‘Proposal is fundamentally flawed’
The Society of Licensed Conveyancers (SLC) says it remains strongly opposed to the proposed Interest on Lawyers’ Client Accounts (ILCA) scheme, which would capture funding generated on legal client accounts.
It follows reports that the Ministry of Justice is advertising for staff to help implement the policy, even though the results of the consultation completed earlier this year have still to be published.
It says the fact the government is already recruiting for the scheme will be deeply concerning to conveyancers, lawyers and, most importantly, the clients whose money would ultimately be affected. The SLC said its stance would continue that the “proposal is fundamentally flawed, unfair in principle and should not proceed.”
Simon Law, chairperson of the Society of Licensed Conveyancers, said: “The Society of Licensed Conveyancers remains firmly opposed to any proposal that seeks to divert interest generated on client monies to the state.
“Client funds are held for the benefit of clients, and the legal profession should not be used as a vehicle for raising government revenue,” he said.
A worrying development
Law described the fact that implementation was continuing despite widespread opposition to the consultation and the government’s failure to publish its results as worrying. “The apparent progression of this policy before the publication of the consultation outcome raises serious concerns. The profession, regulators and other stakeholders engaged with the consultation process in good faith and deserve transparency regarding the government’s intentions,” he said.
“We urge the Ministry of Justice to publish the consultation response without further delay and to abandon a proposal that is fundamentally unfair, operationally burdensome and contrary to the interests of consumers and legal service providers alike.”
The SLC pointed out that the conveyancing profession already faces significant regulatory, operational and consumer service challenges. It said introducing the new scheme would add administrative burdens, increased compliance costs and further uncertainty for firms and consumers at a time when government policy should be focused on supporting growth, housing transactions and access to legal services.
Law said the SLC will continue to work with representative bodies, regulators, policymakers and stakeholders across the legal sector to oppose the implementation of the ILCA scheme and to promote sustainable and equitable alternatives for funding access to justice. The scheme has also received strong objection from The Law Society.
