Alternative business structures

The number of in-house lawyers has not been affected by the economic crisis and alternative business structures (ABSs) offer general counsel an opportunity to expand their services, according to the Law Society.

Legal expenses insurer DAS has finally secured the law firm acquisition that will kickstart its bid to become one of the UK’s top legal services providers. DAS, which is owned by German insurance giant Munich Re, has bought Bristol law firm CW Law.

The number of qualified solicitors in private practice fell last year for the first time since records began. A new legal service market assessment by the Law Society also warned that that a small number of successful ABSs could radically reshape the market for high street legal services.

A company that specialises in helping wealthy business people from Russia and Eastern Europe relocate to London has acquired an alternative business structure licence in order to add legal services to its business services portfolio.

The Legal Services Board has overstepped its bounds, distorted the Legal Services Act’s regulatory balance, aligned itself too closely with the government, and intervened in matters beyond its competence, the Solicitors Regulation Authority has charged.

A leading media law firm and a regional practice seeking minority external ownership to drive an acquisition strategy are among the latest alternative business structure approvals as the number of licences issued by the Solicitors Regulation Authority tops 100.

Global communications company BT has been awarded an alternative business structure license from the Solicitors Regulation Authority to launch BT Law Ltd. It will provide legal services to corporate customers, initially in the motor claims market, but with an eye to expanding into other areas.

Legal expenses insurer and alternative business structure Abbey Protection plc has acquired Manchester commercial law firm Lewis Hymanson Small, completing a three-pronged strategy to expand its services to the SME market.

Slater & Gordon is set to grow its UK business after it announced its first half-year results since the takeover of Russell Jones & Walker. The listed Australian firm – now an ABS in England and Wales – posted a 46.5% increase in its revenue for the last six months of 2012.

A training regime whose only specification is what a newly-qualified lawyer should be able to offer on day one is the kind of deregulation the Legal Education and Training Review should be considering, according to the chief executive of the Legal Services Board.

A Liverpool firm that describes itself as “very open-minded” about external investment is one of a pair of firms to receive the latest alternative business structure (ABS) licences from the Solicitors Regulation Authority.

The Law Society will challenge the application by the Institute of Chartered Accountants in England and Wales to become an alternative business structure regulator, Legal Futures can report. The question of separating regulation and representation is a key bone of contention.

Quindell Portfolio, the alternative business structure that has acquired three law firms in the past 12 months, will have “15% of the UK market for personal injury claims” this year, it has claimed. Meanwhile, another major ABS – Countrywide Conveyancing Services – has reported profits of £8m for last year, up 4% on 2011.

The president of the Supreme Court has urged the legal profession not to lose sight of its fundamental principles in the rush for modernisation, warning about the risks of pressure from “hard-nosed businessmen” who may invest in law firms.

An alternative business structure licence has opened the door to a global consultancy that project manages aspects of some of the world’s largest infrastructure and energy projects buying a specialist construction law practice.