The Competition Authority found that the legal profession was in need of substantial reform. The profession has many unnecessary and disproportionate restrictions on competition; these need to be removed so that consumers can benefit from greater competition in legal services. The report (published December 2006) made 29 recommendations to enhance competition in legal services.
The most important recommendation is the introduction of an independent regulator instead of the present system of self-regulation by the Bar Council and the Law Society. An independent regulator would be in line with better regulation principles and mirror reform in other sectors, including the legal profession in other countries.
In November 2010, the Government signed a Memorandum of Understanding (MoU) with the EU/IMF. The MoU included a commitment that, by the end of the third quarter of 2011, the Government must establish an independent regulator and implement the outstanding recommendations of the Competition Authority. In October 2011 the Minister for Justice, Equality and Defence, Mr. Alan Shatter, T.D published the Legal Services Regulation Bill. On the 25th November 2011, Isolde Goggin presented her views on the impact of the Legal Services Bill on consumers and the profession at the UCD conference on Regulating the Legal Profession. Click here for Isolde’s paper and presentation.
The proposals made in the Bill will substantially reform the profession. It makes provisions for the establishment of independent regulator that will protect and promote the interests of consumers, as well as implementing our key outstanding recommendations.
The Bill provides for
• A new, independent, Legal Services Regulatory Authority with responsibility for oversight of both legal professions,
• An independent complaints structure to deal with complaints about professional misconduct
• The removal of the monopoly on legal professional training for solicitors and barristers in Ireland
• The removal of restrictions on direct access to barristers for legal advice
• The removal of restrictions on barrister partnerships
• The new regulator to explore the possibility of a new legal profession of conveyancers in Ireland.
• The prohibition of several pricing practices which harm consumers -- for example, junior counsel charging fees based on a percentage of those of senior counsel or on a percentage of a client's compensation payment. The Bill provides that fees should be reasonably incurred and reasonable in amount.
The Law Society and the Bar Council have implemented many of the recommendations directed to them. For example, it is now much easier for barristers to switch to being solicitors and vice versa. The new Bill implements the remaining recommendations that were addressed to them.
Updated: December 2011
Further information:
Kathryn MacGuill
kmacg@tca.ie
01-8045392