‘Solicitors concerned’ at Law Society’s ‘lack of dialogue’ over ABS

ABS allow non-lawyers to provide certain legal services and invest in law firms.

Speaking to Scottish Legal News, Fiona Dalton, president of the Scottish Law Agents Society (SLAS) said that most solicitors were aware of the objections of the previous Lord President, Lord Gill to the scheme and were surprised to learn that one had now been approved.

She said: “No details are known as to when the scheme was approved, what had been objectionable and how these objections were resolved”.

The news came to light in a comment by SLCC chief executive Neil Stevenson, published last week, who said the SLCC was “consulting on how … funding should be arranged, following the Law Society of Scotland’s authorisation as an ‘Approved Regulator’ of new business models allowing non-solicitor ownership.”

A spokesman for the Scottish government, however, told SLN: “It is correct that the Law Society regulatory scheme has been approved but the Law Society has not yet been authorised to act as a regulator of alternative business structures.”

Ms Dalton said: “I am concerned that there has been a lack of dialogue with the legal profession about all this. Most solicitors will be amazed to have learnt all this through the SLCC instead of the society.

“The big question is who is pushing this and how much is being spent on seeking approval and now authorisation.”

Lorna Jack, chief executive of the Law Society of Scotland, said: “We know there is some interest within the profession in terms of new business models, permitted by the Legal Services (Scotland) Act 2010, which would for the first time allow solicitors to bring in external capital or to set up licensed legal services providers with other professionals, such as accountants, to broaden the range of services they offer their clients.

“Alternative business structures have been up and running in England and Wales since 2012 so continuing delay risks placing Scotland at a real competitive disadvantage.

“Following discussions with the Lord President’s Office and the Scottish government, we submitted a revised draft regulatory scheme to Scottish ministers in December 2015. The government has now approved the scheme but has not yet authorised the Law Society as an approved regulator.”