Legal Services Bill [HL]

I strongly agree with both my noble friend and the noble Lord, Lord Thomas of Gresford. We spent some time in the Joint Select Committee talking about the phrase just used by the noble Lord: ““light touch””. We heard that phrase on many occasions. I recall with a fond memory that, when my noble friend and I were in harness together on the Financial Services and Markets Bill, we heard constant reiteration of the words ““light touch””. Indeed, that has been the principle behind the way in which the Financial Services Authority and its leaders have sought to conduct regulation. It is very interesting to hear those who are subjected to statutory regulation by the FSA talk about light touch in theory but heavy bureaucracy in practice. Often the engine room will listen to its leadership but will resort to what is called the ““box-ticking phenomenon””, in which one suddenly finds oneself enmeshed in a bureaucratic nightmare of regulation. I am sure that the Minister will say that that is far from the intention in setting up the Legal Services Board. Indeed, when the Joint Select Committee made this recommendation, which has given rise to the amendment, it said thatit wanted to accept the Government’s policy thatlead responsibility should rest with the approved regulators. Against that background, we sought to put forward this idea of partnership. The term ““partnership”” is readily understood: the regulating bodies should act in harness, and the lead regulator should not interfere in a micro-management sense and certainly should not intervene unless there is clear evidence that the approved regulators are failing. In addition, not only should there be clear evidence that they are failing but their failures should have been brought to their notice and directions should have been issued with which they neglected to comply. So we are really talking about finding words that will express ““light touch”” in simple phraseology, and I cannot think of anything better than ““act in partnership””, unless the Minister can suggest some other words. Certainly, this is very much in line with government policy and all the words that we have heard about light touch. Here is an opportunity for the noble Baroness to do what we have not paid sufficient tribute to her for doing already—that is, to accept amendments. The Minister set a marvellous example to all her ministerial colleagues in listening to the argument and suddenly deciding, ““Yes, I will accept””. If one is allowed to refer to the Box and the noble Baroness’s advisers, I saw a sign of shocked silence when she accepted the previous set of amendments. I am not saying that they were caught by surprise but they just looked surprised. Please may they look surprised yet again by the noble Baroness accepting this amendment.