The famous 34

The Solicitors Regulation Authority received ten applications from prospective alternative business structures on 3 January, the day it started operating as a licensing authority. The number rose to 34 by the end of the first week of the year. It reached 50 on 12 January.

The application process is anonymous, with some organisations having specifically requested confidentiality.

We have identified below 30 likely contenders. Sources close to the SRA suggest several small firms have applied for ABS conversion '“ more than anticipated '“ after joining forces with local business advisers. These are proving challenging to track down but we will be continuing our investigations.

Smaller law firms start with an advantage in the race to become the first ABS as their structure is familiar to the SRA, which could make clearance a quick process. New and larger entrants with complex structures will take longer to assess. So, while all eyes are on The Co-op, it could be that the first entities to emerge as ABSs are unknown small firms.

AA

Already present in the market, the AA delivers online advice, working with document assembly provider Epoq. It has teamed up with Cogent Law, the claimant arm of the Parabis group to offer online, email and phone legal advice to members.

ABS application: * * * * *

Admiral

The insurance giant was reported by The Daily Telegraph as considering applying for ABS status as a way of avoiding the forthcoming ban on referral fees. Its share price nosedived following the ban announcement. Becoming an ABS would be an obvious move for a business that is so reliant on referral fees that a ban would endanger its financial health.

ABS application: * * * * *

Barnetts

The volume conveyancing firm set up by Richard Barnett prospered in the boom years of ever-rising property prices but has suffered in the downturn with reports of severe staff cuts. As a volume business with equity in few hands, however, it has the perfect shape to become an ABS. Capital injection could leverage its position with lenders and expand further.

ABS application: * * * * *

Connect2Law

Initially a local referral network set up by Pannone, Connect2Law links up more than 2,000 firms in the UK via 20 regional 'hub' firms. The plan is to continue to grow the business into a wider network of mid-size firms that could start offering ancillary services (see also Pannone below).

ABS application: * * *

ContactLaw

ThomsonReuters' owned referral network looked prime for ABS conversion but its owners have said they did not intend to at this stage.

ABS application: *

Cooperative Legal Services

Arguably the most publicised prospective candidate, CLS has made no secret of its intention to apply and become one of the first ABSs. It will offer legal services face to face in Britannia branches and if successful could roll out to other Cooperative Bank branches.

ABS application: * * * * *

CPP Group

Unknown to the general public CPP Group provides 'life assistance' services to retailers, banks and individuals. This includes protection against credit card fraud, identity theft and a protection against a range of home accidents such as boiler breakdowns and roof damage. CPP director of commercial and personal protection Shirley Woolham surprised the audience at a conference organised by Epoq in September 2010 saying that her organisation was finalising a new legal offering for consumers. In June 2011, the group launched Your Law, a service aimed at consumers. Run in partnership with Irwin Mitchell, the service offers 24/7/365 access to legal advice by phone or online for a £59.99 annual membership subscription. Members get discounts on specific transactional work such as conveyancing.

ABS application: * * * * *

DAS

Since making public its intention to become an ABS in 2008, legal expenses insurance DAS has bought online legal services provider Everything Legal in November 2011. It has also indicated that it would be buying Bristol-based firm CW Law to expand its legal services offering.

ABS application: * * * * *

Duncan Lewis

The legal aid firm that is the biggest LSC biller for civil work was one of the first to be set up as a limited company, making it structurally ABS ready.

ABS application: * * * * *

Everyman Legal

The Oxfordshire virtual firm, which has just started franchising its brand, was first to announce it would look to float on a stock exchange '“ Sharemark, a market for smaller companies. The company is expected to apply for ABS status in March.

ABS application: * * * *

Face2Face Solicitors

Launched in February 2011 by former managing partner of Surrey-based Bells Potter, Ray Gordon, network Face2Face got its first solicitor member in September last year. At the start of 2012, the business is about to sign up its third member and on track to expand to ten by the middle of the year. Software developers Solicitors Own Software bought 50 per cent of F2F's holding company, Professional Business Services. Gordon says they are 'definitely interested' in applying for ABS status.

