Here we are, then, one year into alternative business structures (ABSs). For those who were expecting a revolution, the start to ABSs has been, well, muted. But was revolution ever a reasonable expectation? The statutory timetable envisages a licensing process that could take up to nine months. The SRA has also ensured that the timetable doesn’t start to run with the submission of a stage 1 application, so its nine-month timeline hasn’t been reached yet. The question is: does 36 ABS licences (ignoring the multiple licences issued to Irwin Mitchell) in the first year represent a good outcome, slow take-up by the market, or slow processing by the regulators? Has the whole thing – as many opponents of ABS would like us to believe – been a damp squib, an unnecessary and expensive addition to the regulatory terrain?
Tag Archives: legal services
Lifting the LETR from the doormat
This morning’s seminar on reforming legal education and training, hosted by Westminster Legal Policy Forum, provided a timely opportunity to reflect on the progress so far of the Legal Education & Training Review (LETR).
The lead for the LETR, Professor Julian Webb, rightly reminded us that the function of the Review is to address the question of how best to regulate legal education and training – specifically, the scope, reach and proportionality of that regulation. He said that, so far, responses to the LETR discussion papers had reflected vested interests, and had demonstrated limited consensus and offered little in the way of alternative vision.
External ownership and the forked tongue of ethics
Nine US general counsel have come to the conclusion, reported in Legal Futures, that there is no need for external ownership of law firms and “that the inevitable chipping away at the profession’s professionalism ultimately will do a disservice not just to the business clients we serve, but to all clients who seek the trusted and confidential advice of counsel”.
I would not presume to disagree with their judgement about their own clients. But I would seriously beg to differ with the general sentiment implicit in the conclusion that ‘non-lawyer’ (I still hate that expression) ownership will necessarily erode professionalism, undermine lawyer-client relationships, compromise confidentiality, and encourage unethical, profit-maximising behaviour. Continue reading
