Scenarios

Scenarios for running an Authorised Entity

The scenarios set out some of the business models which CILEx Regulation would be able to authorise for both new entities and also established entities already operating under a different regulatory regime. 

For those new to a regulated entity, we hope that they will give you some ideas on setting up your own legal practice.

Scenarios

Scenario 1:

Andrew Jones is a Chartered Legal Executive and John Smith is a solicitor working at ABC Solicitors LLP. They have talked about setting up their own legal practice together but only John could carry out reserved activities. Now Andrew is applying to be a Chartered Legal Executive Probate Practitioner and once he has gained this, they are going to set up Smith & Jones Legal LLP. They will apply to be authorised by CILEx Regulation for probate and civil litigation. Andrew will be the approved manager for probate and John will be the approved manager for civil litigation.

Scenario 2:

Jayne Lau is a solicitor working on her own as J Lau Limited carrying out civil litigation regulated by the SRA. She will remain a solicitor, regulated by the SRA individually, but seeks entity regulation from CILEx Regulation. She will demonstrate the knowledge and skills she has gained as part of the application process but will not need to obtain a litigation qualification from us. She will describe herself as a solicitor to her clients but be authorised by CILEx Regulation for civil litigation.

Scenario 3:

Mary Rogers, a graduate CILEX member, has run Rogers Wills & Estates for the last 10 years. She has always asked her clients to obtain Grants of Probate but this has occasionally caused problems or clients refer their cases to other law firms that can carry out the whole range of work. She applies to become a CILEx Probate Practitioner and have her entity authorised by CILEx Regulation for probate. Her PII company is on the CILEx Regulation Panel so already understand her business. They will provide insurance meeting CILEx Regulation terms of insurance. 

Scenario 4:

Sally Nowak is a Fellow who works for XYZ Ltd Employment advisors, which is owned by two individuals, neither of whom is an authorised person. Sally provides some legal advice, all non-reserved, as part of the services the company offers but the company recognises that they are having to hand off more work to other legal firms, which is putting their business at risk. Sally is keen to become a Chartered Legal Executive Litigator but to provide advice to clients she would have to work for a regulated firm. The owners support her and suggest that she set up her own regulated firm with CILEx Regulation and work specifically for their clients. They are very clear on the nature of the relationship to the clients who see this as an excellent new service. It also protects YYZ Ltd.

Scenario 5:

Noor Khan has worked for 8 years as a Fellow and an Immigration advisor at DSN Immigration advisors, who are regulated by the OISC. She now wants to set up on her own and applies to be a Chartered Legal Executive Immigration Practitioner. She applies to be authorised by CILEx Regulation for Immigration for her new firm NK Immigration Services Ltd.

Scenario 6:

Johnson, Dubois & Johnson Solicitors Ltd has 3 partners – Mr Johnson Snr (solicitor), Mrs Dubois (Fellow) and Mr Johnson (solicitor).  Mr Johnson Snr wants to retire and the other partners want to bring in Mrs Ritchie (Fellow) as a new partner. With the change to 2 Fellows and 1 solicitor they now want to look at moving to CILEx Regulation as their regulator. The firm will specialise in Conveyancing now that Mr Johnson Snr is leaving. Mrs Dubois and Mrs Garcia are both qualifying as Chartered Legal Executive Conveyancers. Once that happens CILEx Regulation would be able to regulate the firm for Conveyancing subject to SRA approval on keeping the word solicitors in the title. Mr Johnson Jnr will remain a solicitor on his business communications. Given the size of the firm and the area of law, they understand that a risk review visit would be part of the application process.

Scenario 7:

Chris Smith runs his own business CS Wills & Estates as a graduate member. He wants to grow it further and from talking to Jenny Jones, a Fellow who runs JJ Wills & Estates nearby, knows that a large local residential development gives them a real opportunity. However, neither can exploit that by working alone. Chris suggests that if he qualifies as a CILEx Probate Practitioner and Jenny becomes a Chartered Legal Executive Probate Practitioner, then by working together in one office and saving on overheads including regulatory costs they will be able to grow their business together. They approach CILEx Regulation to become an authorised entity.

There will be other permutations that we are sure we will see. We will assess them on an individual basis and then share them both here and as part of our FAQs.