Legal Services Act
The introduction of the Government's Legal Services Act 2007 ('LSA') has spearheaded significant changes in the way legal services are delivered and created a new and more competitive landscape for law firms. It is the first attempt to bring the entire legal services market under one regulatory framework and departs significantly from the previous structure of the profession.
It does this by allowing the creation of what are termed Alternative Business Structures (ABS's) which combine the skills of a variety of professionals including lawyers, as well as current non-law businesses such as banking, insurance and financial services. Through this new legislation the Government is encouraging the creation of ABS's and the development of one-stop shops which deliver packages of legal and other services that better meet the needs of and provide greater convenience for consumers.
The Legal Services Act maintains the status quo in relation to "reserved activities" i.e. advocacy, conducting litigation, conveyancing and probate. It does not, at present, attempt to regulate unreserved legal activities e.g. Will writing, employment advice and health & safety. However, the Act does give the ability to quickly apply regulation to these unreserved activities. Before the Act was brought into law, there were already many instances in which non-lawyers could deliver legal services. The Act has not changed this and has extended the opportunities further in the interests of 'promoting competition in the provision of legal services'.
The opportunities
At the heart of the regulatory objectives of the Legal Services Act is the consumer. In addition to protecting and promoting the interests of consumers, the Act aims to improve access to justice by "encouraging an independent, strong, diverse and effective legal profession" and "promoting competition in the provision of services". The opportunities presented by these objectives to potential and current suppliers of legal services are numerous. In order to maximise these opportunities, however, providers will need to be innovative, using new technologies to deliver services to clients in a more efficient, convenient and affordable way.
For many, internet delivery and document automation will provide the key to benefiting from the LSA. Indeed, a number of forward-thinking law firms and financial institutions are already deploying these technologies through Epoq, achieving internal efficiencies whilst meeting client demand for ease of access and affordability of legal services. Visit our clients page to learn more about some of them.
