The Benchers have approved the 2026 practice fee and indemnity fee, as recommended by the Finance and Audit Committee and the Indemnity Subcommittee.
In order to maintain the programs, support the needs of the profession, implement new initiatives, and reduce deficit budgets, this budget introduces the first fee increase in over 6 years. The practice fee for 2026 will be $2,536, an increase of $215.
Of the practice fee increase, $200 relates to Law Society operational funding, and represents an average increase of 1.75% per year over the last 6 years (2020 – 2026), compared to the average inflation rate of 3.2% per year over the last 6-year time period. The remaining increase ($15) is allocated to fund increased operating budgets of the external organizations funded by the practice fee.
The full-time indemnity fee remains the same at $1,800, despite increased claim levels. The indemnity fee has remained at this level for the past 9 years.
The total annual fee for full-time practicing indemnified lawyers is therefore $4,336, an increase of 5.2%.
Total fee comparison with other law societies*
The overall objective when setting the fees is to ensure that operations are appropriately funded to enable the Law Society to efficiently and effectively fulfill its statutory mandate of protecting the public interest in the administration of justice.
The Benchers approved the 2025 budget with a planned deficit of $1.568 million in order to draw down net asset reserves for the 2025 year, but the structural deficit needs to be funded going forward. In addition, recent revenue trends are now showing slowed growth of practicing lawyers and significant reductions in all other revenues, including interest income, leading to a flattening of revenue so no additional revenues are projected in 2026 to help fund normal operating expense levels.
Practice fee
The Benchers have set the 2026 fees pursuant to the Legal Profession Act based on recommendation by the Finance and Audit Committee. The Finance and Audit Committee met with senior management to review the proposed 2026 fees and budgets for the General Fund and the Lawyers Indemnity Fund. The Finance and Audit Committee also reviewed the fee proposals from a number of organizations and programs supported by Law Society fees, including Courthouse Libraries BC, the Lawyers Assistance Program, The Advocate, the Federation of Law Societies of Canada, the Canadian Legal Information Institute, and funding for the delivery of pro bono and access to legal services, which are included in the General Fund practice fee.
Based on these meetings and reviews, the Finance and Audit Committee made recommendations to the Benchers regarding the amounts from the practice fee that should be allocated to each of these organizations and programs. These recommendations were approved by the Benchers at the September 19, 2025 Bencher meeting.
Law Society Operations
The focus of the 2026 General Fund budget, in addition to delivering the strategic plan and core regulatory programs, and meeting key performance measures, is to ensure that the Law Society remains an innovative and effective professional regulatory body.
There are several key initiatives in 2026, including: 1) work relating to the transition to a Single Legal Regulator 2) work on the review of alternative pathways to lawyer development and licensing 3) work on Innovation Sandbox initiatives to improve access to legal services 4) review of regulatory processes to implement improvement initiatives 5) implement recommendations made by the Indigenous Engagement in Regulatory Matters report 6) focus on anti-money laundering initiatives 7) enhance practice support and online courses 8) implement the diversity action plan items, and 9) implement recommendations of the information technology strategic plan to enhance information technology governance, infrastructure, and services.
2026 Operating Revenues
2026 General Fund operating revenues are projected at $38.6 million, $2.9 million (8.4%) over the 2025 budget, which includes the increase in the practice fee. Without the practice fee increase, overall revenues have slowed from recent years, with the revenue trends flattening over the last 3 years. The budgeted revenue is based on an estimate of 15,324 full-time equivalent practicing lawyers and 682 PLTC students. The expected growth in practising lawyers has slowed and is projected at a 2.5% increase, compared to more recent levels of 3.0% to 3.9%. Interest income is projected to be much lower as interest rates are trending down and will remain lower for the next few years. Electronic filing revenues have reduced from prior years with lower activity in real estate markets. Other revenues are also expected to be lower than historical levels with a decrease in cost recoveries, penalties, and registration and licensing fees.
2026 Operating Expenses
General Fund operational expenses are projected at $38.7 million, a 4.3% increase over 2025, a lower increase from prior years with cost savings incorporated. Operating expense increases are primarily related to market-based salary increases and the addition of select staff resources to address the increase in volume and complexity of the work undertaken by the Law Society. Increases in complaints, calls and cases, the addition of new programs, and new software subscription costs and cyber security initiatives have all served to increase the cost of operations. However, savings have been realized in a number of areas, with the reduction of external counsel fees due to increased use of consent agreements and increased staff vacancies.
