The Legal Services Board has today (25 March) launched a consultation on regulatory independence. A new document sets out proposals for rules that would require the separation of regulatory work from any representative work at eight approved regulators, including the Law Society. 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.

Launching the consultation exercise, chairman David Edmonds (pictured) 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.’

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 once-in-a-generation opportunity: we now have to make sure we get it right.’

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

Law Society President Paul Marsh said: ‘We are committed to making the new regulatory structure set out in the Legal Services Act work effectively. We look forward to continuing our work with the LSB to implement the new framework, safeguarding the vital independence of the legal profession and its important role within the wider economy.’

The SRA issued a document ahead of today’s announcement outlining its own views on governance issues. The SRA board believes that ‘the long-term solution’ is for the Law Society council to undertake an unfettered representative role. It wants to see the establishment of an alternative governing body to deal with issues common to both parts of the Law Society group. Such changes would require amendments to the Society's Royal Charter.

The consultation paper can be accessed online at: www.legalservicesboard.org.uk/what_we_do/consultations