After becoming the first non-legal body to regulate probate services in 2014, the ICAEW is now pushing for an even bigger slice of the legal services pie for accountancy firms. If approved by the Legal Services Board, the latest ICAEW application could see accountancy firms and alternative business structures licensed to offer the full suite of reserved legal services—including litigation, rights of audience, reserved instrument activities, notarial services and administration—within 14 months. It could also open the door for tax accountants to claim legal professional privelege in their tax work.

Tax only

The ICAEW has emphasised that it will restrict the legal services it authorises to only taxation, and that any expansion of its regulatory responsibilities will not service firms looking to offer a wider array of legal services. However, the implications of the ICAEW application for firm-based tax lawyers should not be underestimated, as bringing the licensing of accountants in line with that of law firms could deliver a significant blow to the competitive advantage of solicitors in the legal services marketplace. According to the ICAEW application, however, challenging the status quo is firmly in the interest of consumers and the government agenda of nurturing competition in the legal services market. 'It should reduce fees due to services being provided in one place,' the application suggests.

A level playing field 

The ICAEW has to date licensed 182 firms to conduct probate work in England and Wales, including 124 alternative business structures. According to the ICAEW executive director of professional standards, applications for licenses have 'far exceeded' the regulator's expectations. However, the initiative has not been without setbacks. Last week, the ICAEW renewed its call for a more level playing field between accountancy firms and solicitors in probate work, arguing that banks and insurance companies often discriminate against accountant providers by refusing to open separate client accounts 'except for solicitors.' Sources: Legal Futures; Legal Futures (2); Law Society Gazette; Economia