Given the unhealthy state of the economy in the UK and throughout Europe, indeed the World, it is paramount that the current and future financial law services are structured to stimulate business growth rather than suppress it.
Should Governments implement financial law services that are too stringent then they run the risk of putting off firms from engaging in activities here and taking their business elsewhere. If the financial law services are too relaxed then with little regulatory powers in place and no checks and balances being carried out, there is risk of financial meltdowns.
It is imperative that a correct balance is struck here and that businesses engaging in financial law services are allowed to express themselves but they are sufficiently regulated and following a procedure that is both practical and beneficial to all parties involved.
Alterative Business Structures may be considered by firms in the UKas they bring a number of benefits that will fall in line with financial law services. These include:
- ABS will increase access to finance: at present, providers can face constraints on the amount of equity, mainly debt equity, they can rise.
- ABS will also allow for increased flexibility: non-legal firms such as insurance companies, banks and estate agents will have the freedom to realise synergies with legal firms by forming ABS firms and offering integrated legal and other professional services.
- It will be easier to hire and retain high-quality non-legal staff: ABS firms will be able to reward non-legal staff in the same way as they reward lawyers.
- Allowing new providers into the marketplace should lead to innovation and price reductions. This should result in more people being able to access legal services.
- The ABS regime is facilitative. There is no obligation on a firm to become an ABS although there may be some pressure from competitors which might influence whether or not a firm decides to become one.
The way financial law services are shaped now will go a long way in influencing the recovery of the economy.
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