LSB emphasises ongoing oversight and engagement to drive regulatory improvements

The Legal Services Board (LSB) has reaffirmed its commitment to improving the performance of legal regulators. Speaking at a recent meeting, LSB Chief Executive Craig Westwood outlined the Board’s approach leading up to the next regulatory performance assessment.

Westwood emphasised that, beyond formal assessments, the LSB is actively working with regulators to drive improvements. This includes informal engagement on specific workstreams, structured interactions with the Bar Standards Board (BSB) regarding its ongoing Reform Programme, and continuous evaluation of regulatory efficiency. Westwood said

“This is a big process for us. We are looking at how our oversight is working and whether it is being carried out efficiently.”

When questioned on why the LSB has held off on taking enforcement action against the BSB, the response highlighted that the Board has been closely monitoring the situation. the LSB stated:

“We are considering what further actions we may need to take in the short term, making it clear that all options remain on the table.

The table functions as an initial assessment. The detailed report provides a deeper analysis, and while both regulators have serious issues, the severity and types of problems differ.”

One key question raised was why the LSB did not detect the SRA’s regulatory shortcomings before the Axiom Ince collapse. The response pointed to a complex interplay between the SRA and the wider sector. “A lot of detail has emerged about the SRA’s oversight,” the LSB stated, indicating that lessons are being learned from the case.

When asked whether the current regulatory framework had reached its limits, the LSB expressed confidence that improvements could still be made within the existing system. They said:

“We believe the system can work effectively, and there is more that can be done. We are confident in our ability to work with regulators to drive these improvements.

It’s about how the BSB structures its programme and how we can work with them to ensure these improvements happen.”

With a focus on targeted engagement and active oversight, the LSB remains committed to identifying regulatory weaknesses and ensuring legal services regulators meet the standards expected of them. Law Society of England and Wales chief executive officer Ian Jeffery said:

“The SRA has been found to be lacking in its performance. Only urgent action from SRA’s leadership which focuses on the organisation’s performance and accepts that it has to do much better from top to bottom, will start the process of regaining the trust of the sector, our members and consumers.

Effective regulatory oversight is the cornerstone of consumer confidence. However, while the events leading to the collapse of Axiom Ince were happening, the SRA was focused on increasing its fining powers and proposing regulatory expansion.

Instead, it should have been tackling the known risks from accumulator-style firms and ensuring its operations were joined up and laser focused on protecting consumers. The SRA should refocus on its core responsibilities and significantly improve its approach to risk management following the failings identified in the Axiom Ince review.

We also agree with the recommendation that there is a need for increased transparency regarding the performance of Solicitors Qualifying Examination (SQE) providers to help aspiring solicitors make an informed choice when selecting and investing in a training supplier.

We welcome the LSB’s commitment to reflect on its approach to oversight, with a sharper focus on poor performance and ensuring that regulators identify and take actions to provide the necessary assurance and to address the concerns about their performance.”