The revolution in legal services provision heralded by the 2007 Legal Services Act officially gets under way this week with the advent of legal disciplinary practices. For the first time, law firms can be owned by different types of lawyers, and a proportion of non-lawyers.
Some 14 LDPs officially come into being on 31 March, according to official figures – fewer than had been anticipated.
Justice minister Bridget Prentice commented: ‘This is a big step towards realising the vision set out in the Legal Services Act and improving access to justice. There are real benefits for the legal profession and consumers alike in allowing different types of lawyer and non-lawyer to work together.
‘The reforms will allow firms to operate in flexible ways and encourage more effective competition, leading to innovation and price reductions. It will also be easier to retain and reward high-quality non-legal staff in firms, as they can now become partners. This is the first step towards the full implementation of alternative business structures, which will enable consumers to obtain services from one business entity that brings together lawyers and non-lawyers, increasing competitiveness and improving services.
The Solicitors Regulation Authority has been sanctioned to regulate LDPs, as has the Council for Licensed Conveyancers.
Antony Townsend, chief executive of the Solicitors Regulation Authority, said: ‘The arrival of LDPs is part of the reform of our regulatory role, enabling us to regulate the firms in which solicitors practise as well as individuals, enhancing public protection, and opening up the legal market to new forms of business. These additional powers granted under the Legal Services Act will help us to put consumer and public interest at the heart of regulation.’
For more on this story, see this week’s Gazette, published on Thursday.
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