Legal Services Board
The Legal Services Board (LSB) published its “vision for legislative reform of the regulatory framework for legal services in England and Wales” on 12 September 2016. The LSB’s main proposals include:
- A single consolidated regulator
- Revision of the regulatory objectives - there should be an overarching objective to safeguard the public interest with the possibility of further secondary or subordinate objectives.
- An independent and risk-based review of the regulated activities - this would include services such as immigration advice which are not reserved but viewed as legal services.
- Regulation should be based on activity not professional title. Award of title should not return to professional bodies as the LSB has concerns it may lead to 'gold-plating' of entry standards, less competition, less consumer choice and a rolling back of liberalising reforms.
- Independence – regulation should be structurally, legally and culturally independent of the professions and government. The LSB suggests regulators be accountable to Parliament with a role for the National Audit Office in scrutinising regulation.
- Consumer representation – there should be a general duty on the regulator(s) to consult and engage with consumers to help promote a consumer-focused regulatory culture. There should be an independent sector-specific consumer voice to ensure consumer representation.
The report can be found here (PDF). The Law Society also published a press release in response to these changes which states that the proposals to overhaul regulation of the legal sector are mis-timed given the uncertainty that exists already due to Brexit, and the fact that the CMA market study in still ongoing.
Further to the Law Society’s submission to the CMA following its interim report, they attended a roundtable discussion with the CMA and other stakeholders on Friday (16th September). The roundtable discussion focused on exploring the proposed remedies the CMA are considering, with the majority of the session focused on transparency and consumer information.