The Institute of Chartered Accountants in England and Wales (ICAEW) has become the latest organisation planning to become a licensing authority for alternative business structures (ABSs).

The ICAEW is talking to the Legal Services Board (LSB) about its application, which is likely to be submitted in early 2012.

If its bid is successful, it would mean the ICAEW would join the Solicitors Regulation Authority (SRA) and the Council for Licensed Conveyancers (CLC) handing out licences to businesses seeking to convert. ICAEW's members would be able to receive a licence from the body to bring in solicitors to create multidisciplinary practices under the new regulatory regime.

Head of business law Felicity Banks commented: "We have lobbied for many years for solicitors to be allowed to work within accountancy firms that we regulate, to provide services direct to clients and continuing in compliance with their own codes of practice. This would remove unnecessary bureaucracy, and very much be in the interests of consumers."

The introduction of ABSs comes as part of the Legal Services Act 2007, which came into force on 6 October and allows for external investment in law firms and for businesses other than law firms to set up legal arms.

The SRA said earlier this month that it will start accepting applications from 3 January, after the order designating the SRA as a licensing authority for ABSs went before Parliament 1 December and will come into force from 23 December.

The SRA said depending on the complexity of the first applications received, it expects to announce the first successful applicants in the second half of February.

The CLC was the only regulator approved to license ABSs from 6 October, with Premier Property Lawyers in Leicester becoming the first UK ABS.

The Bar Standards Board has also expressed interest in applying to become an ABS regulator.

The Co-operative yesterday (7 December) confirmed its plans to form an ABS, with Co-operative Legal Services intending to apply in January. Irwin Mitchell became the first law firm to announce plans to convert.