Alternative Business Structures
After a successful challenge by Which ? Magazine over the perceived monopoly of solicitors alone owning law firms the Legal Services (Scotland) Bill was introduced on 30th September 2009.
The introduction of Alternative Business Systems (ABS) follows recommendations from the Office of Fair Trading (OFT) to offer consumers more choice of legal services following a Which ? magazine complaint. This Bill sets out a framework to allow Solicitors the option of adopting an alternative business model to the traditional law firm and is scheduled for Royal Assent next summer. This could include setting up in business with non-lawyers, other professionals and allowing non-lawyers to own entities providing legal services. Currently in Scotland, only solicitors can own law firms and form partnerships with other solicitors. This Bill also covers proposed extended rights to obtain confirmation of estates of deceased persons. The proposals have become commonly known as "Tesco Law" as it is anticipated many other business types will be keen to enter the legal arena. Competitive pricing will no doubt be a factor and employing a ratio of many paralegals to few solicitors will be attractive. This is good news for paralegals as we see our employment opportunities broaden but also highlights the need for tighter regulation whether that be over the lawyer, accountant or paralegal. For more details please follow the Scottish Parliament link: http://www.scottish.parliament.uk/s3/bills/30-legalServices/index.htm