Compl-i - October 2009

Hot topics

The Lord Hunt Review
The Law Society has published Lord Hunt of Wirral’s final report into the regulation of legal services.  Lord Hunt was commissioned in October 2008 by the Law Society to “advise what was needed to establish best modern practice in the regulation of solicitors.”

Please click on this link to view the report. A summary will be provided by way of an e-alert shortly.

The Positive Partnership Initiative
The 360 Legal Group, consisting of 600 law firms, and members of Positive Solutions have launched a joint venture to help Independent Financial Advisers and solicitors in referring business to one another following the rules on partnerships between lawyers and non-lawyers being relaxed.  So far 250 IFA’s have signed up to the scheme, which has seen a huge increase in demand recently, especially from solicitors dealing with pensions, divorce and personal injury work.

Legal Services Board Backs Down on Payments from the Legal Profession
Last month the LSB backed down on plans to recoup 70% of its first year set up costs from the legal profession.  The LSB’s initial proposal was to require 70% to be paid in the first, followed by 20% in the second with the final 10% being claimed in third year.  During consultation the Law Society argued that they had based their financial plans on an equal split between the years and had increased the practising certificate fee to accommodate this.  Following much debate the LSB have decided that the legal professional’s levy could be paid in three equal instalments.  It has also decided that professional bodies should be given greater flexibility allowing them to pay a greater amount or their whole share of the set-up costs in one instalment.  The total cost of establishing the LSB and the Office for Legal Complaints has been estimated at £19.9 million of which at least 80% is likely to be paid by solicitors.