SRA board approves plans to regulate CILEX members

The Solicitors Regulation Authority (SRA) board agreed to take on the regulation of CILEX members, should CILEX decide to go ahead with redelegating this responsibility to the regulator.

The decision of the board on 25 June followed the SRA’s latest consultation into the potential regulation of CILEX members, which focused on non-authorised CILEX members, such as CILEX students and paralegals.

The SRA's analysis was that there would be public interest benefits and that it “would simplify the complex regulatory landscape, making it easier for consumers to navigate” as well as bringing “more consistent standards and levels of protection”.

Anna Bradley, SRA chair, said that “most people find the current regulatory landscape bamboozling,” and that although the change wouldn’t solve all the issues of complexity, “it would benefit the public”.

She said the board had “reflected long and hard on the potential risks and benefits,” continuing: “In making this decision, we are conscious of the strong professional interests that are in play, but the key question for us has always been – is this in the public interest? All the evidence shows that consistency and relative simplicity in regulation matters to the users of legal service. This change would result in a simpler system, with more consistent levels of protection for consumers. There will also be efficiency benefits.”

On 16 July, the CILEX board met to consider the letter received from the SRA confirming its willingness to regulate CILEX members, together with updated proposal documents, stakeholder and consumer feedback and the impact assessments that followed the SRA’s most recent consultation exercises.

In a statement, the CILEX board said it “remains satisfied that its Case for Change is valid and that a change of regulatory delegation is in the public interest”.

It said it would now work with the SRA to “finalise the full details needed for an application to the Legal Services Board to revise its delegation to regulate all CILEX members from CILEx Regulation to the SRA. This includes further work to ensure the identified benefits for consumers can be fully realised and demonstrated”.

The CILEX Board is expected to make a final decision on whether to proceed to making an application to transfer its regulatory delegation to the SRA in public session at its board meeting in October. If it decides to go ahead, a decision to redelegate would then need approval from the Legal Services Board.