The Legal Services Board said on Thursday that it accepts every recommendation of the independent Public Bodies Review directed at it, and will concentrate its work on stronger, risk-based oversight of legal regulators to protect consumers.
The LSB oversees eight frontline regulators in England and Wales. It said its oversight will be proportionate to the risks, with fewer routine reporting requirements for regulators performing well and managing risks effectively.
In its full response, the board said: “We have carefully considered all the recommendations directed at the Legal Services Board. We accept each of them.” It said it has already begun to reduce routine reporting where regulators demonstrate they are performing well.
Monisha Shah, chair of the LSB, said: “We will prioritise our work more sharply on stronger oversight to protect consumers.” She said the strategic objective will be to focus on areas of greatest harm to consumers and where regulation can make the most difference.
She added that the board will use its convening abilities to foster a shared understanding of cross sector risks, using data and evidence. The review, she said, recognises that success depends on co-ordinated change at multiple levels.
The LSB listed changes it says it has already made. They include a more targeted, risk-based approach, a dedicated regulatory oversight directorate with senior appointments, and intensified oversight of the Solicitors Regulation Authority following significant law firm failures.
It said it is seeking urgent improvements from the SRA to protect consumers.
The board has also closed active policy development on professional ethics and the rule of law. It decided not to proceed, at this time, with the proposed statutory statement of policy on diversity.
It said its statutory responsibilities and its oversight of regulators’ work on professional ethics and diversity continue.
In October 2026 the LSB established a Challenge Panel on regulatory oversight, which it said will inform a formal Board Regulatory Oversight Committee in 2027. It will commission an expert review of its oversight approach, and an external Board effectiveness review is also planned.
On technology, the LSB said it will use its regulatory powers to encourage innovative technology that makes legal services more accessible and affordable to consumers.
On complaints, it said it is supporting the Legal Ombudsman’s transformation so that more complaints can be resolved more quickly.
The Office for Legal Complaints reported that the Legal Ombudsman received more than 14,000 new complaints in 2025/26, a 37% increase on the previous year, and resolved 8,199.
Chief Ombudsman Phil Cain said: “rising demand cannot be addressed through incremental change alone.”
The LSB also said it will work with frontline regulators, the Office for Legal Complaints, the Legal Services Consumer Panel and the Ministry of Justice to build a shared understanding of risks and coordinate action. It will support representative bodies and others where they are better placed to lead.
Minister Sarah Sackman commissioned the review on 10 February, led by Richard Lloyd. It considered the LSB’s statutory remit, strategic clarity, governance and accountability arrangements, and current capabilities.
The Government’s written statement that day noted that the last review of the LSB was in 2017 and cited the rapid increase in the use of lawtech since then. It said the review would assess how the LSB and the Ministry of Justice should work together to deliver value for money.
The LSB said its response will inform its strategy for 2027 to 2030. Consultation on the proposed strategy and 2027/28 business plan is planned for autumn and winter 2026, with final publication intended for spring 2027.