Quindell Legal Services the latest ABS

Quindell Legal Services has obtained an ABS licence from the SRA, its parent company announced  yesterday. The ABS will trade as Silverbeck Rymer.

Outsourcer Quindell Portfolio revealed its plans to purchase the law firm for almost £20m in January.

In October it announced an agreement to buy another personal injury firm, Pinto Potts, based in Hampshire, for around £14m.

Earlier this month Quindell confirmed an agreement with Abstract Legal Holdings, the parent company of Accident Advice Helpline, to buy the claims management company for almost £15m in cash and more than £28.5m in new shares.

In a trading statement yesterday, the company said it was “delighted” by the SRA’s approval of its ABS licence, which is effective from Friday this week.

Quindell said it welcomed the government’s recent proposal for a new fast-track fixed fees structure for RTA portal claims, even though the fee for personal injury cases worth up to £10,000 will be cut from £1,200 to £500.

The outsourcer quoted the Law Society as describing the proposed costs as ‘woefully inadequate’ and warning that ‘many solicitors will not be able to afford to carry on doing this type of work’.

The statement went on: “In contrast, Quindell has put in place significant expansion plans over the next 12 months to drive the business forward via organic growth, creating over 300 new positions within Quindell Legal Services.

“Even in light of the most recent government announcement to enter a period of consultation regarding whiplash injuries and raising the small-claims track threshold from £1,000 up to £5,000, the board believes that Quindell is uniquely placed to operate post this suggested regulatory change, even at its extremes, and will continue to be able to operate a profitable business model during this period of significant industry consolidation.”

Rob Terry, chairman and chief executive of Quindell said the company welcomed any proposals that “protect consumer rights and champion industry change”.

Terry said: “Above all else, the market needs clarity. Our combined model and diversified offering means we can still operate profitably within the scope of the new proposals whilst supporting lowering the cost of claims for the industry as a whole.”

Antony Townsend, SRA chief executive, commented: “As I said back in October, ABS applicants have proved to be highly innovative and forward thinking, whether they are existing legal bodies looking to grow successful business models, proposing to grow by acquisition or creating joint ventures, or entirely new entrants to the legal services market wanting to take market share in areas of law traditionally serviced purely by all-lawyer firms.

“This application is yet another example of that innovative thinking.”