The Solicitors Regulation Authority published the final version of its new solicitors handbook this week, as it revealed it had received ‘quite a number’ of enquiries from potential new market entrants about becoming alternative business structures.

The SRA has applied to become a regulator of ABSs when the new business models are permitted from 6 October this year.

SRA chief executive Antony Townsend said the SRA had given itself a six-month period to process applications for an ABS licence once it begins that task on August 6, so that it will be able to cope in the event that a large number of applications are received.

He said: ‘We have had quite a number of expressions of interest from new entrants.

'Like any big change, I do not think anyone knows for certain the size of it. We may find it starts relatively slowly and then builds up.’

Townsend added that ‘a number’ of law firms had made enquiries about becoming an ABS, but it was hard to know if they were just ‘testing the water’.

The new handbook forms the basis of the SRA’s move to ‘outcomes-focused regulation’ in October, to coincide with its new role as an ABS regulator.

The handbook is based on 10 broad mandatory principles outlining the professional standards expected of a solicitor. Firms will be given flexibility in how they meet the principles, in a change from the previous ‘tick-box’ approach.

Townsend said the SRA acknowledged that the new regime required ‘trust on both sides’ if it is to succeed.

He said the SRA would not take action against firms that made small errors under the new regime or demonstrated that they were taking action once an error had been pointed out.

He added that while City firms have generally welcomed the ‘direction of travel’ of the new regulatory regime, sole practitioners have been the section of the profession most worried about the changes.

He said: ‘The Sole Practitioners Group is concerned that many of its members who are having a bad time economically are now facing this regulatory change as well… We have tried to address their concerns.’

The SRA also published a ‘quick user guide’ explaining the handbook this week, outlining the differences between the new document and the current code of conduct. See www.sra.org.uk.