23_07_13 LSB pres Miami

Legal Services BoardRobert Cross

Legal services in England and WalesHeadline numbers

26.8BN$41.7BN

320,000 WORKERS

165,000 LAWYERS

11,500 FIRMS

190 ABS

Legal services reformWhy?Why?Office of Fair Trading Competition in Professions 2001Clementi Review 2004 - Regulation outdated, inflexible, over complex, lacking accountability and transparency No independence in complaint handling Lack of innovation TechnologyFalling public trust in professionsEconomic pressuresUnmet needUnmet need?Good article: http://lexislegalintelligence.co.uk/intelligence/blawg/2013/07/gain-your-clients-trust-its-time-to-use-price-tags/

SeeHigherDemand,LowerSupply? A Comparative Assessment of the Legal Resource Landscape for Ordinary Americans Gillian Hadfield 2009

Legal Services Act 2007Regulation in numbers

Approved Regulators

LSB Board members

Regulatory Objectives

Independent Regulators

Reserved Legal Activities

Better regulation principles

Elements of legal services regulationConstituent parts of good regulation:

Outcomes focused regulationRisk identificationProportionate supervisionAppropriate enforcement

LSB PrioritiesThree strategic priorities:

assuring and improving the performance of approved regulators

helping consumers to choose and use legal services

helping the changing legal sector to flourish by delivering proportionate regulation to address risks

To deliver our vision ofgreater competition and innovation in service delivery access to justice for all empowered consumers, able to choose and use a quality service at an affordable pricean improved customer experience with swift and effective redress when things go wrong constantly improving and consistently ethical legal professions, as diverse as the communities they serve clear and proportionate regulation, that protects fundamental principles, removes barriers to entry, targets market failure and commands wide confidence in the public and the market.

Licensing authoritiesLicensing authoritiesSRA - 158 licencesCLC - 35 Licences

Oversight regulatorOne legal services boardOne office for legal complaints (Legal Ombudsman)One Legal Services Consumer Panel

Current regulation of legal servicesApproved RegulatorsSRABSBILEX PSCLCIP RBMaster of the FacultiesCLSBLegal Services BoardMinistry of JusticeProfessional bodies/trade associationsConsumer LawCompetition LawTrading standardsOffice of Fair TradingEuropean lawConsumer BodiesEmpowered consumers e.g. Large corporateOther regulators e.g. FSA, ACCA etc.MediaCustom & PracticeCase law22The LSB the story so far....The first three years....Liberalising ownership through alternative business structuresEstablishing an independent Legal OmbudsmanSeparation of regulation within professional bodiesThe current priorities....Improving and assuring performance of legal regulatorsSimplification of regulation to support growthBetter consumer protection where neededAlternative Business StructuresThe first twenty months or so

New entrants and new capital

New innovation in existing regulatory model

Innovation outside regulation

Challenges and opportunitiesOpportunitiesSignificant unmet legal needOnly 49% of individuals seek advice and only 18% from a solicitorOnly 29% of small businesses seek advice and only 12% from a solicitorTransparency of costs and their ability to judge value for money was the reason for the reluctance to seek adviceChallengesCompetition - from outside as well as inside regulationEconomic difficulties making new and old models workPolitical changes - Legal Aid and personal injuryConsumer demandsConclusionsLSB is a small, ambitious organisation with potentially a short lifespanThe Legal Services Act 2007 has led to a significant drive to reform the legal services market in England and WalesSignificant reforms have already been introduced independent regulation and Alternative Business StructuresThe next phase of work is challenging but could significantly improve the market for legal firms and consumersThank you and questionsresearch.legalservicesboard.org.uk