Law Society sets out approach to implement landmark regulatory reforms

The Law Society of Scotland has set out its initial approach to implementing the Scottish Parliament’s landmark reforms to the way Scottish solicitors are regulated. In doing so, the Society has announced its decision to defer work on regulating new non-solicitor owned legal businesses for two years. This will allow the Society to focus on the required significant changes to improve the current complaints system for the benefit of consumers of legal services, and to create a new system of regulating 1,200 existing law firms.

The Legal Services (Scotland) Act 2010 provided the statutory basis for law firms to be owned by non-solicitors for the first time. The Law Society was authorised by the Scottish Government in 2021 to be an approved regulator of these new entities, called licensed legal services providers (LLSPs).  While significant preparatory work has been done, the system for authorising and regulating the new businesses is not yet up and running and new legislation now makes further changes to the LLSP regulatory framework.

The Scottish Parliament passed the new Regulation of Legal Services (Scotland) Act in May 2025. The new legislation provides sweeping reforms to the way the existing solicitor profession is to be regulated. It also made changes to the make-up of LLSPs and how they are to be regulated.

The Law Society’s Regulatory Committee, made up of solicitor and non-solicitor members, has therefore concluded that it would be appropriate to prioritise delivery of key parts of the new 2025 Act in the short term. This includes work on a whole new system of business level regulation of 1,200 existing law firms. The committee also agreed to focus on implementing the improvements to the complaints system, recognising that this had been a matter of particular focus for MSPs who had highlighted how the existing system was too slow for consumers in resolving disputes and issues of misconduct.

The committee therefore agreed to defer further work on LLSPs for the next two years. Noting that only limited interest had been expressed so far by firms in terms of becoming LLSPs, the committee agreed to return to the issue in 2027.

David Gordon, convener of the Law Society's Regulatory Committee said: “It is vital that we get on and deliver the regulatory improvements which parliament has agreed. This includes better public protection from a completely new system of regulating over 1,200 existing law firms. We also want to use the range of new tools MSPs have given us to be more proactive as a regulator and prevent problems from arising where we can.

“A key priority must also be delivering the agreed changes to the complaints system which everyone accepts is currently too slow, confusing and cumbersome for both consumers and solicitors. Getting those reforms in place offers a chance to resolve disputes and issues of misconduct more quickly, for the benefit of the public and the profession.

“With such a significant new Act to work with, we clearly had to make difficult decisions around priorities in the early years of the implementation of the Act. That is why the committee agreed to defer work on regulating new non-solicitor owned legal businesses for the next two years. While we remain committed to getting that system of regulation up and running in the medium term, the limited number of firms expressing an interest makes it right for us to focus our resources initially on where we know we can make the biggest difference.”