What is the rationale behind the new regulatory fee structure?
The new policy shifts from collecting the cost solely through the practising certificate fee charged to individual solicitors, to collecting approximately 40 per cent from individuals and 60 per cent of the cost from firms (i.e. recognised bodies and recognised sole practitioners), with the attempt to achieve a fairer system. In the light of feedback we received to an initial consultation on broad principles, and after having conducted further analysis and modelling, we found a general consensus among respondents that the fairest, simplest and most transparent fee structure for 2010 would be to use banded turnover model as the basis for calculating the regulatory fee for the firms. This was perceived to have advantages relating to the “ability to pay” principle of the new fee policy, as those who earn less would be likely to benefit.
