26 March 2010 - Next stage guidance on ABS released

The package brings together guidance to Licensing Authorities on the shape and content of outcome-focused regulation, further detail on governance within ABS and new provisions on consumer protections built into the licensing framework. The initial form of the guidance was released for consultation in November and has been refined in the light of responses from stakeholders.

Alongside this, the LSB is also issuing its final rules on the process for designation and cancellation of status as Licensing Authorities.

The Board earlier this month announced a timetable whereby the first prospective ABS can apply for licenses from June 2011 and begin trading from 6 October 2011.

Legal Services Board Chief Executive Chris Kenny said:

‘This package of guidance to Licensing Authorities is a milestone in the process leading up to the first ABS opening for business on the timescale we announced earlier this month. We are pleased that the initial form of this guidance was generally welcomed by those who responded and this final version builds in their comments. These provisions set out in some detail how outcome-focused regulation will look and feel both for regulators and practitioners, whilst giving a much greater sense of the consumer protections that will be embedded through the licensing framework. We look forward to continuing to work with potential Licensing Authorities, ABS firms, consumer groups and other stakeholders to maintain the momentum of implementation.

The package of policy can be found here.