The initial LETR specification asked us to report on many areas of legal education, and under various headings regulatory relationship was part of the future reform of legal education and training. The subject was hardly addressed in earlier reports on legal education in these isles, either because it wasn’t perceived as problematic or, more likely, it was beyond the remits of the reports. After the regulatory turbulence in E+W surrounding the introduction of the Legal Services Act 2007, however, it was hard to ignore. In my last post on the LETR conference I said I’d summarise what was in my section of the panel presentation regarding regulatory relationship in LETR, and this post outlines what I said.
Our starting point in LETR was the role of OFR – outcomes-focused regulation. As we pointed out in LETR Report 3.44ff, OFR is an element of risk-based regulation, where the regulator ‘identifies the risks that need to be managed in respect of certain activities, and designates the outcomes that must be achieved in order to manage or vitiate those risks’.[1] Even before LSA 2007 the Smedley Report had pointed out the need for culture change, requiring a shift from ‘investigation, scrutiny and punishment’ to ‘education, information, training, expert advice and promotion of standards’.[2]
But the key question is, how is OFR to be implemented within a legislative regulatory structure? The usual top-down hierarchical approach works against the grain of a regulatory regime that is no longer rules-based only. If, for example, outcomes are specified, controlled and overseen by the regulator only, then the regulatee’s space for agency, responsibility and self-determination is compromised even more than in a rule-based regime, and leads to game-playing and systemic avoidance. To mitigate the problems, LETR addressed the issue of regulatory relationship, treating the SRA as one actor amongst many, and adopted what was called in the Literature Review (chapter 3) a ‘shared space’ approach. Individually we co-authors came to this approach through a variety of routes. I wrote about it in a pre-LETR blog post, and have been interested in it ever since my experiences on the Education & Training C’ttee of the Law Society of Scotland (I served from around 2002-2010). Drawing on diverse literatures, and taking traffic planning and road management (particularly the work of Hans Monderman) as an example, we discussed in the LETR project how the idea redistributes risk among road users, treats them as responsible, imaginative, human. We viewed the environment as a stronger influence on behaviour than formal rules and legislation. As Monderman put it, discussing the effects of street furniture and signage on users,
All those [road]signs are saying to cars, “this is your space, and we have organized your behaviour so that as long as you behave this way, nothing can happen to you”. That is the wrong story.[3]
It may seem an odd approach, but the shared space analogy is really one example in a wider movement for participative regulation.[4]There is a running debate on the power of regulatory and licensing agencies – do they have too much power and too little accountability? Or is it the reverse? In LETR, we agreed with Colin Scott’s solution to this debate, which was
[…] NOT to give agencies more power and less accountability, but rather to recognise and work with the various organisations, capacities and forms of control within particular regulatory regimes to promote learning about how regimes work so to secure better understanding not only of policy solutions but also of policy problems.[5]
It’s an example of a participative solution, an example of which might be the situation where frontline experts assist in elaborating a body of standards and guidelines for national implementation (eg in the early 2000s, the Lamfalussy Process in EU financial markets).[6]
In LETR, therefore (and without losing sight of the regulators’ statutory requirement to regulate), we shifted the emphasis from quality assurance to quality enhancement, focusing on innovation, imagination and change for a democratic society. Just as Monderman re-designed traffic systems for responsible adults, so we wanted regulators to act in the same way, where they would be part of a hub of creativity, shared research, shared practices, and the guardian of the debates around that hub. In so doing, they would initiate cycles of funding, research, feedback and feedforward. They would be responsible for an archive of educational research, particularly the research into educational technology.[7] We also envisaged regulators as participating in interdisciplinary, inter-professional trading zones. And so we crafted Recommendation 25 in LETR which like all the recommendations was woven into the fabric of the full set of recommendations:
Recommendation 25
A body, the ‘Legal Education Council’, should be established to provide a forum for the coordination of the continuing review of LSET and to advise the approved regulators on LSET regulation and effective practice. The Council should also oversee a collaborative hub of legal information resources and activities able to perform the following functions:–Data archive (including diversity monitoring and evaluation of diversity initiatives);
–Advice shop (careers information);
–Legal Education Laboratory (supporting collaborative research and development);
–Clearing house (advertising work experience; advising on transfer regulations and reviewing disputed transfer decisions).
