BANG

BANG!

So, today is the day of the introduction of the Legal Services Act and Tesco Law. As from today, non lawyers can own law firms and provide legal services. Law firms can raise external finance and attract investment into their businesses. Is it the BIG BANG speculated by commentators on the legal industry? Well, not quite.

I have not seen any solicitors firms changing their signs permanently to “Closed” or lawyers jumping out of their windows because of the threat of new entrants to the market.

Practically, most new entrants will be delayed from entering the market until early next year due to a delay in the Solicitors Regulation Authority, the main licensing body, being ready to accommodate new business structures. One ABS has been licenced by the Council of Licenced Conveyancers but they are exclusively providing conveyancing services.

As seen on the BBC breakfast couch this morning, organisations such as CO-OP are preparing to enter the market and launch their legal services business when the SRA issue is solved.

Smaller law firms now have a great opportunity to present their expertise to the market to show the public why they would benefit from using traditional high street solicitors as opposed to retailers and insurance companies. Expertise, qualifications, experience, regulatory environment, risk management systems are all some of the selling points but they are assumed by the consumer when using a trusted professional. A far better approach would be for small law firms to focus on delivering great customer service and really getting to know their clients. Then solicitors will be able to play the retailers at their own game.