The Department for Constitutional Affairs (DCA) will revoke the existing framework for Conditional Fee Arrangements (CFAs) on 1 October, it was announced today.
In a DCA report, 'New Regulation for Conditional Fee Arrangements', the DCA said it would work closely with the Law Society to create a CFA model to support a simplified regime.
“The Law Society intends to introduce the amended rules and new model agreements at the same time as the CFA regulations are repealed,” the report said. Under the new model the Law Society will take responsibility for solicitors involved in CFA cases.
Solicitors should ensure clients are kept informed about the strength of their case and prospects of success in clear, simple terms, the report said.
Baroness Ashton of Upholland, who is Parliamentary Under Secretary of State at the DCA, said: "CFAs play a valuable role in helping people with valid claims obtain access to justice.
"For many consumers and businesses this provides the only means of obtaining appropriate redress. A regime that is complex and opaque puts the consumer at a disadvantage.
"Revoking the existing regulations will help make CFA agreements a simpler product and in particular will help consumers to better understand the agreements they enter into and the risks they could face in contemplating litigation.
“Consumer safeguards will be improved as responsibility for proper advice falls on the solicitor."
