Five years ago questions were asked about how easy it was for the man on the street to access legal help. In 2003, the Lord Chancellor, Lord Falconer initiated a review into how legal services were regulated. The recommendations of the review are reflected in the Legal Services Act 2007 and they come into force this year.

The Legal Services Act has the name “Tesco Law” associated with it because it will significantly change the way law firms are owned and invested in by 2012. This is considered the most important, revolutionary part of the Act.

The main feature of Tesco Law is that it allows for Alternative Business Structures to be created. At present the ownership and management of law firms is through the partners but the Act allows certain legal services to be provided by a non-legal organisation (e.g. Tesco) or in conjunction with law firms.

Also firms will be able to look for investment externally, for example, through the stock market or private equity.

Tesco Law was created to improve competition for legal services and to give the consumer more choice at a better price. Law firms were initially concerned about Tesco, the Co op and banks who have such a strong brand presence dominating the legal arena particularly in areas such as wills, conveyancing, personal injury and employment law. However, in a Poll conducted by the Solicitors Regulation Authority in May 2009 69% of people said they were worried about the quality of service offered by banks and supermarkets and 83% said they had a positive experience of solicitors.

It is assumed that it will be harder for the larger organisations to offer the more personal and bespoke service that a local firm of solicitors can offer and only time will tell whether consumers will prefer the personal service over what the larger organisations can offer.

Although the legal profession is braced for a structural shake-up law firms should be reassured that the consumer wants value but also a personal and professional service from qualified, experienced solicitors. After all, if you wanted a tin of beans you wouldn’t go to your lawyer!

For more information on the company and commercial services offered please contact Simon Hayden at Enoch Evans LLP.

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