Introduction of Alternative Business Structures implemented through the Legal Services Act 2007

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

This paper explores the concept of Alternative Business Structures implemented through the Legal Services Act 2007. Thia thesis specifically highlights the Clementi's report regaridng the legal profession and the ABS related issues. The paper presents the historical arguments that led to the Clementi review of the legal profession and its culmination in the Legal Services Act 2007. There were two strands: one based on consumerism (too many complaints about lawyers' services); the other based on a sustained investigation by the competition authorities into professions' restrictive practices (anti-competitive unless proved in the public interest). These led to the abandonment of traditional forms of organization for lawyers' practices (alternative business structures) and the imposition of a new regulatory structure for the profession (oversight and frontline regulators).

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Problem Statement2

Research Aims and Objectives3

Research Question4

CHAPTER 2: LITERATURE REVIEW5

Alternative Business Models5

Clementi Report6

Recent Developments7

Concerns About Outside Investment12

CHAPTER 3: METHODOLOGY15

Research Design15

Literature Search15

Keywords16

CHAPTER 4: DISCUSSION17

Clementi Review17

Clementi and after20

Anti-Competitive - Report From Office Of Fair Trading21

Should the legal profession open up to the new business models? Why23

The ABS enables a shift from “traditional law firm structures” to those enabling control and the management of the practice to be shared among legal professionals and non-lawyers. Is it appropriate?25

How would you interpret the significance of the Act for the following categories: Legal professionals, legal market as a whole, investors, clients?27

Is there a need for innovation and modernisation of legal services? Why?29

Importance for legal professionals and law graduates to have an entrepreneurial acumen30

CHAPTER 5: CONCLUSION32

BIBLIOGRAPHY35

Chapter 1: Introduction

Background of the study

ABSs were set out in the LSA 2007, though the Act did not provide for them to come into being until 6 October 2011. In essence, they will allow non-lawyers to buy law firms or invest in them, and give law firms the opportunity to seek out external investment to grow their businesses, or even to float on the stock exchange. ABSs will give greater freedom for law firms to merge with other businesses such as accountancy, banking, insurance and financial services.

ABSs will be able to act as a one-stop shop for legal and other services, aimed at meeting consumer needs, and introducing a more commercial and innovative environment for legal services.

The aim is for cost-effective, better managed, better marketed legal services, whether delivered through an ABS or a conventional law firm structure, thanks to the competition the new structures will introduce - although some have regulatory concerns as to whether ABSs could lead to lower ...