Joint Committee on the Draft Legal Services Bill - First Report
Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Lords and the House of Commons to be printed 13 July 2006.
CONTENTS
Terms of Reference
Abstract
Chapter 1: Recommendations
Chapter 2: Introduction and background
Chapter 3: The objectives of regulation
Chapter 4: The new regulatory framework
Chapter 5: Alternative Business Structures
(ABS)
Chapter 6: Legal Complaints
Chapter 7: Financial provisions and costs
Chapter 2: Introduction and background
Background to the draft Bill
Table 1: Background to the draft Bill
The legal profession in England and Wales—size
and reputation
Evidence
Timetable of our inquiry
Assistance from other Parliamentary Committees
Chapter 3: The objectives of regulation
Summary of draft Bill provisions
Box 1: The seven regulatory objectives
Box 2: The professional principles
Relative importance of regulatory objectives
Objective (g) and the professional principles
An additional regulatory objective?
LSB function to educate and promote regulatory
best practice
Chapter 4: The new regulatory framework
Table 2: Clementi's three regulatory models
The need for reform
Figure 1: The "Regulatory Maze"
before the proposed reforms
Figure 2: The "Regulatory Maze"
after the proposed reforms
Separation of regulatory and representative
functions by approved regulators
Independence
Independence of the legal profession from
Government
Box 3: United Nations Basic Principles on
the Role of Lawyers
The perception of independence and government
influence
The impact of perceived lack of independence
The view of individual consumers
The powers of the Secretary of State
The power to appoint the Legal Services Board
If not the Secretary of State, then who?
Principles of the appointments process
The involvement of the Secretary of State
in the regulatory process
Independence of the regulatory structure
from the legal profession
A proportionate and risk-based approach to
regulation
Powers of the Legal Services Board
Table 3: Powers of the LSB
Designation of the LSB as an approved regulator
Approval of fees by the LSB
Consultation with authorised persons: a Practioner
Panel
Appeals against decisions of the LSB
Consumer Panel
Approved regulators
The Master of Faculties
Reserved Legal Activities
Offences in respect of reserved legal activities
Extension of the list of reserved legal activities
Mediation as a legal activity
Claims management and the Compensation Bill
Not-for-profit bodies
Trade unions
Membership organisations
Exemption for legal professionals employed
by Government
Compensation Fund Arrangements
Competition Scrutiny
Chapter 5: Alternative business structures
Summary of provisions
Maintaining quality legal advice under ABSs
Legal disciplinary practices and multi-disciplinary
practices
Table 4: Matrix of possibilities for ABS
firms
Legal disciplinary practices
Multi-disciplinary practices
Conflicts of interest
Conflicts between lawyers and non-lawyers
Safeguards
HoLP/HoFA
Agreements between regulators
Ring-fenced law firms in MDPs
Legal professional privilege
Conflicts between lawyers and shareholders
Fitness to own test
Speed of approach to ABS
Table 5: Staging the introduction of ABS
firms
Pilot scheme/delaying MDP provisions
Impact of ABS provisions
"One-stop shops" for legal and
other services
"Cherry picking" profitable legal
services
The impact of reputation
Impact of a restructuring of the market
Impact on access to justice and the legal
aid network
Impact on regulatory bodies currently licensing
ABSs
International impact
Regulatory "competition" under
ABS
A dual licensing regime?
Chapter 6: Legal Complaints
Separation of service and conduct complaints
Structure and Powers of OLC
Delegation of complaint handling to approved
regulators?
Lay and specialist members
Right of Appeal
Consequential amendments
Name of OLC and the ombudsmen
Establishment of OLC
Transitional arrangements
Compensation redress limit
Awarding redress to third parties
"Polluter pays" principle
Communication between OLC and other bodies
Chapter 7: Financial provisions and costs
The Regulatory Impact Assessment
Start-up and running costs of the LSB and
OLC
Start-up costs
Running costs
The LSB—a "light touch" regulator?
The OLC
Number and cost of complaints
Efficiency Savings
The LSB's levy making powers
Government role in funding the set-up of
the new system
Impact of contributions on small practitioners
Existing funding of regulation and public
policy considerations
Costs to the consumer
Appendix 1: Joint Committee on the Draft
Legal Services Bill
Appendix 2: List of Witnesses
Appendix 3: Call for Evidence
Appendix 4: Letter from the Minister to the
Chairman
Appendix 5: Letter from the Chairman to the
Minister on Human Rights
Appendix 6: Letter from the Minister to the
Chairman on Human Rights
Appendix 7: Memorandum from the Chairman
of the House of Lords Select Committee on the Constitution
Appendix 8: Memorandum from the Chairman
of the House of Lords Select Committee on Delegated Powers and
Regulatory Reform
Appendix 9: Table of Powers of the Secretary
of State (SoS) specified in the Bill
Appendix 10: List of Acronyms
Appendix 11: Formal Minutes
NOTE:
The Report of the Joint Committee is published in
Volume I, HC 1154-I, HL Paper No. 232-I
The Evidence of the Committee is published in Volume
II, HC 1154-II, HL Paper No. 232-II (published 3 August)
References in the text of the Report are as follows:
(Q) refers to a question in oral evidence (Volume
II, HC 1154-II, HL Paper No. 232-II (published 3 August)
(Ev) refers to an evidence submission
EVIDENCE - HC 1154-II, HL 232-II
6 June 2006
8 June 2006
12 June 2006
15 June 2006
19 June 2006
22 June 2006
26 June 2006
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