Economic Crime Bill: Lord Bellamy supports proportionate regulatory objective

Lord Bellamy’s statement in the House of Lords (27 June) has emphasised and agreed with many points made by the Law Society as the Economic Crime Bill reached Report Stage.

Law Society of England and Wales President Lubna Shuja said: “We are pleased Lord Bellamy highlighted how important it is for the objective to be implemented in a targeted and proportionate way, and that regulatory activity should be transparent, accountable, proportionate and consistent as well as targeted only on cases where action is required.

“Lord Bellamy’s statement makes clear how Parliament expects the Legal Services Board and the front line regulators – like the Solicitors Regulation Authority (SRA) – to interpret the government’s proposed new regulatory objective.*

“There was particular reference to the objective not directly creating any new burden on solicitors, the requirement for any regulatory activity to be appropriately targeted, and not just become a hollow box-ticking exercise.

“The originally proposed definition of the objective was overly broad. It risked diverting compliance resources and activities away from the areas of genuine risk, as well as undermining efforts to tackle economic crime. It is good to see that the concerns raised by the Law Society have been taken on board.

“We look forward to continuing to work with the Legal Services Board, the SRA and Ministers on its implementation.”