The whole of the legal fraternity in UK is abuzz with discussions about the changes that the legal profession shall undergo after the implementation of the Legal Services Act (LSA). To be specific, people are worried about the Alternative Business Structure (ABS) that the Act propounds.
In its 3rd March, 2010 edition, “The Lawyer” reported that nearly 40 senior clerks wined and dined at The Ivy while discussing the challenges facing the profession’s commercial development.
The Legal Services Reform Fact Sheet issued by the Ministry of Justice (MOJ) interalia states that:
“Alternative Business Structures are bodies that have lawyer and non-lawyer management and/or ownership, and that may carry out solely legal services or legal services in combination with other non-legal services. ABS will also allow for increased flexibility: non-legal firms such as insurance companies, banks and estate agents will have the freedom to realize synergies with legal firms by forming ABS firms and offering integrated legal and other professional services.”
The M.O.J. expects that allowing new providers into the marketplace should lead to innovation and price reductions. This should result in more people being able to access legal services.
So the crux of the whole concept is all about:
Flexibility;
Increased efficiency;
Participation of lawyers and non-lawyers to provide “one stop shops” to the customers of legal services;
Effective competition;
Wider opportunities for better quality;
Cheaper legal services for consumers in UK;
Currently of course, the whole scenario is extremely dilute with an air of uncertainty about every aspect of the matter and people are busy discussing the regulatory aspect of the ABS regime.
One of our legal consultants, who is deeply looking into the scheme of Alternative Business Structure (ABS) as contemplated in the LSA, was researching as to whether the creation of synergies between law firms and non-legal firms could be stretched to an extent where Indian LPOs can create ABS synergies with UK law firms. Extensive reading and research on the available materials in the matter did not help. He however proceeded to write to an UK Solicitor asking, whether in the ABS regime an Indian LPO can create synergies with a UK law firm to provide cost effective solutions and services. In reply, the considered opinion of the UK Solicitor was, “There is no reason why an Indian LPO could not be part of the ABS”.
This is where the Indian LPO companies now need to put their thoughts into. As for the aspiring Indian LPOs, it is worth taking further legal opinions from Solicitors in England and Wales and gauge whether they can open up a new horizon for themselves. Being a part of the ABS and having synergies with UK law firms would definitely mean a high level of business activity.
Undoubtedly, Indian LPOs are famous in the UK and US for providing cost efficient and high quality services. We believe that given a chance to be a part of the ABS regime, Indian LPOs can be of great help to the MOJ in giving shape to its proposal of providing cost efficient legal services to the people of UK.
Now we just need to watch as to how the regulatory provisions of the LSA takes shape in UK.
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