Following the implementation of the Legal Services Act, companies that do not offer legal services as their primary business can now undertake legal practice.

The new sphere of legal services will offer both rewards and challenges to comms departments. Companies will need to convince consumers and stakeholders that they are able to go beyond their perceived core business strength and compete against the traditional law firms in the legal sector which is perceived as complex and technical.

Although the act was passed in 2007 and put into force in October 2011, applications to become an Altenative Business Structure (ABS) opened to non-legal firms on 3 January. ABSs are new multidisciplinary trading bodies that are more flexible than traditional law firms but may undertake reserved legal activities on behalf of clients.

This change to the legal sector has been dubbed 'Tesco-law' and will create challenges for the traditional firms as they face competition from the likes of the Co-operative and other high-street brands.

Co-operative Legal Services is committed to applying for ABS status. Set up in 2006, the CLS employs over 400 staff currently, and Eddie Ryan, managing director, says that it is looking forward to the change in British legal services. "The act will change the way in which legal services are delivered in England and Wales," he says, "and we believe it will provide customers with greater accessibility to legal advice and better value for money."

Pearse McCabe, strategy and planning director at Rufus Leonard, comments: “This is going to be a titanic battle for the hearts and minds of potential customers. On the one hand there is the established order that holds all the cards in terms of expertise and heritage in legal services. On the other hand there are established brands that have a proven track record in going beyond their own core business if the prize is big enough. With the UK domestic legal services market estimated to be £25 billion, such diversification is worth considering for any brand that can persuade consumers it can provide the necessary service at a competitive rate.”

"Lawyers hate change," says Steve Kuncewicz, lawyer at Gateley LLP, "but the Legal Services Act along with the advent of the Jackson Review of Civil Litigation and the move to outcome-focused regulation aren't issues which the profession needs to "get ready" for - they're happening now. Add to this the fact that they'll now have to compete with major consumer brands who really understand both their stakeholders and how to communicate with them and it's fair to say that lawyers are fortunate to live in 'interesting' times which not all firms are going to survive.”

The act also has implications for law firms as it allows them to raise capital through third parties or the public markets. Investor relations has become necessary for the first time for those firms which have already taken advantage of the opportunity to seek external investment and found a whole new audience of investors to communicate with.

Kuncewicz continues, “Firms may need to radically rethink how they do business if they intend to attract external investment, and it's telling that those applying to become ABS include heavyweights like Irwin Mitchell. This isn't a minor blip - it's fundamental change."