Chief executive frustrated by time taken to secure licence
Parabis Group has become the first private equity-backed firm to be granted an alternative business structure (ABS) licence by the Solicitors Regulation Authority (SRA).
Parabis comprises defendant and claimant insurance law firms and a many non-legal insurance services from loss adjusting and rehabilitation to risk management, including Plexus Law, Argent and Parabis Claims Solutions.
An ABS is a business providing regulated reserved legal activities but which has either, or both, non-lawyer owners and managers. Traditionally, law firms have had to be owned and managed only by lawyers.
“This really is a milestone for Parabis,” said Parabis Group chief executive Tim Oliver, “It signals our intention to be at the heart of change in the insurance and legal sectors. We are very excited by the possibilities now open to us. This is a fast-changing, highly competitive market. It has been important to secure ABS status so that we can compete effectively and retain our innovative edge.
“While, at times, we have felt frustrated at the time it has taken to secure our licence, we are very pleased with the robustness of the application process.
“We look to the SRA as our regulator to ensure legal services are delivered in a safe way by good quality professional organisations and for the protection of the public. The ABS licensing process has given us great confidence that the SRA is fully committed to discharging that obligation.
“Our businesses are individually strong and distinct but together they represent the most comprehensive professional services offering in the insurance sector.”
Duke Street partner Iain Kennedy said: “Parabis presents a unique opportunity to invest in a fast-growing, dynamic and fragmented sector. The attractions for us are clear: a market leader with an unrivalled track record of revenue and profit growth, a differentiated business model, and the best management team in the industry. The intention is to support management with Duke Street’s operational expertise in transforming the business from a professional services firm to a business process outsourcer, and to drive the continued consolidation of the legal services industry via Duke Street’s successful buy-and-build model.”
SRA executive director Samantha Barrass said: “Licensing ABSs provides the opportunity to stimulate competition, innovation, and choice for consumers of legal services. Parabis Law is the 20th ABS that we have licensed and the first ABS to be created through private equity ownership. It is a good example of the type of innovation that the liberalisation of the legal services market has enabled.”
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