Our first Board meeting of 2025 took place on Tuesday 21 January. It was a pleasure to be joined by our new Board Apprentice for this year, Liz Marshall.
We had two substantive items to discuss: first, the LSB’s approach to regulatory oversight; and second, a draft policy statement about professional ethics and the rule of law.
Our approach to regulatory oversight
We had a general discussion about how the LSB oversees regulators’ performance. This provides an opportunity for me to highlight this fundamental duty that we carry out.
We oversee the performance of eight regulatory bodies, each with distinct roles and responsibilities in the legal services market. Our approach is designed to be proportionate, risk-based and evidence-based. We set standards for the regulators, and they determine how they’ll meet those. They provide us with evidence through regular performance assessments and other regular interactions with the LSB team at Board and executive level.
When these assessments identify concerns with a regulator’s performance, we have a range of regulatory tools we may use, including in-depth reviews or enforcement action. Our overriding duty is to ensure that the regulators operate in the public interest, upholding the nine regulatory objectives set out in legislation.
To evolve our approach, in recent years we’ve introduced a new regulatory performance framework and, most recently, a new regulatory review team and horizon-scanning function. We’re also dedicating more of our resource to how we actively maintain relationships with the regulators.
We’ve seen progress, but of course we’ll continue to refine our approach, including a planned formal evaluation of the current framework in 2026/27. As the Board we’ll also revisit this topic in greater depth: we recognise that we need to reflect on and improve our own processes just as we assess those of the regulators.
Professional ethics and the rule of law
The second substantive item at January’s Board meeting was a draft policy statement on professional ethics and the rule of law. This represents the next step in our response to an issue that is a core part of current debate about, within and across the sector.
Based on extensive research, engagement and evidence-gathering, we feel that there is a case for regulatory intervention to support legal professionals to understand and uphold their ethical responsibilities.
In the meeting, Board considered a draft policy statement that sets five proposed outcomes for regulators to meet. Broadly speaking, these proposed outcomes would require regulators to strengthen their approaches to the following:
- Education and training on legal professionals’ ethical responsibilities;
- Regulators’ rules and guidance on the same;
- The support available to legal professionals when challenged;
- How ethical conduct is monitored;
- How the impact of the above measures is evaluated and improved as necessary.
Board members offered a range of insights and critical perspectives; we are reflecting on these as we prepare the draft policy statement for public consultation.
Although our proposal is to set outcomes for regulators, support for ethical decision-making at all levels of the profession needs to extend more widely. We want to facilitate a change in workplace and leadership culture, so that all legal professionals understand their ethical responsibilities and are supported to uphold them.
Conference
Plans for the annual Reshaping Legal Services conference are now well advanced. The programme is nearly finalised, with a wealth of speakers and panels exploring professional ethics and restoring confidence in legal services; making the legal profession truly inclusive; and creative ways to improve access to justice.
The event takes place on 6 March at the Kings Fund in London. You can book a place here.
Open consultations on our business plan and economic crime
Finally, a reminder that we have two consultations currently open. One is on our draft business plan and budget for 2025/26 and closes on 3 February, the other is on guidance for the new regulatory objective on economic crime and closes on 7 February.
You can access both consultations here.
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