Where are the MDPs? Waiting for the accountants to start setting them up


Bushell: significant growth in the number of JVs

There is so far little evidence that alternative business structures (ABSs) will spawn large numbers of multi-disciplinary practices (MDPs), and those that do are likely to be accountancy led, it was claimed yesterday.

Stuart Bushell, legal affairs director of SIFA, said that instead there is likely to be further growth in solicitors forming joint ventures and marketing alliances.

Mr Bushell told CLT’s Innovation in Legal Practice Conference in London that of the ABSs announced so far, only Crabtree Law is an MDP. “There is not much evidence of the much discussed ‘one-stop shop’ type MDP, which was the focus of much of the discussion five to ten years ago,” he said.

However, it was clear that the Institute of Chartered Accountants in England and Wales is determined to open up legal services – specifically probate work – to its members. “According to a recent survey, about 250 of the institute’s member firms would be likely to seek accreditation under the scheme.”

Mr Bushell focused on combining legal and financial services, saying that there has been “significant growth” in the number of joint ventures between solicitors and independent financial advisers (IFAs), some of them with multiple solicitor contributors. These have the advantage of allowing the solicitors to receive financial reward in the form of dividends for the business they refer.

However, he said some of these joint ventures stumble “because the participants have not made efforts to establish the financial viability of the new enterprise. Some solicitors’ firms struggle with joint ventures because of the need for the whole firm to commit to making it a success. Many firms still operate like collections of sole practitioners rather than businesses”.

Mr Bushell said some firms are looking at informal marketing alliances – with the likes of IFAs and accountants – because of the practical issues for some of the various MDP options. “This idea is inexpensive to start, represents a one-stop shop of sorts and is uncomplicated in regulatory terms. The IFA does well and the law and accountancy firms may well do so. However, is it attractive to clients?”

 

Tags:




    Readers Comments

  • John Wright says:

    Although it may be the way of the global economy’s future, one cannot but face the prospect of ABS’s and MDP’s with some trepidation for the ethical and financial consequences they portend.
    The words monopoly and cartel spring to mind which, with few historical exceptions, hardly ever benefitted the consumer in terms of cost or service.
    Furthermore, the very notion of non-professional owners is terrifying. P. Randolph Hearst types ordering legal professionals how to conduct themselves? Shudder!


Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


Taking a compliance-driven approach to enhance PII renewal

Adopting a compliance-driven approach can significantly streamline and improve the professional indemnity insurance renewal process, as firms now begin to look forward to 2025.


Compliance in the age of technology

Does keeping up with best practice for your law firm in compliance, finance and risk management keep you awake at night? If so, you are not alone.


Continuing competence still in the SRA’s headlights

The SRA’s second annual assessment of continuing competence leaves lawyers and COLPs in little doubt that the regulatory spotlight is still firmly on whether skills and knowledge are being maintained.


Loading animation