Timeline

2010

Legal Services (Scotland) Act 2010 passed, allowing for Alternative Business Structures (ABS) – called Licensed Legal Services Providers (LLSP) in Scotland.

The Act permitted non-lawyer ownership of law firms for the first time. However, this was under the proviso that an ABS still required 51% lawyer ownership.

2012

The Law Society of Scotland’s Executive Director of Regulation reported that increasing numbers of Scottish firms had been contacting the Society to ask about becoming a licensed provider. However, he warned that new regulations enabling them to convert remained “some way off”.

2016

ABS in Scotland described as “rarer than Nessie” by the Law Society Gazette, reflecting the lack of implementation.

2017

Law Society of Scotland approved by Scottish Ministers under Section 7 of the 2010 Act as a potential regulator.

2018

Roberton Review recommended an independent regulator for legal services, but the Scottish Government declined to adopt this recommendation.

2021

Law Society of Scotland officially authorised to regulate LLSPs under Section 10 of the 2010 Act (December 2021).

The Society announced plans to launch the regulatory scheme in 2022.

2022

Regulatory scheme submitted to Scottish Ministers and the Lord President for approval (November 2022).

2023

Approval granted for the regulatory scheme (August 2023).

Law Society paused implementation due to pending legislation (Regulation of Legal Services (Scotland) Bill).

2025

New legislation passed (Regulation of Legal Services (Scotland) Act 2025) removing the requirement for majority lawyer ownership (now reduced to 0%).

Despite this, the Law Society announced a further two-year delay, effectively “deep freezing” ABS until at least 2027 (September 2025).

This deep freeze of ABS described in the English Legal Press as “an abdication of duty” on the part of The Law Society of Scotland and “bordering on farce”.

ABS Scotland Group formed by Scottish law firms and other organisations or individuals with an interest in ABS in Scotland, whether as possible market entrants, funders, strategic advisers or others. The main objective of the group being to encourage and facilitate the introduction of ABS to Scotland.

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