The restriction was included in the Eighth Directive and enshrined in United Kingdom law, so any reform would have to be agreed both at European level as well as by the Department of Trade and Industry. Europe, though, will be a significant obstacle. 50 percent is a very light touch by European standards, so I'm afraid this is probably a bit fanciful. As far as the Institute is concerned, we've been pretty open-minded about the rule. Our concern is to protect the quality of the audit and we regard the 50 percent rule as a safeguard, but there are other alternatives that could be used in its place.
Lawyers already employ forensic accountants, say, or tax practitioners.
What is much more important is that we are going to have fair competition. The Law Society is already well on the way to changing its rules about MDPs, although its plans go nowhere near as far as the OFT's. Last December, the Society's council agreed to allow any professional to become a partner in a firm of solicitors provided the solicitors remained in the majority. Used with permission. Used with permission.