Why independent regulation is important for CILEX members

Jonathan Rees, Chair of CILEx Regulation reflects on the achievements of the regulator since its creation in 2008 and outlines its future plans

In May, the CILEx Regulation board had its first strategy review following the introduction of our new strategic objectives agreed at the end of 2021. As part of our discussions, we reflected on the significant strides forward we have made since we became the independent regulator for the CILEX regulated community in 2008, as well as thinking about how we can continue to drive forward the changes that are particularly important to our unique and diverse regulated community. In particular, we want to provide better regulation at lower cost to CILEX Fellows as well as make it easier for CILEX Fellows (and others) to set up their own firm.

A brief history 

The Legal Services Act 2007 required that representative bodies, like CILEX, should no longer be responsible for the regulation of their members. This was to give everyone confidence that legal services were working in the public interest and supporting the rule of law. The Act required all legal professional associations to formally delegate their regulatory functions to new independent bodies and prevented them from interfering with the regulatory functions of those bodies. This was a crucial step in giving consumers confidence in the regulatory system while recognising that different parts of the legal profession need bespoke regulation.

CILEx Regulation (then known as ILEX Professional Standards) was established as the independent regulator by CILEX in 2008. We regulate in the public interest, providing assurance to consumers, other stakeholders and to our regulated community. We are proud of the high standards that we maintain, having been assessed as a top-performing regulatory body by the Legal Services Board in November 2021.

What we have achieved so far

Being an independent regulator, with a focus on our own regulated community, brings with it many key benefits. These include allowing us to create a more focused, effective regulatory model, which better recognises and serves the individual needs of CILEX members.

With a thorough understanding of the history and importance of the CILEX profession, since being established in 2008, we have delivered forward-looking, risk-based regulation in the public and consumer interest. Recent examples of our work include:

• Securing rights for CILEX members to practise in reserved and regulated areas of legal activity without supervision;
• Supporting CILEX members to set up their own law firms or establish alternative business structures through individual, tailored support;
• Developing apprenticeships to enable new members to qualify as Chartered Legal Executives;
• Introducing a new assessment route for Chartered Legal Executives to be authorised for independent practice rights; and
• Championing fair access for all in the legal market through our equality, diversity and inclusion strategy published earlier this year.

At the start of 2022, we also took over regulatory responsibility for ACCA members and entities carrying out probate work.

Plans for the future

We are currently working on:

• Securing higher rights of audience for CILEX members to allow them to appear in all courts;
• Seeking final approval from HM Treasury for CILEX law firms to offer ancillary insurance products and funeral plans;
• Making things simpler for both those CILEX members setting up new law firms and those with existing entities who have limited resources to spend on administration and business planning;
• Reducing the practising certificate fee;
• Continuing to lobby for equal recognition of CILEX members by third-party financial institutions; and
• Raising further the profile of our regulated members in the legal sector.

For around 100 years, CILEX and its predecessors has championed the importance of diversity in the legal community in England and Wales. With recent changes in the legal services market, if we are to continue to build on that rich history, it is now more important than ever to recognise and preserve the distinctive role of CILEX members and to safeguard their continued independent regulation.