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Draft Legal Services Bill HOUSE OF COMMONS HOUSE OF LORDS Joint Committee on the Draft Legal Services Bill Session 2005–06 Draft Legal Services Bill Volume II: Evidence Ordered to be printed 13 July 2006 and published 3 August 2006 Published by the Authority of the House of Lords and the House of Commons London : The Stationery Office Limited £26.50 HC 1154-II HL Paper 232-II CONTENTS ORAL EVIDENCE Page Office of Fair Trading (OFT) Written evidence (Ev 43) 1 Oral evidence, 6 June 2006 4 Law Society of England and Wales Written evidence Law Society (Ev 03) 14 Oral evidence, 8 June 2006 19 Supplementary written evidence Law Society (Ev 03a) 26 Further supplementary written evidence Law Society (Ev 03b) 26 Further supplementary written evidence Law Society (Ev 03c) 34 Further supplementary written evidence Law Society (Ev 03d) 38 Further supplementary written evidence Law Society (Ev 03e) 41 Further Supplementary written evidence Law Society (Ev 03f) 42 General Council for the Bar of England and Wales Written evidence Bar Council (Ev 01) 43 Oral evidence, 8 June 2006 55 Supplementary written evidence Bar Council (Ev 01a) 63 Further supplementary written evidence Bar Council (Ev 01b) 65 Further supplementary written evidence Bar Council (Ev 01c) 67 Further supplementary written evidence Bar Council (Ev 01d) 70 Further supplementary written evidence Bar Council (Ev 01e) 74 Further supplementary written evidence Bar Council (Ev 01f) 76 National Consumer Council, Which?, Citizens Advice Written evidence National Consumer Council (Ev 04) 78 Written evidence Which? (Ev 21) 81 Oral evidence, 12 June 2006 84 Sir David Clementi Oral evidence, 12 June 2006 93 Written evidence Sir David Clementi (Ev 72) 102 Council for Licensed Conveyancers (CLC), Institute of Legal Executives (ILEX), Institute of Trade Mark Attorneys (ITMA), Chartered Institute of Patent Attorneys (CIPA) Written evidence Council for Licensed Conveyancers (CLC) (Ev 08) 106 Written evidence Institute of Legal Executives (ILEX) (Ev 41) 111 Written evidence Institute of Trade Mark Attorneys (ITMA) and Chartered Institute of Patent Attorneys (CIPA) (Ev 12) 115 Oral evidence, 15 June 2006 121 Supplementary written evidence Legal Executives (ILEX) (Ev 41a) 127 Legal Services Commission and Legal Aid Practitioners Group (LAPG) Written evidence Legal Services Commission (Ev 75) 129 Written evidence Legal Aid Practitioners Group (LAPG) (Ev 02) 131 Oral evidence, 15 June 2006 133 Legal Action Group (LAG) and Law Centres Federation Written evidence Legal Action Group (LAG) (Ev 40) 139 Written evidence Law Centres Federation (Ev 19) 142 Oral evidence, 15 June 2006 143 Lord Chief Justice and Master of the Rolls Oral evidence, 19 June 2006 149 Legal Services Ombudsman for England and Wales and Financial Ombudsman Service (FOS), Written evidence Legal Services Ombudsman (Ev 20) 156 Written evidence Financial Ombudsman Service (FOS) (Ev 18) 160 Oral evidence, 19 June 2006 162 Supplementary written evidence Financial Ombudsman Service (FOS) (Ev 18a) 167 Supplementary written evidence Legal Services Ombudsman (Ev 20a) 169 Law Society Consumer Complaints Board and Law Society Regulation Board Written evidence Law Society Consumer Complaints Board (Ev 68) 171 Written evidence Law Society Regulation Board (Ev 67) 174 Oral evidence, 19 June 2006 179 Supplementary written evidence Law Society Regulation Board (Ev 67a) 183 Bar Standards Board Written evidence (Ev 56) 184 Oral evidence, 19 June 2006 193 Supplementary written evidence (Ev 56d) 197 Co-operative Legal Services, AA Legal Services and Institute of Chartered Accountants in England and Wales (ICAEW) Written evidence Co-operative Legal Services (Ev 66) 199 Written evidence Institute of Chartered Accountants in England and Wales (ICAEW) (Ev 65) 202 Oral evidence, 22 June 2006 205 Federation of Small Businesses, City of London Lawyers (CLLS), Solicitors Sole Practitioners Group (SSPG) and Bar Sole Practitioners Group Written evidence City of London Law Society (Ev 42) 210 Written evidence Solicitors Sole Practitioners Group (SSPG) (Ev 25) 215 Oral evidence, 22 June 2006 220 Written evidence Bar Sole Practitioners Group (Ev 73) 229 Bridget Prentice MP, Parliamentary Under Secretary of State, Department for Constitutional Affairs Oral evidence, 26 June 2006 231 Written evidence (Ev 76) 246 Supplementary written evidence (Ev 76a) 256 WRITTEN EVIDENCE Page Addleshaw Goddard LLP (Ev 81) 215 Advice Services Alliance (Ev 29) 259 Allen and Overy (Ev 34) 261 Amicus (Ev 26) 262 Association of Personal Injury Lawyers (APIL) (Ev 28) 265 Dr Kamlesh Bahl CBE (Ev 35) Simon Baker (Ev 80) 271 Berrymans Lace Mawer (Ev 82) 276 Bird and Bird (Ev 23) 214 British and Irish Ombudsman Association (BIOA) (Ev 15) 278 British Printing Industries Federation (BPIF) (Ev 39) 279 Charles Russell LLP (Ev 49) 215 C S Caisley (Ev 05) 282 Clifford Chance (Ev 36) 283 Cobbetts LLP (Ev 59) 285 Complaints Against Solicitors, action for