Thirteen firms call for support of reform
As representatives from Scotland’s legal community we write to express our support for arguably the most important change to our profession in its history - alternative business structures (ABS). ABS give law firms greater flexibility in the way they are run as businesses, such as permitting the investment of external capital, promoting non-lawyers to the partnership and offering combined services, such as accountancy or surveying and law.
We represent an array of Scottish law firms, from the very largest to some far smaller. Often we are competitors, but today we are writing united in our belief that the Legal Services Bill in Scotland must be supported by the legal community.
The bill which gives access to ABS has been introduced following a finding by the OFT that lifting the current regulatory restrictions would benefit consumers and lead to innovation in the provision of legal services. ABS will empower our businesses to better meet our clients' needs, from allowing firms on the high street to decide how to structure their business to compete more effectively, to ensuring our biggest firms can contend with the legal giants south of the border. Without these changes there is a real risk that Scotland's law firms will be left unable to compete.
Today many law firms headquartered in England & Wales have offices in Scotland, just as many Scots firms have successfully grown south of the border – and we thrive on that competition. But in England & Wales the Legal Services Bill has already been passed and ABS is to become a reality: Law firms of all types and sizes are investigating new opportunities to fund growth and invest in their businesses. These are law firms with whom we compete for work both in Scotland and in England & Wales.
To access ABS, if it were not permitted in Scotland, would require re-registering in England & Wales. For smaller firms this is not a viable option, and for larger firms it is not a palatable option as it would have damaging and complicated side effects in Scotland, such as the loss of training places for trainee solicitors in Scots law. It could also result in fewer transactions being carried out under Scots law, with adverse consequences for the Scottish court system and, ultimately, the wider Scottish economy.
To ensure the continuing success of Scotland's thriving legal industry, we feel it is crucial that Scottish law firms are given the option to access ABS and a level playing field with England & Wales is maintained. We would like to encourage Law Society of Scotland members to vote in favour of the Legal Services Bill at the SGM on 25 March and MSPs to support the bill as it progresses through the Parliament.
Yours faithfully,
Anderson Strathern LLP
Austin Lafferty Solicitors
Blackadders LLP
Dundas & Wilson LLP
Harper MacLeod LLP
HBJ Gateley Wareing LLP
Lindsays WS
Maclay Murray & Spens LLP
McGrigors LLP
Semple Fraser LLP
Shepherd and Wedderburn LLP
Pagan Osborne
Turcan Connell