Press Release

Law Society commissions review of regulation of law firms

9 October 2008

President of the Law Society, Paul Marsh today announced a review to advise on what is needed to achieve good, modern regulation of law firms. The object will be to produce a series of recommendations aimed at ensuring that legal services are regulated in ways that are effective for consumers, businesses and the legal sector, taking account of the very different requirements of diverse parts of the legal services market. The review will involve wide consultation with all stakeholders and will draw extensively on the experience of the SRA.

Paul Marsh, Law Society President, said: "The profession wants the Society to consider how to optimise regulation in the interests of all. They have told us that they want a regulatory regime that is appropriate, inspires public confidence and supports the development of profitable legal businesses. Solicitors want an effective regulatory system that is relevant to the markets firms operate in, whatever size and location of firm."

Helen Davies, Chair of the Law Society Regulatory Affairs Board, said: "The Clementi reforms addressed the governance of regulation and we fully support its recommendations as implemented in the Legal Services Act. We now need to examine the substance in order to best understand how to deliver regulation which is relevant, works in the interest of those who use and provide legal services and is properly targeted to the risks involved in different sectors. This review will, we hope, set the agenda for all of those responsible for regulating lawyers"

Within the overall project there is a sub-strand focussing on the particular issues involved in the regulation of corporate law firms and how far structures which are based on the need to protect individual consumers are suitable for the very different risks associated with corporate law firms. This work will be supported by a reference group, chaired by the Vice President of the Law Society, Bob Heslett. The reference group will include representatives of large corporate firms and of corporate clients.

For more information contact Melissa Davis in the Law Society press office on 020 73205811