Buckinghamshire County Council recently became the first local authority to be granted a licence by the SRA to form an Alternative Business Structure ("ABS"). The licence was granted in August but the
Buckinghamshire County Council recently became the first local authority to be granted a licence by the SRA to form an Alternative Business Structure ("ABS"). The licence was granted in August but the new model does not take effect until November 2014. The changes will mean that the provision of legal services by the council's in house legal team will be combined with the Buckinghamshire and Milton Keynes Fire Authority.
The entity will be known as Buckinghamshire Law Plus Limited and will be licensed to provide a broad range of services including litigation and probate services as well as other reserved activities. The entity will provide legal services to local authorities, the public, charities and the voluntary sector as well as targeting educational institutes, health and emergency services. This diversification of services is expected to increase the work of the council's in house legal team and save costs on associated outsourcing.
The new arrangement is expected to generate a shared profit of £1.7 million over the first five years. The council's constitution will need to be carefully drafted to set out the decision making powers and other details relating to shares, ownership and membership.
Whilst some view this as a great opportunity for members of the public to access previously unavailable expert legal advice, others believe that it is unfair competition and is detrimental to solicitors in private practice. Some individuals do not agree with the council undertaking legal work which appears to be of little relevance to their function and service. Nonetheless, other councils are reported to have ABS applications pending and are awaiting approval from the SRA. Moreover, a group based in Canary Wharf has formed an ABS specialising in Islamic finance and a number of major accountancy firms have established ABSs of their own.
The SRA granted 218 ABS licences between March 2012 and January 2014 including BT Law and Co Operative Legal Services. The SRA's breakdown of solicitor firms as at August 2014 shows that 27.7% are recognised Sole Practitioners, 23.4% are Partnerships, 15% are Limited Liability Partnerships, 33% are Incorporated Companies with 0.9% falling within the 'other' category. This demonstrates a steady rise in the presence of licenced bodies/alternative business structures.
The entity will be known as Buckinghamshire Law Plus Limited and will be licensed to provide a broad range of services including litigation and probate services as well as other reserved activities. The entity will provide legal services to local authorities, the public, charities and the voluntary sector as well as targeting educational institutes, health and emergency services. This diversification of services is expected to increase the work of the council's in house legal team and save costs on associated outsourcing.
The new arrangement is expected to generate a shared profit of £1.7 million over the first five years. The council's constitution will need to be carefully drafted to set out the decision making powers and other details relating to shares, ownership and membership.
Whilst some view this as a great opportunity for members of the public to access previously unavailable expert legal advice, others believe that it is unfair competition and is detrimental to solicitors in private practice. Some individuals do not agree with the council undertaking legal work which appears to be of little relevance to their function and service. Nonetheless, other councils are reported to have ABS applications pending and are awaiting approval from the SRA. Moreover, a group based in Canary Wharf has formed an ABS specialising in Islamic finance and a number of major accountancy firms have established ABSs of their own.
The SRA granted 218 ABS licences between March 2012 and January 2014 including BT Law and Co Operative Legal Services. The SRA's breakdown of solicitor firms as at August 2014 shows that 27.7% are recognised Sole Practitioners, 23.4% are Partnerships, 15% are Limited Liability Partnerships, 33% are Incorporated Companies with 0.9% falling within the 'other' category. This demonstrates a steady rise in the presence of licenced bodies/alternative business structures.