The Legal Services Board could punish non-compliant regulators with multi-million-pound fines if its proposals on enforcement, released today, are accepted.

From January 2010, the LSB would be able to fine the Law Society up to £28m for non-compliance if its proposals come into force in their current state, as fines would be linked to a body's number of members.

The LSB is to use its enforcement powers to ensure that the eight legal regulators deliver its regulatory objectives. The proposals, open to consultation until 26 October, also provide an initial impact assessment on how the LSB’s powers would affect different parties.

David Edmonds, LSB chairman, said: ‘The LSB has a clear mandate through the Legal Services Act to put the consumer at the heart of the delivery of legal services. In meeting this challenge, it is crucial that regulation is delivered in pursuit of the public interest at all times.

‘I am very clear that by working jointly with all approved regulators we can achieve better regulation underpinning that goal. But enforcement powers and how they might be used are a key part of the new statutory regime. This paper sets out our first thoughts.’

The LSB wants to levy fines of up to £250 per person an approved regulator regulates, or £5,000 per entity that it regulates, or £10m in total, whichever is greatest.

The eight approved regulators are the Law Society, the Bar Council, the Master of the Faculties, the Institute of Legal Executives, the Council for Licensed Conveyancers, the Chartered Institute of Patent Agents, the Institute of Trade Mark Attorneys and the Association of Law Costs Draftsmen.

The consultation document is available here.