Law Society challenges SRA over CDS Direct waiver

15 November 2007

The Law Society has today expressed its concern that an SRA decision would give an unregulated body a near monopoly of the telephone advice service offered to vulnerable suspects in police stations.

Andrew Holroyd, President of the Law Society, has written to Peter Williamson, Chair of the SRA Board, to request an explanation of the SRA’s thinking behind the decision to grant a waiver of the rule which prohibits solicitors from providing services to clients through a commercial body which will effectively allow an unregulated limited company to deliver the majority of the LSC’s CDS direct service.

The Law Society has asked the SRA to explain how the public interest concerns underpinning the rule were addressed so that the waiver could be granted without compromising the interests of a client group that is in particular need of independent legal advice.

 The Law Society supported the provisions in the Legal Services Act to permit ABS commercial bodies which would provide legal services subject to strict regulation.  But Des Hudson, Law Society Chief Executive, said “the SRA decision amounts to setting up ABSs through the back door”.

“Parliament has required the establishment of a proper regulatory regime and I am deeply concerned that this decision has been taken before any proper regulatory structure is in place.”

“How can the SRA meet its regulatory obligations, in respect of this organisation given that its powers only cover the solicitors working for the company and do not stretch to regulating the organisation itself.”