The SRA has been told to prepare for increasing interest from non-English law firms following the introduction of alternative business structures.

The regulator has already received expressions of interest in ABS investment from outside of the UK, including from firms which want to use the ABS structure outside this jurisdiction.

A report compiled jointly by Alison Hook, former head of international at the Law Society, and SRA head of standards Richard Collins, concluded the regulator will need to be ready for the influx of interest from abroad.

International dimensions should be factored into all aspects of the SRA’s work, whilst the work of the SRA’s risk centre should be built with international considerations from the start, the report said.

The report, to be presented to the SRA board next week, said: ‘Clearly the SRA already has much on its plate and is certainly not in a position to launch major new initiatives.

‘However, its ability to establish itself as a credible regulator means that it must recognise the fact that a large proportion of the business of its regulated community takes place outside England and Wales, nor should it be satisfied that its existing processes or knowledge base are robust enough for the increasingly globalised environment in which it finds itself.’

The regulator is encouraged to establish working relationships with foreign jurisdictions and create vetting processes for foreign lawyers that are at least as comprehensive as those for domestic solicitors.

There are currently almost 1,500 registered foreign lawyers regulated by the SRA, nearly two-thirds of which are from the USA, most working in large firms.

More than 3,200 European practitioners have re-qualified as English solicitors, and two-fifths of them are based in England and Wales.