ABSs not to to be introduced by new Government? The SRA has reported that the Times speculates on future of ABSs. Clive Sutton of SPG's Executive Committee has been prominent in representing the views of SPs on this, including making representations to the House of Commons Select Committee.
"Jonathan Ames writes in The Times that rumours abound over the future of Alternative Business Structures in England and Wales. Ames claims the that ABSs could be “kicked into the long grass” by the new coalition government, which is “less enthusiastic” about the changes than Labour ministers had been. He says that Jonathan Djanogly, the minister at the Ministry of Justice with responsibility for implementing the changes is not “enthusiastic about the philosophy behind ABSs.” Ames also quotes an unnamed MoJ source: “We are in the very early stages of a new government and ministers will wish to consider the full range of justice policy.” The article claims that both the Law Society and the Bar Council are hoping that new faces at the MoJ will “if not completely scupper ABSs and external investment,at least significantly amend the way in which they operate.” " UPDATE: The Law Society's Gazette comments on 10th June 2010: "The coalition government is reviewing key reforms to legal complaints handling and the introduction of alternative business structures, as part of a wider review of regulatory measures inherited from the previous administration. Plans for a Legal Ombudsman service and ABSs have fallen under the scrutiny of business secretary Vince Cable’s (pictured) Reducing Regulation Committee, formed last week to ‘bring an end to the excessive regulation that is stifling business growth’. The measures could remain unchanged, be modified, or be scrapped completely. It is understood that the Legal Ombudsman, due to be opened by the Office for Legal Complaints (OLC) in October, had not been given final ministerial approval before Cable’s committee was formed. Ministerial sign-off is not now expected to be given until the committee has completed its review. Cable’s committee also halted pending regulation stemming from the Third Parties (Rights against Insurers) Act, aimed at simplifying the procedure for claimants to claim directly against the insurer of an insolvent wrongdoer. A Ministry of Justice spokesman said: ‘We are in the middle of productive discussions with the [Department for] Business, Innovation and Skills and the Cabinet Office about whether and how the recent announcements of a government recruitment freeze and review of regulatory projects affect the Legal Services Act. ‘It is important for the legal services industry to have an efficient and independent public complaints system. The Legal Ombudsman is on schedule to open for business in October 2010. Offices have been secured, senior posts have been filled and recruitment of more than 200 staff is under way.’ The spokesman said she could not comment further on whether ABSs could be delayed as a result of the review." |
