Alternative business structures

City firms’ concerns over the international rejection of alternative business structures can be overcome quite easily, a Legal Services Board study has concluded – but they are not interested in ABSs anyway, confirming the findings of a host of other surveys and reports.

The relationship between large law firms and general counsel is likely to evolve in three phases, with the “endgame” around five years away, Professor Richard Susskind has predicted. He also expects the large accountancy firms to return to the arena.

The first wave of alternative business structures is on the way after the Council for Licensed Conveyancers (CLC) opened its doors for applications. The CLC will be able to start licensing ABSs from 6 October.

The Solicitors Regulation Authority (SRA) has strenuously denied it was responsible for the slippage of the timetable for licensing alternative business structures. On Tuesday, Professor Stephen Mayson accused regulators of failing the market.

The implementation of alternative business structures has become “something of a shambles”, Professor Stephen Mayson said yesterday. He accused regulators of failing the “new entrants, new capital and entrepreneurial law firms” poised to take advantage of the new regime.

The latest national marketing organisation for solicitors could be an attractive takeover target for a big brand looking to enter the legal market, its founder has admitted. Lawyers2you, the consumer-facing brand of Birmingham law firm Blakemores, is being rolled out nationally.

Turcan Connell has signalled its intention to become one of the first alternative business structures in Scotland, while its joint senior partner has called for law firms to be subject to capital adequacy requirements. Douglas Connell said the introduction of ABSs provides a “once-in-a-lifetime opportunity” for lawyers.

The German Bar has called on its American counterpart to form an international coalition against alternative business structures. The news comes as the American Bar Association prepares to publish a proposed rule change that would allow minority non-lawyer ownership of law firms, with the New York courts set to rule on the issue too.

Co-operative Legal Services is planning a more extensive pilot of face-to-face advice in its bank branches later this year as it bids to become consumers’ “lawyer of choice”, the company has confirmed. The Co-op has also merged its legal and funeral businesses.

The Legal Services Board has approved changes to the Bar Code of Conduct that will allow barristers to become partners and employees of alternative business structures. The bar’s rulebook as currently drafted would prevents barristers from working for an ABS.