Glossary

Alternative Business Structures
An Alternative Business Structure (ABS) is new structure for law firms likely to be introduced in 2011. Nicknamed “Tesco Law” (although as yet Tesco have not indicated any intention to become involved in the provision of legal services) an ABS could take several forms including:

  • a firm in which more than 25 per cent of the managers were non-lawyers
  • a firm which has been taken over by a non-lawyer enterprise
  • a firm which is a company and which has been floated on the stock exchange, or
  • a firm which provides both solicitor services and non-legal services (i.e. a multi-disciplinary practice).

Alternative business structure will need to be licensed by a licensing authority as a licensed body and the Legal Services Board is currently consulting on their likely structure and regulation.

Approved Regulators
An Approved Regulator is a regulatory body which has been approved under the Legal Services Act 2007 (LSA) to authorise individuals or firms to undertake certain reserved legal activities – the activities depending upon the stats of the person being regulated. There are a number of approved regulators named in the LSA, namely:

  • the Law Society acting through its independent regulatory body, the SRA,
  • the Bar Council, acting through the Bar Standards Board,
  • the Master of Faculties – regulating notaries
  • the Institute of Legal Executives – operating through ILEX Professional Standards
  • the Council for Licensed Conveyancers,
  • the Chartered Institute of Patent Attorneys and the Institute of Trade Mark Attorneys, and
  • the Association of Law Costs Draftsmen

Legal Disciplinary Practice
A legal disciplinary practice is a new practice structure for law firms which permits the establishment of a regulated practice comprising lawyers from different regulatory backgrounds (and up to 25 per cent non-lawyers). Note however, that this is not the same as a Multi-disciplinary practice which is one made up of professionals from various backgrounds (e.g. accountants, surveyors, architects) and which is still not permitted, and an Alternative Business Structure which allows, inter alia, for outside participation and ownership.

Multi-Disciplinary Practice

A multi-disciplinary practice (MDP) is a firm which involves a number of different professionals from diffrent backgrounds as owners or managers of a business – for example solicitors together with other lawyers and non-lawyers such as accountants, surveyors and architects. The MDP, which is currently not permitted to undertake legal work under the Solicitors’ Code of Conduct, must be distinguished from the Legal Disciplinary Practice (see above) which is.

Statements of Insolvency Practice (SIPs)

SIPs are issued to insolvency practitioners with a view to maintaining standards by setting out required practice and harmonising practitioners’ approach to particular aspects of insolvency.

The purpose of SIPs is to outline basic principles and essential procedures with which insolvency practitioners are required to comply. Departure from the standards established in SIPs is a matter that may be taken into account in the event of disciplinary or regulatory action.

SIPs can now be downloaded from the Insolvency Practitioners Association Web Site where they are divided between England & Wales, Scotland and Northern Ireland.