The Law Society Council gave the green light to the Solicitors Regulation Authority’s application to become a licensing authority for alternative business structures last week.

Having obtained the council’s approval, the SRA will now submit its application to the Legal Services Board, putting it on track to become an ABS regulator in time for the introduction of the new business models this October.

The council approved the SRA’s application by 54 votes to 16.

Law Society chief executive Desmond Hudson commented: ‘The Law Society believes it is right that we should seek to regulate ABSs and we want to be certain that the regulatory framework guarantees the same levels of probity and consumer protection that have been the tradition of the solicitors’ profession.

‘The Law Society Council has examined the proposals from the SRA very carefully and voted to put forward the application to the Legal Services Board. With the introduction of ABSs, law firms will have to consider what the best structure for their business will be.

‘An ABS business model will not suit every firm, and over the coming months the Law Society will run a programme of national roadshows offering advice and support for the profession.

'We will also issue a practice note on ABSs in May.’

Hudson added: ‘We believe that 308 of the country’s 418 legal disciplinary practices – because they have brought a non-lawyer into the partnership – will have to be among the very first to apply to become ABSs.’

Charles Plant, chair of the SRA board, said: ‘The SRA remains on track to receive applications from potential ABSs from August, and to enable the first ABSs to operate from 6 October.

‘The application is the culmination of a determined effort by the SRA, working with consumer groups, the Law Society and other professional organisations, the Legal Services Board, and others to deliver a rigorous regulatory system which enables wider choice for consumers while preserving high professional standards.

‘It demonstrates the SRA’s ability to deliver a reformed regulatory system to a demanding schedule.’

Meanwhile, the Sole Practitioners Group said last week that it had dropped plans to force a postal ballot of solicitors in relation to the Law Society’s policy on ABSs.

Hudson stressed that, under the Legal Services Act, ABSs ‘are now the law’, and preventing the Society from licensing them would simply result in the Legal Services Board stepping in to do the job – ‘which is what the law demands’.