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Legal Services Bill [HL]

Under Clause 53 we have provisions to ensure that approved regulators can take steps to prevent conflicts of this type, to avoid duplication of rules and to resolve any problems that may arise. The amendments proposed by the noble Lord are in keeping with the spirit of these existing duties. He is seeking, as we are, to ensure that legal and non-legal regulators are encouraged to co-operate and to work together towards better regulation. The amendments seek to take this duty a stage further in that they require approved regulators not only to take steps at a general level to pre-empt conflicts, but also to consider, on a case-by-case basis, any specific problems that external regulators might bring to their attention. The changes would also highlight further the fact that the board can play a role in resolving external conflicts where all parties consent to this arrangement and it is within their power to do so. The principle behind the amendments is absolutely sound. It creates the potential for professional services to become more integrated. If the benefits of this integration are to be realised, regulators have to be able to co-operate with one another. Indeed, the Joint Committee recognised the importance of guarding against regulatory conflict, particularly in ABS firms, and this is what we have sought to achieve in this part of the Bill. I am perfectly happy to take the matter away and consider whether the provisions can be made clearer. I shall consider what formulation might be appropriate, particularly in relation to the functions of the board. I am happy to consider the principle behind the noble Lord’s amendments and return to these clauses on Report.