Provider of Legal Services
Regulated individuals are subject to regulatory requirements in respect of all legal
services they provide (not just for reserved legal activities):
a) Solicitors
b) Barristers
c) Chartered Legal Executives: work within law firms under the supervision of a
solicitor (authorised by the CILEx Regulation).
d) Licensed conveyancers: deal with property transactions (authorised by the
Council for Licensed Conveyancers).
e) Patent attorneys: specialists in patents and intellectual property (authorised by
the Intellectual Property Regulation Board).
f) Trademark attorneys: specialists in trademark law and practice (authorised by
the Property Regulation Board)
g) Costs lawyers: specialists in legal fees and costs (authorised by the Costs
Lawyers Standards Board).
h) Notaries: authenticate and certify signatures and documents (authorised by the
Master of the Faculties).
i) Chartered Accountants: authorised by the Chartered Accountants in England
and Wales.
Reserved Legal Services
The framework for the regulation of legal services is contained in the Legal Services
Act 2007. Reserved legal activities can only be provided by individuals who are
authorised to do so. Essentially reserved activities comprised of legal work where
the risk to the public is the greatest.
Definition
Six types of legal work defined as reserved legal activities in s.12 Legal
Services Act 2007.:
a) The exercise of a right of audience: The right to appear before, address a
court, right to call and examine witnesses.
b) The conduct of litigation:
a. Issuing of proceedings.
i. Laying information before court constitute the commencing of
proceedings. It is unlawful for the director of the Football League
to commence the proceedings, i.e., carry out reserved activities
unauthorised (Media Protection Services Ltd v Crawford).
b. The commencing, prosecuting and defending of those proceedings.
c. The performing of any ancillary functions in relation to those
proceedings.
c) Reserved instrument activities: Preparing and lodging an instrument (formal
legal document) dealing with the transfer or charge of land, relating to real or
personal estate or an instrument relating to court proceedings.
d) Probate activities: Preparing probate papers.
,e) Notarial activities: Activities relating to the certifying and authenticating of
certain documents.
f) The administration of oaths: Power to administer an oath.
Authorisation
Reserved legal activities can only be carried out by those who are authorised or
exempt (s.13) by a relevant approved regulator (s.18 LSA 2007):
• The Law Society is the approved regulator for solicitor.
• But the regulatory function is carried out in practice by the Solicitors
Regulation Authority (SRA). The SRA deals with all the authorisation except
for notarial activities.
An authorised person is subject to the regulatory requirements of their own
regulator in respect of all the legal services they provided, including those which fall
outside the definition of reserved legal activity.
It is a criminal offence for a person to carry on a reserved legal activity if they are
not authorised or exempt (up to 2 years imprisonment) (s.14 LSA 2007). In the
context of conduct of litigation and right of audience, it is also a contempt of court.
There is a list of circumstances in which a person is exempt in relation to reserved
legal activities (s.19 LSA 2007). E.g., McKenzie friend (right of audience), employee
acting under the supervision of an authorised person (probate activities), charities
and independent trade unions.
Legal Services Board
The Legal Services Board are responsible for overseeing the regulation of all
lawyers in England and Wales. There are eight regulators regulating different type
of lawyers.
• A body can only act as a regulator for legal services if approved by the LSB.
The LSB has a duty to promote the regulatory objectives in s.1 LSA 2007:
a) Protecting and promoting the public interest.
b) Supporting the constitutional principle of the rule of law.
c) Improving access to justice.
d) Protecting and promoting the interests of consumers.
e) Promoting competition in the provision of services in the legal sector.
f) Encouraging an independent, strong, diverse, and effective legal profession.
g) Increasing public understanding of citizens’ legal rights and duties.
h) Promoting and maintaining adherence to the professional principles of
independence and integrity; proper standards of work; observing the best
interests of the client and the duty to the court; and maintaining client
confidentiality.
i) Promoting the prevention and detection of economic crime.
The LSB monitors the way in which regulators operate, and they can make
recommendations for improvement, impose penalties for deficiencies or withdraw
approval.
, Regulated Providers
• Regulated individuals must comply with their own regulator’s regulatory
arrangements (e.g., training and education requirements, code of conduct,
framework of practice, provision for disciplinary and enforcement actions.
• Firms are primarily responsible for ensuring compliance with regulators.
• Individuals in those firms are responsible for their own conduct.
o Solicitors by SRA.
o Barristers by BSB (except authorisation for notarial activities).
o Chartered Legal Executive by CILEx Regulation (except notarial): They
cannot carry out work independently, must be under the supervision of a
solicitor.
o Licensed Conveyancers by Council for Licensed Conveyancers (except
probate and administration of oaths).
o Patent and Trademark Attorneys by Intellectual Property Regulation
Board (except probate and notarial activities).
o Costs Lawyers by Costs Lawyers Standard Board (allow rights of
audience, conduct litigation, and administer oaths).
o Notaries by Master of Faculties (only regulator that can authorise notarial
activities) (except right of audience and conducting litigation).
o Chartered Accountants by Chartered Accountants in E&W (probate).
