MPs and peers have reported on the draft Legal Services Bill
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A proposed regulatory body puts the independence of the legal profession at risk, MPs and peers have said.
A Lords and Commons committee set up to consider the draft Legal Services Bill says ministers should have less power over the new Legal Services Board.
The committee wants a nominations committee and not the Lord Chancellor to appoint board members.
The government says it wants the interests of consumers to be "at the heart" of the legislation.
'Conflicts of interest'
The committee is concerned about the proposed role of the lord chancellor in appointing the board's chairman and members.
It wants the board to be selected initially by the Lord Chancellor in consultation with the Lord Chief Justice and the Commons constitutional affairs select committee.
The committee would then like to see the board to set up a nominations body to appoint all members apart from the chairman.
The committee is also worried about the direct powers the draft legislation would give the Lord Chancellor over the legal profession.
There is concern at potential conflicts of interest if proposals to deregulate the types of firms that provide legal services go ahead.
The committee's report questioned the pace and cost of reform, and the amount of time it was allowed to look into the proposals.
'Direct involvement'
Committee chairman Lord Hunt said: "We have some very real concerns about the proposals put forward in this Bill.
"It is vital that industry and the public have faith that our legal profession is independent of government.
"The legal system must not only be independent, it must be perceived as being independent, and we are worried that the proposals as they stand would give the Lord Chancellor far too much direct involvement in regulating the legal services market."
The government wants to simplify the system and reduce costs.
Constitutional affairs minister Bridget Prentice said: "In considering the joint committee's report, we'll be keen to make sure that the interest of consumers continues to be placed at the heart of these proposals.
"The government is also keen to ensure that its proposals remain consistent with the principles of better regulation."
The board would regulate professional bodies such the Law Society and the Bar, which have previously dealt with complaints against lawyers.