Menu

How can a regulator accommodate disruption?

18 August 2017

Like any regulator, we need to deliver consumer protection in a changing world. And as a regulator with a proud history of supporting innovation in the delivery of legal services, we also support lawyers who want to find new ways of responding to changing client expectation and who harness new tools to do so. That’s why we held a round table with Legal Futures to look at the regulation of digital conveyancing.

Now we’re collaborating with Legal Geek and their network of legal tech entrepreneurs as well as others in financial tech and property tech. We want to explore with them how the delivery of legal services is likely to evolve. That way we can be ready to support innovation in the interests of both consumers and lawyers.

After just one evening of very lively discussion over pizza with a range of legal tech entrepreneurs, it became clear that there is a wide range of interesting challenges for us if we are to be ahead of the game. We don’t want to find ourselves floundering like TfL when faced with Uber, or the many cities struggling to cope with AirBnB. Neither services are fundamentally novel, but new ways of delivering them have thrown up unforeseen issues.

The arrival of a disruptor in the residential property market could pose serious challenges, especially if their approach was to get on with delivering property transfers in a new way that pays little or no attention to current legal processes for conveyancing or the consumer protection framework around that.  Such a ‘seek forgiveness not permission’ approach would not be astonishing. But even that could be less problematic than a new entrant that manages to corner a large part of the data that could be used to make the conveyancing process smoother and faster. Such a development could have a damaging anti-competitive effect that could be hard to undo.

We want to extend the dialogue so that we can identify light-touch interventions, appropriate for regulators to make will promote innovation and competition to encourage the development of new solutions. There are opportunities here to make huge improvements to the consumer experience and create major efficiencies while also reducing risks in the current processes.

Maybe this is the last place you’d expect to find a regulator, but we’re determined to deliver on our mission to support innovation.

This blog was first published on Legal Geek

Lawyers need an innovative watchdog for the tech era

25 November 2016

A chatbot has successfully challenged hundreds of thousands of parking tickets in London and New York. It is surely only a matter of time until artificial intelligence (AI) brings the impact of the fourth industrial revolution to wider legal services.

The degree of automation that can be achieved may vary between services, but it seems clear that the most progressive legal businesses will in future operate very differently, meeting client expectations more efficiently and cheaply.

Traditionalists mourn the passing of the old ways, but let’s not forget the high prices and poor service 30 years ago that prompted the creation of the profession of licensed conveyancer to introduce fresh competition. Maybe I’m swayed by the location of our offices on the so-called Silicon Roundabout in London, but it seems that “lawtech” offers opportunities. It could help widen access to legal services too. We regulators must help to facilitate that.

The largest firms regulated by the Council for Licensed Conveyancers would be unrecognisable as law firms to a time-traveller from 20 years ago. That is because of the degree of automation and the ratio of lawyers to non-lawyers working in those firms. Highly specialised lawyers supervise the work. The firms they lead are answerable to a specialised regulator, protecting the consumer.

This model, with service design led by customer expectation, is extremely successful. The increasing market share being taken by such firms is proof. Activity-based regulation is perhaps especially appropriate here, because it can focus sharply on the risks particular to those legal services and client profiles. This gives firms the maximum possible flexibility compatible with consumer protection.

The Legal Services Board rightly plans to reform regulation, looking at which services need to be regulated. The current system has evolved haphazardly and is a mess. Some counsel a steady-as-she-goes approach through the choppy waters of Brexit, saying we cannot risk change. The Law Society is the leading defender of the status quo, perhaps anxious to defend its members’ interests.

However, the British are good at recognising when everything must change so that everything may remain the same. That means a revolution in legal services delivery and regulation to remain the global jurisdiction of choice. The UK’s businesses need every possible advantage so they can compete and grow. We can't stand still while the world changes around us.

Designing organisations to regulate legal services in future is a dull matter. There are more interesting questions around the appropriate scope of regulation – and most excitingly, there is the question of how legal services will be delivered in the future.

We have no map for the post-Brexit landscape, but developing a framework that supports innovation in the delivery of legal services will put UK law firms in the best possible position for that world. As an activity-based regulator with unmatched experience regulating innovative, automated and commoditised services, the Council for Licensed Conveyancers is ready to help build that framework for a new age of law.

Turnover of CLC Firms Doubles in Four Years

29 July 2016

There has been rapid growth in turnover of firms regulated by the CLC. 

ABSs Leading the Way on Information Technology

13 April 2016

Among CLC-regulated practices, Alternative Business Structures (ABSs) are three times more likely than recognised bodies to offer novel online solutions for clients wishing to access their services. That’s the finding from analysis of data gathered during last year’s Annual Regulatory Return.

Understanding the conveyancing profession

14 March 2016

The Council for Licensed Conveyancers (CLC) is surveying all lawyers that hold a CLC licence and all staff in CLC-regulated firms.

Increasingly rich mix of managers in CLC-regulated firms

09 March 2016

The CLC's Annual Regulatory Return Analysis shone a light on the increasingly diverse mix of different types of lawyers and non-lawyers that manage CLC-regulated entities. 

Help to Buy: ISA - First Bonus Applications

01 February 2016

News about the Help to Buy: ISA scheme

A specialised, innovative community

29 January 2016

The analysis of the CLC’s Annual Regulatory return for 2015 is now published. Two major findings underline the degree to which the CLC regulates an innovative sector of the legal profession and the extremely high degree of specialisation of CLC-regulated firms.

Making innovation easier

15 October 2015

Continuing our mission to foster innovation and competition in legal services.