Legal Services Board Robert Cross
Legal services in England and Wales Headline numbers
£26.8BN $41.7BN
320,000 WORKERS
165,000 LAWYERS
11,500 FIRMS
190 ABS
Legal services reform Why?
Office of Fair Trading – Competition in Professions 2001 Clementi Review Regulation outdated, inflexible, over complex, lacking accountability and transparency – No independence in complaint handling Lack of innovation Technology Falling public trust in professions Economic pressures Unmet need
Unmet need? Good article: your-clients-trust-its-time-to-use-price-tags/ your-clients-trust-its-time-to-use-price-tags/
Legal Services Act 2007 Regulation in numbers
Approved Regulators
LSB Board members
Regulatory Objectives
Independent Regulators
Reserved Legal Activities
Better regulation principles
Elements of legal services regulation
LSB Priorities
Licensing authorities
Oversight regulator
Current regulation of legal services Approved Regulators SRA BSB ILEX PS CLCIP RB Master of the Faculties CLSB Legal Services Board Ministry of Justice Professional bodies/trade associations Consumer Law Competition Law Trading standards Office of Fair Trading European law Consumer Bodies Empowered consumers e.g. Large corporate Other regulators e.g. FSA, ACCA etc. Media Custom & Practice Case law
The LSB the story so far.... The first three years.... Liberalising ownership through alternative business structures Establishing an independent Legal Ombudsman Separation of regulation within professional bodies The current priorities.... Improving and assuring performance of legal regulators Simplification of regulation to support growth Better consumer protection where needed
Alternative Business Structures The first twenty months or so
New entrants and new capital
New innovation in existing regulatory model
Innovation outside regulation
Challenges and opportunities Opportunities Significant unmet legal need Only 49% of individuals seek advice and only 18% from a solicitor Only 29% of small businesses seek advice and only 12% from a solicitor Transparency of costs and their ability to judge value for money was the reason for the reluctance to seek advice Challenges Competition - from outside as well as inside regulation Economic difficulties – making new and old models work Political changes - Legal Aid and personal injury Consumer demands
Conclusions LSB is a small, ambitious organisation with potentially a short lifespan The Legal Services Act 2007 has led to a significant drive to reform the legal services market in England and Wales Significant reforms have already been introduced – independent regulation and Alternative Business Structures The next phase of work is challenging but could significantly improve the market for legal firms and consumers
Thank you and questions research.legalservicesboard.org.uk