Lack of clear regulation slows progress of LLPsLEGISLATION: framework requires further clarificationLaw firms keen to be in the first wave of limited liability partnerships (LLPs) will be delayed by lack of clarity in legislation and regulatory...Law firms keen to be in the first wave of limited liability partnerships (LLPs) will be delayed by lack of clarity in legislation and regulatory issues, a leading lawyer said this week.Quentin Poole, managing partner of Birmingham firm Wragge & Co said: Some bits of the statutory framework still need to be clarified, especially regarding tax.

And the Law Society hasnt reached a conclusion about how LLPs will affect the solicitors compensation fund.Currently all solicitors/directors in incorporated practices wishing to have cover under the fund need to sign individual covenants to ensure they are exposed to the same level of risk as non-directors.

Mr Poole said this was time-consuming and the procedure needed to be addressed.A Law Society spokeswoman said Chancery Lane was considering changes to make the situation easier.Firms may take six to nine months to become LLPs, Mr Poole said.Wragges has long been at the forefront of firms queuing to adopt the structure after the legislation is introduced in April (see [2001] Gazette, January ).Meanwhile, four of the big five accountancy firms are ready to use the new LLP structure.

However, their associated law firms will not be following hot on their heels.KPMG and Ernst & Young answered yes to the question Will you set up as an LLP after 6 April 2001? in a survey for Accountancy magazine.

PricewaterhouseCoopers was likely to adopt LLP status, the survey said.Christopher Tite, of Tite & Lewis, affiliated to Ernst & Young said: Their business model is down to them and doesnt have any impact on our relationship or association with them.A spokesman for KLegal, affiliated firm to KPMG, said: If KPMG became an LLP we may or may not become one but not automatically.l The Law Societys LLPs information pack is now available.

For information, tel: 0870 606 2577.Jeremy Fleming