Our Board meeting on 18 September 2024 was especially notable for three reasons.
First, we were gathered in Bristol, on the day after a series of engagements with legal services providers in the city. Second, it was our annual session on the LSB’s strategy, a welcome opportunity to consider the organisation’s direction for the coming year. And third, it was our first meeting with the LSB’s new CEO, Craig Westwood, in post.
A West Country welcome
Before I report on the Board meeting, I’d like to thank everyone who met with us in Bristol.
The Board and I appreciated your warm welcome, as well as your candour about the challenges and opportunities for legal service providers in the West Country. We gathered many insights that will prove valuable as we continue to identify where regulation can make a positive difference. Indeed, the feedback we heard at Tuesday’s events set the context for – and was frequently referenced in – Wednesday’s Board meeting.
A more detailed account of the events will follow, but for now, I’d like to offer special thanks to our hosts, the Bristol Law Centre, Citizens’ Advice Bristol, the University of Bristol Law Clinic, and Clarke Willmott.
Looking back, looking forward
The Board began our strategy session with a reminder of the main projects undertaken by the LSB since the launch of the Reshaping Legal Services strategy in 2021.
For example, we have:
- Pressed regulators to be proactive in creating an environment that encourages innovation in how people connect with legal services;
- Set new expectations for regulators to ensure that lawyers remain competent throughout their careers;
- Set clear expectations for regulators on empowering consumers to better access information about the price and quality of legal services providers.
Having looked back, we then looked forward, trying to anticipate where changes might occur within both the legal sector and society at large in the coming years.
We considered the new Government, inflation falling from historic highs and predictions of economic growth, rapid advances in AI, and recent high-profile collapses of law firms. The latter raises wider questions about the financial management of law firms, the complexity of market models, and the impact on consumers.
Our thinking was aided by a contribution from the Legal Services Consumer Panel, who offered their important perspective on where the LSB might most effectively focus its attention and resources. The Panel’s Chair, Tom Hayhoe, confirmed their support for the strategic priorities set out in the Reshaping Legal Services strategy. He reported the Panel’s concern about how difficult it can be for people to shop around for and compare the price and quality of legal services.
Tom also challenged the LSB to continue driving up standards at the Legal Ombudsman, including publishing ombudsman decisions in full. We confirmed our commitment to both, and agreed that transparency and ensuring effective redress mechanisms for consumers were important.
Priorities for the LSB
The Board agreed that, into 2025 and beyond, the LSB must maintain its focus on regulatory oversight and improving the performance of regulators. We will continue to sharpen how we carry out our statutory functions and apply our performance assessment framework through our annual assessment of regulators’ performance.
We will also be seeking assurances from regulators about the areas where we’ve recently set new expectations or guidance – namely first-tier complaints, and technology and innovation. Other work currently under way may also develop into new policy interventions. This includes EDI, professional ethics and the rule of law, and regulators’ disciplinary and enforcement processes.
The latest data from the individual legal needs survey shows that nearly one in three people with a legal dispute have an unmet legal need. In light of this, the Board agreed that we need to enhance our focus on access to justice and the areas where regulation might be able to make a difference.
But what new policy areas might come into focus?
The LSB has, under consideration, a review of our education and training guidance; a review of our enforcement policy; and the possibility of a more strategic approach to consumer vulnerability. Our ability to pursue this work will be strengthened by our new reviews and investigation team and an improved horizon scanning function.
One recurring question for the Board was around how effectively legal services regulators are currently able to protect consumers from financial detriment. We recognised that greater collaboration between legal and financial services regulators may be necessary to identify and close current gaps in the protections available.
So, we’re expecting 2025 to be as busy for the LSB as 2024 has been. In the coming months, as part of our annual business planning and budget cycle, we’ll launch a public consultation to hear your views about where we should focus our attention next year.
Reshaping Legal Services – a refresh
Our society changes fast, and so do the legal needs of its citizens. It follows that the sector-wide strategy Reshaping Legal Services will also need to adapt as it moves towards the halfway point of its original 10-year focus.
We recognise that the public wants to see evidence from the regulators that they are making progress and delivering positive outcomes for people who need legal services.
This, too, will require collaboration across the sector – and we will consult publicly about how to refresh Reshaping Legal Services to ensure it evolves with the needs of society over the next five years.