Committee
Equalities, Human Rights and Civil Justice Committee 21 January 2025
21 Jan 2025 · S6 · Equalities, Human Rights and Civil Justice Committee
Item of business
Regulation of Legal Services (Scotland) Bill: Stage 2
The Scottish Government recognised the differing views on the primary recommendation in Esther Roberton’s report, so it committed to seeking a wide range of views through consultation to inform the shape and extent of the reform. The bill takes a proportionate approach that seeks to balance and deliver the key priorities of all stakeholders, and it has been shaped by the responses to the consultation. As I said in my opening statement, we have had to balance those differing views as we aim to modernise the regulatory system. The consultation highlighted that views were evenly split between support for and opposition to the primary recommendation. However, it is important to state that there are many areas where there is broad agreement between stakeholders, such as the introduction of entity regulation, protections around the title “lawyer”, and improvements to the complaints system. It is agreed on both sides of the polarised debate that reform is long overdue and is needed through the bill. The bill will require that regulators of legal services exercise regulatory functions independently of other functions and activities. By removing complaints handling from regulators, the bill reflects the position that 60 per cent of the respondents supported, retaining and improving the current position in respect of responsibility for complaints handling. It was considered important that the body that is responsible for setting the rules deals with conduct complaints in relation to failure to adhere to those rules. The SLCC will remain the single gateway for all legal complaints against legal practitioners for consumers of legal services, with a limited exception. When a complaint is identified by a regulator, it will be able to investigate it immediately. The bill will introduce a more efficient and flexible system to allow complaints to be dealt with more swiftly. The Scottish Government has given very careful consideration to which bodies should have responsibility for investigating conduct, services and regulatory complaints. Although there is general agreement that improvement is needed, there is again significant divergence in views on what that improvement should look like. I think that everybody appreciates the need to find a balance as the bill progresses. The bill retains a multi-agency approach, but it introduces changes that will vastly simplify and strengthen the process to the benefit of consumers, practitioners and the bodies that are responsible for handling complaints. The bill establishes a new legislative framework that will allow the SLCC to design its own flexible and responsive complaints system. It is intended that a proportionate system will be created for processing complaints. The bill will also remove steps in the current system that slow down the investigation of complaints by allowing the Law Society and the Faculty of Advocates to raise a complaint and directly investigate it without first going through the SLCC in certain circumstances. The introduction of those new systems, as well as the new ability for the SLCC or the regulator to initiate its own complaints, will be hugely beneficial for consumers and practitioners alike. The Scottish Legal Complaints Commission currently has a role in monitoring trends in legal complaints and making regulations with which the regulator does not have to comply. The bill will build on that in providing greater independent oversight of complaints handling by allowing the SLCC to set minimum standards in consultation with the regulators and the Lord President. That will ensure consistency and best practice in the way that complaints are handled and it will mean that consumers should receive redress as quickly as possible and that fewer complaints should reach the SLCC. Setting minimum standards for regulators will also improve the experience for those who have a complaint to lodge and for practitioners. The committee heard evidence from Rosemary Agnew, the Scottish Public Services Ombudsman, that that approach is best practice. I appreciate that, in this part of stage 2, we are focusing a lot on removing ministerial powers and on all the legal aspects of the bill. In future sessions, we will consider how consumer interests are strengthened and improvements to the complaints system. The voice of the consumer will be placed at the heart of legal regulation by the expansion of the consumer panel’s remit. The panel will be able to make recommendations on, for example, client relation rules and price transparency. The introduction of the consumer principles will reinforce that, as the bill will require that the views of consumers are understood and taken into account. I note the concerns that the Law Society raised in its letter of 17 January, in which it advised that the problems in the complaints system today are not because of who regulates but stem from complex, cumbersome and confusing processes that are required by statute. I have lodged a significant number of amendments that have been developed following engagement with the bodies that are involved in the complaints system, and they will streamline and deliver a more proportionate and flexible system to better serve legal practitioners and consumers. I will speak to those amendments when they are debated in subsequent groups. I will address one of my concerns with Tess White’s amendments. At the moment, the Court of Session is responsible for the regulation of advocates, so we would undermine that court if we agreed to her amendments. That is just one of my concerns. However, I am very happy to discuss with Tess White before stage 3 how we can strengthen the consumer’s voice, which I am trying to do with my stage 2 amendments that we will discuss further down the track.
In the same item of business
The Convener (Karen Adam)
SNP
Good morning, and welcome to the second meeting in 2025 of the Equalities, Human Rights and Civil Justice Committee. We have received no apologies. Our first...
