LSB reveals initial findings on litigation

The Legal Services Board (LSB) unveiled an interim report detailing preliminary findings from its ongoing review of the advice and guidance related to the conduct of litigation provided by regulators to the legal profession. This development comes after recent scrutiny of judicial interpretation surrounding reserved legal activities, particularly following the High Court judgment in Mazur v Charles Russell Speechlys.

The interim report reveals noteworthy inconsistencies in how various regulators have interpreted and communicated their requirements, highlighting the need for improved clarity, consistency, and collaboration among them. The LSB’s review was prompted by the implications of the Mazur case, which, while not altering existing law, raised significant questions regarding the practical application of litigation conduct regulations.

The report summarises the LSB’s initial assessment of a range of materials submitted by approved regulators and regulatory bodies. This includes various forms of guidance, communications, and other relevant information that detail how litigation conduct advice has been developed and disseminated among legal professionals.

Key findings from the report indicate a stark divergence in the clarity and consistency of advice available to legal practitioners across different areas of the regulated sector. Moreover, there seems to be a variation in the degree of engagement among regulators concerning draft guidance, which may have further contributed to differing interpretations of relevant laws. Additionally, the findings reveal disparities in the information held by regulators regarding the involvement of both authorised and exempt individuals in the conduct of litigation.

Importantly, the report notes that, in light of the Mazur judgment, regulators have taken initiatives to collaborate more closely, aiming to offer clearer distinctions between assisting with litigation and actually conducting it. However, the LSB stresses that this interim report does not make final determinations about facts, compliance, or legal assessments of past or current regulatory strategies.

The ongoing review will continue to evolve, taking into account the outcomes of the Court of Appeal's proceedings concerning the Mazur case and conducting further analysis based on the collected materials. Interested parties can access the full interim report, titled “Regulatory review of advice and guidance provided to the profession on the conduct of litigation by approved regulators and regulatory bodies,” on the LSB's official website.

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