Unregulated Providers
Unregulated legal services providers conduct work outside the areas of reserved
legal activities under the Legal Services Act 2007.
• E.g. will writing, family law advice, and employment law advice.
• Many individuals providing legal services in the unregulated sector have legal
qualifications in that they are former or non-practising lawyers or law graduates.
, The Regulatory Role of the Solicitors Regulation Authority
The SRA
The SRA regulates solicitors, the firms in which they work and registered European
and foreign lawyers.
• Their purpose is to protect consumers of legal services and support the
operation of the rule of law and the proper administration of justice.
• Governed by a board of 9 members (4 solicitors and 5 lay members).
• Regulation is underpinned by the SRA 7 Principles.
• As the Legal Service Board have discharged their regulatory functions to the
SRA, the SRA is under a duty to promote the regulatory objectives from s.1
Legal Services Act 2007.
Risk-based Regulation
Paragraph 2.5: The code requires a firm to identify, monitor, and manage all
material risks to its business.
The SRA takes a risk-based approach to regulation.
• In exercising its regulatory functions, the SRA assesses the risk to the SRA
achieving its regulatory objectives.
• The focus is on misconduct most likely to harm the public interest.
• Risk is a combination of the impact of a certain event occurring (i.e.,
potential harm that could be caused) and the probability that the event will
occur (i.e., the likelihood of the event occurring.
• Examples of risk:
o The way a firm is structured and its viability (ability to work successfully);
firm or individual becoming involved in fraud or dishonesty; the way legal
market operates; the people, systems, and the internal process of the firm;
individuals lacking the requisite skills, knowledge, or behaviours;
economic, political or legal change.
• The SRA looks at problems which have actually arisen or factors which pose
potential problems for the future.
o After assessment, the SRA will target its resources appropriately.
o The SRA aums to be proactive and address the issues before they
become problems.
• The SRA can use a variety of measures to proportionately address the issues
or reduce the risk: set standards, impose fines, issue warning notices or raise
consumer awareness.
Regulated individuals are subject to regulatory requirements in respect of all legal
services they provide (not just for reserved legal activities):
a) Solicitors
b) Barristers
c) Chartered Legal Executives: work within law firms under the supervision of a
solicitor (authorised by the CILEx Regulation).
d) Licensed conveyancers: deal with property transactions (authorised by the
Council for Licensed Conveyancers).
e) Patent attorneys: specialists in patents and intellectual property (authorised by
the Intellectual Property Regulation Board).
f) Trademark attorneys: specialists in trademark law and practice (authorised by
the Property Regulation Board)
g) Costs lawyers: specialists in legal fees and costs (authorised by the Costs
Lawyers Standards Board).
h) Notaries: authenticate and certify signatures and documents (authorised by the
Master of the Faculties).
i) Chartered Accountants: authorised by the Chartered Accountants in England
and Wales.
Reserved Legal Services
The framework for the regulation of legal services is contained in the Legal Services
Act 2007. Reserved legal activities can only be provided by individuals who are
authorised to do so. Essentially reserved activities comprised of legal work where
the risk to the public is the greatest.
Definition
Six types of legal work defined as reserved legal activities in s.12 Legal
Services Act 2007.:
a) The exercise of a right of audience: The right to appear before, address a
court, right to call and examine witnesses.
b) The conduct of litigation:
a. Issuing of proceedings.
i. Laying information before court constitute the commencing of
proceedings. It is unlawful for the director of the Football League
to commence the proceedings, i.e., carry out reserved activities
unauthorised (Media Protection Services Ltd v Crawford).
b. The commencing, prosecuting and defending of those proceedings.
c. The performing of any ancillary functions in relation to those
proceedings.
c) Reserved instrument activities: Preparing and lodging an instrument (formal
legal document) dealing with the transfer or charge of land, relating to real or
personal estate or an instrument relating to court proceedings.
d) Probate activities: Preparing probate papers.
,e) Notarial activities: Activities relating to the certifying and authenticating of
certain documents.
f) The administration of oaths: Power to administer an oath.
Authorisation
Reserved legal activities can only be carried out by those who are authorised or
exempt (s.13) by a relevant approved regulator (s.18 LSA 2007):
• The Law Society is the approved regulator for solicitor.
• But the regulatory function is carried out in practice by the Solicitors
Regulation Authority (SRA). The SRA deals with all the authorisation except
for notarial activities.
