In last year's report we noted that we had launched targeted reviews of the performance of BSB and FO against the Well-led standard. In September 2021, we completed our FO performance review against the well-managed standard of the regulatory performance framework.
Overall assessment themes
We also asked the SRA about its overall approach to transparency and how it had taken into account the findings of our review of the BSB's performance against the well-governed benchmark. We also note that the SRA has drawn lessons for its own work from our review of BSB's performance against the good governance standard, and we will monitor how it applies them.
Based on our ongoing monitoring during the year and our request for information, we believe that the SRA continues to meet all 27 outcomes. The SRA will need to take action on the outcomes identified in this assessment to ensure they remain assessed as achieved.
Our focus in 2022
Our emphasis on transparency and how other regulatory bodies considered the findings of our BSB review also highlighted concerns about some other regulatory bodies' approaches to this standard, and we have set out actions for them in this assessment to promptly addressed our concerns. . During 2022, we encourage all regulatory bodies to use the lessons from our reviews to improve their performance against the Welled standard and others where these lessons can be applied.
Annex A: Regulatory performance framework
Annex B: Assessments of regulatory bodies’ performance November 2021
Bar Standards Board (BSB)
We believe that resources, capacity and capability are central to this assessment and have reflected this in our BSB performance assessment against the WL2 score, which we have downgraded from met to not met - action in progress. As of 2019, BSB has not made a significant application to amend its regulatory arrangements, which would allow us to reassess BSB's performance against RA2 at this time.
Not met – action being taken
We also acknowledge the work of the BSB in addressing the recommendations following the Independent Review of Bar Examinations in August 2020. Timeline We will monitor BSB's progress against this WL2 result in the first quarter of 2022. We have assessed BSB's performance against WL3 taking into account the BSB's progress update.
We have evaluated the performance of BSB against WL5 considering the BSB progress update. A deterioration in the quality of BSB's applications to change its regulatory arrangements in 2019 means that we cannot consider this result to have been met.
CILEx Regulation (CRL)
The CILEx Regulation has explained to us the details of changes to its internal processes to provide additional quality assurance of applications. During the year we have had concerns about how the CIEx Regulation chooses to use its resources to carry out its regulatory activities. We know that the CILEx regulation has introduced new processes and plan to do so further.
We believe that some of these changes will help CILEx regulation to better deploy its resources. Action needed We invite CILEx Regulation to consider its approach to deploying its resources and continue to undertake planned changes to support this.
Council for Licensed Conveyancers (CLC)
We want to better understand how the CLC assures itself (and through it the public) that its approach is proportionate to the risk. Action required Further assurance that the CLC's approach to disciplinary and enforcement activities is sufficient to support public confidence. The CLC maintains a register which seeks to identify and link to any disciplinary outcomes of those authorized to practise.
We are concerned about the time it takes for the CLC to link the findings of the arbitration panel with the entry of the individual in the register. The CLC has informed us that it intends to check whether the disqualification information will be published in its register.
Not met: action being taken
November 2021 LSB review Last year we rated the CLC as compliant with WL3 as it has taken excellent steps to improve transparency on how it holds itself accountable. This was achieved through the introduction of the KPI framework and the publication of performance data along with Board documents on the CLC website. We were unable to assess the quality of information provided to the CLC Council based on published documents.
The CLC has committed to reviewing both performance data on how it holds itself accountable in 2022, as well as a review of its publication policy, which determines what information is made publicly available. Action needed We expect the CLC to make progress in 2022, both its review of the CLC publication scheme, how to increase the transparency of decision-making and the review of its performance data (KPIs).
Costs Lawyer Standards Board (CLSB)
Overview
November 2021 LSB Assessment We introduced an action for CLSB to demonstrate the continued use of its consumer engagement strategy, particularly its consumer outcomes framework, once it was operational. We have set an expectation to receive evidence of the impact the framework has made over time and to be updated on further progress towards its 2021 business plan priorities for improving its regulatory arrangements. In addition, CLSB made use of its consumer outcomes framework when considering and drafting its business plan for 2022.
