1. The changing world of legal services
Patrick Reeve

2. Markets outpace regulation
LSB estimate % of the turnover of the legal services market in the UK (£29 billion in 2013) is generated by alternative legal services providers r
‘Unregulated’ and regulated providers offer services together e.g. Rocket Law, Legal Zoom
Legal Process Outsourcing
‘Unbundled’ services

3. ABS & MDP Are the accountants coming to get us?
ABSs provide a mix of legal and non legal services
MDPs provide a range of professional services ‘in house’
Wide definition of ‘legal activity’ in Legal Services Act
MDP changes a recognition that the SRA is a legal services regulator!
‘Legal activity’ by non legal professionals under suitable external regulation or ‘subsidiary and necessary’ will not be SRA regulated
Are the accountants coming to get us?

4. ‘Separate’ & ‘In Firm’ Why not the other way round?
Firms could have separate businesses with other professionals
Could employ accountants in house
It’s not just about large firms
High Street firms well placed to provide multiple services
Opportunities to attract investment
Demand there from SME clients – LSB research shows higher incidence of legal problems than individuals and more likely to take action but less likely to use lawyers.
Cost to economy >100 bn per year

5. Consultation Proposals
Separate Business Rule
Remove prohibition on links with separate business providing non reserved legal activity
Focus on client protection, referrals and not splitting reserved services
Recognised Bodies
Restrictions on activities in Administration of Justice Act –list of permitted activities via Practice Framework Rule 13.2
Adding accountancy  
Professional and specialist support services to business, including: human resources; recruitment; systems support; outsourcing; transcription and translating

6. Consultation www.sra.org.uk/seperatebusiness Responses
Online questionnaire to

7. Discussion/Questions
Your feedback, questions and issues
Prompts
What does your firm do in house?
What links does your firm have with a separate business?
How might this change in light of the consultation proposals?
What are the implications for COLP/COFA?