Maintaining values and integrity key to future regulation

Published on Sunday 21 February 2010 22:03

WHAT is the Law Society for? It is there to create and maintain a professional standard for solicitors in Scotland, which includes representing the interests of the profession and of the public in relation to the profession.

As a membership body, decisions are made by its council, made up of members elected and co-opted from the profession and with four non-solicitor observers. Its key decisions on rules and policies are, as with the policy on alternative business structures (ABSs), made at general meetings and, as with the ABS policy, following consultation with its members.

The 92 responses to the Society's three-month ABS consultation came from individuals and organisations representing thousands of members, such as the In-House Lawyers Group and the law agents, as well as firms large and small which represent the views of thousands of solicitors.

Solicitors, at a conference organised by the Society to debate ABSs, were informed by the justice minister in 2008 that "no change was not an option".

Each and every member was asked to contribute to the consultation on which the Society's ABS policy paper was based, and had the opportunity to vote on the paper at the 2008 AGM. There, 801 votes were for the proposal to support change and introduce ABSs while 132 were against. Approximately 600 of the votes in favour, which included proxy votes, were from some of Scotland's bigger law firms.

The Society's work on ABSs proceeded on the basis of the AGM vote. Not to do so would have been extraordinary action, which would rightly call the Society into question by its members.

The Government's Legal Services Bill has certainly been shaped by the Society's policy paper, but has also been influenced by other factors, not least the enormous changes in business practice by firms and their regulatory environment.

The Society and solicitors' profession was given the opportunity to change or be changed, to get involved in creating the best model for Scotland, or have someone else decide on the future direction of legal services in Scotland.

The Bill is ongoing – the Stage 1 debate is next month – and the Society has consistently made representations on the need for independence of the legal profession, protection of core values and access to justice, and a level playing field for legal service providers.

Indeed, these are all stipulated in the Bill, but the Society has called for the role of the Lord President to be strengthened to ensure independence and seeks assurance of sound client protections.

Clients must be able to expect standards equivalent to those of the Scottish legal profession at the moment. The more we can work together on that, the more likely we will achieve that outcome.

The Scottish Law Agents Society is entitled to call an SGM and the Society can divert the resources it has to organising and holding the meeting. If the profession changes its policy on ABSs, the Society would promote that policy.

The Society is a statutory body and must regulate solicitors. It also intends to apply for the role of "approved regulator" of any new structures as a result of the Bill.

On 12 February, we published a consultation paper on the types of business the Society could regulate and the principles which should be applied. This has gone to all our members as we need their input to develop a regulatory system which works effectively. This work must be done now, so we are urging the profession to give us its views to help determine the kinds of legal service providers the Society should regulate in the future.

While it cannot be disputed a professional body always has a tension between its regulatory and representative roles, it is that tension that binds the profession and maintains its reputation as a profession of value and integrity. For more than a year, the Society has increased focus on its representative role by reviewing services, asking members about services and support, increasing resources and appointing a director of representation and support. Recent research showed that there was support for all current services continuing and more being developed.

Lawyers have always moved with the market and thrived on change, and the profession is for many a profitable business. It is not for the Society to protect that market, but it is for the Society to protect the core values. That is why legal service providers proposed under the Bill must be well regulated and adhere to the professional standards currently upheld.

To make sure that happens, we are creating the opportunity for all solicitors to be involved in the discussions, to respond to the current consultation and to work together to protect independence and core values of the profession.

&#149 Lorna Jack is the chief executive of the Law Society of Scotland.

&#149 This article is a response to the piece run last week by the Scottish Law Agents Society.