Alternative Business Structures
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Alternative Business Structures

Alternative Business Structures


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About the Book

With the dramatic increase in the number of ABSs licensed, and large players now entering the field, it is clear that ABSs will have a sizable impact on the market. Can you really afford to turn a blind eye? Taking the risk may well be at your firm's peril. Managing Partner's report, Alternative Business Structures, offers legal services providers and consumers with crucial advice on how best to deal with this new regime. Whether you are considering taking the ABS route, or wish to know if you may need to, this report provides the basis upon which to make your decision. Included you'll find: A definition of what must be an ABS; Practical advice on the regulatory requirements and issues to consider when applying for a license, and dealing with the licensing authority; The different models of ABS available and factors that may affect investment; Issues of supervision and enforcement that may arise post authorisation; and The implications of ABSs on the wider legal market. Insightful case studies on the implications and practicalities of converting to an ABS are featured from high profile and innovative ABSs, the Co-operative Legal Services, and Knights. You'll also find a detailed international perspective on ABSs from Tina Williams of Fox Williams LLP, focusing specifically on the USA, Australia, and Europe. And, an expert view from the LSB's Crispin Passmore on the future of the legal market, and the risks and opportunities legal services businesses can expect to face.

Table of Contents:
Executive summary ...VII About the authors ...IX Acknowledgements ...XI Chapter 1: History and background ... 1 Office of Fair Trading Report and Clementi ... 1 The Legal Services Act 2007 and implementation up to October 2011 ... 3 Reserved legal activities ... 5 Regulated unreserved activities ... 7 Unregulated activities ... 8 Chapter 2: The evolution of ABSs from October 2011 ... 9 Introduction ... 9 The first 15 months - an analysis of SRA authorised ABSs ... 11 Early impact - the personal injury market ... 12 Early impact - the conveyancing market ... 14 Early impact - other areas of law ... 15 Case study 1: The Co-operative Legal Services ... 17 Why did the Co-operative enter the legal services market? ... 17 How does being part of a broader organisation affect the way we do business? ... 17 Embracing new ways of delivering services ... 17 Do you have to be an ABS to do this? ... 18 Competition and regulation ... 18 Our experience of ABS ... 19 Chapter 3: Becoming an ABS - requirements ... 21 Defining an ABS ... 21 Licensing rules and regulatory arrangements - An overview ... 22 Risk based compliance with regulatory arrangements ... 24 Consideration of the application for approval as an ABS - Specific issues for risk assessment ... 27 Multi-disciplinary practices - Special considerations ... 30 Waivers ... 32 Legal Disciplinary Partnerships transitional provisions ... 33 Chapter 4: Approval of role holders in the ABS ... 35 Head of Legal Practice and Head of Finance and Administration ... 35 Who needs to be approved as an 'owner'? ... 36 Approval of managers ... 42 What factors are taken into account when approving individuals? ... 43 Approval of individuals - The 'fit and proper' test and the Suitability Test ... 44 Chapter 5: Becoming an ABS - investment and structure ... 47 Types of structure ... 47 External investment... 50 The practicalities ... 54 Relationship with other businesses under the separate business rules ... 55 Case study 2: Knights Solicitors ... 57 Taking on external investment ... 57 Conversion to an ABS ... 57 Impact on clients ... 58 The future ... 58 Chapter 6: Choice of licensing authority ... 61 The regulatory landscape ... 61 Choice of licensing authority ... 62 Relationship with the licensing authority post approval ... 64 The future ... 66 Chapter 7: Implications of ABS on the existing market ... 69 Solicitors ... 69 Barristers ... 71 Other legal service providers ... 71 Insurers ... 72 Unregulated providers ... 73 Chapter 8: The international implications of ABSs ... 75 Introduction ... 75 Europe ...75 The USA... 76 The future ... 76 Chapter 9: Future trends ... 79 Regulation ... 79 International regulation ... 82

About the Author :
PATRICK REEVE is an independent consultant on legal practice management and regulatory compliance who has advised both regulators and individual firms. He also works with DG Legal, a company that offers specialist advice and support to law firms and other organisations providing legal services. Patrick was formerly deputy director responsible for civil and family justice and legal aid policy at the Ministry of Justice and Director of Strategy at the Legal Services Commission, and started his career as a solicitor in private practice. Patrick can be contacted via e-mail at patrick@dglegal.co.uk and at www.dglegal.co.uk. NICHOLAS WRIGHT is a solicitor who has specialised in partnership and regulation for many years and was Chief Executive of his Gray's Inn firm before his retirement in 2012. He was a member of the Solicitors Assistance Scheme for over twenty years and was a contributing editor of Cordery on Solicitors. He has written reports for Ark Group on partnerships and conversion to LLP status.



Product Details
  • ISBN-13: 9781908640925
  • Binding: Paperback
  • ISBN-10: 1908640928
  • No of Pages: 90


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