The Solicitor’s Regulation Authority will be given new powers to operate a single compensation fund for alternative business structures and non-ABSs, if parliament follows a recommendation made by the Legal Services Board yesterday.

The LSB also recommends that the SRA should be able to charge non-ABS law firms periodical fees without the need to renew practicing certificates every year.

In a third recommendation, it suggests the SRA be given the power to charge ABSs for the cost of investigations that lead to enforcement action.

For the changes to be introduced, an order must be made under s69 of the Legal Services Act 2007. The changes are designed to enable the SRA to regulate more effectively and efficiently.

The LSB has also put forward recommendations relating to the Council of Licensed Conveyancers.

The CLC was the first organisation to receive LSB approval for its application to become a licensing authority earlier this week.

The LSB has recommended that legislative changes should be introduced to enable the CLC to:

  • Issue licences for a fixed or indefinite period
  • Make rules about compensation payments for additional reserved legal activities if it is approved to regulate those activities
  • Change the constitution of its council to ensure a lay majority, and
  • Charge ABS for the cost of investigations that lead to enforcement action.

The LSB’s recommendations follow a consultation process.