LSB updates governance rules to “enhance regulatory independence”

A new set of rules have been released by the Legal Services Board (LSB), which aim to clarify the separation between representative bodies and their regulators. The internal governance rules (IGRs) have been published following a series of public consultations that first began in November 2017. The rules which were released by the oversight regulator provide and define the relationship between the approved regulator and the regulatory body can be viewed here. Legal regulators now have one year to implement changes to bring themselves in line with the new rules.

Governance Gone Wrong: Examining Self-Regulation of the Legal Profession

England and Australia have abandoned self-regulation of the legal profession yet Canadian law societies continue to function on this basis. This article argues that the self-regulatory model on which the Law Society of Ontario (the “LSO”) operates represents an inadequate form of governance in terms of the accountability it yields. When compared to other organizations, including law societies in other common law jurisdictions as well as corporations, the weaknesses in the LSO’s governance model are conspicuous. This article advocates replacing self-regulation in Ontario’s legal profession with a co-regulatory regime. In the absence of such an extensive reform, this article puts forward recommendations for changes to the current bencher model of governance on which the LSO is based including the implementation of bencher expertise requirements and a duty of loyalty and a duty of care to the public.

Paper Available Here

Anita Anand, University of Toronto – Faculty of Law

The Governance of Regulators

The Organisation for Economic Co-operation and Development (OECD) has described a regulatory policy and governance framework. This report describes seven principles for the governance of regulators:

  1. Role clarity
  2. Preventing undue influence and maintaining trust
  3. Decision making and governing body structure for independent regulators
  4. Accountability and transparency
  5. Engagement
  6. Funding
  7. Performance evaluation

Read ‘The Governance of Regulators’ on the OECD website

 

Report cover

Report cover: The Governance of Regulators