LSB endorses CLC’s approach to regulation

10 May, 2016

The Legal Services Board has published individual reports on the regulatory standards of the front line regulators as well as a thematic report drawing on all of the individual reports. They can be read here.

The CLC is pleased that LSB recognises the ‘real improvement against all of the standards since 2012/13’. The LSB agrees with the CLC’s own assessment that its performance is satisfactory against the standards, which are:

• Outcomes-focused regulation
• Risk assessment
• Supervision
• Enforcement
• Capability and capacity

Notable comments by the LSB are that the CLC takes a ‘consistent and risk-based’ approach, is able to take ‘targeted action depending on the risk posed’ and ‘allows practitioners to be innovative in the way they deliver their products’. Looking at the CLC’s capability and capacity, the LSB comments that ‘the CLC has a culture of improvement and is not static in its approach to regulation.’

The CLC notes that the LSB wishes to see more information about the details of the work of the CLC published on its website and will work with the LSB to develop a plan to achieve that.

Dame Janet Paraskeva, Chair of the CLC said: ‘The LSB’s assessment of the CLC’s regulatory standards is an endorsement of the major improvements that have been made to the CLC’s staffing, infrastructure, policies and processes since the 2012/13 report. We are committed to keeping our work under continuous review to make sure that it reflects the realities of the market that we regulate, the changing needs of consumers and the firms we regulate and evolving risks. I am pleased that in its thematic report, the LSB is able to cite so many positive examples of our work. As we continue work through our review of our handbook and other regulatory arrangements, we will see if further improvements can be made for the benefit of clients, innovative firms and the wider public interest in a well functioning property market.’