When non-lawyers were first allowed to own law firms in England and Wales, commentators warned of the “Tesco-isation” of legal services. More than a decade after the first Alternative Business Structure (ABS) licences were issued, legal services ownership UK has become far more varied. Business owners can now buy legal advice from household-name insurers, private-equity-backed firms, listed companies and even local councils, as well as from traditional solicitors’ practices. Understanding who owns the firm advising you is now an essential part of choosing a legal provider.
According to the Solicitors Regulation Authority (SRA), there were more than 1,100 ABS firms in England and Wales in 2024, representing roughly one in eight SRA-regulated practices.
Understanding Alternative Business Structures
An ABS is a law firm regulated by the SRA that can be owned or managed, wholly or partly, by people who are not solicitors. Introduced under the Legal Services Act 2007, the model was designed to increase competition and allow new investment into legal services. It means a practice can raise capital from external investors, appoint non-lawyers to senior management roles, or operate as part of a larger corporate group.
ABSs are not the same as unregulated providers. Any firm doing reserved legal work, such as conveyancing, litigation, probate or immigration advice, must still be authorised by a regulator and meet professional indemnity insurance requirements. Every ABS must also appoint a Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA), and comply with the SRA Standards and Regulations. You can check whether a firm is SRA-regulated on the SRA’s online register.
Since 2019, the SRA has also allowed solicitors to practise as freelancers and in unregulated firms for non-reserved work, adding further variety to the market. The result is a more complex landscape in which ownership, regulation and accountability can differ significantly from one provider to another.
How ownership models have shifted
The early wave of ABS entrants included well-known consumer brands. The AA, Saga, the Co-operative and Direct Line all established regulated legal arms, using customer trust and large databases to sell conveyancing, wills, personal-injury and employment services. BT created an ABS to serve corporate clients, while insurers brought personal-injury work in-house to cut costs and retain customer relationships.
More recently, the ownership story has shifted towards institutional investment. Private-equity firms have bought stakes in law firms, and several practices have listed on the London Stock Exchange. DWF, Gateley and Knights Group were among the first UK law firms to float, demonstrating that legal practices can operate with public-market ownership structures. These moves have brought capital and scale, but also scrutiny. The Law Society Gazette reported in 2023 that the collapse of The Ince Group showed how external ownership and rapid expansion can create risks for clients and staff alike.
For business buyers, the lesson is that a familiar brand or a stock-market listing does not, by itself, guarantee the right legal expertise. It is still important to ask who will handle the matter, what experience they have, and how the firm is regulated.
Small firms, local authorities and new investment
ABS status is not reserved for large corporates. Many small and rural solicitors’ practices have used the structure to bring in non-lawyer managers, secure investment from family members or local business people, and reduce the administrative burden of traditional partnership models. The SRA’s ABS framework allows these firms to remain regulated while changing how they are owned and run.
Local authorities have also set up ABS vehicles. These allow councils to provide legal services to external clients, generate income, and clarify who they can represent when acting for both public and private bodies. Again, the key point for business users is to check who is ultimately responsible for the advice and whether the provider carries appropriate insurance and regulatory cover.
Legal services ownership UK: ABS market share in 2026
The Legal Services Board, which oversees approved regulators including the SRA, has tracked how these new ownership models have changed market concentration. The number of ABS firms has grown since the first licences were issued in 2012, reaching more than 1,100 by 2024, according to SRA data. They now represent roughly one in eight SRA-regulated firms and account for a growing share of total legal-sector turnover.
However, ABS providers are not evenly spread across all areas of law. They remain strongest in consumer-facing and personal-injury work, where insurers and large brands have built market share. In commercial property, corporate transactions, tax planning and planning law, traditional solicitor-led firms still dominate and ABS market share remains in single figures. The “Tesco-isation” of the entire legal market has therefore been partial: new ownership models have disrupted some sectors while leaving others largely unchanged.
What legal services ownership means for women-led businesses
For women running SMEs, the expanding range of legal-service ownership models offers more choice, but also more questions. Before instructing any provider, consider:
- Regulation: Is the firm authorised by the SRA or another approved regulator? Can you find it on the official register?
- Ownership: Who owns the business? Does the owner have a legal background, or is it a corporate parent, investor or local authority?
- Insurance and redress: Does the firm hold professional indemnity insurance? Is there access to the SRA Compensation Fund or an ombudsman scheme?
- Expertise: Will a qualified solicitor handle your work, or will it be managed by paralegals, technology platforms or unregulated staff?
- Transparency: Are fees clearly explained? Are there hidden charges or referral fees from associated businesses?
If you are choosing between a sole trader structure and a limited company for your own professional services firm, our guide to What Is a Limited Company? A Plain English Guide for UK Business Owners explains the implications. For broader context on the UK women in business landscape, see Women in Business: Key UK Facts.
Practical steps when choosing a legal provider
- Check the SRA register before instructing any solicitor-led firm.
- Ask who will actually handle your matter and what their qualifications are.
- Request a written fee quote and ask about referral fees or commissions.
- Confirm the firm’s professional indemnity insurance and complaints procedure.
- Review the ownership structure if you are entering a long-term relationship.
The legal market in England and Wales is more diverse than it was a decade ago. Whether you choose a high-street solicitor, a brand-owned ABS or a private-equity-backed firm, the most important thing is to understand who is behind the service and what protections you have if something goes wrong. Legal services ownership UK will keep evolving, so make ownership and regulation part of your due diligence every time you instruct a provider.
