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SRA board agrees to CILEX regulation

03 July 2024
Issue: 8078 / Categories: Legal News , Profession , Regulatory
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The Solicitors Regulation Authority (SRA) board has approved controversial plans for the SRA to take over the regulation of legal executives

The board announced its decision this week to expand its regulatory pool to include authorised and non-authorised members of the Chartered Institute of Legal Executives (CILEX).

CILEX members are currently regulated by CILEx Regulation—which opposes the switch on grounds it will diminish protection and confuse consumers.

However, CILEX has been in discussion with the SRA about potentially switching regulators since 2022.

Anna Bradley, SRA chair, said: ‘The key question for us has always been—is this in the public interest?

‘All the evidence shows that consistency and relative simplicity in regulation matters to the users of legal service. This change would result in a simpler system, with more consistent levels of protection for consumers. There will also be efficiency benefits.’

According to the SRA, both CILEX members and solicitors would retain their distinct identities and there would be no financial cross subsidy between the two sides of the profession.

However, the Law Society is staunchly opposed to the move. Its chief executive, Ian Jeffery, said: ‘The SRA requires the Law Society’s approval for changes to the corporate objects of SRA Limited in order to be able to take on the regulation of CILEX members.

‘The SRA has created the impression that this is no more than an administrative issue to be resolved. Instead, the Law Society has consistently said our consent cannot be assumed. This is a matter for the Law Society’s Council to decide at the appropriate time when any proposals are made and supported by a persuasive case for change.

‘We are concerned that the redelegation of CILEX’s regulatory functions to the SRA could adversely affect the SRA’s ability to meet its duty to regulate the solicitor profession in a way that supports and promotes the regulatory objectives. This is of particular concern in light of the collapses of Axiom Ince, Metamorph, Kingly and the SSB Group.’

The super-regulator, the Legal Services Board, would have to give approval before any change could take place.

Issue: 8078 / Categories: Legal News , Profession , Regulatory
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