Scots Parliament limits external investment to 49% as ABS reforms are voted through
The Scottish Parliament has voted through a compromise deal on Alternative Business Structures (ABS) which will allow external investors to take up to 49% ownership in the country's law firms. The Legal Services Bill (Scotland) was passed by the Scottish Parliament yesterday (6 October), with a cap set on external funding requiring a majority share of 51% in Scottish firms to be owned by solicitors and other regulated professionals.
October 07, 2010 at 06:40 AM
2 minute read
The Scottish Parliament has voted through a compromise deal on Alternative Business Structures (ABS) which will allow external investors to take up to 49% ownership in the country's law firms.
The Legal Services Bill (Scotland) was passed by the Scottish Parliament yesterday (6 October), with a cap set on external funding requiring a majority share of 51% in Scottish firms to be owned by solicitors and other regulated professionals.
The Law Society of Scotland last night backed the passing of the Bill, following earlier questions over the specific details of the reforms.
President Jamie Millar said: "I am pleased that the Scottish Parliament has voted to approve this legislation. These changes will broaden access to legal services and allow the Scottish legal profession to remain competitive against a challenging economic backdrop and in an increasingly international, competitive market.
"At the same time, the Bill continues to protect the principles and core values that underpin the Scottish legal profession."
Many Scottish lawyers have expressed concerns over the ABS reforms. Yesterday's decision follows a narrowly-won referendum in April this year which saw 2,245 Scottish lawyers vote in favour of ABS – on the condition that appropriate regulation was put in place – while 2,221 voted against.
Law firms in England and Wales are set to see ABS deals officially come into force as of October 2011 as part of the reforms of the profession ushered in by the the Legal Services Act.
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