Legal Services Board

The miners’ compensation scandal shows that a maximum fine of £150m for misconduct or non-compliance by alternative business structures is too low, the Solicitors Regulation Authority has warned. With new entrants set to enter the legal market after 6 October, it was “perhaps dangerous to rely too heavily upon turnover figures in the current market to assess appropriate fining powers”.

Lord Justice Thomas is heading a new expert group to advise the Solicitors Regulation Authority, Bar Standards Board and ILEX Professional Standards on developing and operating the controversial quality assurance for advocates scheme, it has emerged. Meanwhile, the BSB has hit out again at the Legal Services Board’s “unhelpful and ill-timed” intervention over the scheme.

The obligation on barristers to notify clients of their right to complain to the Legal Ombudsman is more a marketing opportunity than a burden, the Legal Services Board has said. Meanwhile, the LSB reaffirmed that its policy on providing complaints information at the time of engagement will stand, despite a number of concerns raised by the Bar Standards Board.

The Bar Standards Board has fulfilled its side of the deal struck with the Legal Services Board over its lay/professional composition, with four new members taking office this month. There is now an equal number of lay and professional members ahead of a lay majority being in place after further changes next year. Later this year the Solicitors Regulation Authority will also move to parity before a lay majority is appointed for 2013.

Senior managers at the Legal Services Board (LSB) earn between £80,000 and £120,000, it has emerged in data released under the government’s transparency agenda. The LSB is funded by a levy on the eight legal professions it oversees, and the top-paid senior managers under chief executive Chris Kenny are general counsel Bruce Macmillian, paid between £115,000 and £120,000, and strategy director, Crispin Passmore (£110,000 and £115,000).

The Legal Services Board is explicitly threatening the Solicitors Regulation Authority, Bar Standards Board and ILEX Professional Standards with using its formal enforcement powers for the first time over their quality assurance for advocates scheme, Legal Futures can reveal. The regulators have branded the move as neither “helpful nor necessary”.

Barristers going into competition with solicitors to offer litigation services could reduce costs and make services “more efficient for consumers through packaged delivery”, the voice of legal consumers has said. The Legal Services Consumer Panel also backed the Bar Standards Board as the sole regulator of advocacy services.

The Solicitors Regulation Authority (SRA) has slated the suggestion by the Legal Services Board that approved regulators should collect and publish all referral agreements between introducers and lawyers, which the SRA estimates run to many thousands.

Alternative business structures face a fine up of to £150 million for misconduct or non-compliance, with a figure of £50 million for individuals working within them, under plans released by the Legal Services Board (LSB). The LSB said such large figures “will have strong deterrence in the market and avoid situations where any entity or individual may consider ‘pricing in’ non-compliance”.

The Bar’s regulator has blasted the Legal Services Board for not doing enough to avoid the risk of abuse by solicitors of lawyer-to-lawyer referrals – and warned that they may fall foul of the 2010 Bribery Act.

The Legal Services Board is to measure the working of the Solicitors Disciplinary Tribunal against key performance indicators, a move described by the tribunal as “wholly inappropriate”.

All workers at law firms and chambers will be asked whether they are straight, gay or bisexual, about their parents’ educational background and what kind of school they attended as part of the Legal Services Board’s push to improve transparency about diversity in the legal profession.

Details of investors in alternative business structures that will be made public should include the beneficial owner but might exclude the names of people with a “significant influence” over the business, the Legal Services Board has proposed.

Half of charities have experienced a poorly drafted will from a will-writer, a new survey has revealed – but a third have also seen shoddy work from a solicitor. A survey of over 50 charities by Remember A Charity found unanimous support for regulation of the will-writing sector.

The Legal Services Board has unveiled plans to ‘mystery shop’ solicitors and will-writers as part of its research into the market – and is looking for a panel of both to assess the quality of what is produced.