New Regulations Introduce Levy on Legal Societies to Fund Oversight Commissioner in Northern Ireland

The Department of Finance has introduced a new statutory rule under the Legal Complaints and Regulation Act (Northern Ireland) 2016, aiming to bolster the funding mechanism for the Legal Services Oversight Commissioner (LSOC). This regulation, officially titled S.R. 2025 No. 120, seeks to impose a levy on two crucial legal bodies: the Law Society of Northern Ireland and the Honourable Society of the Inn of Court, also known as the Bar Council.

What’s Driving This Change?

The core purpose of this levy is to ensure that the expenditures of the LSOC are adequately covered. This includes all costs incurred by the Commissioner under the Legal Complaints and Regulation Act or any related legal provisions. Essentially, the LSOC's role is to provide strategic oversight of the complaints-handling systems within these legal societies, rather than delving into individual complaints.

Background and Objectives

The Legal Complaints and Regulation Act 2016 was designed to establish the LSOC, an office intended to enhance transparency and efficiency in how legal complaints are managed. While the Commissioner’s role is largely oversight-focused, it is a significant step towards ensuring both the Law Society and the Bar Council maintain high standards in handling complaints.

Consultation and Compliance

In crafting these regulations, the Department of Finance engaged in consultations with both the Law Society and the Bar Council, indicating a collaborative approach to the new levy. Importantly, the rule has been assessed for equality impacts under the Northern Ireland Act 1998, with no adverse effects found. Additionally, the regulation aligns with Section 24 of the same act, ensuring its legal compliance.

Financial and Regulatory Impact

For the Department of Finance, the introduction of this levy does not bring any direct financial implications. However, it shifts the fiscal responsibility onto the legal societies, ensuring that the oversight body is sustainably funded without adding to government expenses.

Conclusion

This new regulation marks a pivotal step in enhancing the governance of legal complaint systems in Northern Ireland. By imposing a levy on the Law Society and the Bar Council, the Department of Finance aims to secure the necessary resources for the LSOC, furthering its mission to uphold accountability and integrity within the legal profession.