SRA want independence from TLS and Bar separation from BSB

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Paul Philip told MPs that total independence from the Law Society was crucial. “Perception is everything,” he said. “It is all about public perception. And currently the public is confused over who we are. It is difficult to convince them that we are not part of the Law Society.”

Vanessa Davies, director-general of the Bar Standards Board, agreed with Philip that complete separation was necessary – from the Bar Council in her organisation’s case – if public trust and confidence in legal profession regulation were to be maintained.

23,000 and 30,000 people use online provider for divorce.

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The research, which focused on unregulated providers for wills, divorce and intellectual property law, found that on average unregulated providers represent 5% of the paid advice given to address a legal problem.

The proportion was highest in family law, where unregulated providers represent between 10%-13% of the paid advice given.

The research found that unregulated providers offer lower prices on average than their regulated competitors, particularly for wills and divorce.

According to the report, solicitors on average charge £722 for an uncontested divorce compared to £36 to £172 from online divorce providers.

Meanwhile it noted that consumers value the fact that wills and estate administration providers typically conduct home visits.

The report also found that 81% of consumers who had used an unregulated provider were satisfied with the customer service, almost the same level as with regulated providers, where 84% of consumers said they were satisfied.

Pitt said: ‘It is however, very important that consumers make informed decisions to use unregulated providers. They will receive less protection than if using a regulated provider and it is of concern if they are accepting this without realising the lack of consumer protection.’

Legal professional bodies said that the LSB report understated the risks posed by unregulated providers.

Chantal-Aimee Dorries QC, chairman of the Bar Council, said: ‘It is a matter of concern that between 23,000 and 30,000 people, according to the LSB report, are using unregulated online providers when going through a divorce.

Using unqualified and insufficiently insured providers of advice in family matters, which will often involve children, instead of using the services of properly regulated professional lawyers, carries considerable risk for all concerned. Legal regulators must do more to warn consumers about the risks of using the wrong type of legal service provider – unregulated, not properly qualified or insured.’

Catherine Dixon fighting at Justice Committee for TLS

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The Law Society today warned government that now is the ‘wrong time’ for a shakeup of legal services regulation – stressing that the profession will be focusing on supporting its clients through a period of unprecedented change in the wake of last week’s Brexit vote.

Speaking before giving evidence to the House of Commons Justice Committee, chief executive Catherine Dixon pledged that Chancery Lane would work with solicitors, clients, the public and government to support a ‘calm transition’ after the UK voted to leave the EU.

She alerted MPs to what she described as ‘the dangers of picking away at the finely balanced legal services sector when the sector, constitution and economy are going through a period of such unprecedented change’.

She also outlined some of the sectoral issues which will need to be addressed in the event that Article 50 is triggered.

These include: maintaining single market access; enabling solicitors to continue to practise across the EU; maintaining financial services passporting arrangements; ensuring the mutual recognition of judgments; maintaining extradition arrangements including the European Arrest Warrant; and maintaining England and Wales as the jurisdiction of choice, and the use of English and Welsh law across the globe.

The prospect of separation of the SRA and Law Society – along with other legal regulators from their representative bodies – was raised by the Treasury last year, with a consultation expected to be published this summer.

Dixon disagreed with her SRA counterpart Paul Philip during the evidence session over which body should ‘own’ professional standards, legal education and entry into the profession, and the awarding of the professional title of solicitor.

Practising fees to be reduced by 10%

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Solicitors are in line for a near 10 per cent cut in their practising certificate fees, the profession’s joint governing bodies revealed on Friday.

 

“We have reduced the cost of our work very significantly since 2014 and we are committed to further reduction,” said Paul Philip, chief executive of the Solicitors Regulation Authority. “This underpins our wider reform programme, reducing bureaucracy and costs and helping to address the affordability and accessibility of legal services for the public.”

The setting of the practising certificate fee is wrapped up in the highly political relationship between the authority and the Law Society. The latter technically is the front line regulator but it is obliged by legislation to delegate all practical responsibility for regulation to the SRA.

It is understood that senior figures at the regulator are becoming increasingly frustrated for having to set a fee that also takes into account funding for the society’s representation and lobbying work.

The proposed 9 per cent cut to the next fee will go to a three-week consultation. A source at the regulator acknowledged that it would be extremely unlikely that any practising solicitor would object to the cut – however, plenty might suggest that the reduction should be larger.

