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Boosting public confidence in legal regulation

MINISTRY OF JUSTICE News Release (On behalf of the Legal Services Board) issued by The Government News Network on 25 March 2009

Confidence for consumers of legal services is the aim behind the LSB's consultation on regulatory independence, published today.

The separation of regulation from representation was a key plank of the reforms made possible by the Legal Services Act 2007.The LSB was created in large degree to address lack of trust in the current regulatory framework. This was identified by the Clementi Review, the White Paper and the Parliamentary debates on Bill prior to enactment.

Launching the consultation exercise, Chairman David Edmonds said:

"The Legal Services Act is designed to put the interests of consumers at the heart of regulation. The Act on its own is not enough. Consumers have to see benefits flow from changes in legislation. The Legal Services Board is here to make sure they do. Our proposals on regulatory independence are a first step to achieving the tangible change that's necessary.

"Ensuring that the consumer interest really is placed at the heart of the system is essential. Confidence in regulatory process will be good for consumers, good for the profession and at the heart of the public interest."

The consultation paper published today sets out proposals for rules that would require the separation of regulatory work from any representative work within the eight approved regulators designated under statute. It also deals with rules necessary to approve the level of practising fees, charged by the approved regulators and paid by lawyers as a condition of being authorised to practise. Together, the proposed rules should see appropriately resourced regulatory bodies pursuing an agenda that is demonstrably in the public interest.

LSB Chief Executive Chris Kenny said:

"Under the Legal Services Act, we are required to make rules on regulatory independence. That independence is not yet a done deal - we need to provide the detailed rules under the Act's broad framework.

"We therefore want to encourage as wide a range of stakeholders as possible to engage with us on this consultation. We need consumer input and we need lawyer input. The Act has given us a one-in-a-generation opportunity: we now have to make sure we get it right."

The consultation exercise will run until 26 June. Following the consultation, it is envisaged that rules will be made in the autumn, coming into force early in 2010.

Notes to Editors

1. The consultation paper can be accessed online at: http://www.legalservicesborad.org.uk

2. The Legal Services Act 2007 provides for the creation of the Legal Services Board as the oversight regulator for legal services in England and Wales.

3. The LSB oversees eight "approved regulators", which in turn regulate individual lawyers and organisations. The eight 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 Institute of Legal Executives, the Council for Licenced Conveyancers, the Chartered Institute of Patent Agents, the Institute of Trade Mark Attorneys and the Association of Law Costs Draftsmen.

4. The rules that the LSB needs to make are under sections 30 (internal governance) and 51 (practising fees).

5. Some approved regulators have already started work to separate their regulatory and representative functions. For example, the Law Society has established the Solicitors Regulation Authority (SRA) and the Bar Council has set up the Bar Standards Board (BSB).

6. Two approved regulators, the Council for Licenced Conveyancers and the Master of the Faculties, are established as regulators without any 'representative' functions. Section 30 rules will therefore be unlikely to impact much on those bodies. However, the section 51 rules will apply to all eight of the approved regulators.

7. The legal profession currently consists of some 15,000 barristers, 108,000 solicitors and 14,000 individuals operating in other aspects of the legal profession such as conveyancing. The sector is currently valued at £23.34 billion per annum (total turnover in 2006).

8. For more information or interview requests please contact Craig Robb at the LSB on 020 7271 0072.