Agenda

CMA HAS COMPLETED THE RESEARCH PROJECT ON SCOTTISH LEGAL SERVICES

09/04/2020

 

The UK competition authority, Competition and Markets Authority (CMA), has completed a research project to examine market structure, competition level and regulatory framework in the Scottish legal services sector and recommended a series of regulatory reforms including in informing of consumers on legal service fees and establishing an independent regulatory body.

CMA identified some indicators demonstrating that the Scottish legal services industry may not currently be delivering good outcomes for consumers. Some of the identified indicators are increased consumer complaints, challenging market conditions for solicitors and regulation that is not adequately responding to new market pressures in Scotland. The CMA researched whether there is evidence of a lack of competition among legal service providers in Scotland, looking specifically at the transparency of information on price and quality. This research project built on the previous market studies of CMA conducted on legal services in England and Wales. CMA considers that legal providers should be informing people better on costs, customers should get better value for money and the industry should be competitive. The Authority raised a number of recommendations including:

  • A review by the Law Society of Scotland of the impact of existing price and service transparency guidance, including whether mandatory rules could strengthen the information available.
  • Law firms to be more flexible and innovative with the aim of better adaptation to consumer needs, asking the Law Society of Scotland and the Scottish Government to implement the alternative business structures scheme and for the Scottish government to remove certain restrictive requirements of the scheme.
  • The formation of an independent body to regulate the legal profession, setting standards and handling complaints.

The CMA stated that the Scottish Government will implement the recommendations promptly, but recognizes the challenges of the current environment and the impact of the Covid-19 outbreak.

(CMA Decision – 24.03.2020)