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OFT welcomes proposals for future of Scotland's legal profession

178/07    19 December 2007

The OFT has today welcomed the Scottish Government's clear commitment to change within Scotland's legal profession.

The Justice Secretary has responded to the OFT report which concluded that current restrictions on business structures in the Scottish legal services market should be lifted, to allow solicitors and advocates to adopt the structures which will deliver the most efficient service for individual consumers and for businesses.

In Scotland there are currently restrictions on:

• advocates' business structures
• solicitors and advocates providing services jointly
• third party entry into the market, and
• direct consumer access to advocates.

In May this year, consumer body Which? submitted a super-complaint to the OFT, which argued that these restrictions prevented legal services providers in Scotland from adapting their business to best fit the needs of Scottish consumers. The OFT concluded that these restrictions disadvantaged Scottish consumers, were unnecessary and believed that if they were lifted there would be real benefits to consumers, including efficiency gains and higher levels of innovation in the provision of Scottish legal services. The OFT submitted recommendations to the Scottish Government in July looking for a policy statement by the end of the year.

Download the OFT response to Which's super-complaint (pdf 138 kb).

The Scottish Government has today made clear that solutions need to be found to allow Scottish law firms to be able to compete internationally, and that Scotland's legal system should be more attractive to major businesses. They are also looking to early progress on potential new models for Scottish legal services.

Speaking after meeting Justice Secretary Kenny MacAskill in Edinburgh today, OFT Chairman Philip Collins said :

'We welcome the Scottish Government's commitment to change in the structures for legal services which will address the interests of both Scottish consumers and Scotland's legal profession. This is a very positive response and we particularly welcome the commitment to early progress in this matter'.

OFT Representative in Scotland, Kyla Brand, said:

'Scotland's legal services are hugely important for individuals and businesses and we want to see them grow and innovate, and compete on equal terms with providers across the UK. The commitment to work for a Scottish solution to address the issues affecting the Scottish legal profession is most welcome.'

NOTES

1. The right to submit super-complaints was created by section 11 of the Enterprise Act 2002. A super-complaint is defined under section 11(1) of the Act as a complaint submitted by a designated consumer body that 'any feature or combination of features, of a market in the United Kingdom for goods or services is or appears to be significantly harming the interests of consumers.'

2. On 8 May 2007 Which? submitted a super-complaint to the OFT on restrictions imposed on providers of legal services in Scotland. See the Which? website for details. Section 11(2) of the Act requires the OFT, within 90 days of receiving a super-complaint, to publish a reasoned response saying what action, if any, it proposes to take.

3. For more details of the Scottish Government's response to the OFT proposals, go to the Scottish Government's website.

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