ABS application: * * * *

GetSolicitors

Set up in late 2010 as a network, GetSolicitors intends to federate like-minded small firms under a united brand sharing marketing services. Although it promises to be 'the antidote to QualitySolicitors and Contact Law' GetSolicitors runs along similar concepts, with one GS firm per geographical area.

ABS application: * * *

HighStreetLawyer.com

Set up by former City lawyer Gary Yantin, the HighStreetLawyer 'branchise' operates as a network of approved local law firms via an online platform. The network, aimed at consumers and small business, has recently been pushing its fixed-price services. A credible ABS candidate but 'not at this stage', says Yantin.

ABS application: * * *

In-Deed

The all-in-one property buying service set up by Rightmove founder Harry Hill has started branching out into traditional high street legal services. After raising £4.5m on AIM last June, InDeed said it will expand into areas such as wills and it has started conversations with a view to buying into law firms. A fairly safe sign the organisation is preparing an application.

ABS application: * * * *

Irwin Mitchell

The top 10 law firm, perhaps best known for its personal injury litigation work, has been openly prepared for the external investment and stock exchange listing. Compare with Australia's Slater & Gordon, the specialist personal injury firm that became the first law firm to float on a stock exchange.

ABS application rating: * * * * *

LawVest

Launched in October 2011 as a 'market disrupting brand' LawVest is owned by AdviserPlus Business Solutions, a business started in 2001 by former fund manager Karl Chapman to provide integrated solutions to mid-cap and FTSE100 companies. City firm DLA Piper has a minority stake and Sir Nigel Knowles, the firm's joint CEO and managing partner, is chairman and non-executive director. Very likely to apply for ABS status but possibly not this time around.

ABS application: * * * *

Lawyers2you

The consumer-facing service set up by Blakemores. Initially an online marketing tool to reach out to a wider market, the service is also a franchise bringing together 50 independent law firms or 'law-hubs' around the country. Very strong ABS potential.

ABS application: * * * *

LEGAL365

A joint initiative between Freeserve founder Ajaz Ahmed and medium-size Last Cawthra Feather, LEGAL365 is a rare example of 'high street' firms openly taking the lead in the ABS revolution. The firm has been contemplating becoming an ABS but may not be in the first round.

ABS application: * * * *

LegalZoom

Online only US-based legal advice provider, its slick ad campaign presents legal services as part of ordinary people's live, on a par with healthcare or insurance. The start-up has raised $66m from venture capitalists Kleiner Perkins and Institutional Venture Partners and its founders have made a number of trips to Britain in recent months. It already has a reported annual turnover of $100m and is preparing for stock market flotation. LegalZoom does not provide legal advice in the traditional sense but offers a number of precedents and build-it-yourself legal documents.

ABS application: * * * * *

MTA Solicitors

General practice MTA Solicitors has vowed to bring high street firms back on the high street. Its LawStore in the Regents Arcade, Bromley, is sited where people congregate: shopping centres. Like the new entrants, it also promises plain speaking, and also a 15-minute free consultation. More a lead generation front the LawStore is also evidence of MTA's intentions to do things differently. Its related non-legal services hint at a strong interest in ABS.

ABS application: * * *

Optima Legal

The property and litigation firm got rapped on the fingers by the SRA last year for being a bit too close to outsourcing company Capita and being a de facto ABS at a time these weren't yet legal. The firm has suffered in the property downturn but remains a strong ABS contender, particularly if it can be allowed to rekindle its relationship with Capita, allowing it to be 'the first choice law firm for property and litigation services for the UK lending market'.

ABS application: * * * * *

Pannone

The Manchester-based firm announced last spring that it would be providing white labelled legal services to a yet to be named big retailer through its new brand, Affinity Solutions. While the firm does not rule out becoming an ABS, Affinity's head Andrew Morton has confirmed to Solicitors Journal: 'We do not feel it necessary to file an immediate ABS application, as our work centres on working in 'affinity' with other organisations like insurers and major retailers, who will themselves file for ABS.' Pannone's spin off Connect2Law is a more likely applicant at this stage.

