Are Law Firms Ready to Compete? Navigating the SRA, Alternative Business Models and Private Equity Structures

Legally reviewed by: Wesley Thompson May 2026 In: Legal Regulation

If the pandemic had happened 10 years ago, law firms wouldn’t have been ready to adapt. They wouldn’t have the IT infrastructure, video conferencing tools and ability to manage and lead remote working, fact. Thanks to significant investment and a keen focus on market trends, the legal sector’s response to the pandemic stands out as one of the best examples of adaptability. The legal industry excelled in navigating these challenges, emerging as a leader in its response. You could go as far as to say that the legal industry won that race!

The next race though is how to handle the aftermath. Insolvency data shows that the industry is under strain, with predictions for 2025 indicating significant changes. Overstretched borrowing, over-leveraged funders, and rising insurance premiums are major concerns. We’ve already seen this play out with firms like SSB, Pure Legal, and more recently McDermotts. While these were high-profile cases, it’s important to note that around 500 law firms have either closed, been acquired, or faced intervention from the SRA in the last 12 months, many due to financial pressures.

To stay competitive, law firms need to think ahead about their structure and choosing the right setup is critical for the success of the next phase. An alternative business structure allows law firms the option to invite in non-lawyer equity, reward their non-lawyer staff, and bring to the board non-lawyer professionals who can support the running of your business. Situations where time isn’t on your side, will limit your options. Our advice is to hope for the best but prepare for the worst.

100% Non-Lawyer Ownership Can Be Approved By the SRA

The SRA announced earlier this year that the timeframe for reviewing private equity ownership applications has been increased to 180 days. This period can be extended further from the previous 90 day time frame. Six months or more is a significant wait for a decision, which could have considerable knock-on effects.

Providing Regulatory Guidance for SRA and Private Equity Structures

Completing SRA applications and interpreting the SRA Standards and Rules, alongside Firm-Based Authorisation regulations, while ensuring compliance with Schedule 13 and Section 72 of the Legal Services Act 2007, is highly complex. Anticipating additional questions from the SRA and providing the necessary supporting documentation are crucial for meeting deadlines.

With extensive knowledge of the SRA process, we address potential challenges during the application process, reducing delays and ensuring smooth progress. We specialise in understanding the implications of restructuring ownership within law firms, such as navigating insurance and licenses that may need to be obtained or novated. Our team will assist you throughout the entire process, including liaising with the SRA and key stakeholders.

The Importance of a Regulatory Lawyer

Failure to submit a full and accurate application can significantly prolong your approval process. Incorrect or incomplete information may not only delay the decision but also adversely affect the commercial and corporate scope of your firm.

When submitting an application, a Regulatory Lawyer can be invaluable. They have the expertise to navigate the complex legal requirements, ensuring all documentation is compliant with SRA standards. A regulatory solicitor can foresee potential challenges, mitigate risks, and provide tailored advice, saving time and reducing the risk of an unfavourable outcome.

What Our Regulatory Team Offers

Cartwright King’s regulatory team provides a comprehensive range of regulatory services for law firm restructuring or start-ups, including:

Bespoke and tailored applications
Experience with large and complex structures
Strong working relationships in the professional practices sector
Expertise in SRA regulations, insurance brokers, investors, financial services, and more
Managing key stakeholders
Tailored supporting documentation and processes
SRA liaison handling the application from start to finish
Guidance on navigating Schedule 13 and Section 72 of the Legal Services Act 2007
Technical support with SRA regulations
In-depth understanding of role holder processes, Character and Suitability guidance

Why Choose Cartwright King?

Head of Regulatory, Wesley Thompson brings 6 years of senior experience with the SRA’s authorisation team, making him an expert in efficiently managing applications within set timeframes. Since moving to private practice in 2016, he has guided some of the UK’s largest law firms through complex regulatory restructurings, including IPOs and private equity investments.

Wesley leverages both his SRA background and 8 years of private practice, including time at a top-tier multinational firm. He is highly regarded for delivering specialised expertise at the highest levels of the legal market.

Get in Touch with Our Regulatory Team

At Cartwright King, we offer full support for regulatory matters across the UK, starting with a free, informal phone discussion. Whether you’re facing regulatory investigations or navigating complex legal processes, our experienced team is here to help.

There’s no substitute for speaking to a specialist when your firm’s future is at stake. For prompt assistance, call or email us to arrange your free* initial discussion.

This confidential conversation gives us the chance to: