UK Unveils Legal Services Bill
The UK Government published the controversial Legal Services Bill, signalling the onset of a radical shake-up to make the UK the most liberal legal market in the world.
The long-awaited legislation is expected to take effect from 2008. It proposes radical plans for Alternative Business Structures allowing law firms to form practices with other professionals, such as barristers and accountants, and attract external investment. The move is thought likely to encourage supermarkets, banks and accountants to acquire legal practices.
However, investment will be subject to a strict vetting procedure dubbed the 'Fitness to Own' test, overseen by frontline regulators such as the Law Society and the Bar Council. Firms will also be required to nominate formal heads of practice, finance and administration if they are to be eligible for outside investment.
The Bill includes additional provisions for a central Office for Legal Complaints (OLC) and an over-arching regulator, dubbed the Legal Services Board (LSB), with the ability to strip underperforming professional bodies of their powers.
The Bill could be an interesting development for Singapore, which historically looks to UK for reform ideas. In Australia, the first listing of law practices, Integrated Legal Holdings, is about to take place in December 2006.
The long-awaited legislation is expected to take effect from 2008. It proposes radical plans for Alternative Business Structures allowing law firms to form practices with other professionals, such as barristers and accountants, and attract external investment. The move is thought likely to encourage supermarkets, banks and accountants to acquire legal practices.
However, investment will be subject to a strict vetting procedure dubbed the 'Fitness to Own' test, overseen by frontline regulators such as the Law Society and the Bar Council. Firms will also be required to nominate formal heads of practice, finance and administration if they are to be eligible for outside investment.
The Bill includes additional provisions for a central Office for Legal Complaints (OLC) and an over-arching regulator, dubbed the Legal Services Board (LSB), with the ability to strip underperforming professional bodies of their powers.
The Bill could be an interesting development for Singapore, which historically looks to UK for reform ideas. In Australia, the first listing of law practices, Integrated Legal Holdings, is about to take place in December 2006.
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