Costs of regulation in England and Wales

The Legal Services Board found little evidence on the costs of legal sector regulation, so in late 2014 it surveyed the regulated community and in 2015 it commissioned a study of the incremental costs of regulation – those incurred to comply with legal regulation.


Categories of regulatory cost in the studies include:

  • Requirements to have separate client accounts
  • Information requests from the regulator (including applying for practising certificates).
  • Consumer information disclosure
  • Ongoing supervision activity by the regulator
  • File retention
  • Keeping up to date with changes to regulations
  • Professional development training course fees
  • Professional indemnity insurance

Legal Services Board. “The regulated communities’ views on the cost of regulation”. March 2015.

Legal Services Board. “In-depth investigation into the costs of regulation in the market for legal services.” 15 September 2015. Available from the LSB website, accessed 19 October 2015.

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