Well, we all know where that went – dismissed outright by the SRA in its initial response to LETR. But let’s push a bit further and see what could have been, and what could still be shared in this shared space. We envisaged that as a consequence of this culture change there would be more agency at every level – students, trainees, professional learners, QWE, CPD, the profession itself. In the last category we were really just following practices in the health sciences, where practitioners are encouraged to give back to learning and teaching institutions the benefit of their accumulated experience and wisdom. Law schools could be encouraged to share much more than they do at present – collaborative formations such as the Glasgow Graduate School of Law (discussed in an article here) and the Oxford Institute of Legal Practice are examples. Professions, law schools, students and legal tech companies could converge in more innovative clusters, such as the Institute for the Future of Law Practice, in which Osgoode Hall Law School is a founder member. And regulators themselves could come together much more than they do. A good example of this is the Prairie Law Societies in Canada (ie Manitoba, Alberta & Saskatchewan provinces), where one regulator may face many of the same problems as its neighbour and it makes sense to collaborate closely on problems, processes and solutions.[8]
Regulators have of course liaised internationally. There is an International Conference of Legal Regulators, set up in 2012. Laurel Terry attended that meeting and wrote a perceptive account of it. She identified four possible goals for the then new international conference:
- Co-operation and information sharing on specific cases
- Clearinghouse for information about regulators’ practices & tools
- Exchange of information on policy issues & projects
- Development of common policies or practices[9]
She noted that when she put these goals to conference the first three were accepted and the last, predictably, proved divisive & was rejected.
But perhaps we should go in a different direction than common policies and argue for peer-review (PR) of legal educational regulation, based on the body of literature on peer review of agency decision-making. Simply put, this entails policy-making in one jurisdiction being reviewed by another jurisdiction. PR can reveal national issues & dilemmas for parties involved in it; and trans-national deliberation can help clarify local debates, frame local choices, and help explore policy alternatives. The issues involved are fascinating. It can of course assist reflection and action, on both sides of the PR; and gives a regulator an interesting and international view on domestic practices. Questions arising include the potential role of PR in enabling agency loosening from domestic regulatory regimes; the role of PR in either decreasing or increasing agency uncertainty, and the issue of who educates the regulators undertaking the PR process. In the implementation of the Quality Enhancement regime in Scottish universities information, guidance and education was a key element of its success, and this would be true, too, of international regulatory PR of legal education.
We seem to have strayed far from LETR and its recommendations five years ago. And yet I’d argue that what we have above is simply the natural extension of shared space and what LETR advocated.[10] It’s also, and more crucially, where good practice in regulation is heading globally. In a fascinating seminar on ‘Peer Review of Agency Decision-Making’ (given to ANU’s Centre for European Studies, 25.10.16), Yane Svetiev, then of the EU Institute, now with Sydney University, summarised in one slide the list of regulators in the EU (the LH col) and globally (RH col) involved in some way in PR.[11]
And PR, too, can be seen as part of the movement for Experimentalist Governance, the literature of which is extensive. This movement is key for the future of legal education regulation, in any jurisdiction. Take the example I started with, above, the problem of an OFR regulatory regime. As LETR pointed out, OFR is necessary but insufficient. If there’s a focus on outcomes, there needs to be agreement on standards for the outcomes. But where do those standards come from? Process regulation of standards by the regulator would inhibit the flexibility and scope for innovation around OFR – we’re back with top-down hierarchy, the situation that gave rise in E+W to the impossible tensions of the Training Framework Review, the antinomies of ACLEC, and for legal educators, the loss of creativity, agency and responsibility – to put it bluntly, regulatory infantilisation. By contrast, experimentalist governance offers solutions that emphasise responsibility and creativity, and helps a more interactive, democratic community for OFR, or indeed any prudential scheme of regulation, to work properly. Zeitlin put it well:
The crucial point that distinguishes such experimentalist architectures from conventional hierarchical governance is their contestability, whereby local actors have the autonomy to report problems with existing rules and explore alternatives, while the organizational centre is obliged to take account of such local experience in reconsidering and revising the rules.[12]
This is real shared space, where contestation, contingency, historical awareness and sensitivity to relationship is acknowledged and then is put to work for the benefit of the community. What we proposed five years ago in LETR is now ever more urgently required in the regulation of legal education in England and Wales, indeed I’d argue it’s needed globally in legal education. The touchstone for legal educators in E+W is the SQE. Ask yourself: will the SQE as currently constructed help our students to bridge academic into professional learning, help them be responsible lifelong learners, help them be ethical practitioners, help law schools co-operate with each other, engender and sustain educational and professional innovation, encourage social mobility and diversity in legal education and in the profession? You know my answer. In the words of Monderman above, it’s the wrong story.
