Legal Services Act - act now!

Due at the end of 2011, the Legal Services Act could change the legal profession in  England and Wales forever. Many law firms are already actively looking at the threats and opportunities that the Act presents.

How can you take advantage of it?

The advantages of the Act include the ability for law firms to receive external investment from non lawyers. This could take the form of a sale of equity or a flotation on the stock market. Various private equity houses are already considering investments in this new asset class.

Multi disciplinary practices will also be accelerated by the act with cross profession mergers between solicitors and accountants highly likely.

However, the most dynamic impact is likely to be the creation of Alternative Business  structures enabling non-lawyers to provide legal services. Dubbed "Tesco Law", various brands including Co-op and RAC will be competing with traditional solicitors to offer low cost high volume legal work.

One way for existing solicitors to counter the threat of Tesco Law is to become part of a legal brand themselves. Being part of a brand will attract large savings on core services as buying power is increased whilst also creating a strong market presence for the benefit of its members. Members will benefit from marketing campaigns and business development techniques previously unavailable to them as smaller stand alone firms.

There is no doubt that consumers will have a greater choice than ever in buying legal services next year. For solicitors, the opportunities in the Act require planning, an open mind and the desire to adapt.

Contact us

For more information on preparing for the Act, attracting investment or joining a brand contact Jon Yantin - jon@lawinvest.co.uk

Jon is a director of Law Invest Asset Management Ltd, owner of the High Street Lawyer.com brand.

For more information on our services to the legal profession, please contact a member of our Legal sector team.