There is mixed opinion on the impact that alternative business practices would have on the traditional law firm model. Whether you are in support or resistant to these changes, ABSs and their effect on the liberalisation of the profession will have a future impact on lawyers and how they practice.
The Solicitors Regulation Authority (SRA) has completed its first year authorising and regulating alternative business structures (ABS). The SRA was approved as an ABS licensing authority by the Legal Services Board (LSB) in December 2011 and started accepting applications on 3 January, 2012.
454 firms have started the application process. Some 117 firms have completed the submission of all necessary information and 74 licences have been granted with a further 19 close to completion.
Among those approved so far have been Co-operative Legal Services (one of the first three to receive a licence), Parabis Law, Irwin Mitchell, Lyons Davidson, Russell Jones Walker, Quindell, Abbey Protection Group, New Law, Keoghs LLP and Amelans.
Alongside these firms, the SRA has also granted licences to smaller organisations, such as the other two of the first three licensed, John Welch and Stammers in Oxfordshire and Lawbridge in Kent. Both of these converted to ABSs primarily to allow non-lawyers who had been integral parts of the firm to have partner status.
Looking ahead, the SRA is expecting further ABS applications to come through during 2013 and the range of types of business and services offered to continue to develop and expand as the possibilities afforded by the increased flexibility of the ABS model are better understood by the market.
Details of the ABSs licensed so far can be found at www.sra.org.uk/absregister. Further information on ABSs is available at www.sra.org.uk/abs.