Veyo salaries were an average of £74,300

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Staff at failed e-conveyancing project paid average £74k

Staff at the Law Society’s failed e-conveyancing business were paid average salaries of nearly £75,000 annually, final account figures for Veyo revealed.

For the year ending October 31, 2015, the ten staff involved with the business were paid a total of £743,000. Ultimately, Veyo went down with losses of more than £11.4 million, most of which was borne by the body that represents solicitors in England and Wales.

The project, which collapsed just six months after launch, has been highly criticised by conveyancing specialist solicitors. Its board of directors included several prominent names from the society’s Chancery Lane headquarters, including the current president, Jonathan Smithers, and the chief executive, Catherine Dixon.

Also driving the project were the former chief executive Des Hudson, who resigned as Veyo chairman four months before the plug was pulled, and Nigel Spencer, another former senior Law Society executive.

Law Society officials were contrite when Veyo sank in December 2015. A spokeswoman told The Times at the time that the organisation was “sorry” for the failure. However, society chiefs did not accept that they were lax in project management and financial controls. “They took steps to reduce operating costs and to ensure that more conveyancing experts were involved in looking at the product’s functionality and usability,” the spokeswoman added.

LSB comments on risk in reducing SRA Handbook to 50 pages

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LSB state that the SRA ‘will need to consider carefully how it manages the risk’ of overwhelming legal firms (and itself) through such a radical exercise as reducing the SRA Handbook to nearer 50 pages.

One common theme arising during the LSB review of the SRA was a concern that consultation outcomes ‘could lead the profession to question whether their views were adequately taken into account’. Various controversial reforms have progressed in the face of strong initial opposition from practitioners and representative bodies.

The Yorkshire Building Society now require CQS

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The Yorkshire Building Society now require CQS accreditation to remain on their panel.

Veyo report released by Law Society

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Extract from Legal Futures

Law Society has made available a summary put together by OC&C of five core principles which should be observed for all future commercial ventures:

  • Understand risks and plan accordingly. This included understanding customer needs based on robust evidence and avoiding “single large investments”;
  • Establish clear and robust governance structures. This included ensuring that those providing governance have the appropriate skills and are “not just purely representing the Law Society’s interests”;
  • Install a capable team with the required skills;
  • Execute effectively and communication regularly. This included ensuring greater transparency to the society’s council and to members; and
  • Follow a clear process for product development.

Rob Hailstone, who runs the Bold Legal Group and has been one of the most outspoken critics of Veyo, said there were still a number of unanswered questions, such as how the market had in fact changed so as to justify the end of Veyo, adding: “There must be something to show for £7m plus – why can’t the source code be obtained from Mastek?”

He continued: “The findings from this fiasco should not just end up producing a pretty standard ‘guidance for commercial ventures’; it should be a wake-up call for the Law Society generally about how it conducts and runs its business (including CQS)…

Flood Re to come into effect from 4th April 2016

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The Law Society has published a very helpful note concerning the introduction of Flood Re.

Flood Re, a new scheme designed jointly by government and insurers that intends to provide people living in flood-prone areas with lower insurance premiums, will come into effect on 4 April 2016.

The introduction of Flood Re is intended to ensure homeowners whose properties are at high flood risk can obtain affordable flood insurance with cover at a set price. However, certain categories of properties will beexcluded from the scheme, including many leasehold flats, small and medium-sized businesses, buy-to-let properties and all properties built after 1 January 2009. The Flood Re regulations set out in some detail those properties that will not be covered by the Flood Re Scheme.

Consumer Protection in Conveyancing

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The Consumer Protection from Unfair Trading Regulations (as amended) (CPR) prohibit businesses from engaging in unfair commercial practices with consumers. The amended regulations came into force on 1 October 2014. Since then, they apply to ‘immoveable property’. As a result, they have a most important impact on the duties of solicitors in conveyancing transactions.

How this applies to conveyancing is the subject of a new Practice Note from The Law Society Law Society Practice note for CPR

In September 2015 the National Trading Standards Estate Agency Team (NTSEAT) produced revised guidance to estate agents – in connection with their obligations under the CPRs. That guidance replaces the Office of Fair Trading 2012 guidance. Even though the revised guidance has been prepared for estate agents and specifically states that it is not aimed at conveyancers or surveyors, it is suggested that parts of the guidance ‘may be relevant and helpful’ to surveyors and conveyancers. You may find it useful to read its guidance.