SGI Legal gains ABS status
LIVERPOOL-based personal injury law firm SGI Legal has secured alternative business structure (ABS) status.
The Legal Services Act introduced the idea of alternative business structures where law firms can change their ownership arrangements away from share-holding partnerships to structures similar to non-law businesses such as banking, insurance and financial services.
It also means they can receive backing from external investors.
SGI plans to use its ABS licence to develop a range of legal and non-legal accident management services under its brand and to seek external investment and acquisitions.
The firm, set up a year ago by a team from Kirwans, recorded turnover of £5m in its first 12 months. It has four solicitor partners and nearly 60 staff, of whom just six are qualified lawyers.
SGI says it is using technology to drive efficiency believes that the focus of qualified lawyers should be on “refining business process, supervision and undertaking fee earning work which is commensurate to their skills and cost base”.
Managing partner Simon Gibson said: “Clients have not benefited as much as their lawyers have from the traditional way in which legal services have been provided. We want to move away from that and focus on what the client wants – which is to get from A to B as quickly as possible. The flexibility ABS status gives us is a key part of our plans.
“The costs base and structure of many law firms is unsuitable for the changing regulatory and economic situation. In my opinion, law firms must structure their cost base and drive efficiency in fee earning so as to meet the challenges ahead. We ensure that our lawyers add value where their professional knowledge and skills are needed, but we recognise that there is a need to process client transactions using fewer lawyers with a far greater reliance upon IT.”
