CFAs set or further regulations

Civil Justice Minister David Lammy last week launched another consultation paper on conditional fee arrangements (CFAs), proposing to scrap regulations introduced less than four years ago.

The paper, entitled ‘Making Simple CFAs a Reality’, follows last summer’s consultation ‘Simplifying CFAs’. Responses from that document are included in this year’s paper.

New regulations are expected to follow the Law Society’s professional guidelines and should be introduced by the end of this year. Responses to the paper are due on 21 September.

Law Society chief executive Janet Paraskeva cautiously welcomed the latest consultation, but said: “Problems caused by the indemnity principle and the lack of regulation of claims intermediaries must be resolved before the benefits of simplification can be realised.”

Association of Personal Injury Lawyers president Colin Ettinger agreed, pointing out that regulations had been introduced too quickly. He said: “[The consultation] will be helpful, but I’m not sure it will be the complete answer. They should have got it right to start with; the regulations were brought in very hastily without thinking of the ramifications.”