The Legal Services Act


October 2011 is set to bring some monumental changes to the accountancy and legal world. The Legal Services Act - nicknamed 'Tesco Law' for its potential to increase price competition - is set to change the way the industry has been operating.

For the first time, lawyers will be able to form partnerships with other professions. Already, QualitySolicitors has teamed up with WHSmith and aims to have representatives in 500 stores in the long term. Web-based associations of law firms are already providing cut-price basic services, such as website T&Cs. In addition, regulatory changes in the legal world brought about by the Legal Services Act mean certain professional bodies will be able to issue licences to conduct probate work for their members. One body that has applied for probate authorisation is the Institute of Chartered Accountants in England and Wales (ICAEW), which is also set to be approved as an accredited professional body by the Financial Services Authority.

The Act also allows accountancy firms to merge with law firms and to offer combined financial and legal advice. This concept was attempted and rejected back in the 1990s when four of the 'Big Five' accountants set up associated law firms with little success. This time however, the focus is on the high street and mid-market. For cost-conscious SMEs looking for a differentiating factor, this could be the answer. There is significant appeal in a firm that can offer accounting and legal services as part of a package deal.

However, both accountancy and law firms need to consider whether two very different styles of practice can work sufficiently well together to add the value that will win them new business. In addition, merged accountancy firms in the 1990s found that joining with a solicitors cost them referrals from other law firms, and vice versa. Mergers are usually approached with cost saving in mind. However, two firms desperate to save costs can end up as one firm with one big problem.

Apart from 'merger mania', are there other ways to improve the value proposition and demonstrate true differentiation?
While this new merger idea may have merit, firms might benefit by considering additional ways to improve their value proposition to new clients. What can be done to make your firm stand out from the rest, merged or not? Clients can no longer be bamboozled with technical jargon and mysterious fees. These days, clients want greater fee clarity and more access to information, and The Legal Services Act will only serve to improve this.

Don't forget that company websites attract clients and form lasting first impressions. A range of web-based tools can take your website from a simple advert for your firm to an interactive and informative marketing tool that will capture your prospects' attention and improve your positioning in their minds. For example, a company providing comprehensive industry and financial news or an own-branded online magazine giving cutting edge advice from industry experts, will reassuringly demonstrate expertise and knowledge of the market. These simple, branded tools are a worthy investment in your reputation and standing of your firm.

Notes:

  • Bizezia provides high quality, unique website marketing apps and practice management tools. Bizezia's products are designed to make business easier, encourage people to to visit your website and to keep them coming back.
  • Bizezia's EziaNews is an ideal example of how to keep your website current and informative. It's a daily round-up of business news that can be placed on to your website with no effort on your part and gives your clients, prospects and staff instant access to the latest business news. 
  • Bizezia can trace its roots back to 1986, at a time when accountants were beginning to develop innovative marketing strategies for the first time. Then, with the launch of the Internet, Martin Pollins, founder of Bizezia, saw a new business opportunity to provide marketing and administrative products specifically for professionals serving SMEs, which would be available on their own websites with the aim of attracting potential clients and improving the level of service to existing clients. 
  • Martin Pollins, chairman and founder of Bizezia, is a Chartered Accountant with wide experience in corporate finance and business management. He ran his own accountancy firm in Sussex and was the first accountancy firm in the UK to advertise on television. Martin went on to create and launch the CharterGroup Partnership (the UK's first accountancy network) and then LawGroup UK, one of the largest networks of lawyers in the country. He also served on the ICAEW Council for several years. 
  • Operations director, Iman Rouane, is an honours journalism graduate, who has worked on a number of magazines, including Marie Claire and BBC Eve and was also a freelance newsreader for several radio stations across the south east. She joined Bizezia in 2005.