Comments
2 responses to “LETR, regulatory relationship and the shared space”
Full marks for pressing on this issue of regulation.
In a time of rapid change, the last regulatory approach that is likely to succeed is the traditional autocratic, hierarchical, bureaucratic and adversarial one.
I am reminded of Steve Mark’s long tenure as the Legal Services Commissioner of the state of New South Wales. He was an early adopter of OFR. He changed the focus, and metrics, of his Office from successful prosecutions to reduced complaints against legal practitioners. He worked closely with professional bodies and practitioners to more than halve the rate of complaints by clients.
With the, quite revolutionary, introduction of incorporated legal practices in NSW, he brought in a requirement for ‘appropriate management systems’. Incorporated practices had to develop these systems in a form suitable for their particular circumstances. Steve provided a list of 10 areas for the systems to cover. The areas reflected the volume of complaints his Office received. His Office also provided resources for systems for each area, but it was up to each incorporated practice to decide what suited them.
There were widespread concerns that incorporated practices would open a Pandora’s Box of ethical and professional problems. The outcome was that incorporated practices averaged about one third of the complaints compared to the average for traditional firms. I see this as fitting nicely with Hans Monderman’s shared space outcomes.
Finally, I can’t help but think of the Prussian Army’s invention of Auftragstaktik in response to their defeats in the Napoleonics Wars. Their logic was that because they could not rely on having a genius like Napoleon to lead their Army, they had to have a method that tapped into the creativity and initiative of all their soldiers. That became Auftragstaktik, where the commander expressed the overall outcome to be achieved and an outline plan, but subordinates at each level had autonomy at each level to use their local knowledge, initiative and creativity to achieve the outcome in their context.
Regulators are unlikely to be genii or omniscient. Their aim should be to create and manage a dynamic system where the best outcomes emerge: something like scientific method. Just enforcing their authority is a weak, ego-defensive alternative.
Good points Gary. You’re right to cite Steve Mark’s work in NSW in this context. On LETR we referenced it, particularly on the issue of variation of training on the training contract. At LETR Reportpara 5.178 we quoted a solicitor talking about the issue as an example of the problem:
I would change the training contract, having received virtually no training from a firm which
believed in trainees ‘learning by their mistakes’. I would make it more prescriptive about the
level of training and supervision received. Some firms are excellent and others are appalling.
The appalling ones then complete the assessment forms for the qualifying solicitor so that it
appears that all the steps have been taken.
The situation comes about because, faced with the issue, the typical regulatory response is to set up a detailed standards + compliance regime (and actually not just regulators – universities are increasingly doing it with staff). But this infantilises, and just does more to encourage tick-boxing or oppositional behaviour, as the solicitor describes. In LETR we liked the approaches of Steve Mark and others in NSW & Queensland, which as you say did much to encourage shared space – see para 5.180 in the Report, extract below:
New South Wales and Queensland in
particular have substantial experience of using ‘practice reviews’ or ‘self-assessment audits’
to require incorporated legal practices to self-assess and report on their implementation
of appropriate management systems (Briton and McLean, 2008; Mark and Gordon, 2009;
Briton, 2011).85 These are distinct from compliance audits, which may have formal regulatory
consequences. Rather, they form part of what in New South Wales has been called an
‘education towards compliance’ strategy (Parker et al, 2010) since they are designed to
facilitate firms identifying where their systems are non- or only partially compliant with
regulation, and help identify steps that will enable firms to develop fuller compliance.
There are interesting parallels between Christine Parker’s ‘education towards compliance’ and Steve Mark’s self-assessment initiative, and the regulatory regime change in Higher Education in Scotland from Quality Assurance to Quality Enhancement, which involved delegated responsibility to the institution for self-assessment and reflection by the institution on whether its institutional benchmarks had been achieved; which process also included a much more active role for students in that reflective process.