The key conclusion from the report is that “the regulatory framework should better reflect the legitimate needs and expectations of more than 90% of the population for whom it is not currently designed”.
The report also makes a number of key observations that are likely to raise eyebrows with some lawyers. For example, “the proposition that legal services are best provided by lawyers would be correct if two further propositions were borne out. First, that lawyers were universally the best providers; and second, that lawyers were universally accessible by all those in need. Unfortunately, neither is the case”.
Key findings
Here are some of the key findings in the report:
- A discrepancy between consumer expectations and the reality of regulatory scope and protection
- The concept of “reserved” legal activities in the regulatory framework is questionable
- There is merit in legal services being assessed for risk to the public interest
- The link between the reserved activities and authorisation through professional titles creates inflexibility and constraints in the current regulatory framework
- The current regulatory framework is insufficiently flexible to apply targeted, proportionate, risk-based and consistent regulation to reflect differences across legal services areas and across time
- There should be a single legal regulator (Legal Services Regulation Authority)
- Regulatory and representative functions should be separated
Recommendations for reform
A number of recommendations have been made in the report to address the findings, which if adopted, would significantly change the way in which the legal sector would operate in the future. Their aim is to enhance consumer access to legal services and provide consumers with more clarity over the regulatory framework and protections.
It will be interesting to see what the government has to say about the report, especially as it recently intimated that a review of legal regulation and the Legal Services Act 2007 was not currently on its agenda. In addition to this, the Legal Services Board has said that it will review how it can utilise the current Legal Services Act to address shortcomings in the current regulatory regime.
The effect of Covid-19 on legal services
The Covid-19 pandemic has raised some real questions over how legal services should be provided in the future, and legal service providers, regulators, and the government must address these or face a backlash from consumers. They will have seen that things can be done more efficiently using information technology and remote working, and will therefore expect these to be adopted where appropriate in the future, perhaps with savings in overheads being passed on to them through a reduction in fees charged.
Conclusion
According to Professor Stephen Mayson; “The current regulatory structure provides an incomplete and limited framework for legal services regulation that is not able in the near-term and beyond to meet the demands and expectations placed on it.”
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