Pace of ABS approvals quickens as total reaches 59

The pace of ABS approvals by the SRA has gathered pace over Christmas and the New Year, with the total now standing at 59.

Everyman Legal, the Oxfordshire ‘virtual’ law firm which announced plans to launch a franchise operation and create business hubs for commercial lawyers across the country at the start of last year, is one of them.

The firm, which combines a network of freelance solicitors working from home with online sales of templates and documents, was the first to reveal plans for a stock exchange listing, on Sharemark, in October 2011.

Speaking to Solicitors Journal today, James Hunt, founder of Everyman Legal, said the firm had decided to defer its listing until the franchise was up and running.

He said the firm, which is a limited company, already had external loan funding from five ‘high net worth individuals’.

Hunt said that when Everyman Legal becomes an ABS, on Monday next week, the investors’ loan notes would convert into shares.

“When we file our annual return in the autumn, their names will be publicly available,” he said.

Hunt added that the firm also had solicitor shareholders, but he retained the majority of the shares.

In contrast John Dickerson (pictured), non-lawyer practice director and partner at Anderson, Longmore & Higham in West Sussex, said the firm was “forced to become an ABS” because it had been an LDP for a couple of years.

“It took me a year to get us passported through to ABS and it’s been a struggle. We chose to apply in January because we knew the process was there and we had to do it at some stage.

“It’s a shame the SRA phased out LDPs. We were happy to trade as that and the term ‘alternative business structure’ does not really suit us at all.”

Dickerson said the regulator asked for “quite a lot of information” on all the firm’s partners and managers, and it was “quite a sweat” to get it all together.

He added that the firm had to nominate its COLP and COFA as part of the application process, but this was only acknowledged once the licence was approved.

Tassells, based in the historic market town of Faversham in Kent, also had its ABS licence approved by the SRA this week.

The firm, established in 1792, is a general civil practice covering conveyancing, family, probate and commercial work, and specialising in education and judicial review.

The firm has five offices, in Chichester, Petworth, Storrington, Billingshurst and Midhurst.

Joining the growing number of personal injury firms to become ABSs is Jigsaw Law, based in Ellesmere Port.

Stephensons, based in the North West and one of the biggest civil legal aid firms in the country, will become an ABS on Monday next week.