The Convener
SNP
Amendment 1, in the name of the minister, is grouped with amendments 2 to 4 and 38 to 46. I call the minister to move amendment 1 and to speak to all the ame...
The Minister for Victims and Community Safety (Siobhian Brown)
SNP
Good morning. I will make a few remarks before we turn to amendment 1. We have an extraordinarily large number of amendments before us, so I intend to keep m...
Maggie Chapman (North East Scotland) (Green)
Green
Good morning, minister. With regard to amendments 40, 41 and 42, the named regulatory authorities need carry out their regulatory duty only so far as practic...
Siobhian Brown
SNP
Yes, certainly. Amendment 41 makes it clear that the requirement to exercise regulatory functions in a way that contributes to sustainable economic growth ap...
Maggie Chapman
Green
Thank you. I thought that it would be helpful to have that on the record.
Paul O’Kane (West Scotland) (Lab)
Lab
Before we move into lengthy consideration of the amendments that are before us, I thought that it would be helpful to put on the record some general comments...
Tess White (North East Scotland) (Con)
Con
Minister, I would be grateful if, when you wind up, you could address the SLCC’s concerns about amendment 40. The amendment looks like a minor drafting adjus...
The Convener
SNP
I invite the minister to wind up, please.
Siobhian Brown
SNP
I thank Paul O’Kane for his comments. I know that the bill has been on a bit of a journey since it was introduced in April 2023. When we went into stage 1, c...
Tess White
Con
And the SLCC? You mentioned discussions with the Law Society in relation to the amendment.
Siobhian Brown
SNP
Yes, after engagement, we decided that amendment 40 is the right way forward. Amendment 1 agreed to. Amendments 2 to 4 moved—Siobhian Brown—and agreed to. ...
The Convener
SNP
Amendment 47, in the name of the minister, is grouped with amendments 5 to 26, 28 to 38, 412, 413, 461 to 466, 507 and 522.
Siobhian Brown
SNP
Amendments 47, 522 and 466 will make the necessary changes to legislation to reflect the change of name of the Association of Commercial Attorneys to the Ass...
The Convener
SNP
Amendment 48, in the name of the minister, is grouped with amendments 49 and 50.
Siobhian Brown
SNP
Amendments 48 to 50 have been lodged in response to concerns raised by the Delegated Powers and Law Reform Committee and legal stakeholders that section 8 mi...
The Convener
SNP
Amendment 51, in the name of the minister, is grouped with amendments 53 and 52, 54 to 67, and 69 to 92. I draw members’ attention to the pre-emptions set ou...
Siobhian Brown
SNP
Amendments 51 to 72 bring the provisions relating to a category 1 regulator’s exercise of its regulatory functions by an independent regulatory committee est...
The Convener
SNP
Amendment 541, in the name of Tess White, is grouped with amendments 542, 546 to 548, 561, 566 to 570, 574 to 577, 579 to 581, 583 to 589, 591 to 604 and 607...
Tess White
Con
The amendments in this group are probing amendments. I lodged them because my colleagues and I believe that the bill does not go far enough in creating a sim...
Paul O’Kane
Lab
I put on the record my thanks to the many stakeholders who provided briefings in advance, some of which were referenced by Tess White, including the Law Soci...
Maggie Chapman
Green
I thank Tess White and Paul O’Kane for the discussion, because it is useful for us to air our views. I ask the minister to talk specifically about the conce...
Siobhian Brown
SNP
The Scottish Government recognised the differing views on the primary recommendation in Esther Roberton’s report, so it committed to seeking a wide range of ...
The Convener
SNP
I invite Tess White to wind up and press or seek to withdraw amendment 541.
Tess White
Con
I thank the minister for her remarks. I am not going to press my amendments in this group at stage 2, but I welcome the opportunity to get it on the record t...
The Convener
SNP
Amendment 68, in the name of the minister, is grouped with amendments 93 to 101, 105, 104, 102, 103, 106 to 121, 310, 311, 122 to 178 and 459.
Siobhian Brown
SNP
Section 20 currently allows Scottish ministers to intervene in the event of concerns being raised that a regulator is failing to exercise their regulatory fu...
The Convener
SNP
If amendment 542 is agreed to, I cannot call amendment 77, which was debated with amendment 51 in group 4, because of pre-emption. Amendment 542 not moved. ...
The Convener
SNP
I propose that we suspend the meeting for five minutes for a comfort break. 10:42 Meeting suspended. 10:51 On resuming— Section 21—Power to direct speci...
The Convener
SNP
Welcome back. Amendment 179, in the name of the minister, is grouped with amendments 180 to 188, 543, 189, 190, 544, 191 to 199 and 545.