'Tesco law' set to open up legal services

Published on Wednesday 10 March 2010 21:58

ALTERNATIVE business structures will allow Scottish law firms to be owned by non-lawyers, ending a restriction that has existed for centuries.

The deregulation, which has already taken place in England and Wales, could allow banks and supermarkets to operate legal services in Scotland, a move that has led some onlookers to describe the development as "Tesco law".

The changes are currently before the Scottish Parliament as part of the Legal Services Bill and are largely endorsed by the Law Society, with its position based on a vote taken at its AGM in 2008, which saw solicitors overwhelmingly back the move.

However, lately some smaller firms have sought to retreat from that stance, complaining that the approval was effectively "railroaded" through the AGM by the large proxy votes of Scotland's larger firms.

Some have specific fears about Section 92 of the bill, which critics say will allow Scottish ministers unfettered power to install non-lawyers on the society's council. This, they argue, will diminish the independence of Scottish solicitors.

The Law Society insists the changes will still see lawyers given a majority vote on the council and denies it will damage lawyers' independence.