Lloyd: Heading review
The Ministry of Justice yesterday announced a long-awaited review of the Legal Services Board (LSB) – the first of the oversight regulator since 2017.
Richard Lloyd, a former executive director of Which? and current chair of the Independent Parliamentary Standards Authority, has been tasked with undertaking it.
The move has been in the works since last year and justice minister Sarah Sackman told Parliament: “It is best practice for departments to regularly review their public bodies to provide assurance to both government and the public that these bodies are operating effectively, and that their functions remain useful and necessary.
“In the case of legal services, this assurance is especially significant because the sector’s regulatory framework must remain demonstrably independent of government, a key pillar of the rule of law, and of public confidence in our justice system.”
She acknowledged that the legal services regulatory framework was “complex”, and said the review aimed to ensure that “the current regulatory oversight arrangements are effective and do not duplicate frontline regulators’ work and initiatives”.
In 2017, an MoJ ‘tailored’ review [1] of the LSB and the Office for Legal Complaints – the body that oversees the Legal Ombudsman – concluded that both were “generally operating efficiently and effectively” and that no change should be made to their structures as non-departmental public bodies.
The first review of the two bodies was in 2012, when the government praised them for their “excellent standards of corporate governance” [2].
Ms Sackman said the developments in the sector since 2017 – such as concerns around professional ethics and rapid increase in the use of lawtech – “it is timely and appropriate to review how the work of the LSB is delivered”.
She went on: “This review provides an opportunity to consider the LSB’s statutory remit, its strategic clarity, governance and accountability arrangements, and the LSB’s current capabilities.
“The review will assess how the LSB and the Ministry of Justice should work together to deliver value for money and ensure sufficient focus is maintained on the evolving priorities of legal services consumers and the wider sector.”
Ms Sackman described Mr Lloyd as “an experienced senior executive and non-executive director, with a strong track record of chairing high-profile regulatory bodies and committees and a reputation for integrity and commitment to public service”.
He is a non-executive director of both the Financial Conduct Authority and Advertising Standards Authority.
The ministry has also issued a call for evidence [3] on the LSB, which asks questions such as whether the LSB is sufficiently focused on its statutory obligations, how it holds frontline regulators to account, and what evidence there is that the LSB’s oversight has had a positive impact.
In a statement, the LSB said: “We welcome this opportunity to reflect on the positive impact of our work, our role supporting independent legal services regulation, and areas where we can continue to improve and learn from others.”
Law Society chief executive Ian Jeffery commented: “We welcome the government’s review of the LSB. It is an opportunity to speak up for proportionate risk-based regulation that protects consumers and helps the legal sector grow.”