The representative body for legal executives has decided to press ahead with plans to transfer regulation of its members to the Solicitors Regulation Authority - despite hundreds of members signalling that they do not wish to move.
In a consultation paper published today, CILEX said SRA regulation will provide 'steady-state regulation of CILEX lawyers at a cost similar to, and potentially lower than, the current practising certificate fee without any cross-subsidy between solicitors and CILEX lawyers and with the additional benefits of increased levels of consumer protection, the ability to respond to new regulatory demands and the profile of the SRA brand'.
Legal executives are currently regulated by CILEx Regulation, which asked members in a recent consultation if they considered changing the current regulatory regime a priority. Of the 1,018 people who replied, 68% said 'no'. (According to government figures, there were 8,191 chartered legal executives in April 2023.)
The Gazette raised this at a press conference with CILEX chief executive Linda Ford this morning.
Ford replied: 'CILEx Regulation did ask the question around whether members considered it a priority. That's not the focus of our decision or consultation. We will make this decision based on public interest outcomes... CILEx Regulation had a very small number of responses to their consultation. We're keen to engage with as many stakeholders as possible.'
The Gazette also asked if there has been any discussion about the SRA changing its name if it ends up overseeing legal executives.
SRA chief executive Paul Philip said: 'We're very early in the process. We have talked to CILEX about whether or not changing our name would be a good thing or not. We have also spoken to the Law Society [on] whether changing the name would be a good thing or not. No decisions are being made.'
Philip pointed out that the SRA regulates other categories of people who are not solicitors. 'If it is deemed appropriate and someone can come up with a better name at some point in time, we will think about that. But it's not on the cards right now.'
CILEX's consultation paper states that the SRA will publish an authorised CILEX Lawyers Register alongside the Solicitors Register. Annual reporting and accounting arrangement will deal separately with the regulation of solicitors, law firms and authorised CILEX lawyers. 'These arrangements will maintain financial transparency to ensure that each profession appropriately funds the costs of its regulation,' the document says.
The consultation closes on 5 November. The SRA will shortly publish a consultation on changes it has to make to accommodate CILEX members. Any transfer will not take place until April 2024 at the earliest.
CILEx Regulation said any changes to the regulatory system needed the widespread support of those affected, noting the findings of its recent consultation.
Jonathan Rees, chair of CILEx Regulation's board, said CILEx Regulation's proposals to change its rules and procedures remained the best way forward for the regulation of legal executives. 'In the coming months we will continue to put forward that case and hope we can reach an accommodation with the CILEX board based on the clear views of members,' Rees said.
A Law Society spokesperson said: 'We will read the consultation with interest and respond in due course. The consultation is an opportunity for CILEX's own members to have a say in what is being proposed as a big change to how they are regulated.'
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