More people are making better-informed decisions about which solicitors firm to engage on a legal matter. That is one finding of the SRA’s three-year review of the Transparency Rules which the regulator is naturally keen to shout about.
The good news doesn’t end there. A 110-page report conducted by researchers Economic Insight has more. Consumers increasingly trust the market – and solicitors. Nearly 60% agree they had greater trust in the legal profession following their most recent experience of a provider, up from 38% after the year-one review. More people think legal services are affordable, too.
A hefty caveat is worth airing, nevertheless. That is the apparent insouciance of thousands of law firms in thumbing their nose at the regulator. The Transparency Rules were introduced in 2018-19, yet over half of firms surveyed do not fully comply with the prices and services requirement. About a quarter do not display all of the pricing information required.
Why so? A clue lies in the SRA’s approach to enforcement thus far. ‘Direct and open communication’ has been preferred to sanctioning, as the regulator puts it. Of over 1,300 investigations relating to the Transparency Rules between 2019 and 2021, just 21 resulted in decisions relating to compliance failures. Six firms were fined the maximum of £2,000.
This permissive stance – reflecting a universal wish for proportionality as the pandemic raged – may be about to change. Failure to publish the required costs or complaints information, or display a clickable logo, is a specific breach meriting a fine under the regulator’s new fixed penalty scheme. From now on, the profession should brace for such penalties in cases of persistent non-compliance.
The review also confirms that comparison sites have failed to ‘flourish’ as the SRA and Competition and Markets Authority hoped they would. Only 4% of firms provide information to price comparison sites and consumers remain largely oblivious of these sites in the marketplace.
The public relies heavily on recommendations or their own previous experience when choosing a provider. Many law firms are doing just fine in consequence. It was ever thus.
If this particular dial is ever going to move, it will take years.
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