ABS application: * * *

Parabis

The Parabis group is perhaps less well known than its component organisations: Plexus Law, the defendant personal injury firm; Cogent Law, the claimant personal injury firm behind Saga and the AA legal service; and a range of related services such as rehabilitation for accident victims. Most definitely a contender for round one of ABS applications.

ABS application: * * * * *

QualitySolicitors

Started as a 'marketing collective' by barrister Craig Holt, QualitySolicitors has moved away from its 'high-budget, glorified 'find a solicitor' service' to become the loudest and most developed solicitor franchise. The nearest comparison in the consumer world is the Best Western hotel chain, according to Holt. In September 2010 it entered into a partnership with financial advisers AWD Chase de Vere and last October it sold a majority stake to private equity firm Palamon Capital Partners. All the signs are there that it is preparing for ABS.

ABS application: * * * *

RBS / NatWest

Royal Bank of Scotland runs Mentor, a service for its business customers including employment law advice, company formation and basic contract law. Talking at a conference organised by Epoq in September 2010 John Muncey, head of Mentor, said his organisation did not intend to enter the legal services market when it opens to non-lawyers on 6 October 2011. This was 18 months ago. Things could have moved on and the word now is that RBS could be contemplating turning Mentor into an ABS.

ABS application: * * * *

Rocket Lawyer

Founded in 2007, US-based Rocket Lawyer burst into the UK legal press headlines after getting a $18.5m injection from Google and August Capital in the summer. The model is similar to LegalZoom, providing legal documents and legal help online but also access to member lawyers. The trust the search engine has built up with the web community is likely to be a powerful factor in helping it gain rapid credibility in the legal services arena. Much like LegalZoom, Rocket Lawyer introduces a new legal services philosophy: not so much about legal advice as about online legal solutions, where access to justice is seen in terms of democratising access to legal services. See its strapline: 'Finally. Easy and affordable legal help. Over 15 million individuals and businesses use Rocket Lawyer to simplify their legal lives.'

ABS application: * * * *

Russell Jones & Walker

When RJW bought the Claims Direct brand from the wreckage of The Accident Group in 2003 many feared it would damage the firm's own brand. Eight years later the dust has settled and, with RJW as one of the leading firms in the Claims Direct panel, the brand has enormous ABS momentum. Last year RJW also revealed it had plans to grow the brand into other areas such as wills, employment and family law.

ABS application: * * * * *

Saga

Like the AA, Saga is part of the Acromas group and like the motor insurer it has teamed up with Cogent Law and Epoq to offer members a suite of online and phone services.

ABS application: * * * *

Slater & Gordon

The Australian personal injury firm and first legal practice to float on a stock exchange has apparently been sniffing around north of the Equator. It's only an unconfirmed rumour but various sources have mentioned it. Slaters certainly has the experience and could replicate the model.

ABS application: * * *

Shoosmiths

Launched in February 2010 Access Legal is Shoosmiths' foray into the direct consumer market, offering a range of short guides online and even a live online chat with a 'qualified legal adviser'. Another example of services that could either expand into non-legal or offer greater efficiencies if it benefited from a capital injection '“ both of which would only be possible as an ABS.

ABS application: * * * *

Simplify the Law

A newcomer to the Legal Services Act party Simplify the Law is the service offered by Evident Legal, a company set up in January 2011 by solicitor Jonathan Brewer and South-African born technology expert Jean-Paul Camelbeek. Essentially a marketing and lead generation business for franchisees, Simplify the Law is another network model aiming to bring together medium-sized law firms and help them 'stand up to the brand savvy big hitters'. The choice of name shows things have moved on since QualitySolicitors appeared on the scene but so far the model is the same as QS, Face2Face or HighStreetLawyer.

ABS application: * * * *

US private equity firm

This is another unverified rumour but one we have heard it a few times. A large US private equity firm is said to be looking for medium-sized firms to buy up.

ABS application: * * * * *

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