Explanatory Notes

Legal Services (Scotland) Act 2010

2010 asp 16

9 November 2010

The Act

3.The principal effect of the Legal Services (Scotland) Act 2010 (“the Act”) is to liberalise the legal services market in Scotland by allowing solicitors who offer legal services to operate using certain business models which are currently prohibited. It will do this by making amendments to the Solicitors (Scotland) Act 1980 (“the 1980 Act”) to remove restrictions on solicitors entering into business relationships with non-solicitors, allowing investment by non-solicitors and external ownership (see sections 123 and 124), and by creating a regulatory framework in which the new types of business will operate (see Parts 1 and 2). It is enabling rather than prescriptive legislation, as the traditional business models will remain an option for those solicitors who choose to carry on practising within those structures.

4.The Act will create a tiered regulatory framework in which the Scottish Government will be responsible for approving and licensing regulators (“approved regulators”), who in turn will regulate licensed legal services providers (“licensed providers”), as shown below:

5.The Act also includes: