The Solicitors Regulation Authority has found that Bradford, Glasgow and Newcastle firm Optima Legal overstepped the rules on alternative business structures (ABSs) in an arrangement with outsourcer Capita.

Publishing an investigation into the agreement, the SRA said that ‘while Optima Legal’s original outsourcing and funding arrangements were put together at a time when the form of ABSs was being widely debated, the [arrangements] went further than was allowed by the rules’.

Optima, previously part of national firm DLA Piper, had entered into a loan agreement with Capita. It gave Capita an option to obtain shares in the firm once ABS legislation comes into force in October 2011. The agreement provided for Capita to supply outsourced administration, HR and payroll, and IT services to Optima.

Optima’s outsourcing and funding arrangements were restructured in January. The firm had taken advice from leading counsel before entering into its agreement with Capita, and the SRA said that Optima Legal cooperated fully during the investigation.

The SRA and Optima said in a joint statement that ‘at no time has there been any suggestion that the former structure had in fact adversely affected any of Optima Legal’s clients or its service’.

The statement continued: ‘However, given the decision of the SRA that it was not in accordance with the rules, it was essential to restructure it to the SRA’s satisfaction. This has now been achieved.’