XN000022-1996-02-06 — Page 7

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Abolition of the rule preventing a barrister from entering into a contract for the provision of his or her services as a barrister. The Administration continues to think there is merit in this proposal, although the Bar Association opposed it. It will continue to have discussions with the Association.

Legally invalidating contractual provisions, in respect of mortgages, requiring a borrower to pay the lender's legal costs. Although there is public support for the proposal, some of the objections to it need serious consideration.

Requiring interest on the account of a solicitors' clients that is not payable to the clients to be used to fund a Law Foundation. The establishment of such a foundation is a complex matter and the Administration will make further study of overseas models and to discuss the mechanics of such a scheme with local banks.

The problems of touting and commission-paying in respect of criminal defence work and conveyancing. The Administration will conduct a review in the first half of this year, having given the profession sufficient time to deal with the problems itself, to decide whether touting and commission-paying should be criminalised.

Implementation by legislation

Seven of the publicly supported recommendations will be implemented through legislation. They are:

to abolish scale fees in respect of conveyancing and probate work, and to prohibit the Law Society from creating non-statutory mandatory fee scale;

invalidating contractual provisions under the Consent and Non-consent Schemes requiring a buyer to pay a seller's legal costs;

requiring solicitors to pay interest to clients in certain situations;

giving the Law Society the power to make rules in respect of multi- disciplinary practices;

subject to rules, permitting solicitors to incorporate their practices with either limited or unlimited liability;