Solicitors Face Tough Times

(Posted on 28/04/12)

Should solicitors be concerned about the new regulations set for by the Solicitors Regulation Authority?

There's a growing fear that banks and supermarkets could drastically change the way legal services are carried out in the UK. The SRA already oversees the 120,000+ solicitors in the UK. And as many already know, the invitation's been extended for other sectors to apply for Alternative Business Structures, or ABS. This means the dynamics have shifted drastically and those applicants who qualify will be able to open legal firms and offer an entire range of legal products and services.

Until these changes began, only licensed solicitors were able to own and practice in a law firm. After all, they'd studied hard and paid the big bucks associated with earning a law degree - the privilege of owning a law firm was reserved for those who did the work.

Specifically, concerns are that supermarket chains and other companies could force traditional law firms out of business. Some say it could eventually mean more supermarkets than lawyers could own these firms. One solicitor in the UK said that the years of studying and qualifying as a lawyer could become moot if consumers opted to go the cheaper route, something that grocery stores and banks are promising to deliver. So is it quantity over quality? Maybe.

The fact is, bigger companies have bigger budgets for marketing purposes and advertising. A small two-solicitor firm could easily find itself struggling to stay afloat with the kind of competition these bigger companies are sure to bring to the table.

So what are many legal minds up to in their efforts of offsetting potential disaster? Many say they're taking another look at their own business models and seeking to redefine their target markets. It's about offering a very personal service for clients versus the more mechanical efforts and banks and supermarkets will offer.

For now, though, the entire brouhaha continues to unfold.