Legal Services Bill [HL]

My Lords, first, the duties under Clause 3 require its regulatory activities to be proportionate, accountable and targeted only at cases in which action is needed. The threshold conditions on the use of board powers ensure that the board can take action only where in all circumstances of the case it is the appropriate action to take and the additional provisions tabled requiring the board to consider the impact of taking action on the other regulatory bodies, which we have just discussed. The other policy statements require the board to respect its oversight role and the principle that matters should be resolved informally. It is also important to note that, as a public body, it will be required to act in a proportionate manner when any convention rights of the approved regulators are engaged. It will be open to approved regulators judicially to review decisions of the board that are prima facie irrational, unreasonable or disproportionate. The question is whether the balance is right. The Government’s view is that, were we to accept the amendment, the balance would not be right, and the board would be inhibited from any intervention unless it was in dire circumstances. I recognise that it is difficult to get the balance right, but accepting the amendment could have some very negative consequences on the Bill and on the role of the board.