The governing body for Scottish solicitors has pledged to issue landmark recommendations by the end of February which could trigger a revolution in the way legal services are delivered in Scotland.
Speaking at a landmark conference in Edinburgh, Law Society of Scotland president Richard Henderson conceded that the organisation needs to respond quickly to urgent calls for reform of Scotland's closed shop, which prevents organisations such as banks and supermarkets from offering legal services and bans Scots lawyers from seeking external capital or forming partnerships with other professionals.
A society consultation paper discussing the reform options is planned for late October. Henderson said the ruling council plans to issue draft policy recommendations by the end of February.
Yesterday's event at the National Gallery of Scot- land, "The Public Interest, Delivering Scottish Legal Services", was acknowledged to be one of the most important forums the society has ever staged.
In England and Wales, reforms collectively dubbed "Tesco Law" are set to take effect in 2010 and Scotland is under pressure to produce its own blueprint for change.
As The Herald reported yesterday, Justice Secretary Kenny MacAskill is obliged to act after the OFT upheld calls by consumer watchdog Which? for reform of Scotland's legal services market.
A "super complaint" lodged with the OFT in May by Which? had recommended the watchdog address fears that the current regulation of Scottish legal firms is hindering competition in the market, restricting choice and pushing up the price.
MacAskill must respond to the OFT by December. He told yesterday's conference that he expects Scotland's legal profession, not its government, to plot the way forward, but left the society in no doubt that he expects action soon. "You do not have the luxury of endless time to decide," said the Justice Secretary. "I shall be meeting Law Society officials within the week and expect to hear a positive outcome."
The debate around so-called "alternative business structures" is a deeply divisive one among lawyers. There are fears that many small Scots firms could be wiped out by a competitive free-for-all and that permitting external ownership could compromise professional integrity.
This was evident during a question-and-answer session attended by Julia Clark of Which?, architect of the super-complaint. She was howled down with cries of "rubbish" when pressed by a representative of the society's in-house lawyers' group over precisely how banks and building societies offering legal services would be policed.
"You proposed this, you should have some sort of concept about how this will work," Clark was told.
As expected, defenders of the status quo were given short shrift by Sean Williams, executive director for markets and projects at the OFT.
He was asked whether the watchdog would act to block wealthy organisations such as banks from elbowing their way into the legal services market through what one delegate called "predatory pricing".
Williams countered by demanding to know why Scotland's legal services sector should be protected from competition if this was in the interests of clients.
"To say we should prohibit entry by very major suppliers because they have deeper pockets is a route to a smaller profession," Williams said.
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