LSB review identifies inconsistent guidance and outlines measures to improve regulatory oversight
Conduct of litigation guidance is set to become more consistent after the Legal Services Board (LSB) published the findings of its review into how legal services regulators have advised the profession on the reserved legal activity.
The review, published on 27 July 2026, was carried out with approved regulators and regulatory bodies following the High Court judgment in Mazur in September 2025 and the Court of Appeal’s clarification in March 2026 that unauthorised individuals may conduct litigation under the supervision of an authorised person.
According to the LSB, regulators responded constructively after the judgments by updating guidance. However, the review found that earlier advice given to the profession differed in clarity and consistency. It also concluded that, in 2022, regulators developed differing interpretations of the Legal Services Act 2007 without sufficient cross-regulator engagement to resolve those differences.
For solicitors, the most significant practical outcome is the LSB’s expectation that regulators provide clearer guidance on what constitutes adequate supervision of unauthorised individuals carrying out litigation work. The regulator has also called for greater consistency when issuing guidance on reserved legal activities and more robust regulatory oversight of how those activities are undertaken in practice.
The review noted that several regulators considered levels of non-compliance with the Act to be low or insignificant within their regulated communities. However, the LSB said those assessments may have been affected by limited understanding of how supervision arrangements were operating in practice.
The report also acknowledges the impact of the High Court judgment on the legal profession. It states that some firms reassigned work, while some individuals lost their jobs, retired early or were demoted following the decision. The LSB said it recognised the significance of those consequences for those affected.
The oversight regulator added that there had been opportunities to identify and address some of the issues sooner and said the review forms part of a broader move towards more proactive regulatory oversight.
The LSB highlighted the action already taken by regulators since the Court of Appeal judgment. The Solicitors Regulation Authority, the Law Society, CILEx Regulation, the Costs Lawyer Standards Board, IPReg and ICAEW have all published updated guidance. The Law Society and CILEX have also held webinars to explain the practical effect of the ruling to legal professionals.
The review also noted that, after the LSB approved CILEx Regulation’s application in October 2025 to facilitate standalone litigation rights, more than 1,000 chartered legal executives have obtained litigation practice rights, allowing them to conduct litigation without supervision.
To improve consistency across the sector, the LSB has identified four actions for regulators. These are to provide clear guidance on adequate supervision in both routine and higher-risk cases, share draft guidance on reserved legal activities more widely before publication, collect better data on reserved legal activities within regulated communities, and strengthen assurance processes to identify regulatory risks more proactively.
The LSB also confirmed it will review guidance covering other reserved legal activities to determine whether similar inconsistencies exist elsewhere.
Richard Orpin, Chief Executive of the Legal Services Board, said clear, consistent guidance supported by robust regulatory assurance is essential to protect consumers and the public. He welcomed the constructive engagement from regulators following the court judgments but said further work was needed to ensure the identified actions are delivered.