FOR IMMEDIATE RELEASE
Tuesday, 9 June 2015
LSB PUBLISHES ANNUAL REPORT FOR 2014/15
REGULATING FOR INNOVATION AND GROWTH
The Legal Services Board – the independent body overseeing the regulation of lawyers in England and Wales - has published its Annual Report and Accounts for the year 2014/15. The document was laid before Parliament earlier today, 9 June 2014.
The report covers the fifth full year, of the post Legal Services Act 2007 regulatory regime and describes the role the LSB continues to play in assuring the public of the independence and competence of legal regulators
The annual report describes how the LSB delivered its 2014/15 Business Plan priorities and its statutory objectives highlighting, amongst others:
- changes which have the potential to stimulate more competition and choice in how legal services are delivered[1]
- completing the first stage of a substantial project putting the cost of regulation to the legal profession under the spotlight, and
- championing greater openness and access to information in order to develop consumer choice tools such as comparison websites and empower consumers.
The report also describes the work we are doing with all the legal services regulators to understand the challenges facing the sector and ensure that public and consumer interests are at the heart of regulation.
Justice Minister, Shailesh Vara MP said:
"The Legal Services Board plays a fundamental role in improving standards across the legal profession. The range and quality of services offered continues to improve, and I would like to thank everyone for their work this year
We are committed to cutting regulations and I welcome the work they have done to make sure regulations are appropriate and necessary.
I look forward to working with the Legal Services Board over the next year."
Chairman of the Legal Services Board, Sir Michael Pitt said:
"The LSB holds to account the various regulators of the legal profession in England and Wales. We also encourage change in the sector where this is in the consumer and public interest.
We will continue to drive the modernisation of regulation and to stimulate innovation, investment and growth. A priority is to improve outcomes for individual and small business consumers. By forcing the pace on reducing unnecessary red tape and regulation, we can play our part in helping the sector rise to the challenge of improving access to justice for those on limited budgets.
The coming years are going to present the legal services profession with both challenges and opportunities. I believe our progress and future plans, delivered as a result of the Legal Services Act 2007, are continuing to make a positive contribution."
[1] The passing by Parliament of an Order designating the Institute of Chartered Accountants in England and Wales (ICAEW) as an approved regulator for probate activities, and as a licensing authority for the same activity, the fact that Chartered Legal Executives are now able to deliver the same range of legal activities as barristers and solicitors, and changes to Bar Standards Board’s (BSB) rules which will mean that barrister owned entities can now enter the legal services market.
ENDS
For further information, please contact LSB Communications Manager Vincent McGovern or by calling 020 7271 0068.
Notes for editors:
- The Annual Report can be found here.
- The LSB operates at nil cost to the public purse and its expenditure in 2014/15 was £3,92m against a budget of £4,29m resulting in an under spend of £0.37m. 100% of this under spend will be used to reduce the levy for the approved regulators for the coming year.
- It highlights the efficiency of the organisation which operated with an average of just 29 full time equivalent members of staff (during the 2014/15 year).
- 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 2015, the legal profession comprised 142,109 solicitors, 326 alternative business structures, 15,237 barristers, 7,848 chartered legal executives and 5,678 other individuals operating in other areas of the legal profession such as conveyancing. The sector is valued at £25.49 billion per annum (total turnover in 2010).