How regulators should respond to the needs of consumers

Regulators in the legal sector have traditionally focused on protecting consumers from known harms that have been caused by the small minority of legal professionals who are unscrupulous, incompetent, or both. This has been achieved through issuing rules and guidance, and through associated supervisory and enforcement activities.  Such activities will always be important, but modern regulators must do more than this. They should be forward-looking, in order to identify future risks as well as deal with the problems of the past, to be pro-active in identifying emerging as well as existing consumer needs, and to support the profession in finding new ways to meet those needs.

Progress in other sectors, whether regulated or not, has shown the huge benefits to consumers that can be derived from the provision of appropriate, timely, and clear information which sets out the available options. Where such information is both accessible and assessable, it empowers consumers to make the right choice in order to access the justice system in a way which is both affordable and enables them the best chance to secure a good outcome. The legal sector in general lags behind other sectors in the way in which it gathers and presents such information around consumer choice.  Regulators must show leadership in helping the sector, which spans from large and highly resourced organisations, to sole practitioners, to have sufficient insight, knowledge and  expertise to understand and address consumer needs, to tailor their interventions and to evaluate their effectiveness.

Responsive regulation means an approach which is more proactive than reactive.  Legal regulators should have strong links with regulators outside their own sector, sharing insights and learnings continuously. They should understand where there are gaps they cannot fill, for example with funding for low income individuals or to deal with providers in the unregulated sector, but make the case robustly and strongly for others to step in to ensure universal access to justice and redress.

I will be chairing a panel exploring how regulation can actively empower people who need legal services at our Reshaping Legal Services Conference on 7 March 2024. I hope to see you there!