(Ministry of Justice) Boosting public confidence in legal regulation

Confidence for consumers of legal services is the aim behind the LSB's consultation on regulatory independence, published today.

The separation of regulation from representation was a key plank of the reforms made possible by the Legal Services Act 2007.The LSB was created in large degree to address lack of trust in the current regulatory framework. This was identified by the Clementi Review, the White Paper and the Parliamentary debates on Bill prior to enactment.

Launching the consultation exercise, Chairman David Edmonds said:

"The Legal Services Act is designed to put the interests of consumers at the heart of regulation. The Act on its own is not enough. Consumers have to see benefits flow from changes in legislation. The Legal Services Board is here to make sure they do. Our proposals on regulatory independence are a first step to achieving the tangible change that's necessary.

"Ensuring that the consumer interest really is placed at the heart of the system is essential. Confidence in regulatory process will be good for consumers, good for the profession and at the heart of the public interest."

The consultation paper published today sets out proposals for rules that would require the separation of regulatory work from any representative work within the eight approved regulators designated under statute. It also deals with rules necessary to approve the level of practising fees, charged by the approved regulators and paid by lawyers as a condition of being authorised to practise. Together, the proposed rules should see appropriately resourced regulatory bodies pursuing an agenda that is demonstrably in the public interest.

LSB Chief Executive Chris Kenny said:

"Under the Legal Services Act, we are required to make rules on regulatory independence. That independence is not yet a done deal - we need to provide the detailed rules under the Act's broad framework.

"We therefore want to encourage as wide a range of stakeholders as possible to engage with us on this consultation. We need consumer input and we need lawyer input. The Act has given us a one-in-a-generation opportunity: we now have to make sure we get it right."

The consultation exercise will run until 26 June. Following the consultation, it is envisaged that rules will be made in the autumn, coming into force early in 2010.