Bar Standards Board applies to regulate entity licensing; unlikely to regulate ABSs until 2015

The Bar Standards Board (BSB) has confirmed the submission of its application to regulate new business entities to the Legal Services Board (LSB), but this will not include alternative business structures (ABS).

As reported by the Law Society Gazette, the development would see BSB-regulated barristers able to set up companies as well as contract directly with the Legal Aid Agency. As a result, there could be a conflict with solicitors, with work moving away from solicitors’ firms. A representative of the Law Society commented: “Competition in the provision of legal services is one of the intended outcomes of the Legal Services Act and the Law Society has no objection to that if it provides benefits to consumers in terms of greater access and choice to those services. It is important that there is a proper level playing field and that any new licensing authority entering the market requires and maintains the same high standards as solicitors.”

The LSB has 90 days from submission to approve the application. Vanessa Davies, director of the BSB, has said that a project board has been created within the regulator to develop “operational systems” in preparation for entity regulation. She added the changes would mean that “barristers will be better placed to come up with new and innovative ways of providing legal services. This is good news for the public.” As reported by Legal Futures, the BSB has indicated that should approval be granted, the entity regulation regime will go live in October 2014.