The Competition and Markets Authority (CMA) has put The Law Society under its scrutiny, after concerns were raised with regards to the affordability and quality of the legal services being offered. The proposal to conduct the probe was welcomed by The Law Society.
According to The Guardian, the study aims to determine whether clients are getting their money's worth; whether they are given sound advice during house purchases and access quality legal services in case of disputes.
The CMA, an anti-trust body in the United Kingdom, will also look at the legal sector's regulatory framework, including the disciplinary measures it imposes on members of the bar, and how it impacts market competition.
"We would be concerned if customers are not getting a good deal, either because they do not know what to expect when purchasing a legal service, or because they are not seeking appropriate legal support in the first place," Rachel Merelie said, a senior director at the Competition and Markets Authority.
Legal service is a £30 billion industry, Financial Times noted. They provide legal assistance on laws pertaining to commerce, labor, family, torts, immigration, succession, and conveyance. 130,000 solicitors in England and Wales are being represented by The Law Society.
A recent survey conducted by the CMA shows that one out of 10 clients who have subscribed to legal services in England and Wales were not satisfied with the kind of service they are receiving, saying that the quality was not commensurate to the amount of money they are paying.
Only 13% in the small business sector found applying for the service is cost-effective, while nearly half of the respondents confirm that they sought the help of legal services providers as a last resort to solving business-related concerns.
The Solicitors Regulation Authority is also open to the review. Chief executive Paul Philip said, "It is crucial that the legal services market works in the public interest and serves all consumers. We welcome all and any efforts to promote that goal and that is why we are pleased the CMA is conducting this study and will offer our help as they do so."
Meanwhile, The Law Society's chief executive Catherine Dixon agreed that much like solicitors who are heavily regulated, legal services must, too, be reviewed to see how it competes in the market.
A margin of six months was given to the CMA to conduct their study and address the issues raised, and subsequently give their recommendation as to the necessity of an in-depth probe. The CMA's findings are expected to be reported within a year.
