Singapore to push ABS structure as accounting firms eye market entry
The Singapore government is making progress towards allowing alternative business structures (ABS') in the city-state as accounting firms eye the market as a base from which to provide legal services.
April 10, 2014 at 12:53 AM
3 minute read
The Singapore government is making progress towards allowing alternative business structures (ABS') in the city-state as accounting firms eye the market as a base from which to provide legal services.
Proposals to accommodate 'Legal Disciplinary Practices' (LDPs) whereby non-lawyers and lawyers will be allowed to share profits have been subject to a public consultation, which will end tomorrow.
The Legal Profession (Amendment) Bill 2014, which details the scheme, will then be submitted for a first reading in the Singapore parliament late next month.
It says that non-legal staff would be considered as 'non-lawyer owners' under the structure, but would be required to seek approval from the director of legal services.
Should the changes come into force, they could set Singapore ahead of Hong Kong in allowing participation of non-lawyers with management, finance or other experience, in law practices.
The decision to introduce the ABS model comes as two big four accounting firms Ernst & Young (EY) and PricewaterhouseCoopers (PwC) say they are mulling options for providing legal advice in the city.
PwC said it will consider the LDP, but will wait on more information before deciding on an appropriate strategy.
"This is relevant to us, but there are still a lot of questions, such as how much profit sharing is allowed," said Andrew Wheeler, head of PwC legal in Asia.
"We will seriously consider it – we just want to see what the landscape is first; we need to understand it. There may be a different route. There are a few different models."
In Australia PwC provides legal and accounting services through a multi-disciplinary practice, and in the UK it is looking at making the switch to an ABS structure in line with regulatory changes.
The proposed amendments in Singapore are based on research by a regulatory committee in 2012, whose recommendations were submitted to the Ministry of Law (MinLaw) on 21 January this year.
In September, the president of Hong Kong's Law Society Ambrose Lam told Legal Week that he had been pushing similar changes in Hong Kong, with the society set to review proposals allowing local firms to set up with and raise funds from non-lawyers, and non-law firms to provide legal services in the region.
The Singapore committee also recommended that a new Legal Services Regulatory Authority (LSRA) be established to oversee the industry, and that professional conduct rules apply to all lawyers as opposed to just those practising Singapore law.
Related: Hong Kong eyes Tesco law as Law Society mulls UK-style ABS reforms
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