Legal executives bid for ABS regulation
- Category: Risk and compliance
- Date: 05-09-2017
In a significant move towards regulatory reform, CILEx Regulation—the independent regulatory body of the Chartered Institute of Legal Executives (CILEx)—has applied to the Legal Services Board (LSB) for authorization to license Alternative Business Structures (ABS). This initiative aims to empower Chartered Legal Executives to establish and operate their own legal practices with non-lawyer ownership and external investment, thereby enhancing competition and innovation within the legal sector. citeturn0search0
The application, submitted in 2017, sought to position CILEx Regulation as the sixth regulator authorized to oversee ABS entities. By obtaining this status, Chartered Legal Executives would gain the autonomy to manage legal businesses, fostering a more diverse and dynamic legal services market. citeturn0search0
Alternative Business Structures were introduced under the Legal Services Act 2007 to allow non-lawyers to have ownership stakes in law firms, promoting external investment and multidisciplinary practices. This framework aims to increase access to legal services, encourage innovation, and provide consumers with more choices. citeturn0search0
The bid by CILEx Regulation reflects a broader trend of evolving legal service delivery models. Notably, in 2025, KPMG became the first of the Big Four accounting firms to establish a law practice in the United States, following approval from the Arizona Supreme Court to operate as an ABS. This development underscores the growing acceptance and implementation of ABS frameworks to diversify and modernize legal service offerings. citeturn0news12
The outcome of CILEx Regulation's application marked a pivotal moment for Chartered Legal Executives, enabling them to fully participate in the evolving legal landscape and contribute to a more competitive and innovative market for legal services. citeturn0search0
navlistKPMG's Entry into the US Legal Market as an ABSturn0news12