Current Choices for Solicitors and Accountants

The current choices for Solicitors and Accountants are:

1.  Structured relationships with IFAs

2.  In house financial services operation

3.  Ad hoc, unstructured relationships with IFAs

4.  No active involvement with financial services

1.  Structured relationships with IFAs 

At Ashwood Law we have been setting up and running structured relationships for many years and have successfully developed strategies for accountants, solicitors and estate agents.  These relationships add to the services offered to clients with minimal interference to the day to day running of the practice.

The systems which have been developed to manage relationships are unique to Ashwood Law and have enabled some of our key professional partners to effectively establish an external 'financial services department' .

In addition to the above, the firm’s duty of care to their client can be properly discharged by referring their clients to qualified financial advisers from Ashwood Law, thus protecting the practice against possible claims of negligence by omission and ensuring they work within the confines of the Financial Services and Markets Act.

Once a ‘financial services’ culture has been adopted by a firm it is very easy to refer clients to the dedicated adviser who then deals with the whole matter without impinging further on the fee earner’s time.

There are two principal ways in which a structured relationship can be established. The first is through a traditional 'third party introducer' arrangement.  In this set up the firm refers clients as an introducer to the IFA.  The second method is by setting up a joint venture company between the professional firm and the IFA on a profit sharing basis.  The joint venture option is a more robust model well suited to today's environment.  Ashwood Law has been running joint venture arrangements with great success since 2003.

2.  In-house financial services operation

Some larger firms have provided financial services advice in-house to clients but this has normally been beyond the scope of most firms. The formation of the Financial Services Authority in 2001 has reduced the number of firms providing financial services directly and many have chosen to outsource this work rather than have to deal with additional layers of rules under the new regime.

3.  Ad hoc, unstructured relationships with IFAs

Many firms have had ad hoc relationships with IFAs over the years.  However the lack of structure in such arrangements have inevitably produced little result or future.  Because of this it almost falls into the category of 'no involvement'.

4.  No active involvement with financial services

Inertia rules the day OK!  Some firms have shied away from involvement with financial services in the past because it has been perceived to be the safe or easy option. A lack of understanding of the complexity of the financial services regulations can naturally lead to some reticence. 

However in this increasingly litigious world your duty of care to your clients may well extend beyond the provision of legal and professional advice to encompass your clients' financial affairs.

Also, increasing competitive pressures in today's market make it vital to secure links with other professionals in order to strengthen the core offering.  The imminent changes with regard to Multi Disciplinary Practices are an example of how this ties in.

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