Right Touch Regulation: A blueprint for legal regulators?

Earlier this month, Professional Standards Authority launched a fresh version of Right Touch Regulation, a framework first published in 2010 to help regulators assess risk of harm and decide the most proportionate and effective response.

Now updated to reflect the complex and changing environment regulators operate in today, many of the key challenges and principles feel relevant for the legal sector.

RTR recognises the consequences of regulation and the burdens this places on the system and on regulated communities - and the day-to-day balancing act regulators carry out, between risk and resources/capabilities; public protection and the need to drive economic growth and access to services.

RTR promotes transparency around evidence of risk and tolerance levels – ever more important as regulators across sectors and jurisdictions experience a sharp uptick in reports/complaints (with the SRA reporting an increase of over a quarter this year). Difficult decisions need to be taken and communicated clearly so that priority risks can be effectively addressed, without unnecessary stress and delay for all those involved.

And this version emphasises the need for regulators to focus on preventing harm – reflected in the new anticipatory duties on firms to prevent sexual harassment and fraud. And the SRA’s shift to more proactive regulation: through spot checks and proactive inspections (eg sanctions compliance and accountancy reports), and declarations (most recently from firms involved in high volume claims). But in order to achieve this there is also a real need for regulators to strengthen their understanding of the drivers that affect behaviours and the effectiveness of their regulatory tools in reducing the incidence of harm.

Finally, one new area that seems particularly relevant: The importance of collaboration.

Regulation is a crowded space, and bodies charged with protecting the public need to work together. One example being the recent Government announcement that the FCA will be taking on the supervision of AML compliance in legal services providers; bringing a risk of overlap and/or inconsistency with the professional conduct jurisdiction of legal regulators.

And law is increasingly a global business, working across a fragmented jigsaw of regulatory frameworks. There is an ever-increasing need for international cooperation, and a common understanding of risks and opportunities from developments in AI; and coordinated efforts to address cross-border threats such as cybercrime and money-laundering.

Take a closer look at RTR 2025 here