SRA to reconsider schedule for external investment in law firms
The Solicitors Regulation Authority (SRA) has offered new hope for law firms looking to sign up to external investment deals ahead of the previously agreed start date of October 2011. At a board meeting last Friday (10 September), the SRA said that it now intends to give further consideration to relaxing its guidelines on Alternative Business Structures and that it will launch a further review of the schedule for permitting outside investment.
September 14, 2010 at 06:39 AM
2 minute read
The Solicitors Regulation Authority (SRA) has offered new hope for law firms looking to sign up to external investment deals ahead of the previously agreed start date of October 2011.
At a board meeting last Friday (10 September), the SRA said that it now intends to give further consideration to relaxing its guidelines on Alternative Business Structures and that it will launch a further review of the schedule for permitting outside investment.
The regulator had previously stated that firms would be prohibited from signing agreements with external investors ahead of 6 October 2011, and recently published a discussion document which recommended keeping the schedule in place.
However, the outcome of Friday's board meeting could now allow deals to be confirmed ahead of schedule.
SRA chief executive Antony Townsend (pictured) said: "We are trying to avoid the position where de facto control of law firms goes to those who are subject to no regulatory control. This would be contrary to Parliament's intention, and would place consumers at risk."
Without any changes, firms will remain prohibited from signing binding agreements with investors ahead of October 2011, but will be able to discuss future arrangements with investors as long as the final decision is taken after the implementation of the new rules.
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