Legal Services Board

The Legal Services Board has approved a rule change by the Solicitors Regulation Authority which will make it easier for law firms to switch regulators. In a move which is likely to see more firms leave the SRA than join it, the requirement that they must obtain six years of run-off cover before switching to another regulator will be removed.

The Legal Services Board has marked as “sufficient” action plans produced by legal regulators to introduce price transparency and release other information to the public to help with purchasing decisions. The verdict on the original action plans published at the end of June came in the wake of the regulators moving to the next stage of consulting on how they would implement transparency.

The Legal Services Board has been warned against trying to force the introduction of the civil standard of proof in the Solicitors Disciplinary Tribunal without proper consultation. The Law Society said it was “inappropriate” for the board to use performance assessments of the regulators it oversees to require them to introduce a lower standard.

The Lord Chancellor, David Lidington, has unexpectedly rejected the Legal Services Board’s recommendation that chartered accountants should be able to handle litigation, advocacy and legal instruments in taxation work. It is the first time the Ministry of Justice has rejected a regulatory extension of this nature,

The government indicated today that it will not go ahead with plans to completely separate legal regulators from their linked professional bodies, such as the Solicitors Regulation Authority and Law Society. It came in a review of the Legal Services Board and Office for Legal Complaints that found both “generally operating efficiently and effectively”.

Lawyers acting for mentally ill clients and dementia sufferers have been praised in surveys commissioned by the Legal Services Board on the needs of vulnerable consumers, but some did find it hard to deal with solicitors. The majority of dementia sufferers said their experience of seeing a solicitor had been “extremely positive”.

Accountants are set to enjoy the right to handle litigation, advocacy and legal instruments in taxation work after the Legal Services Board approved an application by the Institute of Chartered Accountants in England and Wales. Its recommendation will now go to the Lord Chancellor for approval, despite the opposition of the Lord Chief Justice.

The low level of external investment in law firms since alternative business structures were allowed more than five years ago “may be a symptom of weak competition in the market overall”, a Legal Services Board report has suggested. There are also cultural and management factors, it found.

The Legal Services Board has dismissed concerns about the “negative” impact of its requirement that lawyers tell clients about their complaints procedures before any work has been done. Research found “negative reactions” to the prominence of this information but the board said the problem was how some lawyers have chosen to provide it.

The Legal Services Board is to meet with the deputy president of the Supreme Court, Baroness Hale, after she expressed the senior judiciary’s concern over its statement last year that the regulatory objective of ‘encouraging an independent, strong, diverse and effective legal profession’ was “problematic”.