legal

Legal regulators at loggerheads, ‘hostile’ exchanges show


Growing antagonism between the bar’s watchdog and the oversight regulator is starkly revealed in frank and accusatory correspondence between them.

The Legal Services Board this week published letters exchanged in the last two months between its chair Alan Kershaw and his counterpart at the Bar Standards Board, Kathryn Stone.

Last year the BSB was given a red traffic light warning by the LSB for its enforcement standards. The BSB commissioned an external review in response and the oversight regulator warned at the end of last year that it would be ‘proactive’ in its approach and take formal action for any under-performance.

Kershaw wrote in May to stress that the BSB needed to urgently address shortcomings in its enforcement approach identified by the external review, and to note that its assurances that action was being taken ‘fall some way short of adequately reflecting the seriousness’ of the problem. He added: ‘The findings around the lack of accountability within the BSB for enforcement processes, and the high level of public dissatisfaction with the BSB, are of particular concern, and have the potential to damage public confidence in the regulation of legal services.’

Kershaw asked to meet with BSB leaders, but warned it should come as ‘no surprise’ that the LSB was considering use of its formal powers under the Legal Services Act to intervene.

KathrynStone

Stone responded to say she was ‘saddened’ that the LSB was had not acknowledged that the review found progress was being made, and that systems and processes were consistent with those used by other regulators.

She pointed out that the LSB was not present at the BSB board meeting when the review was discussed and appeared to indicate that its criticism was arrived at ‘organically’. Stone accused the LSB of an ‘unevidenced and undocumented approach to decision-making’ and acting in defiance of proper governance.

Stone continued: ‘Please do not construe due process and sound governance as being indicative of lack of commitment. I would ask that you also appreciate that the current organisation of the Bar Standards Board, adopted in 2019, is hard-wired into policies, processes, job descriptions and IT systems.’

In a follow-up letter, Stone said the ‘continued hostility and misperception’ was reflecting poorly on both organisations. She rejected the proposal that its director general could meet with the LSB every two weeks, saying he was busy leading the organisation.

‘Relations between our organisations appear to be worsening by the day,’ added Stone. ‘I would like to find a way of resolving this before the issues become more entrenched.’

In a final published letter from last month, Kershaw was ‘saddened’ to hear relations described as hostile, and urged both organisations to work together.

The group were due to have talks ahead of this week’s LSB board meeting and again before the next meeting in September.



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