Introduction to legal services and regulation - Overview of legal services in England and Wales

Learning Outcomes

After studying this article, you will be able to explain the structure and purpose of legal services regulation in England and Wales. You will understand the Legal Services Act 2007, the concept of reserved legal activities, the roles of the main regulatory bodies, and the distinction between authorised and unauthorised legal service providers. You will also be able to identify who can carry out reserved legal activities and the consequences of unauthorised practice.

SQE1 Syllabus

For SQE1, you are required to understand the regulatory framework for legal services in England and Wales. This article covers the following syllabus points:

  • the Legal Services Act 2007 and its regulatory objectives
  • the meaning and scope of reserved legal activities
  • the distinction between authorised and unauthorised legal service providers
  • the roles of the Legal Services Board, Solicitors Regulation Authority, and other approved regulators
  • the requirements for authorisation to carry out reserved legal activities
  • the consequences of unauthorised practice and the role of the Legal Ombudsman

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

  1. What are the six reserved legal activities under the Legal Services Act 2007?
  2. Who is permitted to carry out reserved legal activities in England and Wales?
  3. What is the main function of the Legal Services Board?
  4. What is the consequence of carrying out a reserved legal activity without authorisation?

Introduction

Legal services in England and Wales are subject to a statutory regulatory framework designed to protect the public, uphold the rule of law, and ensure high professional standards. The Legal Services Act 2007 (LSA 2007) is the central piece of legislation, introducing key concepts such as reserved legal activities, authorised persons, and a system of oversight and frontline regulators. Understanding this framework is essential for anyone preparing for the SQE1 exam.

The Legal Services Act 2007: Purpose and Structure

The LSA 2007 was enacted to modernise the regulation of legal services, encourage competition, and improve consumer protection. It sets out eight regulatory objectives, including protecting the public interest, supporting the rule of law, improving access to justice, and promoting competition.

Key Term: Legal Services Act 2007
The main statute regulating legal services in England and Wales, establishing the regulatory framework, reserved legal activities, and oversight bodies.

Regulatory Objectives

The Act lists the following regulatory objectives:

  • Protecting and promoting the public interest
  • Supporting the constitutional principle of the rule of law
  • Improving access to justice
  • Protecting and promoting the interests of consumers
  • Promoting competition in legal services
  • Encouraging an independent, strong, diverse, and effective legal profession
  • Increasing public understanding of legal rights and duties
  • Promoting adherence to professional principles (independence, integrity, proper standards, acting in clients’ best interests, duty to the court, and confidentiality)

Reserved Legal Activities

Only authorised persons or entities can carry out certain activities defined as "reserved legal activities." These are:

  1. The exercise of a right of audience (appearing before and addressing a court)
  2. The conduct of litigation (issuing and managing court proceedings)
  3. Reserved instrument activities (preparing and lodging certain legal documents, e.g., for land registration)
  4. Probate activities (preparing papers for grants of probate or letters of administration)
  5. Notarial activities (certifying and authenticating documents)
  6. The administration of oaths (administering oaths and statutory declarations)

Key Term: reserved legal activities
Specific legal tasks that, by law, can only be performed by authorised persons or entities.

Authorised Persons and Approved Regulators

To carry out reserved legal activities, a person or entity must be authorised by an approved regulator. The main approved regulators and their regulated professions are:

  • Solicitors Regulation Authority (SRA): solicitors and SRA-regulated firms
  • Bar Standards Board (BSB): barristers
  • CILEx Regulation: chartered legal executives
  • Council for Licensed Conveyancers (CLC): licensed conveyancers
  • Intellectual Property Regulation Board (IPReg): patent and trade mark attorneys
  • Costs Lawyer Standards Board: costs lawyers
  • Dean of the Faculties: notaries
  • Institute of Chartered Accountants in England and Wales (ICAEW): probate activities

Key Term: authorised person
An individual or entity authorised by an approved regulator to carry out one or more reserved legal activities.

Key Term: approved regulator
A regulatory body recognised under the Legal Services Act 2007 as responsible for authorising and supervising a specific legal profession.

