The Legal Services Board has approved the Bar Standards Board’s application for changes to the bar’s code of conduct to allow barristers to be managers or employees of alternative business structures.

In April this year, the bar’s regulator took the decision that barristers should be permitted to work in the new practice models and be regulated by other approved regulators when Part 5 of the Legal Services Act comes into force.

The BSB has not yet applied to become a licensing authority, so will not be able to regulate ABSs.

Welcoming the LSB’s decision, BSB chair Lady Deech said: ‘This change will allow barristers to offer their services in different, innovative ways in response to changing client requirements.’

She added: ‘We strongly believe that this move is in the public interest and will, most importantly, increase consumer choice and access to justice.’

Barristers are currently permitted to practice as managers or employees of legal disciplinary practices and have ownership interests in them, subject to putting in place safeguards to manage any potential conflicts of interest arising from self-employed barristers having an ownership.

There are no restrictions in the code of conduct on barristers having an ownership interest in ABSs, although the BSB is considering whether specific rules or guidance need to be developed to manage any resulting conflicts of interest.

LSB chief executive Chris Kenny said: ‘We encourage the BSB to see how the regulatory arrangements work in practice before they decide whether additional rules and guidance are needed.

‘Before making further alterations to its regulatory arrangements, the BSB would need to be satisfied that these are needed and do not duplicate existing conflict provisions in its code of conduct.’

Kenny added: ‘The BSB would also need to consider any potential conflicts with other regulators, particularly the licensing authorities that will identify and address potential conflicts of interest as part of the licensing regime.’