LSB confirms October 2011 as start date for ABSs

The Legal Services Board (LSB) today confirmed the timetable for reform and modernisation of the regulation of the legal services sector, which will see the first Alternative Business Structures (ABS) able to apply for licences in mid 2011.

Legal Services Board Chairman David Edmonds said:

“Today’s announcement is a significant milestone. It gives certainty to the Approved Regulators, the firms they regulate and to potential new entrants alike. Moreover, it paves the way for real benefits to be delivered to consumers on the fastest possible timetable.

In getting to this position, we have worked closely with the Solicitors’ Regulation Authority (SRA), the Council for Licensed Conveyancers (CLC) and other bodies who are considering applying to regulate Alternative Business Structures. I welcome their ambition and commitment to the process.

The timetable, which will see firms applying for licences next summer and being licensed to provide services from 6 October 2011, is challenging, but realistic.

It gives time for regulators to prepare their licensing framework for ABS – frameworks that we will ensure focus on outcomes for consumers, rather than over-complicated rules that stifle innovation and better value.

We have been clear that we want traditional firms to have similar flexibility as well. So we welcome the commitment of the SRA to move ahead with outcome-focused regulation on a similar timetable.
But we will also work with all potential licensing authorities to ensure that they have not just the framework, but also the skills and infrastructure in place to monitor these new businesses to give consumers confidence that necessary safeguards are in place.”

The LSB will shortly publish guidance explaining how applications for becoming licensing authorities for ABS from Approved Regulators will be evaluated, following a consultation exercise. This will be followed by final guidance to potential licensing authorities on the content of their regulatory frameworks.

Taken together, these documents will allow the LSB to consider applications from those seeking to become licensing authorities later this year.

For more details, go to the LSB press release.