2. abs toolkit: where are we
all heading
1 introduction to LSA
2 what’s been happening
what changes might look like moving
3
forwards
3. timeline
march OFT “competition in the professions” report recommends
2001 unjustified restrictions on competition should be removed
Sir David Clementi produces his government commissioned
dec
report “Review of the regulatory framework for legal services in
2004
England and Wales”
oct Legal Services Act receives royal assent
2007
march Legal disciplinary practices authorised
2009 by SRA comprising 25% non-lawyers
Office for Legal Complaints scheduled to
oct
open doors (legal ombudsman)
2010
oct Alternative business structures
2011 scheduled to “go live”
4. Legal Services Act 2007
single
oversight
regulation
competition,
transparency,
alternative innovation office for
business legal
structures complaints
5. Legal Services Act 2007
8 Regulatory Objectives
Section 1 of the Act defines eight regulatory objectives:
•Protecting and promoting the public interest;
•Supporting the constitutional principle of the rule of law;
•Improving access to justice;
•Protecting and promoting the interests of consumers of legal services;
•Promoting competition in the provision of legal services;
•Encouraging an independent, strong, diverse and effective legal profession;
•Increasing public understanding of the citizenʼs legal rights and duties;
•Promoting and maintaining adherence to the professional principles;
6. Legal Services Act 2007
5 Professional Principles
• Authorised persons should act with independence and integrity;
• Authorised persons should maintain proper standards of work;
• Authorised persons should act in the best interests of their clients;
• Persons who exercise before any court a right of audience, or conduct litigation in relation to
proceedings in any court, by virtue of being authorised persons should comply with their duty to
the court to act with independence in the interests of justice, and
• Affairs of clients should be kept confidential.
6 Reserved Legal Activities
• the exercise of rights of audience (ie appearing as an advocate before a court);
• the conduct of litigation (ie managing a case through its court processes);
• reserved instrument activities (ie dealing with the transfer of land or property under specific legal
provisions);
• probate activities (ie handling probate matters for clients);
• notarial activities (ie work governed by the Public Notaries Act 1801); and
• the administration of oaths (ie taking oaths, swearing affidavits etc)
7. “reserved legal activities”
many regulators looking to extend “reserved activities” which can
be carried out by their members
parallel legal services industry of “non-reserved” already evolved
8. the new world regulators
office for
legal
complaints
(end 2010)
the
MOJ
the institute of
LSB insolvency
service
professional
will writers
unregulated
master of
CIPA/ assoc of
SRA CLC BSB ILEX ITMA
the
faculties
law costs
draftsmen
ACCA/
ICAS
patent/ law
licensed legal accountants insolvency claims will legal panel
solicitors barristers TM notaries costs websites
conveyancers executives (probate) practitioners manager writers publishers managers
attorney draftsmen
does not provide simplification and clarity for public
likely to be significant confusion over what the definition of a “qualified lawyer” is, and what the
implications of this are regarding qualifications, insurance and “reserved activities”
(67% of consumers think that will writers are qualified solicitors)
Q: is this PHASE 1?
9. ABSs
reserved
approved licensed
regulators authorise bodies to provide legal
activities
- HoLP-head of legal practice
- HoFA -head of finance
- non-authorised owners, managers
- “fit and proper” test
10. Q: who will be regulator of
choice?
race towards the bottom? reserved legal
activities
ABSs likely to select path of least
resistance outcomes
focussed
regulation
nb: sra intending that ABSs they regulate,
non-reserved activities will be regulated to
the same extent as reserved. This may cost
make solicitors’ practices less attractive to
new entrants indemnity
insurance
11. changes to legal services:
law firms of the future (reserved)
virtual law solicitors business
firms chambers chambers
solicitor umbrella
plcs
networks branding
large ABS niche/bespoke/
local level ABS
brands traditional
12. changes to legal services:
what these changes might look
like moving forwards
client
acquisition &
retention
types of legal
product how its
processed
lawyer
displacement
13. stripping out the legal
work
business processes may aim to strip out any
elements of legal process which are:
a) expensive to deliver
b) high risk
c) can be delivered in a more cost effective
manner in a different way or by BPO/LPO
example: indemnity insurance replaces
conveyancing due diligence?
14. creating vertical client-led
“tiered” products
level 1
documents and forms assembly plus “how to” guides
level 2
“hand holding” / document checking service
level 3
full traditional “bespoke” service
15. creating vertical client-led products:
phase 2 - adding the horizontal
delivering “more than law”
level 1
documents and forms assembly internal legal services
plus “how to” guides
internal non-legal services
level 2 cross selling
“hand holding” / document
checking service (internal +
external) external legal services
level 3
external non legal services
full traditional “bespoke” service
16. 1st point of contact
the Holy Grail
of client
acquisition
17. where do clients come
from?
existing clients / new clients
referrals
repeat business
“traditional”
commercial
relationships
referrals “through
from existing advertising networking website
the door”
clients
18. warning
DO NOT UNDERESTIMATE THE
AGGRESSIVE APPROACH TO THE
ACQUISITION OF CLIENTS NEW
AND EXISTING ENTRANTS TO
THE PROFESSION WILL ADOPT
19. where will clients come from?
the risks
important to understand %ages of client sources to understand exposure to risk
21. the next big ideas
will be inspired by
technology
22. reach of IT
client web 2.0, social media, data handling, internal cross selling,
acquisition & communication and client dialogue
retention
commoditised, workflow based, FOC,
types of
tiered service levels, holistic, legal triage, annual fees
legal product
paperless files, electronic signatures, e-
how its discovery, risk management, exception
processed handling, lawyer displacement, MI,
23. lawyer displacement
role of IT
docs out: risk man:
receipt of docs in: progress of
generates and accounts managing of all
instruction & data files plus case (or stops
sends all e- function deadlines AML
opens e-files scanning in system)
letters & docs etc
document
some client exception
checking/ advocacy etc
liaison handling
drafting
role of lawyers (support to workflow)
24. IT is the preferred medium of
communication*
*and one third of all IT users prefer mobile internet over PC access
26. one final thought...
carpe diem
the clock is ticking
lawyers have 12 months to get their house in order and
steal the lead on their abs competitors
time is of the essence
27. next time...
abs toolkit: how do we get there
new law firm & management structures to
consider
jobs in law
legal services move to commoditisation
lots of case studies
loads of opportunities
