News release

LSB approves SRA rule change on reserved activity

We have welcomed the decision by the Legal Services Board to approve proposals to remove unnecessary burdens on law firms carrying out reserved activities.

The previous rules meant that we could revoke or suspend a firm's authorisation if it did not carry out the reserved activities it was authorised to do. As part of our agenda of reducing the regulatory burden on firms and promoting flexibility and innovation in the legal market, we proposed removing this rule.

This proposal was part of a package of reforms set out in April last year, and consulted upon in the summer. The relevant rule changes were agreed by our Board in September, and the LSB approved all measures in the package except this, which it wanted to consider further.

The LSB has now approved the change. This means that once a firm has shown it meets the standards to be entitled to carry out reserved activities, it will not need to demonstrate that it is actively doing so.

Crispin Passmore, SRA Executive Director of Policy, said: "This is another step towards an open and competitive legal market that works for consumers and the public. Regulation boosts public confidence in legal services but overregulation gets in the way and increases costs.

"These changes give firms more flexibility to decide where to focus their business at any point in time and are part of wider package of reforms to simplify what we do and how we do it."

Further information on the changes made can be found here:

Go to the consultation document

The majority of respondents to the consultation agreed with the proposal, as outlined in the papers to the Board on 9 September:

Go to the Board papers

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