Law Society hits out at plan for CILEX members to be regulated by Solicitors Regulation Authority

The Law Society has sharply criticised proposals from the Chartered Institute of Legal Executives (CILEX) for legal executives to be regulated by the Solicitors Regulation Authority (SRA), claiming that the plans are “seriously misguided and fail to consider the wider regulatory context”.

In a consultation CILEX has argued that the move would benefit its members in the following ways:

• Improved recognition amongst consumers and providers of legal services that CILEX lawyers have parity with solicitors to practice independently in their specialist area of authorisation;
• Increased brand profile for Chartered Legal Executives as Chartered Lawyers, resulting in improved consumer and employer understanding of status and ability to offer specialist legal services;
• Increased recognition and enhanced career development for paralegals as a distinct professional group within the Institute, with the opportunity to obtain Chartered status;
• Equality of voting rights and opportunity to participate in CILEX governance for all CILEX members regardless of membership grade; and
• Ability to establish their own entity with the same access to lender panels, insurance, referral contracts, regulatory quality mark and compensation fund as existing SRA-regulated firms.

However, Law Society President Nick Emmerson said: “There are serious issues with the proposals, which are unsupported by evidence that they will benefit the public.

“The proposals do not consider the wider regulatory context or the serious negative impact these changes will have on solicitors and chartered legal executives.”

He claimed CILEX’s key driver appeared to be raising the status of CILEX lawyers to be on the same plane as solicitors or barristers.

“This is not something that can be achieved by sharing the same regulator with the solicitor profession, or by rebranding as chartered lawyers,” Emmerson argued.

“Both professions are valuable within the wider landscape of legal services provision. But they are not equivalent in education and training or scope of authorisation of practice.”

The Law Society claimed that the proposals would move the regulation of only one part of the CILEX membership to the SRA – “creating regulatory fragmentation, not consolidation”.

“If the proposals are implemented, CILEX would be left overseeing 9,000 non-authorised individuals – previously under the oversight of CILEx Regulation (CRL) – in a backward step for independent regulation and oversight.”

The Law Society also argued that the regulation of authorised chartered legal executives is “best managed under the current bespoke arrangements with CRL, which the majority of CILEX members support.

“CRL is vehemently opposing the changes and CILEX has failed to demonstrate the necessity for redelegating its regulatory functions to the SRA.”

Chancery Lane also claimed that if the proposals go ahead, they will cause consumer confusion, “as it will be less clear which profession is which, and where different authorisations for practice areas apply”.

The CILEX consultation closed on 5 November 2023.