For most people, the structures available under the Legal Services Act (LSA) still seem to be a distant development. However, from 31 March, 2009, under the new rules up to 25% of a firm's partners can now be non-lawyers. This marks the first phase of deregulation under the Act, potentially changing the landscape of the legal profession forever. Those that sit and wait for the introduction of alternative business structures in 2011-12 risk being left behind in the competition, irrespective of whether they are a multinational practice or a small partnership. So, firms with a truly strategic outlook now have an opportunity to gain a commercial advantage.

Undoubtedly, some solicitors may question the introduction of non-solicitors as decision-makers within their firms. Accepting that there may be potential conflicts of interest within a firm and perceived cultural issues between professions, there could be significant benefits of welcoming non-solicitors and non-lawyers into a firm.

One of the most immediate effects is likely to be for in-house senior personnel, whereby, for example, the head of finance or human resources may be made a (true) partner of a law firm. The opportunity for such appointments will allow firms to embrace non-lawyers in their partner team. The change in the rules will also pave the way for the promotion of existing in-house senior barristers, law costs draftsmen, legal executives and other non-lawyers. Although this may surrender some management control to non-lawyers, it will arguably improve the quality of decision-making, help to incentivise staff and encourage key players to stay for the long term.

Many law firms have existing ties with firms of surveyors, accountants, patent agents and barristers among others, and the change in rules offers an additional opportunity to set down the foundations for building the diverse law firm of the future by appointing some of these professionals as partners. As well as fresh ideas and business know-how, such appointments give access to new client networks, helping to provide greater insulation from economic change and facilitating the move towards a fully multi-disciplinary practice. We are beginning to see a future when law firms will offer non-legal services alongside their existing advisory skills under the guise of alternative business structures.

One of the financial benefits of appointing non-solicitor partners is the potential for additional capital to be brought in to the firm. Moreover, if making in-house appointments at partner level, both the firm and individual can benefit from making valuable National Insurance savings.

However, for those non-lawyers seeking appointment as partners, the incentives must be sufficient to outweigh any additional risks they may face. Those firms that have not yet transferred to limited liability partnership (LLP) status and cannot demonstrate limited liability as part of their offering are unlikely to get as much buy-in from non-lawyers, particularly in the current economic environment. Similarly, those firms without modern partnership agreements, profit-sharing arrangements or capital structures may struggle to attract non-lawyers as partners.

While many will be waiting until 2011-12, it is clear that the LSA has arrived, complete with its promise of deregulation and opportunity. However, two key questions remain: first, whether the legal sector is ready to take advantage of the LSA; and second, if those who embrace the early opportunities gain a significant lead over their competitors, will others be able to catch up? We live in interesting times.

Giles Murphy is head of assurance and business services at accountancy and financial services group Smith & Williamson.