LSB consults on rules relating to the regulation of licensed bodies

A key element of the Alternative Business Structures (ABS) regime is that approved regulators may apply to the LSB to become designated as licensing authorities. As such a body, they may issue licences to legal services businesses that have some element of non-lawyer ownership. The Act gives the LSB the power to make a recommendation to the Lord Chancellor about the time period within which certain information must be provided by external investors into ABS to the relevant Licensing Authority. The importance of the LSB setting rules in this area is to ensure that there is clarity for investors about obligations and to enable Licensing Authorities to have clear grounds for taking enforcement action if the time periods are not met. There are also other elements of governing rules being consulted on as a package of proposals contained within the Consultation Paper.