This resulted in an in-depth review of the legal services sector after ten years of independent regulation. We published an agile business plan for 2020/21 and remained flexible throughout the year as the sector grappled with the impact of the Covid-19 pandemic.
Listening to consumers
We made the dashboard available to the regulators and others to inform their recovery plans. These insights informed the consumer-focused strategy for the sector that we published in March 2021.
Prices research and consumer engagement
Legal technology
The articles show how different parts of the legal services sector view technological innovation and how they believe technology can improve access to justice. Developing the regulatory response to innovation and technology will continue to be a workflow within us.
Increasing transparency around practising certificate fees
We also continued to publish and promote our "Talking Tech" podcast series, covering topics such as. The review also enabled us to ensure that our rules and guidelines reflect our overall regulatory approach.
Internal governance rules
Ongoing competence
Developing a sector-wide strategy
Statutory decisions and review Regulatory performance and review Oversight of the Office of Legal Complaints Oversight of the Solicitors Disciplinary Tribunal.
Our purpose
The Legal Services Act 2007 (the Act) established the LSB on 1 January 2009 and we took on most of our statutory powers and duties on 1 January 2010.
The regulated community
The Act also gives us some powers in relation to the Solicitors Disciplinary Tribunal (SDT) and requires it to obtain the approval of the LSB for its annual budget and for changes it wishes to make to its rules.
Our regulatory responsibilities
The expectations that guide our regulatory oversight are based on evidence and information about the state of the market (including consumers' experience of legal services), as well as better regulation theory and practice. Our oversight of regulators is designed to ensure they have the competence, ability and capacity to advance regulatory objectives, always in the.
Key issues and risks
Performance summary
Financial performance
Going concern basis
Demonstrating performance at the LSB
Performance against the Plan
We review the impact of our work and wider law reform on the legal services market. The report was supported by a long-term research program examining how the legal services market is changing.
Strategic objective 1: Promoting the public interest through ensuring independent, effective and
By the deadline, all approved regulators and regulatory authorities have submitted certificates of compliance with the IGR or have permission for non-.
Strategic objective 2: Making it easier for all
We undertook work to encourage further progress by regulatory bodies to improve consumer engagement with the market, given that many consumers still lack the tools to engage effectively and make informed choices. We accepted in principle the CMA's new recommendations to guide and coordinate activity by regulatory bodies to improve consumer engagement.
Strategic objective 3: Increasing innovation, growth and the diversity of services and providers
This informed the CMA's review of progress in increasing competition in the legal services market (published December 2020) and subsequent recommendations. In the run-up to the end of the transition period, we continued to monitor the development of the EU exit and participate in roundtable meetings with the MoJ and legal services regulators aimed at ensuring that the necessary steps were taken.
Discharging our statutory functions
The purpose of the reviews was to gain assurance that the BSB and FO meet ours. We also engaged directly with each of the regulatory bodies, as well as with approved interested regulators and the Legal Services Consumer Panel.
Strategy development
Enabling our business
We started using the LEAN methodology to evaluate the activities at LSB against the National Audit Office's three criteria for assessing value for money (economy, efficiency, effectiveness).
Performance against statutory performance targets
These figures are derived from ongoing data that the LSB maintains about our processing of applications.4. Substantial applications included the application from the Solicitors Regulation Authority to introduce the Solicitors Qualifying Examination, the application from the CILEx Regulation to provide an alternative route for obtaining practice rights, the application from the Institute of Chartered Accountants in England and Wales to change their regulations to comply with internal governance Rules, those of the Intellectual Property Regulations Council.
Performance against budget
The Legal Services Act 2007 (Levy) (No 2) Rules 2010, as amended in 2014, enable the LSB to request funding from approved regulators each year to the extent of estimated net expenditure. These fees are offset against LSB expenses and also reduce the levy paid by all approved regulators.
Performance against other measures
We are obliged to pay all supplier invoices by the due date or within 30 days of receipt if no due date has been agreed. At the end of 2020/21 there were 1,066 ABS licensed by the Solicitors Regulation Authority, 285 by the Institute of Chartered.
Environment, social and community issues
As a data controller under the Data Protection Act of 2018, the LSB is required to respond to data subject access requests within 30 calendar days. During the year, our colleagues supported the London Legal Support Trust by participating in the.
Key risks
Towards the end of 2019/20, LSB began to address the risk of harm to the regulatory targets and consumers caused by the impact of Covid-19. We identified a risk to our operations at the start of the Covid-19 pandemic, but transitioned seamlessly to remote work in March 2020.
LSB Members’ report
The Board of Directors sets the strategic direction of LSB and is solely responsible for decisions made by LSB. All cases are recorded in the minutes of the Supervisory Board, which are also published on the LSB website.
Statement of accounting officer’s responsibilities
By law, the accounting officer carries out his responsibilities on behalf of the Board, which is required by legislation to keep proper accounts and records and to prepare a statement of accounts. The responsibilities of an accounting officer, including responsibility for the correctness and regularity of the public finances for which the Accounting Officer is responsible, for keeping proper records and for.
