Three years after CILEX embarked on a dramatic journey to hand the Solicitors Regulation Authority regulatory control of its members, the chartered institute has decided that regulatory redelegation remains in the public interest. However, CILEX members and solicitors may not know until Christmas at the earliest if they will be sharing the same regulator.

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

The board remained satisfied that its ‘case for change’ remains valid and transferring the regulatory regime from CILEx Regulation to the SRA remains in the public interest.

CILEX said it would now work with the SRA to finalise the full details needed for an application to the LSB, including ‘further work to ensure the identified benefits for consumers can be fully realised and demonstrated’.

CILEX added: ‘We expect the CILEX board to make a final decision whether to proceed to an application to transfer its regulatory delegation to the SRA in public session at its board meeting in October 2024.’

The Legal Services Act prescribes an initial 28-day period for making a decision, which the LSB can extend by up to 90 days via an extension notice. Council members of the Law Society - which opposes the proposals - would also need to approve the necessary rule changes allowing the SRA to take CILEX members into its fold.

Society chief executive Ian Jeffery repeated Chancery Lane's concern that the proposals would have a megative impact on consumers, the wider public interest and regulatory objectices, causing greater confusion in the legal market.

He added: 'Although this decision is an unwelcome further step in the process, several other decisions would be needed and it should not be assumed they will follow. An actual change of regulator would require approval from the Privy Council for changes to CILEX’s byelaws and Royal Charter, and a decision on the regulatory changes from the Legal Services Board. The SRA would also require approval from the Council of the Law Society, as sole member of SRA Limited, for changes to its articles.

'Throughout this process we will continue to advocate on behalf of our members and the wider public interest.'

 

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