Here’s the story…
While law societies across Canada dither over the risks of non-lawyer investment in law firms, Singapore is moving ahead with sweeping changes to its Legal Professions Act to allow it.
Public consultation on sweeping and forward-thinking changes to capital investment in law firms and how they are regulated commenced last week and will end on April 11, 2014.
Among the most interesting changes announced by the Ministry of Law are:
The establishment of a new dedicated regulator (not the Law Society) to oversee entity level regulation. In the past, lawyers were regulated individually, while law firms were not.
A limited form of Alternative Business Structures (“ABS”) will be allowed granting “non-lawyers with deep management, finance or other relevant experience to operate within the law practice.” Also Legal Disciplinary Practices (“LDPs”) will allow “non-lawyer managers / employees … to own shares / equity / share in the profits of the LDP (to be referred to as “non-lawyer owners”). Such non-lawyer owners will need to apply for approval from the Director of Legal Services, subject to any objections raised by the Attorney-General or the Law Society.”
Australia has allowed non-lawyers to invest in law firms since 2001, while the UK has permitted such investment since 2011.