An authorised person is subject to the regulatory requirements of their own
regulator in respect of all the legal services they provided, including those which fall
outside the definition of reserved legal activity.
It is a criminal offence for a person to carry on a reserved legal activity if they are
not authorised or exempt (up to 2 years imprisonment) (s.14 LSA 2007). In the
context of conduct of litigation and right of audience, it is also a contempt of court.
There is a list of circumstances in which a person is exempt in relation to reserved
legal activities (s.19 LSA 2007). E.g., McKenzie friend (right of audience), employee
acting under the supervision of an authorised person (probate activities), charities
and independent trade unions.
Legal Services Board
The Legal Services Board are responsible for overseeing the regulation of all
lawyers in England and Wales. There are eight regulators regulating different type
of lawyers.
• A body can only act as a regulator for legal services if approved by the LSB.
The LSB has a duty to promote the regulatory objectives in s.1 LSA 2007:
a) Protecting and promoting the public interest.
b) Supporting the constitutional principle of the rule of law.
c) Improving access to justice.
d) Protecting and promoting the interests of consumers.
e) Promoting competition in the provision of services in the legal sector.
f) Encouraging an independent, strong, diverse, and effective legal profession.
g) Increasing public understanding of citizens’ legal rights and duties.
h) Promoting and maintaining adherence to the professional principles of
independence and integrity; proper standards of work; observing the best
interests of the client and the duty to the court; and maintaining client
confidentiality.
i) Promoting the prevention and detection of economic crime.
The LSB monitors the way in which regulators operate, and they can make
recommendations for improvement, impose penalties for deficiencies or withdraw
approval.
, Regulated Providers
• Regulated individuals must comply with their own regulator’s regulatory
arrangements (e.g., training and education requirements, code of conduct,
framework of practice, provision for disciplinary and enforcement actions.
• Firms are primarily responsible for ensuring compliance with regulators.
• Individuals in those firms are responsible for their own conduct.
o Solicitors by SRA.
o Barristers by BSB (except authorisation for notarial activities).
o Chartered Legal Executive by CILEx Regulation (except notarial): They
cannot carry out work independently, must be under the supervision of a
solicitor.
o Licensed Conveyancers by Council for Licensed Conveyancers (except
probate and administration of oaths).
o Patent and Trademark Attorneys by Intellectual Property Regulation
Board (except probate and notarial activities).
o Costs Lawyers by Costs Lawyers Standard Board (allow rights of
audience, conduct litigation, and administer oaths).
o Notaries by Master of Faculties (only regulator that can authorise notarial
activities) (except right of audience and conducting litigation).
o Chartered Accountants by Chartered Accountants in E&W (probate).
Unregulated Providers
Unregulated legal services providers conduct work outside the areas of reserved
legal activities under the Legal Services Act 2007.
• E.g. will writing, family law advice, and employment law advice.
• Many individuals providing legal services in the unregulated sector have legal
qualifications in that they are former or non-practising lawyers or law graduates.
, The Regulatory Role of the Solicitors Regulation Authority
The SRA
The SRA regulates solicitors, the firms in which they work and registered European
and foreign lawyers.
• Their purpose is to protect consumers of legal services and support the
operation of the rule of law and the proper administration of justice.
• Governed by a board of 9 members (4 solicitors and 5 lay members).
• Regulation is underpinned by the SRA 7 Principles.
• As the Legal Service Board have discharged their regulatory functions to the
SRA, the SRA is under a duty to promote the regulatory objectives from s.1
Legal Services Act 2007.
Risk-based Regulation
Paragraph 2.5: The code requires a firm to identify, monitor, and manage all
material risks to its business.
The SRA takes a risk-based approach to regulation.
• In exercising its regulatory functions, the SRA assesses the risk to the SRA
achieving its regulatory objectives.
• The focus is on misconduct most likely to harm the public interest.
• Risk is a combination of the impact of a certain event occurring (i.e.,
potential harm that could be caused) and the probability that the event will
occur (i.e., the likelihood of the event occurring.
• Examples of risk:
o The way a firm is structured and its viability (ability to work successfully);
firm or individual becoming involved in fraud or dishonesty; the way legal
market operates; the people, systems, and the internal process of the firm;
individuals lacking the requisite skills, knowledge, or behaviours;
economic, political or legal change.
• The SRA looks at problems which have actually arisen or factors which pose
potential problems for the future.
o After assessment, the SRA will target its resources appropriately.
o The SRA aums to be proactive and address the issues before they
become problems.
• The SRA can use a variety of measures to proportionately address the issues
or reduce the risk: set standards, impose fines, issue warning notices or raise
consumer awareness.
