
in England and Wales.
The Government also commissioned PriceWaterHouseCoopers to provide further financial analysis of the costs of the proposals set out in the draft Bill. Two financial reports were produced. The first "Financial analysis to support the draft Legal Services Bill" was published in May 2006. The second " Financial Analysis on Compensation Fund Options for the Legal Services Sector" was published in June 2006.
Accessible version of report in 6 parts to download more quickly:
How we will do this
We will reform the regulatory framework for legal services to put the consumer first by setting up the Legal Services Board to:
We will establish the Office for Legal Complaints - a new, single, independent complaints body subject to oversight by the Legal Services Board - which will:
We will enable lawyers from different front-line bodies, for example solicitors and barristers, to work together in law practices on an equal footing. Non-lawyers would be allowed to work as managers of legal practices, and also to participate in such practices as owners and investors.
We published a white paper, "The Future of Legal Services: Putting the Consumer First", on 17 October 2005. It sets out proposals for the regulatory reform of legal services in England and Wales.
Accessible version of report in 3 parts to download more quickly:
A draft Bill was laid in Parliament on 24 May 2006 for Pre-Legislative Scrutiny this Session, setting out in legislation the first step in delivery of the proposals put forward in the White Paper.
Background to reform
In March 2001 the OFT produced a report "Competition in Professions" which recommended that unjustified restriction on competition should be removed.
The government responded with a consultation paper and report into competition and regulation in the legal services market.
The report concluded that "the current framework is out-dated, inflexible, over-complex and insufficiently accountable or transparent... Government has therefore decided that a thorough and independent investigation without reservation is needed".
Useful Links:
Regulatory review of legal services
In July 2003, Sir David Clementi was appointed to carry out an independent review of the regulatory framework for legal services in England and Wales. The terms of reference were:
In December 2004, Sir David published a Report following his Review. The government broadly accepted the main recommendations of the review. These were:
Useful links:
Commissioned Research
Following publication of Sir David's Report, a number of stakeholders saw a need for further analysis to underpin some of Sir David's main recommendations. The Department therefore commissioned leading academics to carry out independent investigations of issues around the recommendations.
Specifically, the Department asked for investigations around:
Contact us:
If you have any comments on legal services reform please email us