Being able to have an Alternative Business Structure, or ABS, allows you to have a real choice about the structure of the firm you run. That means it can really involve the key people who need to be in it.

What is an ABS?

An ABS is a legal firm that has some form of non-lawyer involvement in the ownership, whether that is via investment or becoming a partner or director.

Whilst ABS are sometimes seen as complex, the following examples should help you understand that they can be quite straightforward and work well for you, possibly providing the solution on ownership you are looking for.

ABS 1

It could be as simple as having a firm owned by a lawyer with their non-lawyer partner; each owning 50% of the shares and both directors.

ABS 2

An established firm wants to add their existing practice manager, a non-lawyer, as a co-owner.

ABS 3

An existing non-legal business sees legal services as complementary to the services it currently offers, so sets up a standalone business to provide a reserved or regulated activity.

There will be many other possible structures, so do talk to us about how we can help.

What can an ABS allow you to do?

• Bring additional business skills, such as an accountancy, technology, marketing, into the ownership of the business
• Bring a family member into ownership of the business
• Extend your existing business, which has a non-lawyer owner, to also provide reserved work
• Acquire or merge with another business
• Attract external funding from an individual investor

The above are all things that our regulated community have said they want an ABS to do for them – what could your ABS do for you?

What might a CILEx-member ABS offer?

• Greater innovation in the legal sector
• A unique level of diversity
• Greater consumer choice
• Better ways to deliver better services

We are positive about the opportunities that ABS will offer, so do get in touch if you are interested.

ABS Applicant Entities

Do check our Approach to Authorisation on the types of applicant entities that we are encouraging to apply. Whilst we do want to help, there are some structures that may not suit our regulation, so let’s discuss these at the outset.

Our fee structure for 2019 can be found here.

Timescale

Our application on behalf of CILEx was approved by the Lord Chancellor on 17 July 2018 enabling us to license alternative business structures (ABS).

An order will be laid in Parliament in due course to designate CILEx as an ABS licensing authority but owing to a lack of parliamentary time, this will be delayed until early 2019.

However, if you are thinking of setting up your own new ABS firm, then have a look at the Eligibility Checker to see how you can start to prepare to submit an application in early 2019.

We are keen to engage now with those who are interested in having an ABS authorised and regulated by us, so please log your interest at myABS@cilexregulation.org.uk

Once we are able to release details of the application process, we will then get in touch.