SRA sets out new approach to financial penalties

CILEx Regulation raise concerns in SRA consultation response

CILEx Regulation has submitted its response to the Solicitors Regulation Authority’s current consultation launched on 20 March 2024 which sets out their proposals for the regulation of non-authorised CILEX members, including CILEX students, affiliates and paralegals.  

CRL remains concerned that the wider question of the lawfulness and legitimacy of CILEX’s proposals to redelegate regulatory responsibility from CRL to the SRA is still unanswered.

In its response, CRL also raises a number of concerns regarding: the regulation of the 25% of individuals who do not currently work in SRA regulated firms, the need to attribute the cost of regulation to those unauthorised members who benefit from regulation and the arrangements for overseeing the ongoing competence and professional development of unauthorised members. CRL remains of the view that regulation by a specialist regulator best serves the interests of both the public and regulated professionals. CRL chair Jonathan Rees said:

“Over the last ten years, consumers and the profession have benefitted from CRL’s strong independent regulation of all CILEX practitioners, including those non-authorised lawyers providing important services to the public. Whilst we welcome the SRA and CILEX’s belated attempts to address these issues, the current proposals do not match existing levels of protection.

In particular the proposals still do not adequately address our concerns, including how the 25% of non-authorised CILEX members who do not work in SRA regulated firms will be regulated, or the risk that the proposed arrangements will result in the dilution of the coverage and rigour of the existing CRL regulatory arrangements in areas like ongoing competence resulting in a diminution of protection, and potential consumer confusion.”

CRL’s response to the SRA’s consultation has been published on the CILEx Regulation website.

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