CLC's new regulatory approach

Last year the CLC consulted upon the proposal to move towards a regulatory regime less focused upon compliance with the minutiae of prescriptive rules and more explicitly focused upon Outcomes. Thursday 6 October 2011 heralds the start date of this new regulatory approach. Those who deliver the specified Outcomes to their clients will be left to get on with their business with minimum supervision from us. Our attention and resources will be targeted at those entities, individuals and activities which pose the greatest risk to the Outcomes i.e. those most likely to harm the interests of the public and legal services consumers. Please see our Outcomes-Focused Regulation and Outcomes & Overriding Principles Quick Start Guides for more information.

This new regulatory approach will be underpinned by the Handbook which sets out the regulatory responsibilities of all individuals and firms regulated by us. Rules and Guidance Notes have been replaced with Codes which, wherever possible, are comprised of flexible, higher-level principles rather than detailed prescriptive requirements.

There are seven Frameworks setting out our operating parameters in Frameworks. Copies of those Frameworks relevant to the regulated community are also included in the Handbook so it is a one-stop shop of regulatory responsibilities.

Alternative Business Structures (ABS)

The CLC issued its first licence to an externally-owned and managed 'ABS' law firm on 6 October 2011. The responsibilities identified in the Handbook will apply in equal measure to these practices. Potential applicants should familiarise themselves with both the Handbook—which set out the outcomes we expect the firms we regulate to deliver—and the Licensed Body (ABS) Licensing Framework—which sets out how we will operate in licensing these firms. Copies of the ABS application forms and supporting guidance notes are available for downloading and completion – which will in the near future be able to be completed online. Since we are an Approved Regulator authorised to regulate for probate, reserved instrument activities (this includes conveyancing services), probate activities and the administration of oaths, our Licensing Authority designation authorises us to regulate these reserved legal activities. The Legal Services Board is shortly due to decide whether to approve CLC's application to extend our regulatory scope to include litigation and advocacy.

 

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Regulatory Arrangements

View our regulatory arrangements in full here.

  Handbook
Sets out the regulatory responsibilities and the outcomes we expect of all individuals and firms regulated by us.

  Frameworks
The seven Frameworks setting out our operating parameters.

  Licensed Body (ABS) Licensing Framework
Sets out our approach to licensing Alternative Business Structures.

  Client Charter
The outcomes which clients of the regulated community have the right to expect, and the options available to them if they do not receive these outcomes.

  AML & CTF
CLC Detailed Guidance on the prevention of Money Laundering and Combating Terrorist Financing.

  Application pack
The ABS application forms and supporting guidance notes (zipped).

Quick-start Guides (QSG)

Quick-start guides provide an overview of the following:

  Outcomes-focused regulation QSG
Provides an overview of how outcomes-focused regulation is put into practice.

  Outcomes and Overriding Principles QSG&
Lists the 20 Outcomes and six Overriding Principles which form the basis of our Outcomes-Focused regulatory arrangements.

  Handbook QSG
The various Codes which set out the regulated community's responsibilities, the Regulatory & Enforcement Policies, and relevant Frameworks.

  Code of Conduct QSG
The underpinning responsibilities of the Outcomes and Overriding Principles—a separate QSG is provided because this is the parent document for all of our regulatory arrangements.

  Licensed Body (ABS) Licensing Framework QSG
What constitutes an Alternative Business Structure, application requirements and licensing determinations, monitoring and enforcement and licence transfer and continuity.

  Accounts Code QSG
Client accounts, accounting records, reconciliations, deposit interest and Accountant's Reports provisions—a separate QSG is provided because this is the longest and most prescriptive of our Codes.

  Complaints Code QSG
What is meant by a 'complaint', what an effective complaints procedure should look like and details of the Legal Ombudsman—a separate QSG is provided because we are planning to obtain client satisfaction data with complaints procedures.

  Equality Code QSG
Of the Equality Act and what is meant by a 'vulnerable' Client; a separate QSG is provided because this is a new area of regulatory responsibility.

 

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We welcome feedback on our new regulatory arrangements. Please send your comments/feedback to policy@clc-uk.org