Legal Services Act

A former high-flying banker, who worked at Lehman Brothers before the crash, has told Legal Futures how he developed a plan to set up a pioneering alternative business structure while travelling in Vietnam. Zahid Hussein said he wants Z Group to be an integrated one-stop shop for SMEs.

Legal regulators have called on the government to make a series of changes to the Legal Services Act that will make it easier to approve and regulate alternative business structures. The move is part of the first output from joint work being done by all of the legal regulators to identify opportunities for deregulation.

Legal Services Board chief executive Richard Moriarty is to leave the post next February after just a year in the role, it was announced today. Mr Moriarty is returning to the Civil Aviation Authority as its deputy chief executive and group director for consumers and markets.

Banks may charge law firms more for borrowing if they abandon their client accounts, the legal regulators have warned. A report submitted to justice minister Shailesh Vara highlighted both the dangers and benefits of allowing choice on whether to handle client money directly.

The need to extend access to justice to those who cannot afford legal services is “already resulting in less involvement by lawyers in many of the tasks that previously made up their staple diet”, the chair of the Legal Services Consumer Panel has said. Elisabeth Davies also suggested that the emergence of professional McKenzie Friends “may repeat itself in other sections of the market”.

The number of accountancy firms authorised or licensed by the Institute of Chartered Accountants in England and Wales (ICAEW) to provide probate services has passed 100. The ICAEW has predicted that it will reach 200 by the end of the year.

In its first trading statement since listing on AIM last month, national law firm Gateley said that it expects its 2014/15 revenue to rise 10% on the previous 12 months. Meanwhile, the listing “shows a new way forward in opening up the market through flexible regulatory practice”, the SRA said yesterday.

A mutual marine liability insurer covering the smaller vessel sector has launched an alternative business structure to service member and non-member clients, with the object of reducing claims and not generating profit.

There will a review of the Legal Services Act 2007 during this Parliament, the Lord Chancellor Michael Gove announced today. Giving evidence to the justice select committee, he also addressed legal aid, the importance of the criminal Bar, court transformation and court fees.

The new government is not keen to extend regulation of legal services, including will-writing, the chief executive of the Legal Services Board (LSB) has warned. Richard Moriarty said innovation was key to tackling the “trilemma” facing legal services.

The goal of promoting innovation and diversity in the provision of legal services through the introduction of alternative business structures “has been realised”, joint research by the Legal Services Board and Solicitors Regulation Authority has concluded. Across the market, innovation is used to extend service range, improve service quality, and attract new clients – but is “not typically used” to lower costs.

An ambitious Merseyside practice has obtained an alternative business structure licence as part of plans to start a round-the-clock “concierge service for SMEs”, and to kick-start its overseas expansion into southern Spain, targeting the British ex-pat community.

North-west personal injury firm Thorneycroft Solicitors has been granted an alternative business structure licence by the Solicitors Regulation Authority as part of a major restructuring of its operations.

A “typical” legal service user loves Strictly Come Dancing, prefers Coronation Street to EastEnders, regularly browses Facebook and follows Stephen Fry and Jonathan Ross on Twitter. They are also married, in their later years of life, and financially stable – all according to the Legal Ombudsman.

A major international consultancy specialising in research and development grants and tax credits has launched an alternative business structure to offer a wider range of employment law services to its SME clients.