Can we be confident in our regulators?
Like everyone else, I am flabbergasted by the revelations of the Royal Commission into our banking and financial sector. I scratched my head in amazement at the admissions of senior executives and even wondered if this unethical ‘cowboy’ behaviour could be evident in other sectors that provide incentives to increase revenue.
What surprises me even further is that the financial sector in Australia is highly regulated and if a culture of fraudulent behaviour exists within the sector, as exposed so far by the Royal Commission, I must ask – what have the regulators being doing?
Didn’t they see where the risky behaviour was occurring and focus their precious resources where it was most needed?
Luckily the Victorian Legal Services Board is working hard to address risk where it is occurring and not spread itself too thinly. By identifying those practitioners most likely to require attention of the LSB, the Board leaves compliant and conscientious lawyers alone.
There are some who may complain about the Legal Services Board, but the manner it provides leadership on governance and compliance for the profession is significant when compared to the standards we are seeing with the regulation of other sectors in recent times.
The good news for Victorian solicitors is that they have a LSB which is in good shape and has provided leadership through effective stewardship. We have a strong and effective new CEO, Fiona McLeay, an effective board led by a leading chairperson, Fiona Bennett. The board is in its best financial position in many years, meaning increased funding for legal aid, and other programs and projects supported by the LSB.