The Legal Services Board and Oversight

The Legal Services Board (LSB) is the oversight regulator. It supervises the approved regulators, ensuring they meet the regulatory objectives and maintain effective regulation.

Key Term: Legal Services Board
The statutory oversight regulator responsible for supervising approved regulators and promoting the regulatory objectives.

The Solicitors Regulation Authority

The SRA is the largest frontline regulator, responsible for regulating solicitors and SRA-authorised firms. It sets professional standards, authorises individuals and firms, enforces compliance, and oversees education and training.

Alternative Business Structures (ABS)

The Act allows for Alternative Business Structures (ABS), enabling non-lawyers to own or manage law firms. ABSs must be licensed by an approved regulator with licensing authority (e.g., SRA, CLC, IPReg, ICAEW).

Key Term: Alternative Business Structure (ABS)
A law firm or entity that allows non-lawyers to have ownership or management roles, subject to licensing and regulation.

Unauthorised and Exempt Providers

Legal service providers who are not authorised may only carry out non-reserved legal activities (e.g., general legal advice, will writing, some employment law advice). Carrying out a reserved legal activity without authorisation is a criminal offence.

Some exemptions exist, such as:

  • Acting as a litigant in person (representing oneself)
  • Acting under the supervision of an authorised person
  • Certain pro bono or voluntary activities

The Legal Ombudsman

The Legal Ombudsman provides an independent complaints service for consumers dissatisfied with the service received from a regulated legal professional or firm.

Key Term: Legal Ombudsman
The independent body handling complaints about the service provided by regulated legal professionals and firms.

Worked Example 1.1

A paralegal in an unregulated will-writing company is asked by a client to prepare and submit a land transfer document for registration at the Land Registry. Can the paralegal lawfully do this?

Answer: No. Preparing and lodging a land transfer document for registration is a reserved instrument activity. Only an authorised person or entity can carry out this reserved legal activity. The paralegal and the company would be committing a criminal offence if they proceed.

Worked Example 1.2

A solicitor is employed by a company as an in-house lawyer. The company asks the solicitor to represent a customer in court proceedings. Is this permitted?

Answer: No. An in-house solicitor may only carry out reserved legal activities for their employer, not for external clients or customers. Representing a third party in court would require authorisation as a law firm.

Exam Warning

Carrying out a reserved legal activity without authorisation is a criminal offence under the Legal Services Act 2007. This includes holding out as authorised when not entitled. For SQE1, be able to identify reserved activities and who may lawfully perform them.

Revision Tip

When revising, focus on the distinction between reserved and non-reserved activities, and which regulators authorise which professions. Be able to identify the consequences of unauthorised practice.

Summary

Regulatory FeatureDescription
Legal Services Act 2007Main statute governing legal services regulation in England and Wales
Reserved legal activitiesTasks only authorised persons/entities may perform
Authorised personIndividual or entity authorised by an approved regulator
Approved regulatorBody recognised to authorise and regulate a legal profession
Legal Services BoardOversight regulator supervising approved regulators
Solicitors Regulation AuthorityRegulator for solicitors and SRA-authorised firms
Alternative Business StructureLaw firm allowing non-lawyers to own or manage, subject to licensing
Legal OmbudsmanHandles complaints about regulated legal professionals and firms

Key Point Checklist

This article has covered the following key knowledge points:

  • The Legal Services Act 2007 sets the regulatory framework for legal services in England and Wales.
  • Reserved legal activities can only be carried out by authorised persons or entities.
  • Authorised persons must be authorised by an approved regulator.
  • The Legal Services Board oversees approved regulators and promotes regulatory objectives.
  • The SRA regulates solicitors and SRA-authorised firms.
  • Alternative Business Structures allow non-lawyers to own or manage law firms, subject to licensing.
  • Carrying out reserved legal activities without authorisation is a criminal offence.
  • The Legal Ombudsman handles complaints about regulated legal professionals and firms.

Key Terms and Concepts

  • Legal Services Act 2007
  • reserved legal activities
  • authorised person
  • approved regulator
  • Legal Services Board
  • Alternative Business Structure (ABS)
  • Legal Ombudsman
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Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

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Senior Associate at Trilegal