It has been announced that following a cross-profession agreement, alternative business structures should now only have to deal with one regulator.
Earlier this week regulators from the legal, accountancy, financial and property sectors signed a Memorandum of Understanding (MoU), which will allow more information to be shared; according to the Solicitors Regulation Authority (SRA), with the MoU coming into force yesterday (May 3rd 2012).
Currently, under the Legal Services Act, those from other professions and non-lawyers are allowed to own and run law firms; and the SRA have said that this new agreement should now offer clarity to entrants who may have previously found themselves regulated by several different bodies.
As part of the MoU, regulators are set to work together on issues such as consumer engagement, evidence gathering and common standards; in a bid to cut down on the number of regulators alternative business structures are required to deal with.
It is hoped that the increased co-operation “will see the regulated community benefit from a reduction in duplicated regulation and will increase the standard of protection for consumers.”