Law Society votes in favour of regulating ABS firms
The Law Society's ruling council has voted in favour of allowing the SRA to regulate ABS firms. The motion was carried by 54 votes to 16.
The Law Society's ruling council has voted in favour of allowing the SRA to regulate ABS firms. The motion was carried by 54 votes to 16.
As a result, the society will apply to the Legal Services Board for the SRA to become an ABS licensing body. The first licenses are due to be issued this summer and the first ABS firms are due to open for business on 6 October 2011.
The executive committee of the Sole Practitioners Group (SPG) will vote later today on whether to push for a postal ballot of the whole profession on the issue.
Speaking to journalists after the vote at Chancery Lane, Des Hudson, chief executive of the Law Society, said the criticisms made by Clive Sutton, honorary secretary of the SPG, were not 'credible' (see solicitorsjournal.com 18 March 2011).
Hudson went on: 'We have an established democratic process in the society. It's called the council of the Law Society.
'Clive has strongly and consistently held beliefs about ABSs. It is open for him to stand for the council.
'ABS is the law of the land. The Act requires the LSB to become a licensing authority if nobody else will. It is better that the Law Society and the SRA are in there being involved in regulation, than not.'
Hudson added that the move would change the way law firms operated.
'The Law Society believes it is right that we should seek to regulate ABS and we want to be certain that the regulatory framework guarantees the same levels of probity and consumer protection that has been the tradition of the solicitors profession.
'An ABS business model will not suit every firm, and over the coming months the society will run a programme of national road shows offering advice and support for the profession.'