Hong Kong is considering introducing an alternative business structure (ABS) model similar to that of England and Wales, the Chinese region’s legal regulator revealed today.

Ambrose Lam, president of the Law Society of Hong Kong, told the Gazette today that the society would retain its licensing powers if an ABS model was introduced. The Law Society of Hong Kong has been researching the possibility of introducing an ABS structure since 2011 and expects to publish its conclusions early next year.

‘It could increase competition,’ Lam said. ‘If we decide it is good for the market, then it is something we will introduce.’

But he said the society was taking a cautious approach to change. ‘European lawyers have criticized the UK ABS model quite heavily,’ he said. ‘We don’t want it to affect the integrity of law firms.’

Lam added that ABS status of foreign firms could pose problems for regulators in Hong Kong if a firm with an ABS parent company opened an office in the region.

‘Our market is quite open, it may affect the present system,’ he said.

Hong Kong would be the third major jurisdiction to allow non-lawyer ownership of law firms, following Australia in 2001 and England and Wales in 2012.