The CLSB has also been able to provide evidence that it has progressed its regulatory improvements. We are pleased that CLSB has demonstrated its ongoing work using its learning over time.
The Faculty Office (FO)
Based on the evidence gathered during this review15, we determined that FO did not meet four outcomes below the guideline standard: WL2, WL3, WL4 and WL6.16. The FO accepted the findings in the audit report and that it needs to do more to meet the well-managed standard. It submitted an action plan17 to address the findings and enable it to demonstrate improved performance.
As such, we believe that it is too soon after the completion of the Well-Guided Review, and the resulting Action Plan, to make a meaningful assessment of the FO's progress in achieving the four outcomes under the Well-Guided standard. We will continue to monitor the FO's progress against the Action Plan milestones through our regular relationship management meetings.
Not met: action being taken (November 2021 assessment and September 2021 Well- Led Review assessment)
We expect ZF to assess its position once it has completed its planned activities. We welcome the commitments and actions set out in the FO Action Plan that are relevant to demonstrating improved performance in relation to this outcome. Time LSB will review the FO's progress on the above actions and the achievement of this outcome in April 2022.
In its action plan, the FO has committed to deliver all of the above actions by the end of January 2022. Timing The LSB will review the FO's progress on the above actions and meet this outcome by April 2022.
Institute for Chartered Accountants in England and Wales (ICAEW)
November 2021 LSB assessment In December 2020 we set an action for ICAEW to review its approach to consultation and engagement and review its internal procedures to ensure that all future applications provide sufficient evidence to support the proposed changes. We note that the ICAEW's update does not provide specific information about any review of its internal procedures to ensure that all future applications provide sufficient evidence to support the proposed changes. We welcome ICAEW's new approach to meaningful engagement with those affected by changes in regulatory regimes.
November 2021 LSB assessment In December 2020 we set an action for the ICAEW to establish a means of publishing relevant information related to legislative decision-making for legal services. ICAEW referred to the recent publication of several documents, including the annual report of the ICAEW Regulatory Board, which contains targeted information on bankruptcy law.
Not met: action required
ICAEW has also released a monthly Regulatory Standards Bulletin, which increases transparency about how the Professional Standards Department at ICAEW carries out its regulatory work. In addition, ICAEW confirmed that the ICAEW Regulatory Board has agreed a new policy on transparency, which has led to the publication of relevant board documents from August 2021. In December 2020, we set an action for ICAEW to add disciplinary information for verification Find a Chartered Certified Public Accountant (FACA) register, identified as the proposed means of meeting this outcome.
The ICAEW update detailed that in April 2021 a Disciplinary Database covering all service areas regulated by ICAEW was made available to all users of the ICAEW website. We note that ICAEW has published a document on the disclosure periods linked to the disciplinary records database.
Intellectual Property Regulation Board (IPReg)
In particular, as noted above, we have concerns about the scope of IPreg's evidence base and thus its ability to analyze the likely impact of its work on consumers and regulatory objectives. The IPReg committee's response also raised concerns about the committee's insight, which did not appear to reflect the problems with the IPReg evidence base that the committee had been dealing with over the past 12 months. We also note the importance of IPReg's performance commitments in relation to RA3 and the need for IPReg to have a solid evidence base to support any changes to its regulatory arrangements it wishes to make following the completion of the review.
IPReg's proposals for the creation of a new compensation fund and its setting of PCF levels for 2022 were not transparent, which meant that the statutory community and users of IP services were not clear about who IPReg was for. We also raised concerns about the transparency of IPReg's proposals to establish a new compensation fund and set the PCF for 2022, which is detailed in our RA2 assessment.
Solicitors Regulation Authority (SRA) Overview
We would also monitor the progress of the SRA's review of its publication policy for discipline. In response to our request for information, the SRA has provided us with information about its publication. In early 2021, the SRA advised us that it intended to undertake a review of its disciplinary publication policy.
We believe that the SRA will continue to meet this outcome as it maintains its current high level of publication of disciplinary decisions and completes its review of its publication policy in 2022. SRA and the SRA's response to our questions, we believe these two outcomes are still met.
