Law firm awarded ABS licence

Liverpool-based law firm SGI Legal has announced that it has been awarded an alternative business structure (ABS) licence.

The licence, granted by the Solicitors Regulation Authority (SRA), will allow the firm to develop a range of legal and non-legal accident management services under its brand, to bring non-lawyers in as partners in the company, and to seek external investment and acquisitions.

The company says that it is part of its plan to “reshape the way personal injury law firms operate”.

Technology focus

SGI Legal, launched just over a year ago, recorded a turnover of £5m in its first 12 months. The company focuses on using technology to drive efficiency in its business, and more than 10% of the staff are IT specialists.

SGI Legal 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 that ABS status gives us is a key part of our plans.

“The cost 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 into 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.”