The two largest legal regulators in England and Wales are failing to meet the standards expected of them, according to a report from the Legal Services Board (LSB).
The Solicitors Regulation Authority (SRA) and Bar Standards Board (BSB) – which together regulate more than 90% of legal professionals in England and Wales – “failed to demonstrate that they met the required standards”. Those included failing to demonstrate that their operational activity is effective and is clearly focused on the public interest.
The LSB said it found shortcomings in the SRA’s authorisation, supervision and enforcement processes, particularly in the wake of the collapse of Axiom Ince and questions that raised around how the SRA supervises high-risk firms and provides protection for client funds.
The LSB also rebuked the SRA for failing to publish provider pass-rate data for the Solicitors Qualifying Examination despite previous commitments to do so. The LSB said it expects the SRA to publish this information – which helps prospective lawyers make informed choices about training providers – by autumn of this year at the latest.
Meantime, the LSB raised concerns about the slow rate of improvement at the BSB as it seeks to implement a reform programme to boost the regulator’s efficiency and effectiveness. The LSB says the BSB has continued to fail to meet key performance indicators as part of those reform efforts. The LSB also questioned if the BSB is adequately holding senior leaders accountable for delivering improvements.
In addition, the LSB said the BSB is taking too long to investigate misconduct complaints against barristers.
Craig Westwood, the LSB’s CEO, said: “ This year’s assessment reveals some concerning shortfalls in regulatory performance, particularly from the two largest regulators. Effective regulation is essential to protecting the public and maintaining confidence in legal services. All regulators must address the issues that we’ve highlighted and must demonstrate more clearly how their activities benefit consumers.”
He added: “We will be working closely with regulators to ensure these improvements are made swiftly, and to ensure that our approach to assessing their performance remains targeted and proportionate.
“The mixed performance we have seen underscores the importance of robust oversight. We are committed to supporting all regulators to reach the standards the public and profession deserve.”
The LSB is an independent body that oversees the regulation of lawyers in England and Wales. Earlier this month, LSB chair Alan Kershaw said he was stepping down half through his four-year term for “personal considerations”.
The LSB initiated enforcement action against the SRA last year for its oversight failures following the collapse of Axiom Ince.
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