Legal services framework

 

The Legal Services Act 2007 is reshaping the way legal services are provided and legal practitioners are regulated.  The Act sets out a framework for a consumer-led, market-orientated approach to the provision of legal services, in which representative bodies will no longer deal with complaints about the service provided by their own members.

 

Although wide ranging in its effects the legislation does not end the role of the existing regulators.  But it does require them to restructure themselves and have regard to new, statutory criteria.  The Act establishes the Legal Services Board (LSB) as an oversight regulator for the existing regulators: ILEX, the Law Society, the Bar Council, the Council for Licensed Conveyancers, the Institute of Trade Mark Attorneys, the Chartered Institute of Patent Attorneys and the Association of Law Costs Draftsmen.  The LSB takes over the functions of the Lord Chancellor, Master of the Rolls, Ministry of Justice and other organisations previously involved in regulating lawyers.

 

The LSB must promote the statutory objectives set out in the Act.  These can be accessed here.

 

The Act requires the Approved Regulators to separate their regulatory and representative activities and to ensure that regulation is carried out independently, free from interference by the Approved Regulator.  IPS, the Bar Standards Board (BSB), the Solicitors Regulation Authority (SRA) and the Intellectual Property Regulation Board (IPREG) have been established as the regulatory arms of the Approved Regulators.

 

The Act also sets up licensing rules which make it possible for different types of business structures to be developed to provide legal services.  These are described as Alternative Business Structures (ABS).

 

ABS can be owned, managed or financed by people or organisations who are not lawyers. 

 

The Act also made it possible for different types of lawyer to work together in Legal Disciplinary Practices.  As a result, for the first time, Legal Executives can become full partners in solicitors' firms and to date 62 have already done so.  A small proportion of owners or partners in solicitors' firms can also be non-lawyers.