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1. The CMA has recommended that government reviews the regulatory framework for the longer term.

Rationale:  “significant improvements could be achieved through incremental changes to the current regime, particularly through interventions that promote price and quality transparency.” (6.73 - p213¹)

2. The MoJ is to undertake a review of the independence of regulators

Rationale: “We believe strongly in the principle and importance of independence of regulators. This is because insufficient independence may compromise their effectiveness in meeting their objectives. This is a fundamental principle to ensure further changes to regulation are effective.” (6.79 p214¹)

3. The SRA is to remove regulatory restrictions to allow solicitors to practise in unauthorised firms.

Rationale: “we believe that current regulatory rules that limit unauthorised providers’ ability to employ solicitors to deliver unreserved legal work may restrict the ability of unauthorised firms to compete through the impact that these titles have on consumer decision-making and trust. They may also unnecessarily reduce the availability of lower cost options in the market.” (6.84 p215¹)

4. Regulators to take steps to reduce regulatory burden in areas where not justified by consumer protection risk or public interest

Rationale: “Regulation should be proportionate and introduced only when there is a clear need. As such, we recommend regulators to continue the work they have been undertaking to reduce regulations when there is no evidence that they are necessary.” (6.81 p214¹)

5. The CMA's long-term vision for regulation of the legal sector is a risk-based model of regulation under an alternative framework with the following key features:

• Clear objective - legal services regulation should focus on outcomes for consumers and society as a whole, taking account of the balance between wider public interests and consumer protection and competition.
• Independence - insufficient independence may compromise regulators effectiveness in meeting their objectives.
• Flexibility - this could be achieved by replacing (or supplementing) the current reserved legal activities (which are defined in primary legislation and thus require substantial time and resource to be varied) by a provision that allows the regulators to direct regulation at areas which it considers pose the highest risk to consumers.
• Targeted and proportionate regulation
• Fewer regulators - over time, there is a case for consolidation of regulators
• Role of title - in a more competitive legal sector, with appropriately scoped risk-based regulation, title might cease to be subject to statutory regulation.

6. Lawyers will be required to publish prices on their websites so that pricing is transparent.

7. Lawyers will be encouraged to engage with reviews and ratings so consumers know how good their lawyer is in advance.

1. Legal services market study - Final report (15th December 2016)