The statutory barrier to the Solicitors Regulation Authority gaining a licence to authorise alternative business structures has been lifted.

A spokeswoman for the Ministry of Justice told the Gazette: ‘We expect the Solicitors Regulation Authority to become a licensing authority by the end of this year. Appeal arrangements have now been successfully debated in parliament which means the necessary designation order can be made.’

Against previous expectations, the SRA did not become a licensing authority on 6 October 2011 when the terms of the Legal Services Act – including the formation of ABSs – came into force.

The delay was caused by issues that had arisen during the process of gaining parliamentary approval, but those were addressed on Wednesday as the legislation was rubber-stamped in the House of Lords.

Stumbling blocks to SRA approval was the appeal arrangements for those whose application has been rejected and implications of the Rehabilitation of Offenders Act on submissions.

The delay had meant several companies and firms looking to become ABSs had to put plans on hold. The SRA apologised for the delay, although director of standards Richard Collins this month claimed it will be seen as a ‘relatively minor issue’ in two or three years’ time.