March 2010 - Alternative Business Structures could increase links between solicitors and IFAs

As of the 6th October 2011, solicitors' firms will face competition from supermarkets, banks and insurance companies as the Legal Services Act's Alternative Business Structures comes into force.

Many solicitors worry that this increased consumer access to legal services will lead to the closure of nearly a third of practising firms. However, Solicitors for Independent Financial Advice (SIFA) believes it will encourage solicitors to work with independent financial advisors.

SIFA is recommending that financial advisors begin networking with solicitors before the regulatios come into force, as a way of gaining professional connections and increased business.

They believe solicitors will also benefit from these alliances which will give them the opportunity to build client relationships and take a broader view of their clients' needs. They will also be able to work with organisations that provide the relevant complementary skills.

However, before entering any joint venture or referral relationship, solicitors should ensure that the independent financial advisors in question work on a fee basis and are independent as required by the Solicitors' Regulation Authority.

If you would like to discuss this with us, please call 01562 66000, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or contact us using the contacts page of our website.