Meeting of the Parliament 22 February 2024
The bill is very technical and detailed. The committee did its job by scrutinising what was before us at the time, and it is not for us to say what will be presented at stage 2.
I turn to other parts of the bill. There was a view among witnesses that the current complaints system is “slow” and “overly complex”. The bill seeks to simplify the complaints process, but the creation of two categories of regulators with different regimes might mean that a lot of complexity will remain. We recognise that it will be for the Scottish Legal Complaints Commission to establish its own rules on how complaints are analysed to determine whether they relate to conduct issues, service issues or both. That highlights the importance of annual reporting to help understand whether the operational mechanisms are robust.
The bill proposes changing the name of the Scottish Legal Complaints Commission to “Scottish Legal Services Commission”. We welcome the fact that the Scottish Government has listened to the concerns that were expressed about how that might cause unnecessary confusion and it has indicated that it will amend the bill at stage 2 to retain the SLCC’s current name.
We heard broad support for proposals to update the rules on alternative business structures to increase the number of businesses and other bodies operating as such and to encourage innovation.
There were queries about how the ownership threshold figure of 10 per cent was reached, and the committee was not quite convinced by the rationale provided by the minister. The Government’s indication that it
“will bring forward amendments to remove the ownership requirement”
and that it
“will liaise with the Law Society to develop a greater risk based and proportionate system to the fitness test”
is therefore welcome.
We heard conflicting views on the proposal to change the route of appeal in relation to service complaints from the Court of Session to an internal review committee of the SLCC. The Law Society and the Faculty of Advocates considered that the right to appeal to court should be automatic, whereas the SLCC supported the introduction of an internal review committee. On balance, we were content that the proposed internal review committee process should provide a more proportionate approach and resolution that will benefit consumers and those who are the subject of a complaint.
The committee agreed that there is a perception that the term “lawyer” is interchangeable with the term “solicitor”. It is important that consumers are absolutely clear about what service they are being offered and by whom. We therefore support the proposal in the bill to regulate the term “lawyer”.
The introduction of entity regulation to regulate legal businesses as well as individual solicitors received broad support. The committee welcomes the potential benefits that that will bring for regulators and consumers as part of a modern regulatory framework. Concerns were raised by the Law Society about the special rule exemptions, and we welcome the fact that the Government is engaging with the Law Society to address those concerns.
This is a very technical bill, with a lot of detail to be considered. We acknowledge that parts and sections of the bill will need to be amended at stage 2. That could leave us with a different bill as we move on from stage 2 to stage 3, but many aspects of the bill are welcome and will help us to move towards a more modern and accessible regulatory framework.