Law Society of Scotland announces reforms

The Law Society of Scotland has revealed its initial approach to implementing significant regulatory reforms following the Scottish Parliament's new legislation on the regulation of legal services. As part of this strategy, the Society has decided to postpone its work on regulating new non-solicitor owned legal businesses, known as licensed legal services providers (LLSPs), for a period of two years. This pause aims to concentrate efforts on vital enhancements to the current complaints system and to establish a new regulatory framework for approximately 1,200 existing law firms.

The Legal Services (Scotland) Act 2010 set the stage for this transformative change, enabling law firms to be owned by non-solicitors for the first time. In 2021, the Scottish Government authorised the Law Society as an approved regulator of these new entities. Although groundwork has been laid, the system to authorise and regulate LLSPs is still in development, further complicated by recent legislative changes.

The Regulation of Legal Services (Scotland) Act, passed by the Scottish Parliament in May 2025, introduces sweeping reforms to the regulation of the solicitor profession and modifies the structure and oversight of LLSPs. The Law Society’s Regulatory Committee, composed of both solicitor and non-solicitor members, has opted to prioritise the implementation of critical elements from the new Act in the short term. This includes revamping the business-level regulation of existing law firms and addressing the existing complaints system, which has been under scrutiny from members of the Scottish Parliament (MSPs) due to its inefficiencies in handling consumer disputes.

David Gordon, convener of the Law Society's Regulatory Committee, expressed the committee's commitment to delivering essential regulatory advancements, stating that “it is vital that we get on and deliver the regulatory improvements which parliament has agreed.” He emphasised the need for better public protection through the new regulations for existing law firms and highlighted the importance of reforming the complaints system, which he described as "currently too slow, confusing and cumbersome for both consumers and solicitors."

Gordon further noted that with such a significant Act to implement, hard decisions regarding priorities were necessary. He reiterated that the focus would remain on areas where they could achieve the most impactful changes. Hence, the decision to defer LLSP regulation for two years allows the Society to channel its resources toward enhancing the existing frameworks critical for public confidence in legal services.