Another Field Looking to Exploit Desperate, New Law Graduates

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An interesting article, amidst the shrinking legal market, financial firms believe their business will increase by offering similar services to law firms: Look to law grads for recruits, June 24, 2010 

IFAs should look to law graduates as a source of new recruits, according to Sifa. Speaking on board PIMS last week, Sifa development director David Seager said there are few jobs at present for law graduates and financial services firms should look at recruiting them into the IFA profession. Wait, you want to get businesses to hire law graduates who took upon themselves $100,000+ in non-dischargeable debt to fill positions of financial advisors

He said: “There are a lot of people studying law but there are very few jobs. We always have this debate in financial services about where the new blood will come from. Firms should start looking at law graduates.” [emphasis mine] O.k., let’s clarify, yes many students study law, common law, theories, unrealistic hypotheticals which garner no practical legal skills. Unless that law graduate has an MBA or you’re willing to train them on finance, you may be making an investment in these law graduates with the same risk the law graduates made with attending law school. That one business law class will not help them “hit the ground running” at your company. 

Seager said it is estimated that 3,000 out of 8,900 law firms in England and Wales will go out of business by 2012 due to the rise of transactional legal services offerings from big companies such as Tesco. Wow, I can only imagine the number of solo practicioners and mid-size firms that the economy will devour in the United States, especially with top firms laying off staff and associates. 

He said the introduction of Tesco legal services will appeal to a number of consumers because they already have a client relationship with Tesco. He said that clients will be able to get the same transaction from Tesco for half the price offered by some law firms, so solicitors need to focus on building their client relationships to survive. I see, Tesco and other similar business firms would like to absorb the unemployed attorneys, increase their business production, increase their competition with law firms with the hopes of obliterating the legal industry. Makes sense. 

Seager said that IFAs can help solicitor firms to do this by moving away from a purely transactional business model. He said: “There is going to be huge consolidation in the legal sector and IFAs should be looking to make the most of that. I wouldn’t say consolidation, moreso an industry takeover. 

“IFAs are in a good position to partner up with solicitors and offer consultancy on how to change their business model so they retain more clients.”   Seager said that solicitors have 20 per cent client retention on average. 

People are either waiting for or trying to take advantage of the collapsing legal industry, but that’s the point—it is collapsing. Save yourself.

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