A ‘wake-up call for unregulated providers’: Industry reacts to CMA’s new will writing guidance

The Competition and Markets Authority (CMA) recently published compliance guidance for unregulated providers of will writing, online divorce, and pre-paid probate services.

This guidance aims to help these businesses comply with existing consumer protection laws and improve transparency and accountability in a largely unregulated sector. The document outlines the key consumer protection requirements that all providers, including those unregulated, must follow. Industry figures share their reactions and expectations regarding the short- and long-term impacts of this new guidance.

Paul Sharpe, President of the Institute of Professional Willwriters (IPW) welcomes the CMA’s guidance, noting that it largely aligns with the IPW’s Code of Practice, which is already approved by the Chartered Institute of Trading Standards. For members of the IPW and its Scottish counterpart, ISPW, he expects little immediate change. However, Sharpe is sceptical about the short-term impact on consumers, as the guidance does not introduce new regulations and may be ignored by providers operating on the fringes of legality. He said:

“I am sceptical that there will be any impact for consumers in the short term. The guidance offers nothing new. Sure, it sets out existing legislative requirements but can we really expect those at the shady end of the sector to be bothered? And can we really expect consumers to read an eight page consumer guide? That’s assuming that they know that the consumer guide exists and where to find it!

The longer term impacts could be more significant. The guidance signposts the arrival of the Digital Markets, Competition and Consumers Act, expected from April 2025. That will give more power to consumers and it will give the CMA enforcement powers. Maybe the publication of the guidance now is the start of a longer term plan for the CMA to involve itself in all things unregulated. But will CMA have the resources to do this effectively?

Consumer protection and transparency will only be improved if there are mechanisms to ensure a high level of business compliance with the guidance. I note CMA plan to conduction compliance audits, so time will tell.”

Anthony Belcher, Director of The Society of Will Writers (SWW) agrees that the guidance “ticks a lot of the right boxes” and should help improve standards across the sector. He highlights the inclusion of key issues like misleading advertising and unfair terms, which the SWW had pushed for in discussions with the CMA. Belcher appreciates the acknowledgment of unregulated providers’ potential to innovate and offer consumers more affordable legal services.

Belcher is pleased that the guidance does not unfairly target unregulated providers, pointing out that within the SWW, complaints are low, and standards are regularly assessed. He commented:

“With that in mind then I do think the guidance will improve consumer protection, however not on its own. It’s down to bodies like ours to utilise it as a resource for training, and to make sure that its content is being adhered to. We commented in our own response to the CMA that having guidance is all well and good, however it’s just that – guidance. It will require enforcement and a degree of monitoring, something which those the membership can do, however only for their members. Those firms, that for whatever reason choose not to align themselves to any body, remain a bit of an unknown and could pose a threat if they simply elect to ignore the guidance.

I certainly don’t mean to sound negative, because I do think this is a step in the right direction, and it is a good piece of guidance. We’re also glad to see it supported by a consumer facing document as well which should hopefully work towards helping consumers understand their choices and what to look for when choosing their will writer. I’m sure that within our membership compliance levels will be more than acceptable, and we’re awaiting the CMA’s compliance review with interest.”

Emily Deane, Technical Counsel & Head of Government Affairs at STEP also supports the guidance, viewing it as a helpful tool for unregulated practitioners to understand their consumer protection obligations. She said:

“STEP welcomes the CMA’s guidance for unregulated practitioners to help them to comply with their obligations under consumer protection law. Understanding what is required will help protect consumers from poor practice. We believe that it will, in the short term, enable businesses committed to a high standard of practice to understand what is expected of them more clearly so that they can continue to improve the customer services that they offer.

In the longer term, we would hope to see this guidance lead to the elimination of dishonest and incompetent will writers as standards are raised and consumers come to expect a certain level of quality from the will writers they engage.”

STEP has also frequently talked about the need for improved accountability when it comes to will writing. A survey of their members last year revealed that 79 per cent had come across wills with errors and 54 per cent were aware of other firms making false claims. Deane continued:

“While many of the 208,000 unregulated providers in England and Wales will be operating appropriately this guidance will provide a more effective framework to hold those providers who are not currently complying to account.

We wish to see all consumers protected, especially at such a vulnerable time in their lives, and continue to work with the CMA and other partners to push for the regulation of the will writing industry alongside the provision of high-quality training and greater recognition of specialist will qualifications.”

Nicola Combe, Director of Morecambe Bay Wills sees the guidance as a positive development for both the industry and consumers. For compliant providers like her firm, it reinforces existing best practices. For those without the necessary safeguards, it acts as a “wake-up call”. She added:

“But the most important thing is that is it good for clients. They will be better placed to know who they are dealing with and be clear in what is expected from us. And they will be protected from those who don’t have the customer’s best interests at the forefront of everything they do.

Short term I think there will be a period of reflection and (I hope) changes for those who aren’t aligning with the guidance. Though I do wonder who will be policing this?

Longer term I would like to see more. The guidance doesn’t go far enough. Membership of a regulator/self-regulatory body isn’t mandated. And there is no access to customer redress. Until these are in place there will always be some form of ‘us and them’ in the two sectors, but at least if mandatory membership was in place, it would allow more oversight and governance and somewhat allay fears in the industry and for the public.”

Paul Sharpe said that the publication of the guidance is an “interesting next step in the long running saga of the regulation (or not) of Will writing services”. He added:

“The sector is on notice (once again) to sort itself out, perhaps with a signpost of what the next step will be if it doesn’t.”