The current regulator voiced its disappointment and hinted at potential legal action
The Solicitors Regulation Authority (SRA) in the UK has announced plans to regulate members of the Chartered Institute of Legal Executives (CILEX) despite facing potential political and legal challenges.
The SRA aims to simplify the legal regulatory landscape, claiming it is in the public interest to assume this role, The Law Society Gazette reported.
The proposal requires approval from CILEX and the Legal Services Board (LSB). However, even if approved, the Law Society council must sign off on rules governing the current regulatory regime. The Law Society has strongly opposed this move, citing concerns about consumer confusion and the impact on regulated communities.
CILEx Regulation, the current regulator, voiced its disappointment and hinted at potential legal action against the SRA. The SRA's 19-page statement highlighted the benefits of the proposed change, emphasizing increased efficiency and simplified navigation for consumers. Anna Bradley, SRA chair, stated, “All the evidence shows that consistency and relative simplicity in regulation matters to the users of legal services. This change would result in a simpler system, with more consistent levels of protection for consumers.”
Bradley dismissed concerns that combining the two professions would dilute the solicitor brand, emphasizing that the SRA seeks parity in regulation, not licensure. The SRA also committed to maintaining the distinct identities of CILEX members and solicitors.
The CILEX board is scheduled to review the SRA's proposal on July 16, after which it will be sent to the LSB. However, any changes would still need the Law Society board's approval. Ian Jeffery, CEO of the Law Society, reiterated opposition to the move, highlighting concerns about consumer confusion and the regulatory impact on both professions. Jeffery stated, “The change will cause consumer confusion, as it will be less clear which profession is which and where different authorizations for practice areas apply. This is likely a problem for those with complex legal issues or vulnerable consumers.”
CILEx Regulation remains determined to retain its regulatory role. Jonathan Rees, chair of CILEx Regulation, argued that the SRA's proposals lack sufficient evidence of consumer and professional benefits.
Rees stated, “CRL remains concerned that the proposals to redelegate regulatory responsibility in this way are potentially unlawful, and as the justice select committee said, raise serious concerns about the 2007 Legal Services Act model in undermining efficient and stable regulation. We are therefore considering the next steps, including recourse to the courts.”
