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legal edge abs specialists. creating, advising, supporting 21st century law firms home about abs bd outsourcing modular management contact us social media like √ content licensing events and seminars abs build programme it friday 13th – be afraid, be very afraid posted by sally holdway | filed under abs consultancy , abss , consumer , conveyancing , law society , lawyers , legal , solicitors , uncategorized | jan 13, 2012 | tags: abs , alternative business structures , conveyancing , hsbc , lenders | 1 comment i’m not normally a superstitious person. friday 13th generally doesn’t hold any concern for me. but the developments in the legal world this week, may lead me to revising my thinking. could this friday 13th go down as one of the unluckiest days ever for lawyers and the old school legal regime? in particular, i’m talking about the double whammy of news this week. firstly that the sra have (finally) opened their doors to abs applicants, and in less than a fortnight the reports are that more than 50 applications have been received. many, of course will be keen to capitalise on the early adopter advantage, but this is still a significant number. any observers who thought abs would not attract a large take up were wrong. we can expect to feel their impact sooner rather than later. existing lawyers need to have a clear vision of their strategic response to the new entrants now. the other news this week which is of particular concern to high street practitioners is that hsbc have set up a panel of just 40 lawyers to be dealing with their purchase conveyancing for their mortgage customers. if the other major lenders follow suit then the residential conveyancing industry as we know it in england and wales will effectively come to and end. whether conveyancing in its current form is fit for purpose is a debate for another day, but be aware if hsbc’s stance becomes industry norm,then this will mean job losses in the thousands for existing conveyancers, and the diminishing of the “bread and butter” income from conveyancing which supports the cashflow of firms up and down the country. this is very serious news and i’m afraid to say that the law society’s response, “raising concerns” about hsbc’s move, is nowhere near robust enough and will do nothing to protect their members. lawyers, today of all days, i strongly urge you not to be walking under any ladders, and avoid at all costs magpies and broken mirror: at least until midnight has passed. so long referral fees, hello marketing fees posted by sally holdway | filed under abss , claims managers , conveyancing , fees , innovation , lawyers , outcomes focussed regulation , referral fees , solicitors | sep 9, 2011 | tags: abs , abss , alternative business structures , claims managers , conveyancing , estate agents , insurance , lenders , panel managers , pi , referral fees , solicitors | 1 comment so we have the news today that referral fees in pi cases will be no more, and by easter 2012. not long for the workarounds to get underway. just what will the impact be, for the existing claims managers, the pi lawyers currently at the end of the foodchain, and the wider legal industry? well, primarily referral fees have existed, nay flourished under a ban before, and it is hard to think that some redefining and slight shifts in services provided won’t mean that they will still be with us, in one guise or another well after the ban is in place. also, quite how regulators will police this ban effectively under an outcomes focussed regime, which should see a move away from the previous i-dotting and t-crossing, remains to be seen. significant resource will be required, and i’m not sure its there. the nettle of banning claims management companies per say, has not (yet) been grasped, so they and their employees are going to have to find something to do. of course, the next obvious step for the claims managers is to bring the only bit of the legal process they can’t do (the reserved element), in house, and do it themselves. so lawyers who are rubbing their hands together this morning with glee at the demise of the referral fee, may also wish to pause to consider that this may also mean the end of their sources of work, if the claims managers look to create abss and do the work legal themselves. canny law firms have already been in discussion with their referrers to see how they can be working with abs claims managers in the post-abs world; whether that is under jvs, mergers or providing white labelled services. expect these conversations to be hotting up. the wider implications for the rest of the legal, and parallel legal services industry will also no doubt be causing heated debate in board rooms and partners meetings up and down the country. as legal futures have reported, there is not “currently” an apetite from the government to seek to ban referral fees in the conveyancing industry as well, but it has to be said, housing affordability, the state of the market and the disarray the mortgage market continues to wallow in, means that securing peoples homes has the makings of becoming just as much a political hot potato as pi (and surely the government will have more appetite for cutting out costs from the middlemen, rather than reducing revenue from stamp duty). once again, the threat which the withdrawal of referral fees present to the existing business models of many panel managers, estate agents, licensed conveyancers and solicitors must surely be considered, and plans made accordingly. perhaps the lead may be taken from the lenders here, and we may see emerge a new wave of “compliance fees” being charged by the front end suppliers of work to their panel solicitors. creativity and innovation in the delivery of legal services was one of the aims of the legal services act, and if nothing else, i think the referral fee ban will certainly expedite that. trending on slideshare.net today…. posted by sally holdway | filed under abss , linkedin | jun 29, 2011 | tags: abs , linkedin , slideshre.net | no comments our presentation on abss is one of the most talked about on linkedin at the moment… so we’re trending on the front page of slideshare.net. have a look yourself. abs: no crystal ball required posted by sally holdway | filed under abss , business process redesign , conveyancing , it , solicitors , workflow | jun 24, 2011 | tags: abs , alternative business structures , solicitors.it , what will happen with abss , workflow | 1 comment so just what is going to happen to the legal services industry (and in particular the retail end of the market) once abss are with us at the end of this year? looking at how the conveyancing industry has evolved over the course of the last decade provides a clear blueprint. this arena has already been largely commoditised. volume providers now dominate the industry. they all have in common increased use of it workflows, offshore outsourcing, commercial management team structures and lawyer displacement. the reason for the development of volume models in conveyancing is not because it is a simple process (ask any conveyancing solicitor), but mostly because abss have been around for some time in the conveyancing world. the council for licensed conveyancers have allowed external ownership and investment in law firms for over a decade (and so have a head start over the sra in regulating abss – they already have experience of what that needs to look like and what the “coal face” challenges are). and the impact has been astonishing. out of the top 10 volume providers 1/3 are licensed conveyancing practices, despite the fact the that clc practices make up less than 2% of the overall number of regulated legal practices. but its not just financial advantages which externally funded law firms have over traditional solicitors. more of a challenge is that they generally form part of larger groups which can generate a constant flow of work into the legal arm of the business – the countrywide model. h

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