25 April 2018

LSB approves BSB’s application to regulate entities

2 December 2014

The Bar Standards Board (BSB) is pleased to confirm that its application to the Legal Services Board (LSB) to become a regulator of entities - businesses authorised to carry out and provide reserved legal activities - has been approved.

The BSB will start accepting applications for BSB-regulated entities from 5 January 2015 and will start authorising applications from April 2015.

By regulating entities that focus on advocacy, litigation, and specialist legal advice the BSB will significantly help broaden the public's choice as to how they access legal services.

Barristers and other advocacy focussed lawyers will now be able to pool resources and share the risks of investing in their own business, without having to change regulators.

Chair of the Bar Standards Board, Baroness Deech QC (Hon) said: "I am pleased that our application has been approved. Our research shows there is clear interest on the part of the Bar in setting up or becoming part of an entity. As the regulator of barristers we are committed to helping the Bar develop new and innovative ways of providing legal services, because we believe this will benefit consumers and be in the public interest."

The BSB has set out its fee structure for barristers and other lawyers who want to form entities under the BSB's entity regulation regime. At a recent board meeting, the BSB approved the revised fee structure set out below, which was previously subject to a full and open consultation. The LSB has approved the fee structure:

Entity category

Application fee (£)

Authorisation fee (£)

Total authorisation fee* (£)

Annual fee (£)

Single person entity

 

260

330

590

365

2-5 person entity

 

725

875

1600

1000

6-15 person entity (simple) **

1000

1200

2200

1450

6-15 person entity (complex)

1350

1600

2950

2000

15+ person entity

 

1950

2300

4250

2900

*Refers to the combined application and authorisation fees. 

** The distinction between "simple" and "complex" entities refers to the number of authorised persons in the entity.  

The various fees are explained as follows:

  • An application fee: covers the cost of processing the application to be regulated by the BSB (payable by all applicants).
  • An authorisation fee: covers the cost of regulating the entity in its first year of authorisation (payable by those who have been successful in their application and wish to be authorised by the BSB). 
  • An annual fee: covers a review of the entity and the on-going cost of supervision of authorised entities (payable by those authorised entities who wish to retain their authorisation into their second year and onwards). 

Based on responses to the consultation, the board also noted a considerable increase in the regulator's estimate of the number of single person entities (for example barristers wishing to incorporate their practice and form single person companies) which will apply to be regulated by the BSB.

Originally it was estimated there would be approximately 200 single person entities registering in the first year of the BSB's new regulation regime. This has since doubled to 400 in year one, while estimates for single person entities for years two and three have increased from 300 and 400 respectively to 400 and 500.

Overall, the BSB expects to regulate between 900 and 1400 single person entities in the first three years of operation.

For more information, click here.

Interested in forming a BSB-regulated entity? Please get in touch with us via entityregulation@barstandardsboard.org.uk.

ENDS

Notes to editors

About the Bar Standards Board
Our mission is to regulate the Bar so as to promote high standards of practice and safeguard clients and the public interest. For more information about what we do visit: http://bit.ly/1gwui8t

Contact: For all media enquiries call: 0207 611 1452 or email press@barstandardsboard.org.uk.