Provision of legal services in England and Wales it set to change radically with the introduction of Alternative Business structures (ABS). Ownership of legal service providers - currently restricted to lawyers - will be open to anyone deemed "fit or proper".
In my opinion, the jury is still out on whether this is a threat or opportunity to the existing legal profession. I believe the real challenge will be regulation and ensuring the consumer's interests really are best served by opening up service delivery.
Some firms may well feel the pinch - the creation of "one stop shops" by larger organisations with much greater marketing budgets could prove a hefty obstacle to overcome. Smaller high street firms may be able to offer a personalised service and perhaps have a great customer base - but they may not be able to compete with a stronger backed competitor that has the benefits of increased exposure and support.
But out of adversity comes opportunity. I expect smaller practices to be pro-active in building relationships with blue chip organisations - the supermarkets and banks who are enticed into offering legal services under the new regulations. There could be some lucrative partnerships and alliances being formed in the near future - certainly as these companies seek to gain a foothold in the legal services marketplace.
Furthermore, we are living in an increasingly online world and e-conveyancing and e-legal may well be areas where large investment takes place - generating more online legal work and advice. I think we are likely to see the emergence of some big players in this area, as the legal industry finally embraces the online revolution.However, it is important to ensure that the changes taking place best serve the customer. Estate agencies, for example, already claim commission by offering regular services such as Energy Performance Certificates and there is potentially scope to be taking an even greater percentage from the unsuspecting consumer through legal work. It will be down to regulators to ensure that the quality of legal services on offer remains high.
It will be fascinating to see what the uptake of ABS is over the next year and what changes and innovation it leads to. Provided the eventual winner is the consumer via increased choice, lower prices and better service - I see this as a positive step forward.
