The licensing of alternative business structures (ABS) for lawyers, which had been due to take place on 6 October, has been delayed
The legal profession has for years been preparing for the arrival of ABS, dubbed “Tesco law”, which allow non-lawyers to own and invest in law firms. Supermarket chains, high street banks and insurers are expected to enter the legal services sector—a radical shake-up of the market that has prompted fears among many existing law firms that they will find it difficult to compete.
However, the Ministry of Justice told the Solicitors Regulation Authority (SRA) this week that the deadline for Parliamentary approval processes to be completed will not now be met. Consequently, the SRA will not be a designated licensing authority for ABS on 6 October, as planned.
SRA chief executive, Antony Townsend said: “We were on track to license ABS from 6 October, so it is disappointing to learn that we will not be able to do so.
“We will work with the Ministry of Justice to do all we can to speed up the process. But we are in the hands of the parliamentary timetable. It seems unlikely that we will be able to license ABS much before the end of the year, and we shall make further announcements as soon as we have more certainty.”
Townsend said the introduction of outcomes-focused regulation, including the new Code of Conduct, will go ahead as scheduled on 6 October.
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