Alternative business structures

The ‘Big Four’ accountants are proving “intense competition” for mid-tier law firms and “quietly” taking the more commoditised work away from them, the head of legal services at RBS has said, predicting that the accountants will move on to compete with bigger firms.

Counterculture Partnership, a multi-disciplinary practice with one lawyer among 11 partners, has become an alternative business structure. Solicitor Keith Arrowsmith said clients liked the fact that it was an ABS and was under strict rules on confidentiality.

The barrister who defended one of the killers of Drummer Lee Rigby is involved in setting up an alternative business structure (ABS) with another member of his chambers and two senior staff.

The listed company that owns NewLaw Solicitors has completed its acquisition of a fleet accident management group that itself has a joint venture alternative business structure (ABS) with NewLaw. Meanwhile, would-be ABS Metamorph Law will shortly have a £4m warchest that will enable it to buy at least five firms next year.

Rather than feeling threatened by accountants’ move into legal services, law firms should set up alternative business structures (ABS) and compete with them, the president of the Law Society has said. Jonathan Smithers said: “The success of ABS to date indicates that clients are generally not concerned about sourcing their legal services from non-lawyers.”

The number of alternative business structures licensed by the Institute of Chartered Accountants in England and Wales (ICAEW) has hit 100, it has emerged. A further 47 firms have been authorised to provide probate services.

A local authority legal department which recently warned that council lawyers are being forced to set up alternative business structures by restrictive rules on in-house practice, has won backing to do just that. Essex Legal Services predicted that it could make an additional surplus of £1.8m by 2020.

There is no reason why solicitors setting up a new law firm should not do so as an alternative business structure, the chief executive of the Solicitors Regulation Authority has said. Mr Philip predicted that solicitors would in the future be ” business people first”.

Nottingham Law School has created the first “teaching law firm” for students after being granted an alternative business structure licence by the Solicitors Regulation Authority. It will allow students to work in its Legal Advice Centre as a fully regulated organisation as part of their studies.

The new legal business set up by the former head of Quindell Legal Services is poised to start its acquisition programme after being authorised as an alternative business structure (ABS) by the Solicitors Regulation Authority.