AA wins licence to enter legal services sector

THE AA has become the latest company to enter the legal market after being granted an alternative business structure (ABS) licence.

The motoring services giant announced today it has won approval from the Solicitors Regulation Authority to operate its own legal services arm, AA Law.

The new business, a joint venture with solicitors Lyons Davidson, will start trading on 1 December and will be limited at first to personal injury and other car accident claims.

Janet Pell, the head of AA Law, said: “This is a goal we have been working towards ever since ABS was announced and I’m delighted that we have been able to do this with the expertise of the widely-trusted law firm, Lyons Davidson.”

“It is a natural fit for the AA, its legal helpline and its motor legal expenses policy, which is already supported by Lyons Davidson,” she added.

A host of companies in the consumer sector have applied for the ABS licence since the new regime allowing non-lawyers to own or invest in law firms came into force in 2011.

Telecoms firm BT was granted a licence in March while Saga and Direct Line have also applied to enter the legal services sector.