A significant number of brokers are expected to seize the opportunities delivered by the Legal Services Act, which allows businesses outside the legal sector to offer legal services for the first time through the creation of an ABS.
On 6 October the Council for Licenced Conveyancers became the first licencing authority for ABS, while the Solicitors Regulation Authority is due to receive its licence in the coming months, and will offer brokers an even wider range of legal services such as personal injury.
Eddie Goldsmith, partner at Goldsmith Williams, says it is vital for brokers to create viable working partnerships and claims that organisational culture is the key to finding the right ABS partner.
Eddie said:
"ABS has abundant opportunities for brokers, not least the potential for increased revenue streams, but they need to tread carefully when choosing a business to partner with.
"The creation of ABS will invariably see the fusing of two existing companies and the way each operates has to complement the other, or cracks will soon appear, so operational culture will be absolutely pivotal to the success of the enterprise.
“Other clear concerns for brokers include having the required legal knowledge within the business and the board structure of the new business itself. Like with any business, you need the tools to do the job, hence the need for trained legal staff, and you need to be wary of any structure that limits your influence in the company.
“Choose the right types of legal services to best fit your business, particularly those that you are confident can be delivered effectively and to a high standard.
"Brokers should also consider services that have natural cross-selling potential, such as conveyancing.
“When these decisions are made, brokers will be in the best position to choose the right partner. Outline the expectations of each party at the beginning of the arrangement and then the foundations will be laid for a successful and long-term ABS partnership.”
