The LSB yesterday announced its proposals for recouping the ongoing running costs for the LSB and Legal Ombudsman from Approved Regulators.

The arrangements maintain the methodologies that are currently used to calculate the levy for the establishment costs. In addition, there are arrangements that will enable the LSB and Legal Ombudsman to recoup their costs in certain situations, such as, in the unlikely event of an Approved Regulator becoming bankrupt. The LSB will review the levy arrangements in 2013-14 and consider whether the methodologies can be improved in light of more data becoming available.

Chris Kenny, Chief Executive of the Legal Services Board said:

“We want the costs of the levy to be allocated in a way that is clear, simple and practical. We believe that our proposals achieve this. The more effective regulation and redress that these proposals underpin will help to raise consumer and public confidence in legal services, not least by opening up new ways to do business”.