Legal Services Board must enhance oversight

The Law Society of England and Wales has asserted that the Legal Services Board (LSB) needs to concentrate on its fundamental oversight responsibilities while developing a comprehensive risk-based strategy for monitoring frontline regulators. This statement comes in light of a review announced by the Ministry of Justice (MoJ) aimed at ensuring the LSB's effective operation for the UK government and the public.

In its response to the call for evidence, the Law Society has advocated for several key measures. These include a focus on core responsibilities, enhanced verification of performance information from frontline regulators, and improving the current assurance model to ensure a stronger performance from the Solicitors Regulation Authority (SRA). The Law Society emphasised the importance of learning from recent regulatory failures and advised that the LSB adopt a pragmatic work plan that aligns with its capabilities while leveraging the expertise of partner organisations to prevent redundancy in efforts.

Mark Evans, president of the Law Society, highlighted the critical need for improved regulatory oversight, stating: “There is a clear need for stronger regulatory oversight of frontline regulators’ core compliance activities as demonstrated by the collapses of Axiom Ince and SSB Group.” He expressed concerns about the LSB’s current “light touch” assurance model introduced in 2022, which permits frontline regulators to self-report on their performance without stringent requirements for evidence.

Evans remarked: “It has also led to the LSB forming an overall positive view of the SRA’s regulatory abilities based on information provided to it by the SRA, all while major regulatory failures were taking place.” He called for the LSB to refocus its priorities on regulatory oversight, advocating for the establishment of clear expectations, the gathering and evaluation of independent evidence, and proactive intervention when standards are not met or when new risks arise.