Auditor
As LSB's accountant, I am responsible for maintaining a sound system of risk management, governance and internal control that enables LSB to meet its statutory obligations, purposes and objectives, while safeguarding the funds and assets for which I am personally responsible. The committee is responsible for ensuring the efficient performance of LSB's statutory tasks and for ensuring that LSB meets all relevant legal or administrative requirements for the use of public funds.
Corporate governance framework
LSB Board
Appointments are the responsibility of the Lord Chancellor in consultation with the Lord Chief Justice.
Board Member responsibilities
Board Comittees
The Act states that the Board must consist of a Chairman, Chief Executive and at least seven other members. Committee chairs and members are appointed by the Board, with none of the chairs being the chairman of the Board.
Governance relationship with the Office for Legal Complaints
Schedule 15, section 23(1) of the Legal Services Act 2007 allows the OLC to seek an annual variation of its budget. The law requires LSB to give its consent to changes that OLC proposes to make to the scheme's rules.
Governance relationship with the Legal Services Consumer Panel
Executive leadership and key business processes
Board performance
The Chairman of the Board may attend no more than one committee meeting per year as an observer. The chair of each committee provides an oral update to the Board after each committee meeting at the next Board meeting.
Risk and internal control framework
Initial risk identification is undertaken by colleagues across LSB, and those assessed as potential. When the SLT determines that a risk exceeds the Board's appetite, it establishes a strategy to mitigate the risk.
Assessment of risk management
Reporting of risk
The wider framework of control
Role of internal audit
Assurance" in respect of governance, risk management and internal controls in place for the 2020/21 year, as aligned with the assurance definitions used in its internal audit reports. Overall, Crowe LLP considered that “there is a generally sound system of internal control, risk management.
Review of the effectiveness of the risk and governance framework
Information security
In 2020/21, there were no data security incidents that needed to be reported to the Information Commissioner's Office. Learning is shared and reinforced throughout the year and is led by a SharePoint leadership team that brings together representatives from all areas of the organization.
Assessment of fraud and error risk
Appropriate processes to identify and respond to the risks of fraud in day-to-day operations are nevertheless in place. During 2020/21, new colleagues received face-to-face training on the Bribery Act 2010, provided by the LSB's Senior Legal Adviser.
Whistleblowing arrangements
In addition, a Reporting and Investigation Schedule has been published outlining the process by which individuals outside the LSB can report allegations of fraud or corruption. The most recent policy review was reported to ARAC in October 2020 and to the board in December 2020.
Quality of the data used by the Board
Based on the independent review of data submitted to the Board, I am satisfied with its quality and relevance.
Significant control issues
Compliance with Corporate governance in central
Conclusion
Appointments
Termination
Performance conditions
The table below has been revised and details the remuneration of LSB Board members who served in 2020/21: Remuneration of Chairman and Board Members LSB Board Member.
Remuneration of Chair and Board Members
Pension liabilities
Fair pay disclosures (audited)
In 2020/21, a reward of 2% of the salary budget was paid on a fixed percentage basis to all eligible colleagues. The increase in the total remuneration of the highest paid director is due to the fact that the director received a bonus in 2020/21 based on his contract entitlement and the achievement of/.
Staff policies, equality and colleague involvement
The framework agreement of the LSB states that the general objective of the LSB is to contribute to the reform and modernization of the legal services market in the interest. In addition, the LSB has a number of responsibilities related to the management of the OLC.
Regularity of expenditure (audited)
The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament and the Lord Chancellor to the Comptroller and Auditor General.
Opinion on financial statements
Opinion on regularity
Basis for opinions
I am independent of the Legal Services Board in accordance with the ethical requirements relevant to my audit of the UK accounts.
Conclusions relating to going concern
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other Information
Opinion on other matters
Matters on which I report by exception
Responsibilities of the Board and Accounting Officer for the financial statements
Auditor’s responsibilities for the audit of the financial statements
Inquiring with management, the Legal Services Board's internal auditors (by attending Audit .. Committee) and those charged with management, including obtaining and reviewing support. The key laws and regulations I considered in this context included the Legal Services Act 2007, Management of Public Money and Employment, Pensions and Taxation Acts.
Report
Statement of accounting policies
- Basis of preparation
- Accounting convention
- Critical accounting estimates and judgements Provisions
- Income
- Expenditure
- Property and equipment
- Research
- Value Added Tax
- Employee benefits Pension
- Operating leases
- Going concern
- Changes in accounting policy and disclosures Changes in accounting policies
Allocate the transaction price to the performance obligation: The levy income is accrued and corresponds to the LSB's net expenses in the period up to. Ministry of Justice Group, the LSB will adopt IFRS 16 in the financial year starting 1 April 2021, although.
Other programme costs
Levy Income
Property and equipment
Intangible assets
Financial instruments
Liquidity risk is the risk that LSB will encounter difficulties in raising liquid funds to meet its commitments in a timely manner. LSB has not recorded impairments against cash balances, nor has any recovery issue been identified with such balances.
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Provisions for liabilities and charges
Capital commitments
Commitments under leases
Contingent liability
Related party transactions
There were no other material transactions with the OLC during the year or with any of the members of the OLC. During the year there were no related party transactions with LSB members, Legal Services Consumer Panel.
Events after the reporting period
