Clause 1
Legal Services Bill [Lords]
11:15 am
Jonathan Djanogly (Shadow Solicitor General (Also Shadow Minister for Trade and Industry), Law Officers (Assist the Home Affairs Team); Huntingdon, Conservative)
I beg to move amendment No. 207, in clause 1, page 2, line 7, at end insert—
‘(ca) That authorised persons should not act where there is a conflict between the interests of two or more of their clients, or between the authorised person and their client.’.
I propose the amendment on behalf of my hon. Friends. It was suggested by the Law Society and would ensure that the avoidance of conflict of interest is included in the professional principles, the promotion of which will happen by virtue of the regulatory objective in clause 1(1)(h). At present, the Bill will require the Legal Services Board, the approved regulators and the Office for Legal Complaints to act in a way that is compatible with the regulatory objectives.
The regulatory objectives are set out in clause 1, one of which is
“promoting and maintaining adherence to the professional principles”.
It could be seen as important that the Bill should contain such an objective. It is also important that the new regulatory structure maintains and builds on the strengths of the existing system, while providing a more coherent structure for oversight regulation and ensuring that approved regulators separate their representative from their regulatory functions.
One of the main strengths of the existing regulatory system is the strong ethos of professionalism that it engenders, which is respected by the great majority of lawyers. The professional principles are set out in clause 1(3) and require authorised persons to
“act with independence and integrity...maintain proper standards of work...act in the best interests of their clients...comply with their duties to the court”
in respect of the conduct of litigation and advocacy, and keep the affairs of clients confidential.
At present, the principles do not include the need to avoid a conflict of interest. That is a surprising omission. The charter of core principles of the European legal profession adopted by the Council of Bars and Law Societies of Europe—the umbrella organisation for all European legal professional bodies—specifically includes avoidance of conflicts of interest, whether between different clients or between the client and the lawyer. We believe that that is an important principle of practical significance to the legal profession and its regulators. It is not clear why it has been omitted from the Bill, and the amendment is designed to fill the gap.
Several points that came out in our reasoning of why the Lord Chancellor should have to concur with the Lord Chief Justice on appointments to and terminations of the board are relevant. Time and again, we have stressed the importance of maintaining the independence of the legal profession from the Government and the dangers of losing that, whether as a result of an actual or perceived increase in the Government’s interference.
The amendment is another means by which we can demonstrate that the Bill will not destroy the independence of the legal profession and will not be used by the Government as a way in which to intervene and meddle in legal affairs. Such a clear statement made at the beginning of the Bill in the regulatory objectives that will govern it that prohibits an authorised person from acting when there is a conflict of interests will ensure, as well as sending out a clear message to those overseas and at home, that the independence of the legal profession is not threatened by the Bill.