The new president of the Hong Kong Law Society Stephen Hung has said that a common entry exam (CEE) for lawyers in Hong Kong and a new 'Tesco law' allowing alternative business structures (ABS') are still high on the agenda for the coming year.

Hung, who was promoted to the role last month after the former President of the Law Society Ambrose Lam resigned, said the CEE was needed to help more Hong Kong lawyers get training programmes and the ABS structure was something the city had to consider in view of recent developments in the UK.

"If [the Law Society] Council approves the implementation of the CEE within the year, it will take effect at least four years down the road," he said.

"On ABS – there is a working party looking at the matter – they will submit a formal report to Council who will decide how and whether to allow.

"There are two possible models – one is that non-lawyers can be owners of a law firm – so anyone can be the majority shareholder, and the other is one where non-lawyers can only own 25% of shares.

"[The report will be submitted] definitely within the next 12 months."

Currently in Hong Kong law graduates have to complete the Postgraduate Certificate of Laws (PCLL) to get a training contract, while those with degrees from overseas must pass a conversion exam and foreign registered lawyers who want to practice locally have to take the Overseas Lawyers Qualification Examination (OLQE).

If the CEE is introduced, it would mean scrapping the existing assessment procedures in favour of one common assessment to be overseen by the Law Society.

ABS structures, meanwhile, are not currently allowed in Hong Kong, but were recently introduced in the UK to permit firms to accept external investment from and be owned by non-lawyers, while also allowing other companies to offer legal services.

The issue has come to the fore in Hong Kong in recent months, with high competition in the city's legal market continuing to put pressure on profitability levels, and after two of the 'big four' accounting firms PwC and EY announced their intentions to offer legal services in the city.

Separately, the Singapore government has also taken steps towards allowing the structures after proposals to accommodate 'Legal Disciplinary Practices' (LDPs), whereby non-lawyers and lawyers could share profits, were subject to a public consultation earlier this year.

Speaking to Legal Week, Hung also outlined plans to consider allowing lawyers to work as sole proprietors in the city and said the Society would make a renewed effort to urge Taiwan to open up its legal market to Hong Kong firms.

Taiwan currently does not permit Hong Kong law firms to open offices in the country, reportedly due to sovereignty issues.