James O’Connell feels a sense of déjà vu over alternative business structures
Much has been written about the new competition solicitors will face from alternative business structures (ABSs). However, many smaller firms have been quietly facing tough competition from non-solicitor ie, paralegal, law firms (PLFs) for years now. What lessons about the likely impact of ABSs can we learn from 15 years of competition with PLFs?
Take the threat seriously
Solicitors are losing market-share to PLFs in numerous areas, eg uncontested divorces, will-writing, immigration advice, landlord repossessions, debt enforcement, and small and medium enterprise employment law advice.
Audit your “solicitor” branding
If the solicitor brand was as powerful as we’d like, then 6,500 PLFs wouldn’t have flourished over the past 15 years at the expense of solicitors, and ABS firms would not be scenting rich-pickings. These things imply that people really just want basic competency at an affordable price—and whoever it’s from is secondary.
ABSs will be regulated too, but when they get into non-reserved activity work (and they will) the chances are it will be conducted outside the regulatory structure.
