Thank you very much for the invitation to speak to you today. I want to say a few words to you in the light of Sir David Clementi's report.
The detail of our response will come later in the year, but I didn't want to leave it too long before speaking to the Law Society about the report. There is much in it for all of us to consider. And much we can be getting on with at the same time.
The Law Society has been fully engaged in the process so far, and I have been delighted to see that you are already on the way to implementing some of Sir David's recommendations. I am grateful for the steps you have already taken. I would urge you to keep up the pace of change. You know as well as I that there is more to be done.
In the legal sector, as in every other sector, people expect value for money. They expect services that are delivered in ways which suit their needs. And they expect that if they receive poor service they will get proper redress.
So we must ensure that the regulatory framework for legal services makes this happen. I want to talk to you about this today, because it's not just important to get the framework right - it's vital.
Legal services in this country are among the best in the world. The sector has much to be proud of - independence, expertise and excellence - these are the watchwords for legal services in this country.
And the reforms we are looking at are designed to reinforce that, not to change it.
They are designed to ensure our legal services remain among the best in the world. We must recognise the strengths of the current system, preserve them, but make changes where we know there are weaknesses.
I established Sir David's review with the objective of improving the service to the consumer. I think Sir David has risen to the challenge and has delivered recommendations that firmly put the consumer first.
As you know, his main proposals are fourfold.
As I made clear at the time, the Government broadly accepts Sir David's key recommendations. But we will work with the Law Society, other professional bodies, and consumer organisations, to consider the implications of the recommendations and how they could work in practice.
We don't intend to deliberate for too long. I hope to be in a position to say more on this in the next couple of months, and there will be a White Paper later this year.
But, it is obvious that Sir David's ideas - whether accepted wholly or in part - will have significant consequences for the legal professions.
Of course the process of change and reform is not always an easy one. I'd like to express my appreciation of the role the Law Society has played so far.
You engaged thoroughly and seriously with Sir David's review. Your current President, Ed Nally, his predecessor Peter Williamson and your Chief Executive Janet Paraskeva all met Sir David on a number of occasions. The Law Society produced considered material during the consultation.
I was pleased that the Law Society's response to the final report was positive. The Law Society is sometimes described in the media, by those who should know better, as being only interested in self-protection for lawyers. But your response to the report shows that you recognise the need for reform in areas where room for improvement has been identified.
I agree with you that the report is positive for the public, the profession, and the Law Society.
And I am pleased to see that you have taken steps to implement some of the recommendations already. You are moving towards separating your regulatory and representative functions. This will reduce the scope for confusion amongst consumers. It will promote confidence in the system. And provided that you meet the Board's standards, it should allow you to retain the ability to regulate your own profession.
Such an approach is the only way a responsible modern regulator should act. I am pleased to see tangible evidence of the steps you are taking to make legal services more consumer focussed.
So thank you for your involvement so far. The reforms we make will be better for your support, your input and your expertise.
I urge you to ensure that your productive involvement and positive action continues over the coming months, and, indeed, over the coming years.
There is much to consider in a measured way. But there is also much we can be getting on with.
The Law Society's attitude was an important factor in the Government's preliminary agreement with Sir David that an FSA-type regulator is not appropriate, and that the regulation of legal services can carry on being led by the professionals.
I hope this positive approach, across the whole of the profession, will continue.
Sir David's recommendations represent significant change. This is not change for its own sake. Improvements to the legal sector have a simple aim: to focus it more clearly on the needs of the people who use legal services, be they first time house-buyers or FTSE 100 companies.
I have no doubt there will be interesting times ahead for you and your members. But there are very exciting times ahead too. The recommendations create opportunities for the profession as well as benefits for the public.
I am sure the reforms we make, whatever their precise details, will uphold the position of legal services in England and Wales, as the envy and the benchmark for legal services worldwide. I want nothing less.
Thank you very much.