The Benchers have approved the 2027 practice fee and indemnity fee, as recommended by the Finance and Audit Committee.
The overall objective when setting the fees is to ensure that operations are appropriately funded to enable the Law Society to effectively fulfill its statutory mandate of protecting the public interest in the administration of justice.
To maintain the Law Society programs, support the needs of the profession, implement new initiatives, and advance the goals set out in the Law Society’s 2026-2028 Strategic Plan, this budget includes an increase of $171 in the practice fee. Of the increase, $150 is allocated to Law Society operations and $21 is allocated to external organizations funded by the practice fee.
The portion of the 2027 practice fee increase allocated to fund Law Society operations ($150) results in an average increase of 3.1% per year over the last six years (2021 – 2027), which is very similar to the average inflation rate during the last six-year period.
The 2027 budget includes additional investments in the Professional Development to develop and promote resources and programs to support readiness to practice upon being called to the Bar, as well as investments in IT. There will be a focus on evolving existing educational programs and delivering commitments for pre- and post-admission learning resources, including in-person learning events for articled students. The budget reflects a full year of the new bar admission program, the Practice Readiness Education Program (PREP), after the retirement of the Professional Legal Training Course (PLTC) program. The student cost for PREP is $5,000 plus GST, less the 2027 Law Society bar admission tuition fee subsidy of $2,000.
Annual fees for non-practising and retired, and late payment fees, will be increased, along with other select registration and licensing fees. These fees will be increased to reflect associated costs and align with similar fees at comparable organizations. These fees have not increased for at least eight years.
The remaining practice fee increase of $21 is allocated to fund increased operating costs of 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 10 years.
The total annual mandatory fee for full-time practising indemnified lawyers is $4,507, an increase of 3.9% from 2026.
In addition, a special assessment will be implemented for all practising lawyers to replenish reserves spent on the costs of the transition to Legal Professions BC, as mandated by the new Legal Professions Act. Learn more about the special assessment here.
Total fee comparison with other law societies*
Practice fee
The Benchers have set the 2027 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 2027 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 25, 2026 Bencher meeting.
Law Society operations
The focus of the 2027 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 2027, including:
- The review of alternative pathways to lawyer development and licensing
- Exploring implications arising from use of AI-enabled legal tools
- The review of regulatory processes to implement improvement initiatives
- Implementing recommendations made by the Indigenous Engagement in Regulatory Matters report with respect to investigations and hearings
- The continued focus on anti-money laundering initiatives
- Enhancing practice support and professional development
- Implementing the diversity action plan items
- Developing a comprehensive IT strategic plan to enhance information technology governance, infrastructure and services
- Utilizing AI to increase organizational effectiveness and resilience
In addition, the organization is required to support the potential transition to Legal Professions BC, as mandated by the Legal Professions Act.
2027 Operating revenues
2027 General Fund operating revenues are projected at $40.2 million, $1.6 million (4.2%) over the 2026 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 four years. The budgeted revenue is based on an estimate of 15,700 full-time equivalent practicing lawyers. The expected growth in practicing lawyers has slowed and is projected to increase by 2.4%, compared to more recent levels of 3% to 3.9%. Interest income is projected to be much lower as interest rates are flattening and will remain lower than recent 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 and penalties.
2027 Operating expenses
General Fund operational expenses are projected at $40.2 million, a 3.8% increase over 2026. Operating expense increases are primarily related to bargained increases and market wage increases (benchmarked to P50), inflation and a modest increase in staff resources. In addition, information technology costs are expected to increase with the enablement of AI tools, technology upgrades, increased Software as a Service costs and cyber security initiatives. In addition, savings have been realized in several operational areas to offset some of these increases.
General Fund Net Assets
The General Fund remains financially sound, with $34.6 million in net assets at the end of 2025 (excluding the trust administration fee 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 2027 budget results in a small projected deficit, preserving the net assets reserves to fund ongoing one-time projects and costs such as one-time litigation costs, lawyer admission program changes, online course development, pilot fee rebate program and the implementation of the information technology strategic plan.
Costs associated with the single legal regulator transition, which have been incurred to date and projected to the end of 2026, will be covered by a 2027 special assessment for all practicing lawyers. Learn more about the special assessment here.
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 remain the same at $31 per lawyer, to fund the Law Society portion of the operating budget ($484,000). 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 $50 to $61 per lawyer, to fund the Law Society portion of the operating budget ($962,000) 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 $3.5 million, a 2.1% increase, to support operating costs and information technology needs. The practice fee allocation will remain at $222 per lawyer to fund the operating budget contribution to CLBC.
The Advocate
The Advocate per lawyer funding will decrease by $1 to $23 per lawyer to fund $425,000 for the 2027-2028 operating budget. The Advocate publication is distributed bi-monthly to all BC lawyers, including practicing, non-practicing 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 $1.39 million, which is funded through a practice fee allocation of $88 per lawyer, an increase of $10.
Pro Bono funding
The Law Society of BC contributes funding to support pro bono and access to legal services. The funding is set at $440,000 and is sent to the Law Foundation for distribution to organizations. This is funded through a practice fee allocation of $28 per lawyer, a $1 increase.
Lawyers Indemnity Fund fee
For the 10th consecutive year, the indemnity fee for 2027 will remain at $1,800 (full-time) and $900 (part-time). The number of claims reported in 2025 was slightly lower than in 2024, which had been a record year 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.
The indemnity surcharge will remain at $2,000. The surcharge applies up to five 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.
