Ireland: One in five firms expect to convert to new business structure
The Republic of Ireland has introduced ‘legal partnerships’ (LPs), allowing barristers to be partners with solicitors in law firms for the first time and to form partnerships with other barristers.
A survey of solicitors for the Legal Services Regulatory Authority (LSRA), which oversees regulation of the Irish legal profession, found that six out of 10 were in favour of LPs but fewer than four out of 10 thought they would benefit consumers.
Almost one in five believed it was likely their law firm would become an LP in the next five years.
It has taken nine years from passage of the Legal Services Regulation Act 2015, which set up the LSRA, for LPs to become a reality.
The LSRA said the “overriding goal” was to provide “a fresh offering to the legal services market”, while upholding the regulator’s statutory objectives. These include promoting competition and protecting the interest of consumers.
“The introduction of legal partnerships will also see benefits for clients by providing the option of an integrated service or ‘one-stop shop’ for legal services.”
Researchers from Ipsos B&A polled 213 senior solicitors from 201 firms. A comfortable majority, 61%, said the introduction of LPs was a positive development for the legal services market. There was less consensus on the benefits for consumers with only 39% saying the move would be positive for them.
One solicitor said the move would “assist younger barristers with a certainty of income”.
The main reasons for opposing LPs were concerns about independence, the “negative impact on smaller firms”, reduced access to barristers and a feeling that the “current system works well”.
One solicitor commented: “The bigger law firms will enter into partnership with the best barristers, and they won’t be available then to the smaller firms.”
Half of solicitors thought the introduction of LPs would make “no real difference” to competition, while 55% thought it would make no real difference in terms of the costs for consumers.
The most likely benefits were the ability to offer more specialised services, bringing efficiencies by combining skills, expanding into new markets and increasing overall capacity.
Dr Brian Doherty, chief executive of the LSRA, said LPs would “help modernise the provision of legal services” and bring benefits for lawyers and clients.
Barristers and solicitors practising together would benefit from “the efficiencies that flow from a group practice”, such as being able to share backroom costs and client work, as well as risks.
“We know from our recent research on barriers facing early career solicitors and barristers that there is strong appetite, in particularly among junior barristers, for alternative business models in which to practice.”
Helen McEntee, minister for justice, added: “The commencement of the new legal partnerships regulations is a welcome development in our ongoing efforts to modernise and diversify the offerings of the Irish legal services sector.
“Legal partnerships allow for the further growth of our legal services sector and an increase the range of professional opportunities for legal practitioners.
“Importantly, this new business model also offers the potential for a more flexible and cost-efficient service for clients, reducing the stress for those who need to seek legal advice, expertise or representation and is another step towards our goal of making access to justice, cheaper, faster and more efficient.”
In 2020, the LSRA decided that it would be “premature” to abolish the distinction between solicitors and barristers – the 2015 Act required it to consider the issue – but said it would return to it in the years to come.
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