Main benefits of ABS for Professionals
• ABS will increase access to finance: at present, providers can face constraints on the amount of equity, mainly debt equity, they can raise.
• ABS will also allow for increased flexibility: non-legal firms such as insurance companies, banks and estate agents will have the freedom to realise synergies with legal firms by forming ABS firms and offering integrated legal and other professional services.
• It will be easier to hire and retain high-quality non-legal staff: ABS firms will be able to reward non-legal staff in the same way as they reward lawyers.
• Allowing new providers into the marketplace should lead to innovation and price reductions. This should result in more people being able to access legal services.
But, to note…
• The ABS regime is facilitative. There is no obligation on a firm to become an ABS although there may be some pressure from competitors which might influence whether or not a firm decides to become one.
Source: ABS Factsheet from Ministry of Justice website.
http://www.justice.gov.uk/publications/docs/abs-fact-sheet.pdf
http://www.justice.gov.uk/publications/docs/abs-fact-sheet.pdf
Do we have any idea how many Accountants want to get involved?
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