The legal services sector in England and Wales is facing a
market study by the Competition and Markets Authority (CMA). The study, announced on 13 January, has been
prompted by concerns about standards and affordability of legal services,
access to redress, low consumer empowerment and possible barriers to entry.
In announcing this study, the CMA explains that its aim is
to ensure that sectors that play a significant role in the economy are subject
to healthy competition. Legal services
are significant in their own right with a UK turnover of about £30
billion.
Research by the OFT and ongoing monitoring by the CMA has
found that the reforms brought about by the Legal Services Act 2007 have had
beneficial effects in removing barriers to entry. However, the CMA considers that concerns
remain and that a full examination of the sector is now necessary.
The CMA has invited representations including on whether to
make a market investigation reference by 3 February 2016. If it proposes to make a market investigation
reference (or has been urged to make one and proposes not to do so) it must
begin a consultation no later than 12 July 2016. The CMA must publish its market study report
detailing the action it proposes to take, if any, no later than 12 January
2017.
No comments:
Post a Comment