It has been recently announced that there are currently 44 pending applications with the Solicitors Regulatory Authority for alternative business structures regarding the provision of legal services.
The opening up of the legal market has meant that increasingly law firms will need to consider whether they need to change the way they provide legal services in the future. A number of firms have already formed important investment alliances to combat the competition from companies such as CO-OP, who have begun a significant recruitment drive for solicitors and legal executives.
The Government has encouraged the need for competition in the legal market. There are early indications that the move will lead to an increase in fixed fees, the provision of specialist services and improved communication with the client as a result of the introduction of new technology.
Many firms will contest that they are already providing a high quality service but the introduction of more competition in the market will leave the consumer as the ultimate judge and jury. Not all legal firms are concerned about the increase in competition but instead see it as an opportunity to improve the service they already provide.
One concern should be the question of how these new businesses will be properly regulated. While many law firms have stringent processes in place to comply with the current regulations, these processes often having been developed over a number of years, what are the requirements for these new businesses to comply with these regulations?
The change in the law was dubbed “Tesco Law” but surprisingly Tesco do not appear to be at the forefront of this legal services revolution but only time will tell if they are willing to compete for a slice of the market and provide “legal services for less”.
