The Bar Standards Board (BSB) is seeking new statutory powers to step into barristers’ failing chambers, companies and partnerships to protect clients when things go seriously wrong.
In a consultation paper launched this week, the BSB argues for the right to take control of client files in serious instances of regulatory non-compliance, dishonesty, insolvency or in other instances where the client’s interests require protection. This would give the BSB powers to take action such as obtaining alternative representation for clients and securing any papers and assets that belong to them.
Barristers could also be asked to pay into a compensation fund in future—while the BSB does not believe this is necessary at present, the market and its risks may change.
Ewen Macleod, director of regulatory policy for the BSB, says: “To be clear: these are powers that would be used very rarely, but we think that, in the event something goes awry, all clients should benefit from the same safeguards—regardless of whether they’re the client of an ABS, a BSB-regulated entity, or a barristers’ chambers.
“Other regulators already have similar controls so we want to ensure there are no holes in the safety net for consumers. For us, having these powers available, if and when we need them, is key to protecting the public interest and upholding the Regulatory Objectives set out in the Legal Services Act.”
Currently, the BSB’s controls exist by means of contract. The consultation also proposes putting many of the BSB’s existing regulatory powers on a statutory footing.
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