HKCSI's Comments on the Conveyancing Scale Fees

In the course of our discussion with the Law Society, we have noted the strength of feelings amongst the Law Society over the effect of abolition of scale fees on the profession. Although we have not been persuaded by the Law Society on the merits of scale fees, we do see a case for the Law Society in asking for more detailed consideration over the impact of a major, radical change to the profession. Whilst we believe that removal of scale fees would be in the public interest, we also believe that public interest would require this to be implemented in a cautious and measured manner, with the least possible disruption to consumers and minimal negative impacts to the profession.

One of the proposals put forth by the Law Society is for an independent commission of enquiry to study the matter. The Administration has pointed out (in the "Myth 15" of your paper on Myths and Misconceptions) that the proposal has been studied at length for nearly two years. Whilst we recognise this, we do find merit in the proposal for an independent commission in assessing the ways through which the changes are to be brought about, the impact on the legal profession, the monitoring of legal quality in lieu of a scale fee, the implications to the public, and other possible alternatives. Particularly, given the legal profession's concerns on this issue and the need to maintain confidence in the profession around the transfer of sovereignty date, we consider the Administration should move cautiously on this subject so that the abolition of scale fees is a gradual move and that the impact to the profession is minimised.

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