Institutes welcome calls for changes to Legal Services Bill

The Legal Services Bill will dramatically overhaul the way that the legal profession is regulated in England and Wales. It creates a new Legal Services Board as the over-arching regulator of the industry, establishes an Office of Legal Complaints and opens up the market to the provision of legal services by other business structures.

A number of areas in the Bill came in for criticism in the report, including the threat to the independence of the legal profession, the estimated cost of the reforms and the “one size fits all” nature of the new regulatory structure.

The Committee’s concerns reflect the views of the Institutes who, whilst supporting the reforms in principle, as two of the smaller approved regulators within the new system have emphasised the need for regulation to be proportionate and flexible in its approach. The report has advocated a number of the suggestions proposed by the Institutes, such as the requirement for the Legal Services Board to set up and consult with a practitioner as well as a consumer panel and the importance of a right of appeal against decisions of the Legal Services Board.

Commenting on the Committee’s report, Barry Treves, President of the CIPA, said:

“Our members are highly skilled professionals in a specialist field. We welcome being part of the new regulatory system. But it is vital that the new system takes account of our excellent client care record and does not leave our profession over-burdened by unnecessary regulations. We are pleased to see that the Joint Committee has picked up on the legitimate concerns voiced by us and other stakeholders and recognised the potential problems in the drafting of the Bill in its current form. We are looking forward to further constructive engagement with the Department on the detail of the Bill.”

President of ITMA, Phil Harris commented:

“We will be liaising closely with Government officials on several areas in the Bill which the Committee rightly recognised were problematic. This is a great opportunity for us to contribute to the shaping of the new regulatory system to ensure that it is fit for purpose, benefits consumers and professionals alike and enhances the UK’s worldwide reputation for a top-quality, independent legal profession. However, it is vital that costs are contained.”

Whilst welcoming many of the report’s recommendations, both ITMA and CIPA felt that the concerns relating to ABSs (alternative business structures) were unjustified and that restrictions on the external use of law firms would deprive the scheme of much of its attractiveness. Proposals to increase the degree of regulatory separation would also impose significant and disproportionate practical and cost burdens on smaller regulators.

NOTES FOR EDITORS
1. The Institute of Trade Mark Attorneys (ITMA) was established in 1934 as the professional body representing those persons qualified to act for the owners of trade mark and allied intellectual property rights (in particular, registered designs) both nationally and internationally. It now represents the vast majority of UK registered trade mark agents and all UK Trade Mark & Design Litigators.

2. Currently ITMA has approximately 500 practising members; it also extends associate membership to professionals in related fields of law and overseas membership to foreign trade mark attorneys. Its total membership (all classes) is about 1600 members, primarily located in the United Kingdom and Europe, but also in more than 50 other countries.

3. ITMA is regularly consulted by UK government and by international bodies when questions affecting trade mark and allied intellectual property rights arise. It has regular meetings with the UK Patent Office, the Community Trade Marks Office (OHIM), the World Intellectual Property Organisation (WIPO) and other sister organisations in Europe and beyond. For more information visit www.itma.org.uk or call 020 8686 2052.

4. The Chartered Institute of Patent Attorneys (CIPA) is a professional body representing Patent Attorneys in the UK. CIPA was founded in 1882 and incorporated by Royal Charter in 1891. For further information contact CIPA, 95 Chancery Lane, London, WC2A 1DT (Tel: 020 7405 9450).

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