European Court of Justice rules that the German prohibition of investing in a law firm for purely financial purposes is justified by the regulatory objective to ensure the independence of lawyers

In the long-awaited judgement in the case Halmer ./. Rechtsanwaltskammer München (Case C-295/23) delivered on December 19, 2024, the European Court of Justice (ECJ) ruled that a national law prohibiting the participation of purely financial investors in a law firm does not contravene against EU-law. The Court concluded that this restriction of the freedom of…

Arizona hits new milestone under loosened law firm ownership rules

Reuters has reported that Arizona’s Alternative Business Structures (ABS) programme, which allows non-lawyers to co-own law firms, has reached 101 approved entities as of September 2024. The Arizona Supreme Court recently approved seven more applicants, including an accident law firm and Rocket Lawyer. Arizona was the first U.S. state to legislate to remove non-lawyer ownership…

Malaysia’s legal profession act 1976 amendment bill on track to becoming law

On 6 December 2024, the Malaysian Bar issued a press release on the Legal Profession (Amendment) Bill 2024 (“Amendment Bill”).  Once enacted, the amendments to the Legal Profession Act 1976 (LPA 1976) will introduce significant reforms aimed at modernising the legal profession, improving lawyer welfare, and strengthening regulatory oversight. A key amendment will allow lawyers…

New York will adopt NextGen bar exam, considers shifts in state-law tests

The American Bar Association (ABA) Journal reports that the New York Court of Appeals has announced the adoption of the NextGen bar exam, making New York the 30th jurisdiction to implement the new format. While transitioning to NextGen, the state is also considering modifications to its state-specific law component, potentially introducing an in-person examination. The…

American Bar Association’s artificial intelligence task force releases law school survey

A recent survey conducted by the American Bar Association (ABA) and its Task Force on Law and Artificial Intelligence reveals that a significant number of law schools are actively incorporating artificial intelligence (AI) technologies into their curricula. The survey, which included 29 law schools, found that 55% of these institutions now offer AI-specific classes, and…

Legal Services Regulatory Authority of Ireland to introduce legal partnerships

The Legal Services Regulatory Authority (LSRA) of Ireland plans to introduce legal partnerships in the autumn of 2024, providing a new business structure that will allow barristers, or barristers and solicitors, to form partnerships. This initiative, enabled by the Legal Services Regulation Act 2015 and subsequent amendments, aims to modernise the delivery of legal services…

Advocate General at the European Court of Justice considers German rules on third-party ownership of law firms

In May 2023, the Bavarian Higher Lawyers’ Court requested a ruling from the European Court of Justice on an issue which has important implications for third party ownership of law firms in Germany. The ruling relates to the question of whether an Austrian company which is not authorised to provide legal advice services is nonetheless…

Solicitors Regulation Authority updates warning notice Strategic Lawsuits against Public Participation (SLAPPs)

The Solicitors Regulation Authority of England and Wales published an updated warning notice for solicitors about Strategic Lawsuits Against Public Participation (SLAPPs) at the end of May, following the entry into law of the Economic Crime and Corporate Transparency Act 2023 and drawing on its own casework. SLAPPs are identified as a misuse of the…

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