SRA seeks to streamline process for applying for ABS licence
The Solicitors Regulation Authority has streamlined its processes for applying for an alternative business structure (ABS) licence.
The changes are contained in the latest version of the SRA Handbook, published on 1 November, and include the removal of the need for the SRA to approve each individual manager in an ABS corporate owner.
A background paper before the SRA Board said: "Our experience of authorising ABS indicates that the requirement adds complexity, delay and cost to the authorisation process for firms and for the SRA but is not necessary to address an identified issue.
"This is particularly so as individuals within corporate owners are often remote from the legal services business seeking authorisation itself, so have limited influence and present limited risk to the delivery of legal services. The corporate body as a whole must be approved by the SRA. Concerns about individual managers that may affect the suitability of the body to own a legal business can be considered as part of this approval."
Other changes in the Handbook include:
- Amendments to the Separate Business Rule that enable solicitors to offer other professional services;
- Removing the need for the compliance officers of small firms to apply to be licensed by the SRA; and
- Expanding the exemption for firms to obtain an accountant's report
Paul Philip, SRA Chief Executive, said: "These changes are part of our commitment to reforming our regulatory model, encouraging growth in the sector, and ensuring our approach is proportionate. We have also taken another step towards opening up routes into the profession by allowing qualification through the apprenticeship route.
"A large number of the changes we have made have come from suggestions made by those in the profession. We will always look at ideas brought to us and carry them through if we believe they have merit, as these latest amendments show."
The Handbook can be found here.
The local authority legal practices to have obtained ABS licences are Buckinghamshire Law Plus (run by Buckinghamshire County Council and the Buckinghamshire and Milton Keynes Fire Authority), HB Public Law (the shared service run from Harrow Council) and LGSS Law (the shared service set up by Cambridgeshire and Northamptonshire County Councils).
The Cabinet at Essex County Council recently backed plans for Essex Legal Services to apply for an ABS licence.