Wednesday 20 July 2016

Arbitration scheme extends to parental responsibility disputes

Disputes about where children of separated parents should live or how much time they spend with
each parent could be resolved away from the daunting surroundings of a courtroom.

The Family Law Arbitration Scheme, which began in 2012 to deal with financial matters,
is to be extended to disputes concerning parental responsibility, as reported in the Law society
Gazette yesterday.
The scheme was set up by the Institute of Family Law Arbitrators (IFLA), a not-for-profit organisation created by the Chartered Institute of Arbitrators, Family Law Bar Association and family lawyers’ group Resolution, in association with the Center for Child and Family Law Reform.

IFLA chair Lord Falconer of Thoroton, former shadow justice secretary, said the scheme would
enable couples to resolve disputes ‘more quickly, cheaply and in a more flexible, less formal
setting than a courtroom’.

The scheme will also guarantee confidentiality. ‘These are all important ingredients to
minimising conflict and supporting the best interests of children,’ Falconer said.

Family court judges have the power to adjourn court proceedings for the parties to resolve a
dispute through arbitration. With the court’s approval, the arbitration award can then be made
into an order in those proceedings.

At a time when the courts are under significant pressures, Falconer said the availability of
arbitration for children matters ‘builds on the long and proud tradition arbitration has in
other areas, and gives parents and practitioners another tool with which to resolve family
disputes’.
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Tuesday 5 July 2016

Unregulated online divorce providers service 10-13% of the market

New research suggests that unregulated online divorce providers service 10-13% of the market

Legal Services Board research reveals extent of unregulated providers' market shares

The Legal Services Board (LSB) has published the findings of its unregulated providers research
project which, it says, significantly advances understanding of unregulated provision of
legal services.

The LSB's 2016 individual legal needs survey indicated that the size of the unregulated sector is
 smaller than originally thought. This new research suggests consumers are using unregulated
providers for a number of reasons, including:

lower prices compared to regulated provider
higher levels of transparency in pricing and
higher levels of innovation and service differentiation.
The main risks for consumers were said to be:

not making informed choices
misleading advertising claims.
According to the research, consumer satisfaction with customer service is broadly comparable
across regulated and unregulated providers: 84% versus 81%.

The research examined, amongst other areas, divorce services. It found that 10-13% of market
share was serviced by unregulated providers, essentially online divorce providers and
fee-charging McKenzie Friends.

In that sector it the researchers identified five active unregulated providers operating 11
websites, serving 23-30,000 clients annually. The service was delivered online and was reliant
on search engine optimisation and adwords. Services range from DIY packages (average price of £36)
 to managed services (average price of £173).

Commenting the research, Law Society chief executive Catherine Dixon said:

"Many legal services can be provided by regulated and unregulated providers. If legal services
are purchased from a solicitor, buyers can rest assured that the service is fully regulated, that
 insurance is in place, and that in the event that something goes wrong they have the right to
redress.

"Unfortunately, however, it is not always clear to consumers whether they are buying from a
regulated provider. As the LSB research shows, there are a number of unregulated providers
supplying the same legal services as solicitors and many buyers simply will not know that they
won't get the same level of protection from an unregulated provider if something goes wrong.

"This can be exacerbated if the unregulated provider calls themselves a lawyer, which is not a
protected title. We think that you should only be able to call yourself a lawyer if you are a
qualified legal practitioner. We are concerned that many consumers may not know the difference,
which can leave them exposed.

"If it is the case that consumers need regulatory protection, such protection should be
consistent across the market. If not, this can lead to unfair competition and a lack of
regulatory protection for some buyers who genuinely believe they will have rights of redress and
are insured in case something goes wrong.

"The expertise of solicitors comes from rigorous training. They work to professional standards,
are regulated, have insurance, and their clients have access to redress if services do not meet
the required high standard.

'There are obvious benefits in improved, consistent price and service transparency in advertising
 across all suppliers of legal services, whether regulated or unregulated. Solicitors are also
bound by a code of conduct which ensures they are transparent about pricing with a client before
beginning work.

"Sometimes, fixed pricing for less complex issues may be the best pricing solution. For many of
the more complex services that solicitors provide, such as family services, clients have more
complex needs and so the price of the service they receive will be determined by their individual
 circumstances and the type of advice they require.

"The profession has a great track record of innovation and creativity in a changing market.
Solicitors embrace new technology to meet the needs of clients, reduce costs and maintain their
competitive edge. This ability to adapt ensures the vibrancy and long term success of the legal
sector in the UK."
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