Solicitors Regulation Authority consults on regulating Chartered Legal Executives
The Solicitors Regulation Authority (SRA) has revealed it is consulting on “potential changes to its regulatory arrangements” to include authorised members of the Chartered Institute of Legal Executives (CILEX).
This follows a CILEX consultation, launched earlier this month, on proposals to re-delegate the regulation of its members to the SRA.
In July 2022, CILEX initiated formal talks with the SRA to explore the potential change. The SRA Board agreed that taking on the regulation of authorised CILEX members has “potential to deliver tangible benefits to consumers of legal services and the wider public”.
The SRA said: “The proposed change would simplify the complex regulatory landscape, making it easier for consumers to navigate. It would also bring more consistent levels of protection and information. For example, firms owned and managed by CILEX members will have the same level of indemnity insurance as solicitors’ practices, and will publish the same range of information about their costs and services.”
The SRA’s consultation, which will run until 22 November, summarises the model it has proposed to CILEX for the future regulation of its members.
This approach includes maintaining “distinct identities” for authorised CILEX lawyers and solicitors. The SRA said: “To support this, a separate Code of Conduct for CILEX lawyers - which is aligned with the standards and regulations for solicitors but mindful of differences in role and context - would be introduced.”
The SRA revealed it would also introduce education and authorisation rules setting out how authorised CILEX lawyers will be authorised to provide reserved legal services and immigration services on the basis of their specific expertise. “These are largely based on the current CILEX and CRL rules and will maintain a clear separate career path for CILEX members”.
The consultation also confirms that the costs of regulating authorised CILEX lawyers would be “fully recovered” from the practising certificate fees of CILEX members, and that there would be “no cross subsidy” between solicitors and CILEX lawyers.
If CILEX and the SRA agree to proceed with re-delegation after the current consultations, the Legal Services Board would need to agree to the relevant changes to both organisations’ regulatory arrangements, the SRA noted.
Paul Philip, SRA Chief Executive, said: “Bringing together the regulation of solicitors and authorised CILEX lawyers has obvious benefits in terms of simplification and consistency of regulatory processes and procedures and more consistent protection to the public. We believe the changes outlined in our consultation will enable this to happen, while also allowing for a smooth transfer of responsibilities.”
A separate consultation run by CILEX addresses their case for re-delegating the regulation of its members to the SRA, alongside other proposed changes. This consultation is open and runs until 5 November.
Commenting on the SRA’s consultation, Jonathan Rees, Chair of CILEx Regulation, said: “We will study and review the SRA consultation with interest but our view remains that CILEX membership will be best served by independent regulation that has successfully operated over the last 15 years. We welcome that 3 out of 4 respondents to our recent consultation believed that the CILEX profession is enhanced by having its own regulator focused on the profession’s unique place in the delivery of legal services.
“We have published comprehensive proposals which would enhance competition and consumer choice, promote high standards for all CILEX members, whether authorised or not, and deliver enhanced value for money. Above all, we commit to continuing to involve CILEX professionals in shaping the regulatory regime, education, and disciplinary requirements at all levels in our organisation from the Board downwards.
“In the coming months we will continue to put forward that case and hope we can reach an accommodation with the CILEX Board based on the clear views of members.”
Lottie Winson