Alternative business structures

‘Advice deserts’ that appear as a result of competition brought about by alternative business structures cannot be dealt with effectively by regulators operating under the Legal Services Act, an academic study headed by Professor Stephen Mayson has argued.

Accountants could start offering reserved probate services to the public as soon as next autumn, the Institute of Chartered Accountants in England and Wales said yesterday as it submitted its application to become a regulator of probate services and alternative business structures.

Quindell Portfolio has finally received its alternative business structure (ABS) licence and also predicted that it will be able to operate profitably within the new fixed fees and small claims structure put forward by the government.

The Legal Services Board has no agenda for fundamental reform of the profession and would like to see a new era of co-operation between frontline regulators on matters of common interest, its chair David Edmonds told barristers last week.

Innovations in legal practice are coming more from traditional law firms than from ABSs, the SRA said last week. Meanwhile, it will this week clarify the position of firms that have submitted COLP and COFA nominations but have not yet received approvals.

Well-known legal expenses insurer Abbey Protection plc should complete its acquisition of a law firm early next year, it revealed yesterday after receiving an alternative business structure (ABS) licence from the Solicitors Regulation Authority.

Alternative business structures will create “conveyancing factories” that exert a downward pressure on prices and could lead to an upsurge in complaints because of a focus on volume over service, the Legal Ombudsman has warned.

Alternative business structures in the personal injury market will do little to improve injured people’s access to justice but will benefit larger law firms at the expense of smaller ones, a new survey has found. Firms were split over whether their business models can survive the Jackson reforms.

A new national marketing network of solicitors specialising in personal injury claims will be launched in the New Year with funding to spend more than £3m a year on advertising as firms come to terms with the upcoming ban on referral fees. Meanwhile new ABS Thompsons hinted at possible alliances with trade unions.

Not-for-profit (NFP) advice agencies should be allowed to charge for providing legal services soon, the Legal Services Board said yesterday, while also announcing a delay in the creation of an alternative business structure licensing scheme until at least April 2015 because no regulator is ready to provide it.

The growing interest in alternative business structures (ABSs) among corporate law firms has been highlighted by another survey, with 46% of those polled saying they are likely to use the ABS regime in the next three years.

The Solicitors Regulation Authority is to keep alternative business structures within the coverage of the Law Society’s compensation fund indefinitely, although the move was described as “bizarre” by the Shadow Minister for Justice.

AIM-listed Quindell Portfolio has continued its acquisition spree by agreeing to buy leading claims manager Accident Advice Helpline for £70m – the first major deal involving a claims management company ahead of the referral fee ban next April – as well as yet another law firm.

The outsourcing arm of FTSE 250 construction company Carillion could become an alternative business structure (ABS) as it looks to grow its advice services team beyond in-house and legal aid work, it has emerged.

Sports and media stars will be among the wealthy clients of a new alternative business structure (ABS) which has already made a high-profile legal hire while awaiting its operating licence. BlackStar Legal is associated with the tax and wealth management giant, BlackStar Group.