Big changes ahead

There are big changes ahead for all those involved in the provision of legal services with the coming into force of the Legal Services Act 2007 (LSA). In addition to reinforcing the importance of high professional standards, the LSA will provide many opportunities for all those who see the need for, and the benefits of, change.

These changes take many forms – to give a few examples:

A new Ombudsman will ensure that consumers have access to independent redress (including the ability to award compensation) when things go wrong;
There is a new ‘oversight’ regulator (the Legal Services Board) to oversee the regulatory activities of bodies such as the Law Society, the Bar Council and the Council of Licensed Conveyancers, with substantial powers to intervene if they are under-performing;
New rules will ensure the separation of those bodies so that they can carry out their regulatory functions independently of their representative functions; and,
Opening the market to competition in the form of alternative business structures (ABSs) enabling, for example, a high street firm to offer accountancy as well as legal services, or a practice with a majority of non-lawyer mangers. An ABS will be able to get external investment – enabling greater investment in, say, new technology; which in turn could provide more flexibility in responding to clients’ needs.

Like them or not, the changes are here and in one way or another will affect everyone – providers of legal services and users of those services. The challenge is to see the opportunities and to start acting now. That might be a review of existing complaints handling or client care to ensure better focus on the consumer and rapid resolution of complaints. It might be considering how ABSs will impact your organisation – even if you don’t want to become an ABS, the impact of increased competition will affect everyone. Or perhaps it will be developing business plans and getting external capital for a new ABS to provide innovative solutions to consumers’ need for different types of advice.

There is no doubt that with opportunities come challenges. The challenge for all is to make these wide-ranging changes work in the best interests of consumers and practitioners.

Fran Gillon is director of regulatory practice at the Legal Services Board. She can be contacted at fran.gillon@legalservicesboard.org.uk