Reed Smith's U.K. business's long-awaited move to an alternative business structure (ABS) has been given the green light.

The U.S. firm's U.K. limited liability partnership (LLP) has been granted approval by U.K regulator the Solicitors Regulation Authority (SRA) to make the switch, two years after the firm first mooted the idea.

The firm's U.K. LLP consists of operations in London, France, the UAE, Greece and PRC.

Reed Smith Europe and Middle East managing partner Tamara Box said in a statement: "Our clients' needs have changed. In this era of digital transformation, they are looking for a strategic service provider that can go beyond just providing advice on the black letter law but rather one that can assist in solving any challenge they face to help them achieve their business goals.

"We want to ensure that we can retain and attract the very best talent across the board, and the ABS enables this for us."

The firm had previously expected the change to take place early this year.

The firm is one of the largest to date to make use of an ABS structure, as more firms are considering alternative structures or external investment opportunities.

Earlier this year, it was reported that Mishcon de Reya is exploring options to raise capital, including a potential float on the stock market or a stake sale to a private equity investor.

Several firms have opted to list on the stock market in recent years, including Gordon Dadds, Keystone and DWF.