The Law Society faces the threat of millions of pounds worth of fines for missed complaints handling targets, the Government has indicated, after unveiling plans to bring Chancery Lane’s largest regulatory division under an independent commissioner.

The power to impose heavy fines will be the biggest weapon in the armoury of the Legal Services Complaints Commissioner (LSCC), Lord Chancellor Lord Falconer told journalists hours after the surprise announcement of the creation of the LSCC office.