CMA calls for further reform in the legal services sector
In a review of progress made since its 2016 market study of the legal services sector in England and Wales, the Competition & Markets Authority (CMA) has called for further reforms to improve the transparency of legal firms and strengthen consumer protections.
The review found that despite ‘clear signs of progress’, requiring firms to publish pricing information has made little impact on competition in the sector. The CMA now recommends that the Legal Services Board (LSB) should address some aspects of the market study that still require action, such as firms providing more information about the quality of their services. The CMA also recommends that the Ministry of Justice (MoJ) should establish a mandatory public register of unregulated service providers and require them to provide ‘appropriate redress’ in the event of poor or negligent services. In addition, the LSB should review the activities of certain legal services providers to ensure that any restrictions are necessary and proportionate. The review notes that the Government has not acted on the CMA’s call for a review of the Legal Services Act 2007, and stresses that wholesale reform of the Act is needed, particularly as there are signs of growth in the unregulated sector. The CMA is encouraging the MoJ, the LSB and other legal services regulators to continue to work towards reform and to make sure the sector works well for consumers long into the future. Read more about the review at: http://bit.ly/3s4Rult
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