Legal Services Act

Frontline regulators are to collaborate on identifying business models that will avoid lawyers holding client money, it has emerged. The regulators will also come up with joint proposals to amend the Legal Services Act, for top level discussion early next year.

The Legal Services Board has attacked the “arbitrary nature” of the separate business rule used by the Solicitors Regulation Authority, and said the list of what is permitted and what is not is “confusing”.

National firm Cartwright King has opened what it describes as the first “in-house chambers”, made up of 20 advocates, including five barristers. All the solicitors in the chambers are higher court advocates.

Competition from alternative business structures and non-solicitor organisations is of increasing concern to law firms, Law Society research has revealed. At the same time, compliance with Solicitors Regulation Authority rules remains the main problem identified by solicitors.

Chris Kenny, outgoing chief executive of the Legal Services Board, is to join the Medical and Dental Defence Union of Scotland, it has emerged. The union is a fund of over half a billion pounds being managed for the benefit of 40,000 members throughout the UK.

A British PhD student, a Polish accountant and a Brazilian lawyer have come together to form a unique alternative business structure, the first to specialise in Islamic finance.

The Court of Appeal today comprehensively dismissed four criminal law barristers’ challenge to the Legal Services Board’s approval of the Quality Assurance Scheme for Advocates. With the Master of the Rolls, Lord Dyson, giving the lead judgment, the court found that the scheme is lawful.

One of Europe’s largest debt purchasers has acquired a Welsh law firm that specialises in outsourced advocacy following the grant of an alternative business structure (ABS) licence by the Solicitors Regulation Authority.

A further series of mergers around the country have been announced as consolidation in the legal market continues to take hold. There is usually a rush of mergers each year timed to coincide with the 30 September deadline to secure professional indemnity insurance.

The Solicitors Regulation Authority has granted KPMG 12 waivers from the rules governing solicitors, in what appears to be a work-around ahead of proposed new rules that will make it easier for multi-disciplinary practices to become alternative business structures.

The Legal Ombudsman (LeO) is to launch a complaints portal this month that will enable lawyers to manage all of their contact with the organisation online. LeO will also encourage consumers to manage their complaint through the portal.

Top-20 firm Kingston Smith has become the first accountancy firm to be licensed as an alternative business structure by the Institute of Chartered Accountants in England and Wales to carry out probate work.

Hampshire law firm Moore Blatch has teamed up with national spinal injury charity Aspire to launch the first alternative business structure of its kind. Aspire Law will open for business on 3 November, offering a specialist service to people with spinal cord injuries.

KPMG has become the second member of the ‘Big Four’ accountants to be awarded an alternative business structure licence. However, unlike PwC, KPMG said it has no intention of developing a standalone legal practice.

Mergers have been announced across the country in recent days, with firms of all sizes and practice areas choosing to join forces. There is usually a rush of mergers each year timed to coincide with the 30 September deadline to secure professional indemnity insurance.