The two largest legal regulators in England and Wales have fallen short of expected standards, according to the latest annual performance assessment published by the Legal Services Board (LSB).
The Solicitors Regulation Authority (SRA) and Bar Standards Board (BSB) together regulate more than 90% of legal professionals in England and Wales. Both failed to demonstrate that they met the required standards in important areas, including that their operational activity is effective and clearly focused on the public interest.
The LSB’s assessment found shortcomings in the SRA’s authorisation, supervision and enforcement processes. This follows the LSB’s review of the SRA’s actions leading up to its decision to close the law firm Axiom Ince. The review revealed failures in how the SRA supervises high-risk firms and provides protection for client funds.
Additionally, the SRA has failed to publish provider pass-rate data for the Solicitors Qualifying Examination (SQE), the centralised assessment for anyone wanting to qualify as a solicitor in England and Wales. This is despite previous commitments to do so. This leaves people who want to be solicitors without crucial information to make informed choices about training providers. The LSB expects this information to be made available by autumn 2025 at the latest.
The BSB is taking forward a Reform Programme to improve its efficiency and effectiveness. However, the LSB is concerned about the slow rate of improvement and the BSB’s continued failure to meet key performance indicators. The LSB is also concerned about whether the Board of the BSB is adequately holding senior leaders accountable for delivering the improvements, as well as the regulator’s ability to measure the programme’s success.
The BSB is also taking too long to investigate misconduct complaints against barristers. An independent review by the law firm Fieldfisher, published in April 2024, concluded that the BSB could realistically meet its time-based targets in these areas but was failing to do so. Craig Westwood, Chief Executive of the LSB, said:
“This year’s assessment reveals some concerning shortfalls in regulatory performance, particularly from the two largest regulators.
Effective regulation is essential to protecting the public and maintaining confidence in legal services. All regulators must address the issues that we’ve highlighted and must demonstrate more clearly how their activities benefit consumers. We will be working closely with regulators to ensure these improvements are made swiftly, and to ensure that our approach to assessing their performance remains targeted and proportionate.
The mixed performance we have seen underscores the importance of robust oversight. We are committed to supporting all regulators to reach the standards the public and profession deserve.”
The LSB initiated enforcement action on the SRA in 2024, beginning the process to set directions that would require changes to better achieve the regulatory objectives set out in the Legal Services Act 2007. The SRA is reviewing its approach to consumer protection and recently consulted on proposals to safeguard client money. It is engaging positively with the LSB on these issues.
The LSB has been monitoring the BSB’s Reform Programme since April 2024, but these remaining concerns mean that it is now considering what further action may be necessary to drive positive change at the BSB.
The LSB emphasises that both the SRA and BSB have recognised the need to improve. It is within these regulators’ powers to make the necessary improvements at pace.
