The solicitors’ profession faces an ‘interesting challenge’ following the Legal Services Board’s recent stamp of approval for the Council for Licensed Conveyancers to become a regulator of alternative business structures, a leading market commentator has suggested.

Stephen Mayson of the Legal Services Institute said that some law firms converting to ABSs may consider switching regulators from the Solicitors Regulation Authority to the CLC if they perceive that this will mean lower cost and compliance burdens.

However Peter Rodd, chair of the Law Society’s Property Section, pointed out that ABSs that want to be members of the Society’s Conveyancing Quality Scheme will need to remain regulated by the SRA in order to be eligible.

The CLC will only be permitted to regulate ABSs in those limited areas where it is already an approved regulator; probate, reserved activities relating to the transfer of land, and the administration of oaths.

However, it has applied to extend its reserved activities to include advocacy and litigation.

Mayson said the new rules presented an ‘interesting challenge’ for the profession.

He said firms converting to ABSs whose work is confined to the limited range of activities regulated by the CLC may have an important decision to make, but for as long as its scope remains narrow, the decision will be less difficult.

He added that this could change if the CLC is permitted to regulate advocacy and litigation.

Richard Barnett, chair of the Society’s conveyancing and land law committee, said much will depend on how the SRA deals with conveyancers.

He said: ‘I hope they don’t treat conveyancers differently because they perceive them to be a greater risk. We have CQS, which will help differentiate between firms.

'We hope the reputation of being a solicitor will carry the flag.’

Law Society chief executive Des Hudson said he was concerned over the proposed CLC system for licensing ABSs, which he said provides inadequate protection for the public.