The Legal Services Act 2007 Free Guide
6th October 2011
What are the key parts of the new Legal Services Act 2007?
On Thursday 6th October 2011, the Legal Services Act 2007
finally comes into force. This Act will have a significant impact
on legal firms' business activities.
This five part guide, produced by Mitchell Charlesworth's legal
accounting experts, explains the law in detail and how it will
affect your law practice now and in the future.
This new law prescribes
several key changes to the legal profession:
1. It will de-regulate the provision of legal
work, such that companies who do not offer legal services as their
primary business can now undertake legal practice. This has also
been called 'Tesco-law' because technically
supermarkets would now be able to offer legal services and
purchasing legal services will now become as simple as shopping for
everyday items.
Could this become the
new look shopping basket after October 6th 2011?
2. There are significant changes to the rules
concerning Incorporation and Alternative Business Structures. For
the first time, anyone can own a legal firm, even if they do not
have a legal background. This opens up the possibility for private
equity backing flotation on the stock market.
3. As a result of the changes to the Alternative
Business Structures regulations, law firms can also add non-legal
activities to their practice and become a 'one-stop shop' for
professional services.
4. New Solicitors' Accounts Rules are published
by the Solicitors' Regulation Authority (SRA) which will have a
major effect on your accounting function. The principal purpose of
these new accounting rules is to protect clients' money that law
firms might be holding on their behalf.
5. The SRA has stated that every legal firm must
appoint a COLP (Compliance Officer for Legal Practice) and a COFA
(Compliance Officer for Finance and Administration) under the new
Act.
Go to Part 2: Legal Services Act
2007 - What your firm should do NOW
For more information, please contact Mike Buxton on tel:
0151 255 2300 or email: mike.buxton@mitchellcharlesworth.co.uk