Monthly UK Policy Update

Will writing and legal services regulation, England and Wales

STEP's overall position is that the practice of will writing for a fee must be regulated to protect consumers. However, the Society believes it neither practical nor desirable that the preparation of wills be restricted to solicitors.

STEP was represented at a Legal Services Board will writing workshop in July 2010. The Legal Services Board wants to establish a clear evidence base to underpin its approach to will writing – in particular, whether a different regulatory approach might be desirable. STEP has since met with the OFT to clarify some of the questions which were not addressed at the LSB meeting. Discussions are on-going in the England and Wales Committee to decide the way forward for STEP with respect to regulation. Our recent report: Cowboy Will Writing was submitted to the LSB Consumer Panel’s call for evidence of problems in the will writing industry.

STEP is currently working on responses to two Legal Services Board consultations regarding regulation. Enhancing consumer protection, reducing regulatory restrictions, a discussion document about how the LSB will assess the boundaries of legal services regulation and connected regulatory decisions; and, Call for Evidence: Investigation into will-writing, estate administration and probate activities. Both of these responses are due on 4 November.

A draft code of conduct for STEP Members and Affiliates preparing wills is currently being prepared by senior STEP members.        

Alternative Business Structures were permitted from 6 October 2011 with the Legal Services Act coming into force. The Act allows law firms to be owned by many different types of entity, not just partnerships of lawyers. Some of these alternative business structures, such as banks and supermarkets, could already be very active and skilled in consumer markets, and may bring cut-throat competition to large-volume services such as probate, will-writing, estate administration and divorce, as well as property conveyancing.

Engagement with Office of the Public Guardian

STEP representatives met with the Office of the Public Guardian during July 2010. The main point to emerge was widespread concern about the issue of banks not recognising LPAs and EPAs.  STEP pointed out that we had a code which now seemed to be being ignored and that we had been in touch with John McFall (ex-head of the Treasury Select Committee, now in Lords) and the issue had gained traction before being overwhelmed by Election. It was agreed to set up a working group under the auspices of the OPG on which STEP will be represented. The first meeting of the working group took place in October. The meeting identified issues that banks and building societies have when their customers lose capacity to deal with their finances and issues faced by representatives when dealing with banks on behalf of their clients who lack capacity. A working plan is being developed to attempt to resolve those issues.

STEP recently attended the OPG Users Group meeting during which the changes in OPG fees and forms were discussed.

Banking Protocols – British Bankers Association

A joint protocol between STEP and the Law Society has been sent to the BBA subject to some amendments requested by STEP. The Protocol now sits with the BBA who will report back shortly.

First Tier Tribunal (Tax) and Upper Tribunal: Users Group

STEP attended the Users group meeting in March in London. We were also represented at the meeting in November 2010 in Edinburgh. The users group is a forum for users, judiciary and administration, of both First-tier and Upper Tribunals.  While it has no authority, its aim is to provide a sounding board for ideas and suggestions directed at the better running of tax appeals, before the Tax Tribunals (First-Tier and Upper Tribunal).

Consultations:

STEP Committees have written responses to more than a dozen consultations over the summer. These can be reviewed on the STEP Consultation Tracker at www.step.org/tracker

Two of the main responses are summarised below.

Statutory Residence & Non-Domicile taxation

STEP has contributed to on-going discussions with HMRC/HMT regarding statutory residence for the past few years.

Two formal HMRC consultations, one on Statutory Residence and the other on Non-Domicile Taxation opened on 17 June 2011 and STEP’s responses were prepared by the UK Technical Committee and lodged on 9 September 2011.

Other consultation responses due shortly:

November 4: Enhancing consumer protection, reducing regulatory restrictions, a discussion document about how the LSB will assess the boundaries of legal services regulation and connected regulatory decisions

November 4: Call for Evidence: Investigation into will-writing, estate administration and probate activities.

For further information on current consultations or past consultations which STEP have responded to please consult the STEP Consultation Tracker.