“Strong interest” from new and existing firms in seeking CILEx regulation


Open for business: CILEx law firms to hit the high street

Open for business: CILEx law firms to hit the high street

There has been strong interest from new and existing law firms in being overseen by the regulatory arm of the Chartered Institute of Legal Executives (CILEx), it said yesterday.

Having won approval from Parliament last year to regulate practices and all of the reserved legal activities, ILEX Professional Standards (IPS) said it had received expressions of interest from nearly 50 prospective businesses to be run by CILEx members.

Since applications opened on 5 January, it has also received “several enquiries from existing regulated legal firms as to whether they can switch to IPS as a regulator, including from multi-partner firms”.

IPS has been explicit in its desire to lure firms from other regulators, while warning that it should not be seen as a way to escape scrutiny or be judged by lower standards.

One of the first chartered legal executives to seek authorisation is Mark Winton, currently a consultant with Setfords, a new-breed firm that operates nationally on a consultant and fee-share model. He is a civil litigator who specialises in personal injury and credit hire work.

He said: “The fact that IPS have now been granted rights to regulate its members and law firms is the final piece in the jigsaw puzzle for me, as I can take everything I have learnt over the years and start operating independently… I’ve found the IPS model to be much more competitive than some other regulators.”

IPS also revealed that new entities will be able to complete a single proposal form to receive quotes from multiple professional indemnity insurers.

IPS chief executive Ian Watson said: “We have sought to make the process fair whilst maintaining rigour. So far as we can, we have tailored regulatory cost to the size and type of business that we’re going to regulate to make our regulatory offer attractive.

“Until now, CILEx members were not able to run their own firms independently delivering reserved legal activities. Before they can be considered for entity authorisation, a member must be approved by IPS to practise the relevant reserved activity independently.

“Practice rights applications for reserved activities take approximately three months to process, and we expect that once those eligible are granted the rights, we will then start to receive entity applications from our own membership. We expect applications numbers to build gradually, but over time this will represent a significant market change.”

Solicitors would not have to make practice rights applications.

The Bar Standards Board also began accepting entity applications on 5 January, and last week said it had received expressions of interest from 18 prospective firms in the first few days.

Tags:




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Reports

Our latest special report, produced in association with Temple Legal Protection, looks at the role of after-the-event (ATE) insurance in commercial litigation post-LASPO. We are at a time when insurers, solicitors, clients and litigation funders work ever more closely to create funding packages that work for all of them, with conditional fee and even damages-based agreements now part of many law firms’ armoury.

Blog

11 November 2019

Taking a strategic approach to cyber-risk

If you forced 10 cyber-criminals to sit through an average law firm’s IT committee meeting, they’d be turning themselves in to the National Crime Agency before it reached AOB.

Read More

Loading animation