The ‘competitive effect’ of new players coming into the market from October next year will mean that ‘existing firms need to improve their levels of service [and] focus on consumers, to be able to compete in a tougher marketplace’, Legal Services Board chairman David Edmonds has said.

Edmonds (pictured) told delegates at the International Association of Legal Protection Insurers (RIAD) conference today that ‘a major priority in allowing these new alternative business structures is to free up the existing players to innovate, to create new partnerships and to be free to act in a less restrained way’.

He added: ‘The current economic climate means that encouraging innovation as a route to growth is more important than ever.

‘While it is foolish for regulators to try to predict the future shape of the market, it is a vital objective for regulators to liberalise where they can, to knock down unnecessary barriers to entry, and to stimulate competition.’

Edmonds said that, following the work the LSB has completed so far, ‘there can be no allegation that – in looking critically at minimum standards in service delivery across the industry – the [legal] regulators are in thrall to professional interests’.

He revealed that the LSB has now agreed action plans with each of the front-line regulators, which include the Solicitors Regulation Authority and Bar Standards Board, setting out how they will comply with the governance arrangements it is seeking from them. Edmonds said the full details of the governance arrangements that have been agreed with each regulator will be announced in a few weeks.