1. Why have the complaints handling requirements changed in the Legal Services Regulations?
The new requirements were introduced following the Legal Services Board’s updated expectations for all legal services regulators to strengthen transparency, fairness, and accessibility in how firms handle complaints. Following a consultation with accredited firms, ICAEW updated Part 7 of the Legal Services Regulations (the Regulations). These measures are intended to promote consistent complaint management practices across all accredited legal services firms.
2. What is considered to be a complaint under the Regulations?
A complaint, as defined by the Regulations, is any oral or written dissatisfaction with a firm's service. First-tier complaints are submitted directly to a firm about its legal services and offer the first chance to address concerns before escalation to the Legal Ombudsman (LeO).
You are encouraged to address any informal concerns promptly and accept complaints in any format. If you receive a verbal complaint, for example over the telephone, keep an attendance note or other written record of the complaint. You should share this with the complainant to confirm that they agree with it.
3. Who can complain?
Current, prospective, or former clients and others defined under Section 128 of the Legal Services Act 2007
Section 128 of the Legal Services Act sets out the conditions for who can make a complaint about legal services and what they can complain about. Rules 2.8(a) and (d) of LeO’s Scheme Rules, explain that a complaint must concern services provided, offered, or refused to the complainant. This means that a complaint to LeO can in some cases include non-clients. The complainant must provide evidence to LeO that a refusal of service was unreasonable before they will investigate.
A refusal may be considered unreasonable for example, if it is based on a protected characteristic such as sex, age, or race. Offering a service unreasonably could include instances of persistent and unsolicited cold calling about services for example. It is, however, reasonable for a firm to decline to take on work, if for example, it does not offer the service, or lacks the expertise, experience, capacity, or resources to do so. Matters may also be declined due to ethical, regulatory, or legal considerations, such as potential money laundering concerns or conflicts of interest.
Beneficiaries of an estate or trust.
Although beneficiaries are not your clients, LeO may still investigate their complaints about your service in relation to an estate under its scheme rules. Therefore, you should share your complaints procedure with beneficiaries when handling probate and when acting as an executor or trustee. Beneficiaries and executors are also permitted to raise a complaint with LeO about services provided to someone who has died, provided this was not submitted prior to their death.
4. What must be included in your firm’s complaints procedure?
Under regulation 7.1 your complaints procedure must clearly state:
- Complaints can be made free of charge
- How to make a complaint and the format it will be accepted in (for example face to face)
- Who to contact (name and position)
- How the complaint will be handled
- Steps that will be taken to resolve the complaint such as an investigation
- Their right to escalate the complaint to LeO after eight weeks.
5. How and when should complaints information be provided?
Under regulation 7.3 your complaints procedure should be provided:
- At the start of engagement
- On request
- At the conclusion of a matter
- Where appropriate and proportionate, when a complaint arises.
- It should also be clear, prominent and accessible (regulation 7.4).
What is proportionate depends on timescales. For instance, if the retainer is short and/or the client has recently received information about your complaints procedure, an appropriate response may involve acknowledging the complaint and referring them to the complaints process.
6. What should I do if a vulnerable client complains?
Clients making complaints about probate or administration of oaths services may be particularly vulnerable because they might be grieving or concerned about financial hardship. Vulnerability may also result from factors such as age, disability, mental health challenges or language barriers. This can make the complaints process feel more stressful and some complainants may feel unsure about how to raise their concerns.
Your complaints procedure should be accessible and in tailored formats where appropriate. (regulation 7.4). Treat each client as an individual and consider their preferred way of communicating and any additional support they may need. This might include for example accepting complaints through third parties, by telephone, or face-to-face and allowing extra time to respond if necessary. Make sure you keep accurate records of your communications and share them with the complainant.
7. How quickly must complaints be acknowledged?
You should acknowledge complaints within five business days (regulation 7.6). Your acknowledgement should include information about:
- Your firm’s complaints procedure
- contact person
- how the complaint will be handled
- expected timescalesupdates on progress.
8. Who should handle complaints on behalf of the firm?
The named contact will usually be the principal or the Head of Legal Practice (HOLP) in a licensed firm (regulation 7.7). However, all staff should be familiar with your procedure so that they know when and how to escalate a concern to the principal or HOLP. If the principal/HOLP is the subject of the complaint, another suitably qualified staff member must handle it under supervision.
9. What is an appropriate remedy?
If you decide that the complaint is justified in whole or part, you must provide an appropriate remedy promptly (regulation 7.9). It is important that your decision reflects a fair and reasonable assessment of the circumstances. You may find it helpful to review LeO’s guidance which outlines its own approach to remedies.
Examples of appropriate remedies may include:
- remedial work
- an apology
- provision of information
- returning books or documents
- fee reduction or refund
- compensation.
Communicate the outcome of your investigation in writing so that there is documentary evidence for both you and the complainant to refer to.
10. What about complaints about my conduct?
If a complaint involves possible misconduct, such as a breach of the ICAEW Code of Ethics, regulations, or other professional standards, it should be referred to ICAEW’s complaints department. This incudes for example, allegations of dishonesty, misuse of client money or breaches of confidentiality. Firms should provide complainants with the correct contact information for both service and conduct complaints. Guidance on making a complaint to ICAEW is available on our website. Refer to Schedule Q in our engagement letter templates for guideline wording.
11. What complaint information should be included in the annual return?
Paragraph 2.7 (p) of the 2025 Legal Services Regulations includes a new continuing obligation for accredited firms to provide information on complaints received in their annual return. You should begin completing the annual return once the Regulations are in effect and detail any complaints received about legal services received during the reporting period.
Include all first-tier complaints (verbal or written), whether open or closed. Make sure that you maintain a separate complaints file recording all the correspondence, type of complaint, outcome, and resolution time (regulation 7.12). The information you need to report is detailed in the Annual Returns guidance. This includes:
- The total number of first-tier complaints and how many were referred to the LeO during the reporting period.
- The average time (in weeks) taken to resolve complaints.
- The number of complaints that remained unresolved after eight weeks, along with the main reasons for any delays.
- A breakdown of complaints by type (eg, delay, costs, communication).