FOR IMMEDIATE RELEASE
Monday, 08 February 2016
LSB confirms its push for proportionate regulation of in-house lawyers
The Legal Services Board (LSB) publishes today its statement of policy on regulatory arrangements for in-house lawyers (based on section 15(4) of the Legal Services Act 2007).
The statement sets out clearly the principles the LSB will have regard to when making statutory decisions about regulatory arrangements that affect in-house lawyers' practice.
These principles are intended to inform regulators’ work on rules for in-house lawyers and have, as a result, been influenced by feedback from them and other interested parties. The intention is that there should be as few restrictions as possible and only those necessary for the protection of consumers.
Legal Services Board Chief Executive, Neil Buckley, said:
“This statement of policy is intended to support regulators as they reform restrictions on in-house lawyers and where appropriate remove rules that are no longer required.
We know some regulators are planning to review their current restrictions. The principles in our statement of policy provide transparency about the issues the LSB considers essential in this reform.
The statement of policy sets out in a clear and transparent way the areas of which we will be particularly mindful when we exercise our statutory functions.
It provides regulators with clarity on what is important to us when they submit rule changes or new regulatory arrangements.
The widespread backing for the statement supports the Board’s decision in September 2015 to take this approach and we hope that it will encourage essential regulatory reforms that will allow in-house lawyers to improve and innovate.”
ENDS
For further information, please contact the LSB’s Communications Manager, Vincent McGovern (020 7271 0068).
Notes for editors:
- The LSB’s Statement of policy on section 15(4) of the Legal Services Act 2007: regulatory arrangements for in-house lawyers can be found here.
- The four principles outlined in this statement of policy are:
- The approach taken to regulatory arrangements pertaining to section 15(4) must be evidence based
- Regulatory arrangements that pertain to section 15(4) must be considered in light of wider regulatory arrangements
- The impact on consumers of any regulatory arrangements that pertain to section 15(4) of the Act must be assessed, and
- Consistency in approach to regulating in-house lawyers has to be considered.
- The LSB issued a draft statement of policy in September 2015 and invited representations from stakeholders. Relevant information can be found here and here.
- Stakeholders’ representations on the draft statement of policy can be found here.
- 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 2007 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).