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Rethinking regulation: 3rd International Conference of Legal Regulators

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Rogers: Firms need to ensure they remain compliant, not just to “tick” a regulatory box but because it makes good business sense

By Brian Rogers,  director of regulation & compliance services, Riliance [2]

As a provider of regulatory and compliance software and support services to law firms, I could not resist the temptation to attend the conference and hear what the various international regulators had to say on the topics open for discussion over two days.

The attendee list was a who’s who of international regulators, including those from America, Canada, Australia, Holland, South Africa, Singapore, Hong Kong, Scotland, Ireland, New Zealand, etc. The UK was well represented by the SRA, BSB, ILEX, LSCP, and LSB.

Baroness Deech QC (Hon), Chair of the Bar Standards Board, opened the conference giving an overview of the current UK legal landscape, and her thoughts (and opposition) over the proposal to create a single regulator for all legal service providers.

The conference heard from a variety of speakers on the following topics:

Some key points were made by the SRA relating to law firms in England and Wales:

–        OFR is a challenge for many small firms

–        Many firms are risk averse, which drives up their compliance costs

–        The SRA needs to do more for small firms

–        There needs to be a move away from ‘one size fits all’ regulation

–        To focus better on ensuring standards

–        To remove unjustifiable barriers by creating new, flexible and innovative ways to qualify

–        Competence Statement

Keys points made by the LSB about solicitors:

–        Statutory levy for the LSB, LeO, SDT – £21.3m

The conference gave an interesting insight into how various regulators are dealing with their regulated communities with many looking to introduce new regulatory regimes in the next 12-18 months; both the England & Wales and Singapore jurisdictions were held out as good examples of effective regulation and ones to watch and follow.

The American regulatory regime is an interesting one in that it is made up of 56 separate jurisdictions with different approaches in many; if you thought the England & Wales regulatory regime was tough you should try going to California where the regulators are in favour of putting wayward lawyers behind bars!

The regulatory regime in England and Wales has and is going through a period of significant change, and this is likely to continue with the creation of a single regulator and a single set of rules for all legal professionals within the next 3 years, according to the new Chair of the LSB who has been told to plan for his and the LSB’s own demise!

It was clear from the conference that regulation is not something that is going away, and it will be for firms to ensure they remain compliant, not just to “tick” a regulatory box but also because it makes good business sense!

Author: Brian Rogers, Director of Regulation & Compliance Services at Riliance.