UK legal
services market shake-up will not harm legal
sector
The UK legal sector will remain
competitive and maintain its global reputation following the
anticipated radical shake-up of the legal services market, says the
Law Society President John Wotton.The statement comes ahead of the Law Society
President's speech today to world Bar leaders in Dubai, who have
gathered for the annual International Bar Association Conference,
on the introduction of alternative business structures (ABS) into
the legal services market in England &
Wales.
Provisions of the Legal Services Act 2007 mean
that from this year, legal services in England and Wales can be
provided by a wider range of business types. An ABS is a regulated
organisation which provides legal services and has some form of
non-lawyer involvement. This involvement can either be at the
management level- as a partner, director or member; or as an owner-
an investor or shareholder.
Wotton, who is leading a trade mission of law
firms to Dubai as well as attending the IBA conference, said:
“The new legal services landscape only enhances the UK's
position at the epicentre of the world's legal
market.
'Alternative business structures could generate
new ideas, new ways of working and opportunities for law firms, but
innovations and developments will also continue to be made by firms
that do not choose to seek external investment under the ABS
business model.
“UK law firms are already highly
responsive to clients' needs . I am confident that this feature of
the UK legal sector, which underpins its commercial success, will
be sustained as the rules around ownership
change.”
Wotton will tell his counterparts at a speech
he is due to deliver today in Dubai that “many ABS will
recognisably be solicitors' practices, simply with added features
that are not now permissible, such as an unlimited number of
non-lawyer partners , or external investment or control
.
'Either aspect of ABS may bring competitive
advantages with it, but not necessarily unfair competition , for
ABS will have to operate to exactly the same professional
standards, under the same regulatory regime as existing firms .
Many solicitors and firms are already inventive, consumer focused
and a valued part of their local communities. They will continue to
offer strong competition.”
The statement comes days after John Wotton
attended the opening of the Rolls Building in London, a new
high-tech court specialising in financial, business and property
litigation.
The opening formed part of a wider
campaign - Unlocking Disputes - to promote London as the dispute
resolution capital of the world.
UK legal services generated 23.1bn
in 2009 and 2.8 billion in overseas earnings - while many
global companies and individuals choose to resolve legal disputes
in London rather than using courts in their home countries.
Ends
Journalists, please contact the Law Society
press office on +44 (0)20 7320 5764
www.lawsocietymedia.org.uk