Recent proposals set forth by CILEx Regulation Ltd (CRL) aim to significantly transform the legal service landscape by mandating enhanced transparency practices among law firms.
Under these new rules submitted to the Legal Services Board (LSB), law firms regulated by CRL will be required to publish comprehensive price and service information for all legal services they offer. Additionally, firms must link their digital platforms to the Legal Ombudsman (LeO) to facilitate consumer access to pertinent decisions. The initiative seeks to address the informational discrepancies between legal providers and the public, thus enabling individuals to make more informed decisions regarding their legal needs.
A spokesperson for CRL indicated that the proposed changes intend to improve perceptions of legal service affordability, particularly for small businesses with fewer than ten employees and an annual turnover of less than £1 million. By enhancing the visibility and accessibility of information, the changes are expected to broaden consumer access to legal services.
Currently, CRL regulates 61 law firms, with 21 classified as CILEX authorised entities. Of these, 12 firms are exempt from publishing transparency data based on the nature of their services, while 40 are labelled as CILEX-ACCA probate entities. The current transparency requirements are confined to services involving conveyancing, probate, and immigration.
Under the revised rules, law firms will need to display transparency information prominently and in a clear and accessible manner, using a minimum font size of 11. For firms without websites, a physical consumer information leaflet must be made available upon request and submitted to CRL. This provision aims to enable consumers to access and compare a more extensive array of legal providers, potentially elevating competition within the sector.
Consultation responses from firms under CRL’s regulation reveal strong support for these transparency extensions across all legal services provided to consumers. Moreover, no significant challenges in implementation or compliance were anticipated, according to the consultation feedback. The Legal Services Consumer Panel also endorsed CRL’s commitment to advancing transparency, though they acknowledged that further progress remains possible.
Additional feedback from the Council for Licensed Conveyancers (CLC) suggested that disseminating consumer information leaflets should be encouraged even for firms with an online presence. Furthermore, the CLC expressed concerns about perpetuating informational inequalities if digital access is unevenly distributed among consumers. In response, CRL has committed to researching digital exclusion to inform their ongoing efforts to improve informational accessibility.
The proposals by CILEx Regulation Ltd mark a significant step towards greater transparency within the legal services arena, potentially setting a benchmark for other regulatory bodies.
