SRA Chair says more open legal market will boost Welsh economy
Solicitors Regulation Authority
The Solicitors Regulation Authority calls for more competition in the Welsh legal market to reduce costs and raise standards.
The Chair of the Solicitors Regulation Authority (SRA) has told Welsh MPs that a more open and competitive legal services market will benefit the public, the profession and contribute to Welsh economic growth.
Enid Rowlands, who is herself based in Wales, spoke last night at an event for Welsh Parliamentarians from Conservative, Labour and Plaid Cymru, and hosted by Alun Cairns MP, Secretary of State for Wales.
In her speech Rowlands said: "A growing, competitive economy - like Wales - needs a growing, competitive legal sector."
"As the largest regulator in the legal sector in England and Wales, we regulate around 450 firms in Wales with a total turnover in excess of £380m, and nearly 5,000 individual solicitors.
"We regulate in the public interest. And it is in the public interest to see a thriving legal sector in Wales, offering more choice and supporting the economy.”
The SRA is keen to get rid of unnecessary bureaucracy that could be holding the sector back. In the last 18 months it has made 40 red tape cuts to help reduce costs and boost growth. It is also looking to encourage new types of firms to enter the market.SRA is keen to get rid of unnecessary bureaucracy that could be holding the sector back. In the last 18 months it has made 40 red tape cuts to help reduce costs and boost growth. It is also looking to encourage new types of firms to enter the market.
There was recognition that change is already happening in the sector and in Wales, but there is still more to be done to make the sector more open and competitive to give consumers more choice.
"Our programme of reform is helping to encourage new firms and models into the market,” she added. “And we're supporting firms looking to find new innovative ways of providing services to consumers.”
Three of the big topics discussed at the event were how to increase competition, innovation and the implications of Competition and Markets Authority review into legal services.
"One change that could help us make a big difference,” she added, “is the recent government proposal to make all legal regulators fully independent. The public deserve good regulation and the profession deserves good representation. But these don't live well together.”
The CMA has launched a market study into legal services looking at how well they are working for consumers and small businesses. Discussions focused on how the market in Wales was working and how independent regulation could enable innovation, promote competition and improve consumer choice. This would in turn ensure legal services remained of a high standard while driving costs down. And it could mean significant benefits to small businesses - currently only 13% of them say that they consider lawyers provide value for money.
"Research shows that around 7 out of 10 people would trust a solicitor more if they were independently regulated,” Rowlands continued. “Change to make regulators independent would increase public confidence, and allow us to reduce costs and do things faster and more efficiently. That would be good news for the public, the profession and the whole Welsh economy.”
Commenting after the event the Secretary of State for Wales Alun Cairns said: “The UK has a worldwide reputation for its excellent legal services, and Wales plays an important part in maintaining this.
“From Cardiff Capital Region’s burgeoning legal services centre to our internationally renowned Law Schools, the legal services sector plays a huge role in the Welsh economy.
“I was delighted to host this reception at the House of Commons and to highlight this important success story.”
Promoting Innovation and SRA innovate
There was keen discussion around how to encourage more innovation in the sector. The present legal services market faces challenges. People need significantly better access to affordable legal services. Small businesses need cost-effective ways of solving legal problems. Providers of legal services can better meet these challenges if regulation facilitates rather than inhibits innovation and growth.
90% of innovative firms say that innovation attracts new clients. Many firms are innovating, which is good for them and the Welsh economy. And, the SRA asserts, that the real winners will be users of legal services, such as our important small businesses, through greater choice of affordable services
The regulator pointed to research that shows around 25% of legal services providers have introduced a new service in the last three years. The SRA says the figures prove innovation is already happening in the sector and solicitors are more innovative than other regulated legal service professionals.
So far in Wales there are 19 ABSs - that's Alternative Business Structures which allow companies more flexibility in how they are owned, and the services they provide. Research shows that ABS are likely to be more innovative than other regulated law firms.
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