Separate businesses

Separate businesses

The SRA Standards and Regulations permit law firms and legal service providers to restructure their business in a number of ways depending on whether they provide reserved legal activities. The options include:

•
single SRA-regulated entity (law firm, alternative business structure or recognised sole practice), providing reserved and non-reserved services
•
SRA-regulated entity providing reserved legal services with some or all non-reserved services provided by a separate non-SRA regulated business (which crucially can employ SRA-regulated solicitors)
•
non-SRA regulated entity providing non-reserved legal services only, employing SRA-regulated solicitors

This subtopic provides guidance for law firms on operating a separate business, to include dividing a client’s matter between the law firm and separate business, which will involve unbundling legal services. It reflects the Legal Services Act 2007 (LSA 2007), SRA Standards and Regulations and relevant SRA guidance.

The concept of reserved legal services

Understanding the scope of reserved legal services is critical to planning what services can and cannot be delivered to the public (ie external clients) via a separate business. Reserved legal services are:

•
exercising a right of audience
•
conducting litigation
•
reserved instrument activities (conveyancing)
•
probate

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