Could the proposed SRA regulation of CILEX risk consumer confusion?

The Law Society of England and Wales have shared their concerns in a press release regarding the proposed changes over the regulation of Chartered Institute of Legal Executive (CILEX) members, stating that it could risk causing consumer confusion if regulated by the SRA.

The Solicitors Regulation Authority’s (SRA) consultation on the regulation of CILEX members fills in some of the gaps left by CILEX’s consultation to take a more balanced view of the proposals.

However, the Law Society is concerned by the following:

• The SRA expects these changes will not affect the reputation and standing of the identity of the solicitor profession or the way it is regulated, despite an insufficient impact assessment.
• To move only some of CILEX’s members to the SRA creates regulatory fragmentation.
• The SRA takes no view on CILEX’s proposal to introduce the title of ‘SRA-Chartered Lawyers’, despite the risk of confusion this would cause for consumers when choosing legal services.

Nick Emmerson, President of the Law Society of England and Wales, said:

“The Law Society is concerned about the risk to the reputation of the SRA and a loss of confidence in its regulatory capacity, due to a real or perceived lack of partiality towards the inevitable competition between the professions represented by the Law Society and CILEX.

The SRA will effectively be given the power of adjudicating any disagreements between them over regulatory matters.

This fundamental alteration to the regulatory arrangements of the Solicitors Regulation Authority does not consider the disadvantages to members of its existing regulated community.

The consultation also does not consider how the proposals may adversely affect the SRA’s ongoing duty to regulate the solicitor profession in a way that supports and promotes the regulatory objectives.”

Nick Emmerson when talking about regulatory consolidation, added:

“The LSB has indicated it would be supportive of regulatory consolidation, and the SRA believes this move would achieve organic, well managed regulatory consolidation.

The proposals would, however, lead to regulatory fragmentation, with only some of CILEX’s members moving to the SRA and CILEX left overseeing non-authorised individuals, which would be a retrograde step for regulation and oversight.”

With regards to solicitors’ identity, Nick Emmerson commented:

“A profession’s code of conduct and the range and rigour of professional training are the basis for that profession’s identity and public confidence here and abroad.

It is essential in maintaining the separation of the CILEX and solicitor professions that CILEX retain its own code of conduct in order to recognise the difference in scope and context of a Legal Executive’s authorised practice.”

The Law Society, carried out a YouGov poll and found that 24% of members of the public thought the term ‘chartered lawyer’ would be unhelpful in understanding what services any one type of professional can offer.

The poll also concluded that consumers/members of the public associated the following terms with the word/term ‘lawyer’:

• solicitors (76%)
• barristers (61%)
• attorney (59%)

Whilst in comparison, only 12% of those polled associated the term legal executives/CILEX legal professionals with the word/term ‘lawyer’.

Commenting on the rebranding of Legal Executives, Nick Emmerson concluded:

“If CILEX are allowed to rebrand as ‘SRA-regulated Chartered Lawyers’, there is a risk of consumer confusion.

This proposal would negatively impact a consumer’s ability to clearly understand the legal choices available to them and choose the right legal provider for them especially where their legal needs are multiple.”