General Fund Net Assets
The General Fund remains financially sound, with $38.0 million in net assets at the end of 2024 (excluding the TAF net assets). The net assets consist of capital assets, primarily the 845 Cambie Street building, funding for the 10-year capital plan, and a working capital reserve. The 2026 budget results in a small projected deficit, preserving the net assets reserves to fund ongoing one-time projects such as the single legal regulator transition, one-time litigation costs, lawyer admission program changes, online course development, pilot fee rebate program, CanLII AI tool, and the implementation of an information technology strategic plan.
Trust Administration Fee
The goal of the Trust Assurance program is to ensure that law firms comply with the rules regarding proper handling of clients’ trust funds and trust accounting records. This is achieved by conducting trust accounting compliance audits at law firms, reviewing annual trust reports, and providing member advice and resources. The compliance audit program ensures that all firms are audited at least once within a six-year cycle, and includes audits of higher-risk practice areas at least every four years.
The trust administration fee (TAF) remains at $20 per transaction and is projected to fund the trust assurance program and provide funding to the Part B indemnification program.
The Federation of Law Societies of Canada
The allocation in the practice fee to fund the participation in the Federation of Law Societies will increase from $30 to $31 per lawyer, to fund the Law Society portion of the operating budget ($471,000). The Federation provides a national voice for provincial and territorial law societies on important national and international issues.
The Canadian Legal Information Institute
The Canadian Legal Information Institute (CanLII) fee will increase from $40 to $50 per lawyer, to fund the Law Society portion of the operating budget ($769,000) and reflect the additional operating costs to maintain a generative AI search tool “chat canlii”, which will provide AI functionality.
CanLII is a not-for-profit organization initiated by the Federation of Law Societies of Canada, with the goal to make primary sources of Canadian Law accessible for free on its website at www.canlii.org. All provincial and territorial law societies have committed to providing funding to CanLII.
Courthouse Libraries BC
Courthouse Libraries BC (CLBC) provides lawyers and the public in BC with access to legal information, as well as training and support in accessing and using legal information. Through its information services, curation of print and digital collections, website content and training, the library provides practice support for lawyers and access to justice support to the public across the province through its 31 physical locations.
CLBC will be funded $3.4 million, a 2.5% increase, to support operating costs and information technology needs. The practice fee allocation will increase from $218 to $222 per lawyer to fund the operating budget contribution to CLBC.
The Advocate
The Advocate per lawyer funding will remain the same at $24 per lawyer to fund $430,000 for the 2026-2027 operating budget. The Advocate publication is distributed bi-monthly to all BC lawyers, including practising, non-practising and retired lawyers.
Lawyers Assistance Program
The Lawyers Assistance Program (LAP) provides confidential outreach, education, support and referrals to lawyers and other members of BC’s legal community. LAP funding has been set at $1.19 million, which is funded through a practice fee allocation of $78 per lawyer, with further funding from their net asset reserves.
Pro Bono Funding
The Law Society of BC contributes funding to support pro bono and access to legal services. The funding is set at $431,000 and is sent to the Law Foundation for distribution to organizations. This is funded through a practice fee allocation of $27 per lawyer.
Lawyers Indemnity Fund Fee
For the 9th consecutive year, the indemnity fee for 2026 will remain at $1,800 (full-time) and $900 (part-time). 2024 continued to receive a record number of claim reports, a trend that continues this year. LIF is also facing an upward trend in claim reserves and record high claim payments. However, experienced and skillful claims management, relevant and effective risk management for the profession, and prudent and diversified investments of fund assets have allowed the fee to remain stable.
To enhance fairness between claims-free lawyers and those who draw from the fund as a result of negligence claims, the indemnity surcharge will increase to $2,000 from $1,000, where it has been for the past 40 years. The surcharge applies up to 5 years after a paid indemnity claim. The deductible for a first paid claim remains at $5,000, unchanged since the program’s inception in 1986.
For more information
If you have questions about the financial information in this notice, please contact Jeanette McPhee, Chief Financial Officer and Senior Director of Trust Regulation, by email to jmcphee@lsbc.org.
