Does the Law Society impede the SRA’s independence? Legal Services Board launches probe

The Legal Services Board (LSB) has launched an investigation into whether the Solicitors Regulation Authority (SRA) is sufficiently independent – a move that will put further pressure on the Law Society, which remains the approved regulator of solicitors.

Governance arrangements established by the Legal Services Act 2007 and the recommendations of the Clementi Review split the representative and regulatory functions of the Law Society, with the Law Society continuing to represent solicitors and the SRA being formed to regulate solicitors’ activities. The two organisations are currently supposed to work together and share the same finance and HR functions. However, although the SRA has operational independence from the Law Society, it has asked the LSB (the super regulator which oversees the entire legal profession in England and Wales) to grant it full structural independence, too. Legal Futures reports that the LSB is sympathetic to the SRA’s position and has launched a formal investigation into the governance arrangements between the latter and the Law Society.

An SRA spokesman said: “We welcome the LSB’s decision to undertake a formal investigation into the governance arrangements between the Law Society and the SRA. We are continuing to work closely with the LSB and the Law Society, and look forward to the outcome of the investigation.”

Robert Bourns, the president of the Law Society, welcomed the review but said that further action to reinforce the SRA’s independence is unnecessary. He commented: 'We now have the opportunity to clarify the Law Society’s statutory duty of oversight put in place following [Sir David] Clementi’s root and branch review and the Legal Services Act 2007. We support the LSB’s role of ensuring the system as a whole is working for clients, the wider public and the profession. The Law Society does not fetter the SRA’s regulatory activities and responds to consultations as any other stakeholder. On a day-to-day basis, the two organisations maintain good working relations and share support services such as finance and HR systems. We will work closely and collaboratively with the LSB on their review.”