LSB Annual Report highlights progress in legal services regulation

The report highlights the LSB’s ongoing commitment to enhancing standards and public trust in the legal sector.

Key Highlights from the Report

• Performance Assessment of Regulators: The LSB's inaugural assessment against its new performance framework revealed mixed results. While some regulators have made progress, there is a need for enhanced capacity and capability to address emerging risks effectively. The LSB will continue to monitor and support regulators in meeting these expectations.

• Professional Ethics Work Programme: The LSB progressed its work on professional ethics, including a literature review on the application of the rule of law to legal professionals and the maintenance of high ethical standards. This is part of the broader effort to ensure that legal professionals meet public expectations.

• Non-Disclosure Agreements (NDAs) and SLAPPs: The LSB published findings on the use and misuse of NDAs and engaged with the Government Taskforce on Strategic Litigation Against Public Participation (SLAPPs). The LSB led the ethics workstream of this taskforce, focusing on non-legislative solutions to complement existing legislation.

• Review of Axiom Ince Collapse: An independent review was commissioned to investigate the Solicitors Regulation Authority's (SRA) intervention in the collapse of Axiom Ince. The LSB aims to ensure the sector learns from this review to prevent similar issues in the future.

• Consumer Feedback and Continuous Improvement: New rules were introduced to create a culture of continuous feedback and improvement within legal services. These rules ensure that consumer complaints are addressed effectively and used to enhance service quality.

• Dispute Resolution Between CILEX and CRL: The LSB effectively managed disputes between the Chartered Institute of Legal Executives (CILEX) and CILEx Regulation Limited (CRL), ensuring compliance with recommendations from the April 2023 investigation.

• Judicial Diversity: Continued efforts to enhance judicial diversity included contributing to the Judicial Diversity Forum (JDF) and commissioning research into the judicial talent pipeline. The results of this research will be published later in 2024.

• Financial Management: The LSB’s expenditure for the year was £4.659 million, just under its £4.679 million budget. A surplus of £129,000 will be returned to Approved Regulators as a rebate on the levy for the next financial year.

Alan Kershaw, Chair of the LSB, commented on the report by saying “Over the last year, the LSB has worked diligently to ensure that regulation enhances standards and builds public trust in legal services. High-profile cases such as the Post Office IT Horizon scandal and the collapses of Axiom Ince and SSB Law underscore the need for effective regulation and high professional ethics.

We expect all regulators to keep improving their performance, which benefits both the public and the legal profession. Moving forward, we will build on our achievements to ensure that regulation helps people and businesses access high-quality legal services.”

The full Annual Report and Accounts, along with a summary version, are available here.