Concerns mount over Legal Services Act

Concerns mount over Legal Services Act

Saffrey Champness appoints law firm mergers expert as managing partner but denies it is part of wider strategy to create multi-disciplinary practice

THE APPOINTMENT of the first non-accountant as boss of a top-20 firm might be seen as an indicator that the structure of practices is set to move to a much more flexible model.

Yet Jonathan Fox’s promotion to managing partner at Saffrey Champness might prove to be the exception rather than the rule.

Fox is a business manager by trade; he held roles at law firm DLA Piper and St Philips Chambers, where he oversaw the largest merger seen at the Bar.

With his merger experience in law firms, plus new rules from October 2011 opening up the possibility of multi-disciplinary practices (MDPs) and alternative business structures (ABSs), is his appointment a sign that Saffreys is lining up a legal acquisition?

Fox says turning Saffreys into an MDP is not part of the firm’s current strategy.

“Our great strength is being independent. We’re open to ideas, but not interested in mergers,” said Fox.

Opening up firms’ structures to allow lawyers and other professionals into a partnership is a key plank of the Legal Services Act. However, there are still many details to be thrashed out that.

The ICAEW has voiced concerns over the risk of increasing the regulatory burden and cost to serve in an MDP or ABS. It is worried bringing a lawyer into a partnership could bring the firm under the Solicitors Regulation Authority’s gaze. The institute itself might come under the oversight of the Legal Services Board (LSB), as well as the FRC.

Time is running short to deal with these issues. But the LSB is confident that the aim of the Act – to open up legal services beyond lawyers – will be achieved.

The board is developing a memorandum of understanding with interested parties that will guide how they work together.

Further reading:

legalservicesboard.org.uk

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource