The Lord Chancellor, David Gauke, has approved the recommendation for The Chartered Institute of Legal Executives to become an official organisation authorised to license alternative business structures.
Currently, only five authorities can license alternative business structures; these include: The Solicitors Regulation Authority, Bar Standards Board, Council for Licensed Conveyancers, Intellectual Property Regulation Board and Institute of Chartered Accountants in England.
The license allows legal service companies to be owned and operated by non-legal/lawyer ownership and investment.
Those working towards this accreditation have argued of the importance in diversifying the types of roles with a company. A marketing expert, or business specialist could offer something different and create business growth. CILEx will now be able to license firms, ensuring they benefit from this professional diversity in the future.
Sam Younger, CILEx Regulation chair, said: “This is excellent news. It will allow us to license ABS firms, building on the practice rights and entity regulation that we already offer.
“It will both increase opportunities for CILEx practitioners and deliver a wider choice of regulator for all providers of legal services.
“It recognises too that CILEx Regulation delivers an outcomes-focused, risk-based, proportionate and flexible regulatory regime fit for the future of legal services.”
Millicent Grant, CILEx president, added: “Our members are skilled professionals who often have experience beyond the law. They know what it takes to run a successful business. It is right that their firms can bring external investment, advice and knowledge into their ownership.
“This move will also help to encourage competition within the legal services market.”
In a time when greater transparency is integral for legal service companies, it is important that organisations, like CILEx, are offered the opportunity to diversify their company’s employees and create a business model that is more competitive and profitable whilst also creating an efficient, accurate and consistently good service for its clients.
Will a sixth authority permitted to license alternative business structures help to improve the customer experience?
