Wednesday, 25 February 2015
A lot done, but more to do
The Legal Services Board (LSB) publishes today its Regulatory standards 2014/15 - An update report on the performance of legal services regulators.
This report reviews the progress that legal service regulators have made in developing and improving their regulatory standards[1] since a first self-assessment exercise was undertaken in late 2012.
Based on the findings of this review, the LSB expects all regulators to focus on improving standards in certain priority areas that are common[2] across the regulators as well as priority areas particular[3] to each regulator.
Legal Services Board Chairman, Sir Michael Pitt,said:
"I’m pleased to say that, taken as a whole, the regulators have made good progress. They have improved their understanding of, and accountability for, their performance levels. They have improved their ability to identify and assess risks. They know more about their role and their impact; and they have better information about those they regulate. We have identified some case studies of good practice that really stand out
But there is more to do. We have made specific recommendations to each regulator about where it has to raise its game further.
A common shortcoming across all the regulators is that none of them have got a firm grip on understanding the users of the legal services they regulate. For example, not one of the regulators has published new research into the needs of consumers since the publication of the first our reports on regulatory standards in 2012 and 2013. We expect to see changes in this and the other highlighted areas in the coming months and years."
[1] See notes for editors point 2.
[2] See notes for editors point 4.
[3] See notes for editors point 5.
ENDS
For further information, please contact our Communications Manager Vincent McGovern or by calling 020 7271 0068.
- The Regulatory standards 2014/15 – An update report on the performance of legal services regulators report can be found here.
- The LSB developed four regulatory standards that it considers necessary for the approved regulators to effectively regulate lawyers in England and Wales in accordance with the requirements of the Legal Services Act 2007 (the Act) [4]. These standards are:
· outcomes focused regulation: An approach that gives the correct incentives for ethical behaviour across diverse markets
· effective risk assessment: An evidence based understanding of the risks in the markets they regulate and the ability to profile those regulated according to the risks they pose
· proportionate supervision: Supervision of the regulated community according to the risks they present, and
· an appropriate enforcement strategy: A compliance and enforcement approach that deters and punishes appropriately.
The LSB considers that regulators must also have the capability and capacity to deliver the regulatory objectives in the Act and adhere to other relevant statutory responsibilities.
- In April 2014 the LSB asked regulators to report to the LSB on the progress they had made on delivering the regulatory standards since the 2012/13 self-assessment exercise. Today’s report is the LSB’s review of these self-assessment progress reports.
- The report’s common recommendations to all regulators require focus on outcomes focused regulation (page 11), risk assessment (page 13), supervision (page 16), enforcement (page 18), and capacity and capability (page 21).
- It also contains recommendations specific to each regulatory: the Bar Standards Board (page 28), the Costs Lawyer Standards Board (page 32), the Council for Licensed Conveyancers (page 37), the Intellectual Property Regulation Board (page 41), ILEX Professional Standards (page 45), the Master of the Faculties (page 50), and the Solicitors Regulation Authority (page 56).
- The Legal Services Act 2007 (the Act) created the LSB as a new regulator with responsibility for overseeing the regulation of legal services in England and Wales. The new regulatory regime became active on 1 January 2010.
- The LSB oversees nine approved regulators, which in turn regulate individual legal practitioners. The approved regulators, designated under Part 1 of Schedule 4 of the Act, are the Law Society, the Bar Council, the Master of the Faculties, the Chartered Institute of Legal Executives, the Council for Licensed Conveyancers, the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys, the Association of Costs Lawyers and the Institute of Chartered Accountants in England and Wales.
In addition, the Institute of Chartered Accountants of Scotland and the Association of Chartered Certified Accountants are listed as approved regulators in relation only to reserved probate activities. - As at 1 April 2014, the legal profession comprised 138,243 solicitors, 326 alternative business structures, 15,279 barristers, 7,927 chartered legal executives and 5,404 other individuals operating in other areas of the legal profession such as conveyancing. The sector was valued at £29.2 billion in 2013 (total turnover).
[4] LSB (April 2011), Developing regulatory standards: Summary of responses and decision document, http://www.legalservicesboard.org.uk/what_we_do/consultations/closed/pdf/20111214_regulatory_standard_v11.pdf.