Scottish law firms demand reforms to allow non-lawyer ownership and tackle succession crisis
A group of Scottish law firms has launched a campaign to end a 15-year delay in the introduction of alternative business structures (ABS), calling for an overhaul of the legal ownership model in Scotland. The newly formed ABS Scotland Group is lobbying for the right to allow law firms to offer equity to non-lawyers, access external investment, and address a looming succession crisis in the sector.
The Scottish Parliament had approved the introduction of ABSs back in 2010, but since then, efforts to implement the necessary rule changes have been repeatedly delayed. The Law Society of Scotland, which oversees regulation, has postponed progress multiple times, most recently announcing another two-year pause in 2027, citing a “lack of interest” despite increasing demand from Scottish law firms.
The group, led by managing partners Rob Aberdein of Simpson & Marwick, Marie Macdonald of Miller Samuel Hill Brown, and Brian Inkster of Inksters, said the delays have left Scotland “completely out of step with the rest of Great Britain”. They argue that non-lawyer ownership has already delivered clear benefits in England and Wales, where ABSs have fostered innovation, investment, and improved competition.
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Aberdein criticised the claim that there was no demand for ABSs in Scotland. He pointed to the nearly 20 firms that joined the campaign group before its official launch, as well as support from major firms such as Harper Macleod, MacDonald Henderson, and Jones Whyte. “The profession is ready, the market is ready, and the only thing missing is the Law Society’s regulation, support, and acceptance,” he said.
Macdonald emphasised the urgent need for reform, pointing out that over 40% of Scottish law firms are sole practitioners, many of whom face a succession crisis with no clear successor to take over upon retirement. She argued that the legal workforce in Scotland had evolved over the years, but ownership models have remained unchanged, creating significant barriers for firms and their clients.
The group also highlighted the competitive disadvantage faced by Scottish firms, which are being outpaced by firms south of the border, where ABSs have been allowed to thrive. In Scotland, several firms have already circumvented the absence of ABS regulation through workaround structures or by operating under the umbrella of English and Welsh firms.
Inkster, a prominent supporter of the campaign, reflected on the earlier fears of the so-called “Tesco Law” when ABSs were first introduced in England and Wales. He argued that those concerns about corporate erosion of professional standards had not materialised, and instead, the legal sector had become more diverse and innovative while maintaining strong regulation and ethical practices.
Ben Kemp, Chief Executive of the Law Society of Scotland, acknowledged the frustration over the delays but assured that the Society was committed to implementing ABS reforms. However, Kemp noted that the immediate priority was the ongoing systemic reforms, including a new business regulation system for existing firms and improvements to the complaints system.