Alternative business structures

Liverpool-based SGI Legal has set its sights on reshaping the way personal injury law firms operate having received its alternative business structure licence from the Solicitors Regulation Authority.

MPs have attacked insurance companies for not being more transparent over the referral fees they receive from a range of sources. The transport select committee said “the motor insurance sector remains as opaque as ever”.

Alternative business structures may be bad for traditional law firms, but they will have a positive impact on clients, a snapshot survey of small firms has found. This is despite the belief that new entrants will not provide the same quality or ethical standards as traditional practices.

Well-known legal expenses insurer ULR Additions has won approval to set up an alternative business structure. However, the license from the Solicitors Regulation Authority restricts the work LEI Legal Services Ltd can undertake.

The Solicitors Regulatory Authority should be able to process would-be alternative business structures wanting to bid for the new criminal legal aid ‘super-contracts’ in as little as three months, it has told MPs. The Bar Standards Board was more cautious about its regulation, however.

Famous logistics company Stobart Group now has a law firm to sit alongside its direct access barrister service, Legal Futures can reveal. The Solicitors Regulation Authority has granted an alternative business structure licence to One Legal Ltd, which was set up by the company.

Direct Line Insurance Group plc is to partner with alternative business structure Parabis Law to launch a wholly owned law firm, it announced yesterday. The insurer will offer a range of injury and non-injury services to existing and new customers.

A specialist public sector law firm is set to relinquish its alternative business structure licence after being acquired. London-based TPP Law has been bought by Geldards as part of the regional law firm’s bid to grow a national public services practice.

Alternative business structures with a turnover of more than £2m face fines of up to 2.5% of their turnover in cases of serious misconduct, under plans being considered by the Solicitors Regulation Authority.

An accountancy firm for contractors, freelancers and self-employed professionals has launched its own law firm as the “missing piece in the client service jigsaw”. Brookson Ltd – based in Warrington – is only the second firm of accountants to become an ABS.

Alternative business structure Quindell Portfolio plc has signed a contract to provide white-labelled accident management services to Renault UK. Meanwhile, the white-label arm of Manchester law firm Pannone has announced a major hire.

Alternative business structures, law firms and sole practitioners looking for authorisation by the Solicitors Regulation Authority will for the first time fill in the same form as the regulator steps up its risk-based approach.

New entrants and alternative business structures have made their mark on the consumer legal services market by striking major affinity and partnership deals to win new business, according to an in-depth study of distribution relationships in place for legal services in the UK.

The first start-up alternative business structure (ABS) – offering clients ‘early access’ to barristers – has smashed expectations in its first year and aims to be turning over £500,000 in the next 12 months.

A newly established alternative business structure (ABS) set up by two lawyers and a wealth management expert is set to package up legal advice for financial advisers to provide to their customers.