Independent Adjudication (CASIA) (Ev 33) 286 Sarah Cook (Ev 27) 288 Dr Bernhard Dombek (Ev 70) 289 Dechert LLP (Ev 44) 215 Eifion Edwards (Ev 17) 290 Epoq Group (Ev 45) 295 Fishburns (Ev 47) 297 Freshfields Bruckhaus Deringer (Ev 24) 214 Hampshire Incorporated Law Society (Ev 54) 301 HIPS(97) (Ev 06) 301 Holman Fenwick & William (Ev 48) 215 JUSTICE (Ev 10) 302 John Kirkhope (Ev 30) 303 Law Society of Scotland (Ev 51) 303 Lovells (Ev 38) 214 Robin Makin (Ev 09) 304 Guy Mansfield QC (Ev 77) 314 Master of Faculties (Ev 11) 325 Mayer Browne, Rowe and Maw LLP (Ev 07) 326 Medical Protection Society (MPS) (Ev 32) 326 Mercer (Ev 61) 328 David Morgan (Ev 52) 329 Notaries Society (Ev 31) 331 Olswang (Ev 50) 333 Professional Negligence Lawyers’ Association (PNLA) (Ev 58) 333 PricewaterhouseCoopers (PwC) (Ev 46) 335 Resolution (Ev 55) 337 RMT (Ev 78) 342 Reform of Complaints Against Solicitors (ROCAS) (Ev 13) 343 Royal Institute of Chartered Surveyors (RICS) (Ev 53) 346 Slaughter and May (Ev 22) 214 Society of Legal Scholars (Ev 74) 346 Solicitors Disciplinary Tribunal (Ev 69) 348 Mr William Taylor (Ev 16) 350 TUC (Ev 57) 351 Mr David Wolfe (Ev 37) 354 Young Legal Aid Lawyers (YLAL) (Ev 60) 357 Evidence received by the Joint Committee but not printed can be inspected in the House of Lords Record Office (020-7219 2333), e-mail [email protected] 3435523001 Page Type [Ex 1] 31-07-06 10:23:55 Pag Table: LOENEW PPSysB Unit: 1PAG Minutes of Evidence TAKEN BEFORE THE JOINT COMMITTEE ON THE DRAFT LEGAL SERVICES BILL TUESDAY 6 JUNE 2006 Present Bach, L Mr David Burrowes Campbell of Alloway, L Michael Jabez Foster Henig, B Stephen Hesford Hunt of Wirral, L (Chairman) Mr David Kidney Neill of Bladen, L Emily Thornberry In Attendance: Mr Nigel Reeder,andMr Alasdair Wallace, members of the Draft Legal Services Bill Team. Memorandum by the Office of Fair Trading (Ev 43) 1. Introduction 1. The OYce of Fair Trading fully supports the Draft Legal Services Bill. In our view, the Draft Bill represents a significant opportunity to improve current arrangements for the regulation and delivery of legal services in England and Wales. The legal professions need reformto e nhance competition and improve choice for their clients and to ensure that consumers are properly protected when things go wrong. Regulatory arrangements that allow lawyers freedom to develop new, better and more eYcient ways of supplying legal and other services are likely to serve the needs of consumers in England and Wales better and to improve the capacity of lawyers and other professionals to better compete in markets that are increasingly international. We welcome this opportunity to contribute to scrutiny of the Draft Bill by the Joint Committee. OFT gave oral evidence to the Joint Committee on 6 June 2006. OFT involvement 2. OFT has been actively involved in advocating pro-competitive reform of the legal professions for some years. In March 2001, OFT’s report Competition in professions challenged a number of restrictions on the provision of legal services both in professional rules and in statute.1 A progress report in April 20022 noted some reform of anticompetitive rules by professional bodies but noted that significant restrictions remained in particular with regard to business structure.3 Restrictions that remain to be addressed are: — the prohibition on partnership between barristers and between barristers and other professionals, including other lawyers; — the prohibition on sharing of fees between solicitors and other professionals; — the prohibition on solicitors in employment to non-solicitors providing services to third party clients; and — the prohibition on barristers providing litigation services to third parties. 3. An important principle of our work in this area is that it is not for us to dictate how lawyers should or should not supply services. The manner in which goods and services are supplied is generally best determined by unfettered competition between suppliers for the custom of consumers. The freedom to compete that results can only benefit suppliers and consumers. Where rules are necessary, for example to protect vulnerable consumers, it will be important to ensure that these are no more restrictive than necessary to meet that objective. This cannot be guaranteed where the task of making professional rules is the sole preserve of the professional bodies which represent the interests of suppliers, and in the absence of eVective independent oversight. 1 OFT 328 available on our website at www.oft.gov.uk 2 OFT 385 available on our website at www.oft.gov.uk 3 OFT 722 available on our website at www.oft.gov.uk 3435523001 Page Type [E] 31-07-06 10:23:55 Pag Table: LOENEW PPSysB Unit: 1PAG 2 joint committee on the draft legal services bill: evidence 6 June 2006 Key Proposals in the draft Bill 4. Provisions in the Draft Bill fall into three main areas: regulatory framework; alternative business structures; complaints handling.
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