This market leaders’ debate focuses on alternative business structures (ABS) and what impact they will have on law firms. This is an update level course.

Under the Legal Services Act 2007, alternative business structures will be permitted. The intention is to increase competitiveness and choice and improve the quality of legal services. Potentially consumers will be able to get a range of professional services from one organisation that brings together lawyers and non-lawyers.

In the short term, before the full ABS regulatory structure is implemented, the Act enables legal services firms to have up to 25 per cent non-lawyer partners. It also allows legal disciplinary partnerships (LDPs) where different kinds of lawyers can form businesses together. In the longer term, for the first time, law firms will be able to attract external investment.

While the regulatory regime is put in place, there are issues about how law firms will ready themselves for the change and whether the delay in introducing ABS will adversely affect the competitiveness of traditional law firms in the new market.

The information in this episode represented the legal position when it was recorded on 07/12/2007

This video podcast explores in detail the impact ABS will have on the legal profession. It features contributions from some of the profession’s leading experts and will be of interest to anyone wanting to know more about how to ensure their law business remains competitive and stays ahead of the game.

The video lasts for 90 minutes. It will take you a further 20 minutes to complete the questionnaire. You will need to get 50 per cent of the questions right to gain your CPD.

The debate is chaired by Joshua Rozenberg, Legal Editor of the Daily Telegraph. The interviews are with ITN’s Jon Gilbert. The questions are set by Louise Restell.

Learning outcomes

After listening to the programme, you will understand:

• Who is likely to invest in law firms and the key indicators that a potential investor will look for in a law firm
• The delay between legal disciplinary practices (LDP) and full ABS and the impact this is likely to have on law firms
• When we can expect to see these changes taking place
• Which firms are likely to be interested in becoming LDPs or ABS, including potential interest from the magic circle firms
• Whether barristers will embrace ABS and the future for chambers
• The impact ABS will have on the roles of the Law Society, Solicitors Regulation Authority, Bar Council and Bar Standards Board
• Whether ABS will really be good for consumers and the likely impact on access to justice
• Whether commoditised work is likely to fall into the hands of large non-lawyer enterprises
• How law firms can become more competitive