Oversight regulator the Legal Services Board has responded warmly to the government’s unexpected announcement of a wide-ranging legal regulation review. In a statement this morning, chair Monisha Shah welcomed the findings of an independent review by Richard Lloyd - but warned that change would require ‘strategic investment’.

‘We will play our part in bringing about a system-wide transformation of legal service regulation,’ Shah said. The review ‘aligns strongly with our ambition to put consumer confidence and protection at the heart of our work’. 

Monisha Shah

Monisha Shah, LSB chair

A strategy for 2027-30 ‘will focus more sharply on stronger oversight’ she said. ‘Our work will focus on the greatest risks to consumers and where regulation can make the most difference. It will set out clearer priorities and measurable outcomes.’

‘We will also be clear about the results we expect from frontline regulators and take decisive action when improvement is needed. We will bring together the regulators and other organisations to build a shared understanding of risks and challenges across the sector, drawing on data, evidence and technology. If the government considers changes to legislation, we will provide evidence and expertise to inform its proposals.'

However Shah added that 'Delivering substantial change will require strategic investment in the people, skills and systems we need. We have begun to review our current programme of work, re- directing our resources towards fewer priorities, informed by the recommendations of the review. We will consult on our future budget requirements.’

The Legal Services Consumer Panel welcomed the LSB statement. 'The panel looks forward to supporting the LSB as that focus is carried through all of its work, including its oversight of regulators,' chair Tom Hayhoe said.

In other responses to yesterday's announcements, CILEX chair Eileen Milner said: ‘The government has rightly accepted the need for a reset and refocus of the LSB, accepting all the recommendations of the Lloyd review.

‘As oversight regulator, the LSB is in a unique position to bring together key players from across the legal sector to work collectively to improve legal services and drive clarity and consistency, while reducing duplication of effort. It must listen to those it regulates and be open to hearing from approved regulators who have a unique position in the system and can shine a spotlight on issues that only the LSB can tackle.'

Milner added that CILEX 'looks forward to playing its part in the planned review of the regulation of legal services. The current regulatory framework is no longer fit for purpose and reform is critical if we are to protect and meet the needs of consumers, with effective regulation that enables rather than hinders a thriving legal sector.’

Meanwhile campaign group Blind Justice called on the government to set a firm timetable for the review - and bring the handling of public reports of misconduct expressly within its scope. ‘The government’s review never mentions the SRA, sets no date and offers no money,’ said Edward Romain, founder and chief executive. ‘For anyone whose report about a solicitor was closed this week, it changes nothing. They should not have to threaten the High Court before a regulator will admit it has got something wrong.’