Licensed legal services providers

The Law Society of Scotland is the only approved regulator of LPs in Scotland. Approval was granted on application to the Scottish Government. The legislation limits the number of regulators to three.

With the introduction of Licensed Legal Providers, clients could expect to have wider access to legal services. Clients will still be able to expect the same standards of service, advice and consumer protection from LPs as they would from solicitor practices.

No, the main difference is that there are no restrictions as to who can own an ABS in England & Wales. They can be 100% owned by non-solicitors.

If an ABS in England & Wales wishes to operate in Scotland, they would have to meet the criteria for creating an LP, which includes the requirement that at least 51% of the ownership is retained by regulated professionals.

Yes, in respect of the legal services. Part of the regulatory set up for LPs is a robust complaints procedure comparable with the complaints procedure for traditional legal firms. Similarly, all LPs must carry professional indemnity insurance and contribute to the Client Protection Fund.

Not necessarily – solicitor owners and/or owners from specified regulated professions must retain 51% ownership. These investors are known as Qualifying Investors. See Ownership section

A launch date is not yet available.

As part of our work on the current Regulation of Legal Services (Scotland) Bill, we have suggested a range of amendments to the licensed provider regime. Given the unanticipated delays in the progress of the Bill and the uncertainty around the final scope of regulation, including whether and the degree to which the relevant legislation will be amended, our Regulatory Committee has taken the decision to pause further work on licensed providers.

The Law Society remains a supporter of both the creation of these new types of businesses and of us regulating such entities.  However, given the position of the current Bill and the potentially significant changes being made to legal regulation, we believe it sensible to pause our further work on licensed providers until we get the certainty and clarity needed around the final set of reforms being made by Parliament. 

We will make further decisions about future timescales after we consider the Bill in its final form.

No, the restrictions around ownership do not allow for LPs to be floated on the stock market.  

No, the legislation does not allow for law centres or charities to become licensed providers.