Legal Services Act

A start-up company aimed at offering small and medium-sized businesses a wide range of legal and non-legal advice has received its alternative business structure (ABS) licence from the Solicitors Regulation Authority.

Regulators face an “uphill struggle” to put consumers in a position where they can be useful in helping to driving competition in the legal market, a study has warned. The Legal Services Consumer Panel suggested consumers are “currently not very empowered” and lack confidence.

An international boutique legal consultancy headed by Cherie Booth QC, which advises governments on strategy, has received an alternative business structure licence from the Solicitors Regulation Authority. Omnia Strategy hit the headlines last year when it was reported to be advising the government of Bahrain.

The government is to try and overturn a House of Lords vote that the Legal Ombudsman’s (LeO) jurisdiction should extend to bailiffs – although the ombudsman himself has said he is open to the idea. Shortly before Christmas, peers voted 233 to 191 in favour of an amendment to the Crime and Courts Bill.

The first law firm with individual non-lawyer investors has been granted its alternative business structure licence. Everyman Legal – which both employs lawyers at its Oxfordshire base and has developed a network of home-working solicitors around the country – has six private investors who will shortly become shareholders of the firm.

The Legal Services Board has rejigged and expanded its legal advisers panel, although its two previous main sources of external advice – City firm Hogan Lovells and London chambers 39 Essex Street – have retained their places on it.

Leading north-west firm Stephensons is seeking external investment as part of its plans to expand beyond the region after receiving its alternative business structure licence from the Solicitors Regulation Authority. Other new licencees include a firm looking at MDPs and one mulling trade union tie-ups.

Brilliant Law has become what it says is “the first true pure bred alternative business structure (ABS) start-up” and is offering to help other ABS applicants on a fixed-price basis. Meanwhile, a debt recovery business has received an ABS licence so that it can now offer the associated legal work.

Three more alternative business structures (ABSs) have been licensed by the Solicitors Regulation Authority, with external investment, an employee share scheme and a non-lawyer partner the drivers behind them.

Some of the frontline regulators have hit back at the Legal Services Board’s assessment of their performance. A detailed report on the “smaller” regulators found a wide range of competence, both across the different regulators and within each of them individually.