Bar Standards Board calls for new regulatory powers

The Bar Standards Board (BSB) claims it needs new statutory powers to deal with failing chambers so as to protect the interests of clients.

In a new consultation paper, the regulator of the barrister profession has argued that, in serious instances of failure to comply with regulatory requirements, dishonesty, insolvency, or where otherwise necessary to protect the interests of clients, it should have statutory powers to take control of client files.

These new powers, which the BSB envisages would only be used in rare circumstances, will enable the regulator to obtain alternative representation for clients, as well as securing any papers and assets that belong to them, similar to the powers enjoyed by the Solicitors Regulation Authority (SRA).

The consultation also proposes powers to establish and demand contributions to a compensation fund or similar arrangements. While the BSB does not believe that this is necessary at the moment, this may change in the future as the market develops and risks change.

These are powers that will be available to the BSB if it becomes a regulator of ABSs, following the recent application that it has submitted to the Legal Services Board. However, the powers could be applied to barristers, entities, and their owners and managers.

The BSB's director of regulatory policy, said: 'To be clear: these are powers that would be used very rarely, but we think that, in the event something goes awry, all clients should benefit from the same safeguards - regardless of whether they're the client of an ABS, a BSB-regulated entity, or a barristers' chambers.

'Other regulators already have similar controls so we want to ensure there are no holes in the safety net for consumers. For us, having these powers available, if and when we need them, is key to protecting the public interest and upholding the regulatory objectives set out in the Legal Services Act.'

The BSB wants to place its existing regulatory powers on a statutory footing. These include the power to disqualify any individual from being employed by a business or person that comes under the regulator's remit, including lay people employed in a chambers or entity.

At present, the BSB's disciplinary controls over non-barristers come from the contractual relationship it enters into with those it regulates. The regulator believes it is best practice for these powers and its jurisdiction over non-barristers to be stated unambiguously in legislation.

In addition, the BSB is consulting on arrangements for appeals against entity authorisation decisions. The current appeal route to the High Court was introduced as a temporary measure until the regulator could seek an order for such appeals to be heard by the First Tier Tribunal.

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