Alternative business structures (ABSs) will make solicitors’
firms “more competitive, more accessible and more efficient”,
justice minister Jonathan Djanogly claimed as the Solicitors
Regulation Authority (SRA) opened its doors to the first ABS
applications.
In the first week 30 organisations began the application process,
including Co-operative Legal Services, national law firm Irwin
Mitchell and legal expenses insurer DAS.
Mr Djanogly said: “The addition of the SRA [to the Council for
Licensed Conveyancers] marks another major milestone for UK legal
services and the future of ABSs.
“Our UK legal services are unrivalled around the world and these
changes will allow them to reach new heights, as solicitors’ firms
develop new markets, join up with other businesses to offer
different products and provide opportunities for growth.
“Customers will find legal services more accessible, providing a
much more competitive and efficient service.”
Mr Djanogly said ABSs will also provide opportunities for
international growth. He explained: “Legal firms will be able to
get outside investment for the first time, with greater
opportunities for international investment into the UK legal
services sector. ABSs is one of a number of initiatives the
government is undertaking to enhance the UK’s position as a centre
of legal excellence.”
SRA chief executive Antony Townsend said: “This is a milestone that
we have been working towards for nearly two years. It means the
public can have confidence that ABSs providing reserved legal
activities will be regulated according to the same rigorous
professional standards as traditional law firms.”
Depending on the complexity of the first applications received, the
SRA expects to announce the first successful applicants in
February.
HSBC rolls out 43-strong panel in seperate representation
move
HSBC is to force mortgage customers into separate representation
unless they agree to use one of the bank’s new 43-strong panel of
law firms and licensed conveyancers.
The bank said customers who choose to use one of the panel firms
“will have the advantage of competitive fixed fees, as well as
benefiting from the speed, efficiency and consistent quality of
service provided by the firms on the panel”.
Home buyers using a panel firm will pay £399 for a property worth
up to £100,000, rising incrementally to £549 for properties valued
at £300-500,000.
Warning customers who use their own conveyancer that they will also
have to pay HSBC’s legal fees of £160 + VAT (£192), the bank
offered two other benefits to those who use a panel firm and the
sale falls through: they will not have to pay the legal fees and
repeating searches on a replacement purchase within six months will
be free.
Peter Dockar, head of mortgages at HSBC, said: “Our new panel
arrangement will spare customers the time and hassle of searching
for a firm to do the important conveyancing work on their new
property.
“Customers who choose to use a firm on the panel can benefit from
agreed conveyancing costs as well as valuable guarantees should the
seller pull out. We also believe this will provide additional
protection for our customers and HSBC.”
Critics have questioned whether the size of the panel might not
provide sufficient consumer choice, and Law Society chief executive
Des Hudson said: “I suspect [HSBC has] made the calculation that
the majority of their customers will opt to use the bank’s
solicitor. Being on a panel such as that will be valuable. How long
will bankers resist the temptation for a quick profit by selling
places on that panel and putting up costs for house buyers?”
Charter date
ILEX will be formally granted
its Royal Charter on 30 January, it has been confirmed. Justice
minister Jonathan Djanogly will make the presentation to ILEX
President Susan Silver. See pages 12 and 14 for more on the
charter, and pictures will be in the next issue.
Gowland award
ILEX Deputy Vice-President
Stephen Gowland, founder of ILS Solicitors in Newcastle, has been
awarded Star Radio’s Excellence in Customer Service award. Mr
Gowland said: “I’m delighted to receive this award on behalf of my
company. It reflects the hard work and expertise we offer in
getting people the right legal service for their needs.”
Land Registry move
Market research with
government stakeholders and customers has shown “significant
support” for the Land Registry widening its range of information
services to include searches of the local land charges register and
other information currently supplied by local authorities. The
registry said it was now exploring the feasibility of the various
options available before proceeding any further. See feature, page
23.
PI concern
The Association of Personal
Injury Lawyers (APIL) has expressed “grave concerns” at government
plans to extend the upper limit of the road traffic accident portal
to £25,000, while similar fixed-fee schemes are to be introduced
into other, as yet unspecified, areas of personal injury. APIL
president David Bott said the changes, combined with health and
safety law reforms, could expose workers to “an unnecessary risk of
injury and then be left with a civil justice system which cuts them
off from their right to full and fair redress”. He added that “it
is far too early” to consider extending the portal.