Firm leaders evenly split over ABS issue
Almost half the managing partners who attended a high-level private summit held by banking group Investec are committed to investigating the use of alternative business structures (ABSs) in their businesses.
Investec handpicked a selection of the heads of leading UK law firms to the meeting, which was held under Chatham House rules, to discuss ways
of embracing the Legal Services Act (LSA).
A poll of attendees revealed that 45 per cent of firms are considering setting up ABSs, with 36 per cent looking to become multidisciplinary practices and 18 per cent mulling the legal disciplinary panel route.
Jonathan Harvey of Investec’s specialised private banking division said law firms were still nervous about selling equity to external funders.
“There are still a lot of unknowns with external investment because, culturally, it’s a big change for a law firm,” he said. “It may be that new entrants to the market are more interested.”
Panellists at the event, which included Berwin Leighton Paisner managing partner Neville Eisenberg, SJ Berwin chief executive Keith Wood and Fox Williams senior partner Tina Williams, also warned against a rush to sell equity in law firms.
They raised the concern that firms could rush to raise finance without a clearly defined business strategy.
Readers' comments (1)
Anonymous | 9-Jun-2010 2:58 pm
The ABS/Tescolaw issu should be reconsidered with the following items on the agenda:-
1. Post-banking crisis context.
2. Rule of law.
3. English legal system as a pillar of the British claim to be a leader in western civilisation.
4. Social and economic impact of the down grading of lawyers and law firm staff in terms of pay and conditions.
5. Modern human nature.
6. Ideal character profiles of lawyers and all staff who work in law firms.
7. Character profiles and winning ways of successful business people who may buy shares in law firms.
8. 20:20
9. Ratio of men to women at all the levels of a law firm before ABSs and the anticipated change after ABSs.
10. Conflict of interest.
11. Constitutional role of the legal profession.
12. Lessons of the Home Information Pack fiasco.
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