News

The maximum fine for misdemeanours by alternative business structures should be £250m, the Legal Services Board has decided, having considered the amounts of money made by some law firms out of miners’ compensation claims.

A car accident claims manager has revealed its intention to become an alternative business structure, Legal Futures can report. Hampshire-based Vamco, which specialises in repair management and credit hire, is planning to take over a branch office of Nesbit Law Group, which is currently located in the same building under the name Kingsley Law.

The Legal Services Board is pressing ahead with plans to make the new regulatory chamber of the First-tier Tribunal the sole venue for appeals against decisions made over ABSs, despite strong objections from solicitors. It is a move that could damage hopes that the Law Society council will next month approve the Solicitors Regulation Authority’s application to become an ABS licensing authority.

The children of clients are given informal work experience at large commercial law firms “as part of business development”, the first ever research into the subject has found. Students who have had informal work experience while at school have an advantage in pursuing a legal career, but a lack of “social capital” means others are denied access to such opportunities.

Consumers believe that a lawyer who has provided a bad service should be “named and shamed”, research released today has found. However, there are signs that consumers are likely to use published information “in a way that may be at odds with the Legal Ombudsman’s reasons for publication”.

Widespread doubts exist among barristers over aspects of the Bar Standards Board’s equality and diversity reforms, it emerged last week at a consultation event on proposed code of conduct rule changes, where concerns were raised over details of proposed monitoring requirements.

Some 342 law firms have applied to join the Conveyancing Quality Scheme (CQS) since it opened last month, the Law Society has revealed to Legal Futures. A spokesman said the number is growing rapidly, with around 20 new applications a day at the moment.

A director of the Office of Fair Trading is heading a new committee to oversee the Legal Services Board’s contingency planning to regulate alternative business structures directly, Legal Futures can reveal.

The Legal Services Board (LSB) believes that medium-sized City law firms are likely to be the primary targets for external investors, Legal Futures can reveal. It is one of the predictions in a draft impact assessment of alternative business structures that is still being worked on at the LSB.

Implementation of the Jackson reforms could have an impact on the number of complaints against solicitors, the Legal Ombudsman has told the government. It said ending recoverability could cause consumers “to take more of an interest in their lawyers’ fees”.