The Legal Services Board (LSB) has published new Rules and Guidance for regulators applying to alter their regulatory arrangements. They provide a greater focus on the regulatory objectives and ensure regulators consider the impact of changes on regulated persons, consumers, and stakeholders. There is also a specific emphasis on diversity and inclusion.
Regulators can only alter their regulatory arrangements if the LSB has approved the changes. The new Rules and Guidance reflect the LSB’s targeted and proportionate approach to regulation and improve the approval process. They also outline the information and supporting material that regulators must provide before the LSB considers an application.
The LSB has collaborated with regulators on proposals for new rules since December 2020. This early input was considered in developing new draft rules that the LSB then consulted on. The LSB has carefully considered all the feedback and made changes as appropriate.
The new Rules and Guidance will come into effect on 1 February 2022 and provide:
- that information requirements for applications have a greater focus on the impact of proposals – on the regulatory objectives and better regulation principles, consumers and persons with protected characteristics, regulated professionals, and the public interest.
- a clear distinction between applications for approval of alterations to regulatory arrangements and requests for alterations be directed as exempt from the requirement for a full application.
Matthew Hill, Chief Executive of the Legal Services Board, said:
‘We are grateful to the regulators and other stakeholders who collaborated with us as we developed our new rules and guidance and to those who shared feedback in our consultation.
‘Our approach to regulation has evolved significantly since we introduced our process for assessing applications to alter regulatory arrangements in 2010. The new process is clearer, proportionate and more transparent to ensure we and the regulatory bodies make the best use of resources.
‘This is a real opportunity for regulators to take ownership of the regulatory objectives to make the sector work better for consumers, the public and the legal professions.’
ENDS
About the consultation
- The consultation ran from 15 June 2021 to 30 July 2021.
- The consultation responses have been published alongside the decision document (PDF), the new Rules (PDF) and the new Guidance (PDF).