On Wednesday, 26th February 2025, CILEx Regulation (CRL), in collaboration with the Legal Services Board (LSB) and the Legal Services Consumer Panel, hosted a roundtable to discuss the future shape of legal regulation.
The discussion was prompted by CRL’s research into the unregulated legal sector, published last year, which highlighted some significant trends in the market. CRL’s research revealed that:
- Unregulated providers such as will-writers take about 10% of the overall market;
- Some evidence that this share is growing with over 200,000 unregulated providers already; the share is moreover bigger in some areas ( eg personal injury) and for certain types of customers ( eg SMEs).
- Some evidence that some consumers do not understand the distinction between regulated and unregulated providers.
Jonathan Rees, Chair of CILEx Regulation, summarised the roundtable discussions, which covered a broad range of topics and perspectives.
CRL emphasised the need to update the legal framework to reflect the significant changes in the sector over the past 25 years. The evolving needs of diverse consumers, the growing independence of regulators, and the transformative role of technology – particularly Artificial Intelligence – were all highlighted as key considerations.
Participants debated whether unregulated activities should be brought under the ambit of the Legal Services Act 2007. While opinions varied, there was unanimous agreement that sound regulation in the public interest is essential for the growth and credibility of the legal sector.
What’s more, a consensus emerged that risk assessment should be central to any new regulatory system. Currently, the distinction between regulated and unregulated legal services is largely historical rather than risk-based. Ensuring that regulation is aligned with actual consumer risks was seen as a crucial step forward.
The need to support consumers in differentiating between regulated and unregulated providers was widely acknowledged. Participants discussed leveraging the transparency initiatives championed by the LSB to enhance public understanding and trust in legal services.
While immediate legislative reform appears unlikely, the discussion underscored that much could be done by regulators, consumer groups, representative bodies, trade associations, and academics to build consensus on necessary changes. Establishing common ground on regulatory evolution was seen as a key priority.
The roundtable highlighted the pressing need to reassess legal regulation to ensure it remains fit for purpose in an evolving market.
