LSB Demands Regulatory Action as Diversity Failures Persist

LSB Demands Regulatory Action as Diversity Failures Persist

The Legal Services Board (LSB) has warned that the legal profession is failing to tackle structural and cultural barriers to equality, and has made a strong case for regulatory intervention to drive long-term change. 

In advance of a full board meeting tomorrow, the oversight regulator published papers outlining a draft statutory statement of policy on encouraging diversity, which if approved, will be put out to consultation and could significantly strengthen regulators’ obligations. 

The LSB said the risks of inaction are mounting, including a legal profession that remains unrepresentative of the public, and the potential for regulators themselves to face legal challenge for failing to meet statutory equality duties. 

“The case for regulatory action to improve the diversity of the legal profession is clear,” the board stated. 

“Failure to act could leave regulators vulnerable to legal challenge.” 

Barriers Persist Despite Progress 

The LSB’s review found that while frontrunning regulators have made improvements since the last set of diversity requirements was introduced in 2017, progress remain slow, fragmented, and inconsistent.  

Among the barriers identified were: 

  • Difficult or inaccessible pathways into the profession, with financial hurdles and elitist perceptions 
  • Underrepresentation of female, ethnic minority, and disabled lawyers in senior roles 
  • Persistent issues of bullying, harassment, and discrimination 
  • Regulatory processes that may further enable inequality, with ethnic minority lawyers over-represented in disciplinary action by both the SRA and BSB 

The LSB also noted a lack of meaningful evaluation across the regulators to demonstrate the impact of diversity initiatives. 

Regulatory Failures Could Impact Trust 

The LSB documents stress that an equal profession is not only a matter of fairness, but key to maintaining public trust and delivering better outcomes for clients. 

“An equal, diverse and inclusive profession will deliver more effectively for consumers and the wider public, and, critically, will maintain public trust and confidence.” 

New Policy Frameworks 

The proposed statutory statement outlines four high-level outcomes which frontline regulators will be expected to meet: 

  1. Evidence-Based Action – Regulators must take strategic, collaborative and evidence-based steps to encourage diversity 
  2. Fair and Supportive Regulation – Regulatory processes and decision-making must promote equality and not reinforce existing disparities 
  3. Accessible Career Pathways – Entry, progression, and return-to-work routes must be fair, flexible and inclusive. 
  4. Cultural and Professional Standards – Regulators must ensure that the professionals they regulate uphold conduct and behaviours that create a more diverse and inclusive workplace.  

Each of these will be underpinned by more detailed expectations, creating a more measurable framework for accountability. 

Driving Cultural Change 

The LSB said it would also explore non-statutory interventions to support broader cultural reform, including efforts to change attitudes in leadership and workplace environments. 

“As oversight regulator, we are uniquely positioned to bring stakeholders together and maintain momentum on diversity efforts in the sector. 

 
“This includes long-term change in workplace and leadership culture.” 

The push aligns with the government’s own Industrial Strategy, which recognises workforce diversity as critical to growth in professional and business services. 

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