The Law Society is on a collision course with the SRA over the latter’s plan to regulate legal executives. Chancery Lane believes the move would confuse consumers, while the SRA insists it will benefit them.

This morning the SRA published a consultation on taking over regulation of legal executives from CILEx Regulation (CRL). CILEX published its own consultation on the proposal earlier this month, following a long-running public spat between the representative body and its estranged in-house watchdog. A CRL poll, meanwhile, has suggested a big majority of legal executives do not support the transfer.

The SRA board has concluded that taking on the regulation of authorised CILEX members ‘has potential to deliver tangible benefits to consumers of legal services and the wider public’, the regulator said. It would ‘simplify the complex regulatory landscape, making it easier for consumers to navigate’, and ‘bring more consistent levels of protection and information.

‘For example, firms owned and managed by CILEX members will have the same level of indemnity insurance as solicitors’ practices, and will publish the same range of information about their costs and services,’ the SRA added.

The Law Society does not agree. President Lubna Shuja said: ‘While the SRA and CILEX have said they believe that the proposals will benefit consumers, our view is that there is a higher risk of causing greater confusion for when they are choosing the appropriate legal provider to meet their needs.’

The SRA proposes maintaining distinct identities for authorised CILEX lawyers and solicitors. There would be a separate Code of Conduct for CILEX lawyers - aligned with the standards and regulations for solicitors but ‘mindful of differences in role and context’.

A distinct CILEX route to authorisation would be retained.

The consultation states that the costs of regulating authorised CILEX lawyers would be fully recovered from the practising certificate fees of CILEX members. There would be no cross-subsidy between solicitors and CILEX lawyers.

Paul Philip, SRA chief executive, said: ‘Bringing together the regulation of solicitors and authorised CILEX lawyers has obvious benefits in terms of simplification and consistency of regulatory processes and procedures, and more consistent protection to the public. We believe the changes outlined in our consultation will enable this to happen, while also allowing for a smooth transfer of responsibilities.’

The SRA’s consultation will run until 22 November. CILEX’s consultation runs until 5 November.

Shuja added: 'While we appreciate that many of our members hire, supervise and work with CILEX lawyers, we are also mindful that many do not. We will be working with all of our members to gather their views and respond to the consultation, whilst also encouraging them to submit their own responses too.'

Approval for the switch would be required from the Legal Services Board.

 

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