ABS: feedback from the front
5 December 2011
Rob Gurney, licensed conveyancer and Director of Premier Property Lawyers – the first licensed ABS in England and Wales - reflects on 6 October and its future impacts
Although it is clear that the full effects of ABS will not be seen for some time, at Premier Property Lawyers (PPL) we have already begun to feel the benefits.
From our point of view, the accompanying regulatory shift is a welcome one and, in general terms, an increase in investment and innovation will undoubtedly lead to an increase in quality and service provided to the consumer.
With this in mind, 6 October was a landmark day for legal services. The CLC became the first regulatory body to become a Licensing Authority and at PPL we also had reason to celebrate, as we became the first ever Alternative Business Structure in England and Wales.
I am often asked what benefits PPL has received since being issued our licence. In my opinion, the greatest benefit we have thus far experienced is in receiving the endorsement of the CLC that we met their strict criteria to be issued an ABS licence.
And in granting that licence and providing some much-welcomed feedback from the process, it gave me confidence that my firm is operating as expected in this new regulatory space.
The application process was found to be robust, time consuming and administratively challenging. It was also entirely appropriate.
Anyone expecting to simply tick a few boxes on a few forms need not apply to the CLC for an ABS licence. However, if you are expecting a thorough examination of your business and its staff you will not be disappointed.
The difficulty facing any regulator of ABSs is to create an application process that is appropriate to the size and complexity of the applicant organisation. Essentially the questions and criteria remain applicable to all, but the level of information and documentation expected to be produced will vary wildly.
Due to our existing ownership structure and external investment we, along with more than 40 other CLC regulated practices in England and Wales, are required to convert our business to become an ABS within the first 12 months.
In fact, PPL, as a wholly-owned subsidiary of My Home Move Limited, has been an ABS in all but name since it was first established in 2001.
As a practice we made a conscious decision to make an early ABS application and not leave it until the deadline approached. But I would be lying if I said that being the first ever ABS wasn’t also on our minds as 6 October approached.
Certainly, we have not been suddenly inundated with additional work as a result. And, while we did receive healthy press interest initially, many journalists seemed intent on covering the “ABS story” without really attempting to understand its true significance.
As a licensed conveyancer, I was very proud that the CLC became the first - and at the time of writing, only - Licensing Authority. In conjunction with PPL being granted ABS status, I was equally proud to be named the first ever Head of Legal Practice (HoLP).
Regardless of existing business model, I am sure most firms would agree that additional funding in staff, technology and systems would enhance their proposition and client experience.
If licensed conveyancers currently believe that the competition among them is tough, at PPL we believe that the next wave of competitors will be stronger still. We must all rise to the challenge or risk being swept aside.
Rob Gurney is a licenced conveyancer, Director of Premier Property Lawyers and a CLC Council member
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