The Scottish government may soon allow supermarkets, banks and other organisations to provide legal services. The government's proposal is similar to England's recent changes which have allowed the Tesco supermarket chain to begin offering legal services.
According to the proposal on alternative business structures (ABS) for the legal profession, organisations would have to pass a "fit to own" test if they want to provide legal services. Outside owners would also have to comply with a code of conduct.
The details of the "fit to own" test would be specified by the regulator, but the criteria would include honesty, integrity and reputation, as well as competence and capability and financial soundness.
The proposals in the consultation paper include that regulation of alternative business structures should apply to any other form of business where a legal professional is involved in providing legal services.
The alternative business structures will be regulated by an approved regulator, authorised by Scottish ministers, with the agreement of the Lord President.  Professionals within the new set-up will continue to be regulated by their own professional bodies.
The proposals come as a result of consumer group Which? submitting a super-complaint to the Office of Fair Trading (OFT) asserting that the current regulation of Scottish legal forms restricts choice to consumers and prevents the formation of alternative business structures (ABS).