Justice minister Djanogly stresses commitment to ABS implementation schedule
Justice minister Jonathan Djanogly has confirmed that the first Alternative Business Structures (ABS) will be up and running from next October, following prolonged speculation over the coalition Government's intentions for the planned reforms. In a speech to the Law Society this morning (22 September), Djanogly stated that "no one should be under the illusion that I wish to delay ABS introduction, and all lawyers should be preparing for its introduction".
September 22, 2010 at 11:12 AM
2 minute read
Justice minister Jonathan Djanogly has confirmed that the first Alternative Business Structures (ABS) will be up and running from next October, following prolonged speculation over the coalition Government's intentions for the planned reforms.
In a speech to the Law Society this morning (22 September), Djanogly (pictured) stated that "no one should be under the illusion that I wish to delay ABS introduction, and all lawyers should be preparing for its introduction".
This is the first confirmation from the Ministry of Justice that Business Secretary Vince Cable's Reducing Regulation Committee has given clearance to proceed with the work towards introducing ABSs.
The news follows much speculation that the introduction of the ABS regime – which is scheduled to be up and running by 6 October 2011 – could face delays after the change in government.
In February, the Legal Services Board laid out a timetable which would see companies able to apply for a licence to become an ABS from next summer, with successful applicants set to begin providing legal services by 6 October 2011.
However, in April Shadow business minister Lord Hunt of Wirral said that the implementation of the Legal Services Act to date had taken place too quickly and needed to be done in a more controlled manner, while last year shadow justice minister Henry Bellingham had said that the Conservatives would "find ways of slowing down the process".
The ABS model – often dubbed 'Tesco law' – will allow companies to invest in law firms and provide legal services outside of traditional partnerships.
A Law Society spokesperson said: "The Law Society supports the principle of ABS, but is concerned about the extremely fast timetable for its implementation, the potential for ABS to undermine access to justice, damaging choice for the consumer on the high street and the impact upon the profession's diversity in its broadest possible sense."
Djanogly's speech comes after the Justice Minister and former SJ Berwin partner attracted widespread press attention earlier this month after admitting that he last year hired private detectives to find out who leaked information about his parliamentary expense claims.
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