Regulation of Legal Services (Scotland) Act 2025

The Regulation of Legal Services (Scotland) Act 2025 updates the legislation relating to legal services regulation and complaints in Scotland. This includes the legislation that governs the SLCC's powers and functions (the Legal Profession and Legal Aid (Scotland) Act 2007).

This page provides information on the legislation and updates on implementation. 

The Regulation of Legal Services (Scotland) Act 2025 (Commencement No. 1) Regulations 2026, laid in Parliament on 19 February 2026, brings certain provisions of the Act into force. In relation to the SLCC's work that includes: 

• flexibility in the number, required experience and length of term of SLCC board members (comes into force on 5 March 2026)
• expanding the functions of the independent Consumer Panel which will have the power to make recommendations to the SLCC and to legal services regulators and the Lord President in relation to their regulatory functions (comes into force on 1 July 2026). 

No changes are yet in effect

Regulatory objectives and principles

The Act sets out:

• Regulatory objectives: What legal regulation should achieve and how it should operate. Regulatory authorities must act in line with the regulatory objectives.
• Professional principles: Standards for legal services providers.
• Legal definitions: Clarifies who qualifies as a legal services provider and what counts as legal services.

Regulators

The Act:

• Introduces two new categories of legal service regulators.
• Assigns existing regulators to these categories.
• Gives the Lord President powers to oversee regulator performance.
• Allows the independent Consumer Panel, and other bodies, to request reviews of regulator performance.
• Enables creation of new regulators.

Legal businesses and authorisation (entity regulation)

The Act:

• Defines regulator powers to authorise legal businesses.
• Updates the regime for Alternative Business Structures (ABS).
• Gives SLCC authority to handle regulatory complaints about authorised legal businesses (mirroring the existing ABS scheme).
• Allows SLCC to set different levies for individuals and businesses.

Complaints system improvements

The Act makes changes to how complaints are handled:

• SLCC can initiate complaints directly.
• Regulators can investigate certain complaints without referring to SLCC.
• Complaints can be categorised as service, conduct, or regulatory - or a mix.
• SLCC can close complaints if a fair settlement is offered.
• Firms may be required to improve systems or training.
• SLCC can act on incomplete information if firms fail to cooperate.
• Greater flexibility in some other aspects of complaints handling.
• Greater flexibility in when levies are charged.
• Appeals to Court of Session replaced with internal review committee.
• SLCC and regulators can share complaint information in the public interest (including about the practitioner, but not the complainer).
• SLCC can share information about practitioners with regulators if there is a concern.
• Regulators have more flexibility in dealing with conduct complaints.

Other legal services providers

The Act gives the SLCC new powers:

• SLCC can investigate services complaints against individuals or organisations in the wider legal services market (not otherwise regulated by the 2025 Act) offering legal services for payment.
• SLCC will maintain a voluntary register of these providers (may become mandatory for some providers).
• SLCC can charge registration and complaint-handling fees to these providers.

Guidance and standards

SLCC can issue guidance and set minimum standards for regulators on:

• Investigating conduct and regulatory complaints.
• How practitioners handle complaints.
• Trends that lead to complaints.
• Managing compensation funds like the Client Protection Fund.

SLCC may also request information from practitioners about complaints received.

Independent Consumer Panel

The Act:

• Expands the Independent Consumer Panel's role to give it powers to make recommendations to SLCC, regulators, and the Lord President.
• Says the SLCC must ensure the Panel is properly funded and resourced.

Other notable changes

The Act:

• Updates SLCC Board membership requirements.
• Allows third sector organisations to employ solicitors—improving access to justice.
• Criminalises unauthorised use of protected titles such as ‘lawyer’.
• Requires a formal review of the Act’s impact after ten years.

We are currently consulting on our 2026-30 strategy and 2026-27 operating plan and budget. This consultation closes on 19 March 2026.  

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