Legal executives should be allowed to set up own firms, LSB says

The Legal Services Board has backed an application that would allow legal executives to set up their own law firms.

ILEX Professional Standards (IPS) is applying for members of the Chartered Institute of Legal Executives (CILEx) to get rights to practise independently in probate and conveyancing.

Alan Kershaw (pictured), chair of IPS, said a "significant hurdle" had been cleared, and he hoped the Lord Chancellor and parliament would move swiftly to approve the changes, "opening the way for CILEx members to run their own businesses".

This would put IPS in a position to approve applications for authorisation for both individuals and entities in early 2015. IPS also plans to apply "in due course" to license ABSs.

In its decision notice, the LSB said it was satisfied that IPS had taken steps to put itself in a position to have enough resources and experience to regulate the new reserved legal activities and firms.

The LSB said IPS estimated that only around 30 to 85 legal executives would seek to set up firms in the first year.

A spokesman for IPS said the LSB's decision today specifically related to probate and conveyancing practice rights, and would allow IPS to regulate entities operating in these areas. Consequent decisions on rule changes for litigation and immigration services are expected shortly.

Currently, CILEx members are able to conduct many reserved legal activities only under the 'supervision' of an authorised person, most commonly a solicitor.

IPS and CILEx announced their application to the LSB earlier this year.

CILEx president Stephen Gowland added: "Allowing experienced lawyers to practise independently in their area of specialism will stimulate the consumer legal services industry, create a more innovative market, and better meet consumer needs.

"In order to set up my own firm I had to dual qualify as a solicitor, despite being qualified already through CILEx."

Launching their application to register firms earlier this year, Ian Watson, chief executive of IPS, said the organisation wanted to obtain independent practice rights for legal executives before deciding whether to regulate non-lawyers.