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From a profession to a business

Tuesday, June 26, 2012
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The Gazette reports some interesting research on the impact of the Legal Services Act 2007 on the way law firms are run. Since March, firms have been able to apply for a licence to adopt an Alternative Business Structure - a change known as “Tesco Law” for the way it allows law firms to access outside funding.

The research notes that, although firms see the opportunity to obtain such funding as a “compellign reason” to become an ABS, only seven firms have in fact done so to date, with the sole “big name” being Co-operative Legal Services. Perhaps this is due to worries over loss of control, which many respondents saw as the biggest barrier to conversion to an ABS structure.

So, is the law becoming more of a profession and less of a business? Your students may wish to consider the advantages and disadvantages for both law firms and the public of this change…



 

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