CMA finds ‘signs of progress’ on legal transparency

The Competitions and Markets Authority has praised the legal services sector for its “clear signs of progress” on transparency, but believes there is still much work to be done to benefit clients. The CMA has published a review following recommendations it made in 2016, when its market study found that the legal sector in England and Wales was not working well for consumers. Back then, it made recommendations to legal services regulators to improve transparency by legal firms on price, service and quality to help customers navigate the sector more easily and get value for money. It also recommended that the government should consider whether those using unauthorised providers need stronger protections, and that the regulatory framework be reviewed for the longer term. The CMA’s review, published today, states: “There are clear signs of progress. For example, many more legal firms are now providing information on price, service, redress and regulatory status to help consumers shop around. However, while the evidence suggests that some customers are taking advantage of the changes, there is still work to do as there only appears to have been a limited impact on the intensity of competition between providers and on sector outcomes.” The CMA now recommends that the Legal Services Board should work with other regulators in the sector and continue to build on the reforms so far. The review adds: “A number of the CMA’s recommendations, including its initial call for a regulatory review of the Legal Services Act 2007, have yet to be progressed. The CMA considers that the case for reform remains pressing, particularly as there are signs of growth in the unregulated sector, and therefore remains of the view that wholesale reform of the Act is necessary.” Andrea Coscelli, the CMA’s CEO, said: “This is an incredibly important sector that people often turn to at a time of great need, which is why the CMA made recommendations to improve consumer outcomes, including through increasing transparency, as well as to address concerns about the way in which the sector is regulated. “It is positive to see changes that have already been made, but more progress is needed. We encourage the Ministry of Justice, the Legal Services Board and other legal services regulators to continue to work towards reform and to make sure the sector works well for consumers long into the future.” To send feedback, e-mail jess.harrold@egi.co.uk or tweet @estatesgazette