Falconer hails 'Tesco law' reforms

12 April 2012

Moves to allow supermarkets and other companies to provide legal services, such as divorces, are a "visionary" reform, the Lord Chancellor has said.

Lord Falconer of Thoroton said the controversial Legal Services Bill would benefit the consumer even if it led to the closure of small high street law firms.

The legislation will allow so-called "Tesco law" permitting outside companies to own law firms for the first time. The Bill will also strip the legal profession of its ability to handle complaints against its members.

Complaints-handling arms of the Bar Council and the Law Society will be replaced by an independent Office for Legal Complaints. Lawyers will also be allowed to go into business with other professionals such as accountants and human resources specialists for the first time.

Another new body - the Legal Services Board - will be created to oversee the regulation of the legal profession, while day-to-day control remains within existing professional bodies.

Lord Falconer said: "This is reform with a vision - a vision to put people first. The primary focus of this Bill is to support and protect consumers who in many circumstances find themselves in vulnerable positions when dealing with legal services."

Legal Services Minister Bridget Prentice said: "It will create greater competition which will act as a driver for greater quality and lower prices."

Ministers have previously admitted that smaller firms may be forced to close if large companies move into the legal services market in great numbers.

Lord Falconer said: "I believe it will have an effect. What the effect will be will be entirely determined by the extent to which providers of legal services decide to provide it."

He admitted that the reforms meant the law would no longer be a self-regulating profession. He added: "This marks a very significant change." The Bill is broadly based on recommendations first published in 2004 and the legislation was issued in draft form in May.

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