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A consultation by the Department for Constitutional Affairs

New regulation for conditional fee agreements

August 2005

CP(R) 22/04



The initial consultation paper on the conditional fee agreements (CFAs) regime was published in June 2003. It invited respondents to consider the experience of the last three years of the conditional fee agreements regime and what if anything needed to be changed. Following responses to the consultation, the department published a second consultation paper inviting comments on and proposals to reform the secondary legislation governing the operation of conditional fee agreements and a new set of draft regulations. The final response paper sets out the departments' conclusions on the simplification of the conditional fee agreements.


Consultation paper 2003

The 2003 consultation paper 'Simplifying conditional fee agreements' was aimed at encouraging a debate about how to make the conditional fee agreement regime simpler. The paper looked at whether the detailed requirements in the conditional fee agreements, collective conditional fee agreements and the membership organisation regulations 2000 are still appropriate. The paper also asked respondents to consider the experience of the last three years of the conditional fee agreement regime and to put forward views on its possible future direction.

The consultation closed 30 October 2003. (This period was extended)


Responses and proposals for reform 2004

The 2004 consultation paper ‘Making Simple conditional fee agreements a reality' sought views on the departments' response to the 2003 consultation paper. It summarised responses to the June 2003 paper and made some specific proposals. The paper also set the departments strategy towards the development of conditional fee agreements (simplification leading to increased stability, transparency and better consumer protection) and to related legal costs matters.

The consultation closed 30 September 2004. (This period was extended).


Further responses 2005

The Department received 40 written responses. All respondents agreed that the current conditional fee agreements secondary legislation is unnecessarily complex and should be simplified and the regime made more transparent. Many commented that most of the client care and contractual requirements effectively duplicated the Law Society's Professional Rules.

This report summarises the responses received to the 2004 consultation ‘making simple conditional fee agreements a reality'. Highlighting how the consultation process has influenced the final shape of the policy and the conclusions that the department reached on some of the proposals, including revoking the existing conditional fee agreements, and collective conditional fee agreement regulations.

Download the report by section

Download the full report

 

October 2005

A statement from Trinity Mirror Plc, Guardian Newspaper Ltd and Independent News and Media Ltd regarding their position on conditional fee agreements and success fees subsequent to publication of the response paper 'new regulation for conditional fee agreements'

 


Useful links


Contact details

Further copies of the consultation paper can be obtained by contacting the address below:

Graham Young
Department for Constitutional Affairs
Private Funding Regulation Branch
3rd Floor
Selborne House
54-60 Victoria Street
London
SW1E 6QW

Tel: 020 7210 8792
Fax: 020 7210 0613

email


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