Requirements

To set up an LP, you must have - qualifying investors, a Scottish solicitor entitled to practise in Scotland without restriction (the solicitor does not need be an owner, they can be an employee), a head of legal services and a head of practice.

The four main requirements of an LP are -

  1. Have a licence issued by the regulator ie the Law Society of Scotland 
  2. Meet the ownership criteria
  3. Have designated roles within the organisation (see below)
  4. Carry out key duties (see below)
3. Designated roles

There are two designated roles within a Licensed Legal Services Provider.

A head of legal services A head of practice (or committee)
Must be a solicitor entitled to practise in Scotland without restrictions Not required to be a solicitor or have legal training
Responsible for ensuring compliance with the regulatory objectives and professional principles Responsible for ensuring compliance with regulatory scheme and the terms and conditions of the licence
Must meet suitability criteria imposed by the regulator Must meet suitability criteria if a solicitor or a fit and proper test if a non-solicitor
Can be the same person as listed in column one
4. Key duties 
Comply with the regulatory scheme Comply with the regulatory objectives Adhere to the professional principles
General Provisions Support the constitutional principle of the rule of law and the interests of justice Support the proper administration of justice
Practice Rules Protect and promote the interests of consumers and the public interest generally Act with independence (in the interests of justice)
Licensing Rules Promote access to justice and competition in the provision of legal services Act with integrity
Compensation Rules Promote an independent, strong, varied and effective legal profession Act in the best interests of their clients (and keep clients' affairs confidential)
Payment of fees Encourage equal opportunities Maintain good standards of work where exercising before any court a right of audience, or conducting litigation in relation to proceedings in any court
Provision of annual performance reports to the regulator Promote and maintain adherence to the professional principles Comply with such duties as are normally owed to the court by such persons
Meet their obligations under any relevant professional rules
Act in conformity with professional ethics
Other requirements

Similar to a traditional legal practice, there are other requirements for LPs -

  1. A client relations manager
  2. A cashroom manager 
  3. Professional indemnity insurance
  4. Managers in the LP must contribute to the Client Protection Fund.