Practice Regulation by the CLC
The CLC was created in 1985 to foster competition in the provision of conveyancing, and unlike other legal regulators, has only ever had an exclusively regulatory function.
Our approach to regulation is proportionate, risk-based and outcomes-focused. We still support innovation and growth in the sector that we regulate and we do not simply police the community that we regulate, we support them in achieving compliance. We want them to thrive.
The CLC currently licenses over 1,300 individuals and 230 practices, respectively accounting in 2011 (the CLC estimates) for about 4% of authorised persons and 5% of all practices in the legal sector. They service 10-15% of the market for conveyancing transactions with a value of around £11bn-£15bn each year – and 20% of all re-mortgaging activity.
Over 70 licensed conveyancers are now licensed to also provide probate services. A number of CLC practices offer probate as well as conveyancing services and some practices have now been licensed to specialise in probate services alone.
Key points to note about the CLC regime
Our approach to regulation is proportionate and risk-based, and we support specialist lawyers in achieving good practice and developing prosperous businesses in an outcomes focused framework. Our regulatory assistance scheme ensures that each CLC regulated practice is allocated their own Regulatory Supervision Manager (RSM). The RSM’s role is to help the practice to understand their regulatory responsibilities and to assist them in their compliance with the CLC Code of Conduct and the Overriding Principles.
The fact that CLC-regulated practices are specialists means there is no need for accreditation schemes on top of regulation. Expertise is guaranteed through specialisation of regulation and practice.
The CLC’s Code allows referral fee arrangements subject to absolute transparency with the client from the outset. The requirements are set out in our brief Disclosure of Profits and Advantages Code
Participating Insurers Scheme
The CLC runs a Participating Insurers Agreement for Professional Indemnity Insurance and CLC regulated practices can seek cover from any insurer that is part of this scheme. This arrangement was put in place in June 2016. Among other things, it sets out a minimum level of cover of £2 million for each and every claim. It also ensures six years run-off cover at no additional cost when a practice closes with cover of £2 million in aggregate.
Information on setting up as a Recognised Body under CLC regulation.
Information on setting up as an Alternative Business Structure (ABS) under CLC regulation.