Law firms gear up for new-look profession

Published on Tuesday 15 June 2010 21:05

SEISMIC changes in the legal sector came a step closer yesterday after new rules that would allow non-solicitors to own law firms continued to pass through the Scottish Parliament.

• Alliance Trust's Knox: To head new investment strategy team. Picture: Complimentary

The Scottish Legal Services Bill would allow other professionals to become equity partners in legal practices, opening the door for money to be pumped into the sector and mergers with other professional firms such as accountants or financial advisers.

The justice committee voted to give the Lord President, Scotland's most senior judge, powers of approval over who could or could not become an equity partner.

Further amendments will be considered next week.

If approved when the full parliament votes on the issue later this year, the bill would open up the market and bring Scotland into line with England and Wales, where similar changes were dubbed "Tesco law" for allowing other businesses to offer legal services.

Scotland's law firms are already gearing up for the "alternative business structures" (ABS) available under the bill, with Edinburgh-based Turcan Connell yesterday beefing up its asset management division.

Lesley Knox, chairman of Dundee-based investment firm Alliance Trust, will lead a new investment advisory board (IAB) that will develop the investment strategy at the firm, which already manages about 600 million of assets.

Head of investment Alex Montgomery said: "There's no doubt in my mind that, when ABS arrive, our asset management colleagues will join our partnership. Wealth management is a big part of our business and these appointments will help us to expand even further."

Other law firms are also intending to take advantage of the reforms. Last month Pagan Osborne signalled its intention to buy an accountancy practice.

But other firms plan to concentrate on the law. Donald Shaw, managing partner of Dundas & Wilson, yesterday said: "We support ABS because it adds flexibility. We have no active plans to provide investment management services."