Scottish legal profession

Name of complainant: Which?

Date of complaint: 9 May 2007

Subject of complaint

Which? assert that the following restrictions imposed on providers of legal services in Scotland significantly harm the interests of consumers by stifling choice, inhibiting innovation, and excluding potential entrants from the legal services market:

  • the restrictions on advocates' business structures
  • the restrictions on solicitors and advocates providing services jointly
  • the restrictions on third party entry, and
  • the restrictions on direct access to advocates.

Which? further submitted that the regulatory structure for legal services in Scotland should be reformed in order to accommodate the lifting of these restrictions.

OFT response: 31 July 2007

The OFT concluded that the restrictions are unnecessary and believes that there would be benefits to consumers if they were lifted - such as efficiency gains and higher levels of innovation in the provision of legal services.

The OFT believes that Scottish consumers are disadvantaged by these restrictions on Scottish legal services providers. Given that similar restrictions will be lifted on legal services providers in England and Wales it is timely to ensure that due consideration is given to, and action taken to set in hand, the process that will ensure that consumers and legal services providers in Scotland are not unnecessarily disadvantaged. Both the Faculty of Advocates (FoA) and the Law Society of Scotland (LSS) should carry out wide-ranging reviews of their respective rules and make significant and transparent progress towards lifting the restrictions discussed in this response. The OFT notes that the LSS is already looking at the available options and urges it to continue this work.

Given the circumstances, the OFT believe that it is appropriate for the Scottish Executive (SE) and the Scottish legal profession to take a leading role in taking these issues forward and to consider how these restrictions might best be lifted in Scotland, subject to appropriate safeguards being put in place in order to protect the interests of consumers and the integrity of the profession in Scotland.

Action following response: None

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