The Legal Services Board (LSB) has recommended that the ICAEW becomes an approved regulator for probate and a licensing authority for alternative business structures (ABS), opening the way for accountancy firms to provide some legal services.
In a speech earlier this week, LSB chairman David Edmonds described the move as 'a very considerable step for liberalisation in the legal services market' and said he looked forward to seeing the ICAEW 'regulating litigation and other legal services, as we understand they hope to do'.
The LSB has written to the Justice Secretary with its recommendation and a decision is expected imminently. If successful, ICAEW members would be able to apply for authorisation to handle probate activities alongside any related services, such as trust planning and estate administration that they currently provide.
Edmonds said: 'It will enable firms to offer a more integrated service to clients who, in non-contentious cases, will be able to use a single adviser which in turn should have an impact on the overall cost of the service for consumers and increase competition.'
Under the new arrangements, firms will be able to apply to the ICAEW for authority to deliver 'non-contentious' probate services as accredited probate firms. The ICAEW will be allowed only to license practitioners to apply for grant of probate or letters of administration, but it will not be able to authorise firms to oppose a grant of probate or letters of administration. It intends to begin issuing licences in the spring.
Vernon Soare, ICAEW executive director for professional standards, said: 'The Legal Services Board has recognised that consumers can receive legal services from appropriately regulated ICAEW chartered accountants that are of equal quality to traditional providers.'
ICAEW formally applied to be a regulator of ABS and probate services in December last year after a change in regulations made it possible for practitioners, other than lawyers, to become authorised to provide reserved legal services. Prior to this, accountancy firm which wanted to form multi-disciplinary practices with other professionals faced applying for regulation by the Solicitors Regulatory Authority, with the additional costs and complexity of dual registration.
