The Legal Services Board (LSB) has retracted its proposal of a statutory statement of policy to tackle diversity and equality barriers within the legal profession.
Following a consultation between November 2025 and March 2026, where the oversight regulator asked for responses on a proposal which would require regulators to take steps in addressing a lack of representation in the sector, the Board has said it will no longer go ahead with the plans based on feedback it has received.
The LSB proposed regulators would be required to “take strategic and collaborative action” to identify diversity barriers, make sure regulation is “fair and inclusive”, ensure routes into and through the profession are “accessible for talented people from all backgrounds” and lastly “drive cultural change” through professional conduct and competence frameworks. The consultation also asked for views on what additional steps could be taken, beyond the proposed statement of policy, to encourage diversity.
In an update, the LSB said that having carefully considered the responses to the consultation, it has decided “not to proceed with the statutory statement at this time”. The super-regulator explained having examined people’s own experiences from different backgrounds that have progressed through the sector, along with analysing diversity data and evaluating diversity initiatives, there were still question marks over the “extent to which regulation can best support that ambition”.
Some respondents identified challenges around a single policy statement being adapted across multiple regulators with different statutory frameworks, operating models and existing programmes, the LSB said, while others highlighted the resource impact on small firms with limited HR infrastructure could be “significant”.
The regulator acknowledged, “to achieve meaningful change, we need to enable regulators to develop a range of approaches which are better suited to different parts of the profession”.
However, the LSB states it will “continue holding regulators to account” and previously agreed principles with regulators and disciplinary tribunals for tackling “counter-inclusive misconduct” will continue to be put into practice.
Welcoming the decision, the Law Society of England and Wales president Mark Evans said: “We welcome the LSB’s decision to focus its resources and recognise the potential impact that additional regulatory requirements can have, especially on small firms.
“At the same time, it is right that the oversight regulator continues to emphasise the importance of equality, diversity and inclusion in line with our shared aim to build a more open profession.
“The LSB shares a regulatory objective with other regulators to encourage ‘an independent, strong, diverse and effective legal profession’. We therefore expect equality, diversity and inclusion to remain a meaningful part of its oversight of the SRA with clear expectations and accountability.”
Monisha Shah, chair of the LSB, concluded: “Encouraging an independent, strong, diverse and effective legal profession remains a statutory regulatory objective that we share with regulators.
“We are concentrating our resources on fewer priorities, focusing on the most pressing risks to consumers and how regulation can protect them, enable technology and innovation, and support growth. This means making choices about where we lead, and where we enable others to do so.
“We have carefully considered the consultation feedback and made the decision not to pursue a Statutory Statement of Policy at this time. However the regulatory objectives in the Legal Services Act continue to inform and shape our work, and we will keep our priorities under review as the landscape, the evidence and our assessment of the risk to the public and consumers continues to change and evolve.”
