The Bar Standards Board (BSB) has said it would be ‘wrong’ to allow barristers to join alternative business structures (ABSs) without evidence of whether all forms of the new structure are ‘compatible with the regulatory objectives’ of the Legal Services Act 2007, or necessary for the benefit of consumers.

The BSB has commissioned preliminary research to assess the potential effects on the market and consumers of allowing barristers to take part in ABSs.

Responding to the Legal Services Board’s discussion paper on developing a regulatory regime for ABSs – ‘Wider access, better value, strong protection’ – the BSB urged the board to give greater consideration to the regulatory regime for ABSs.

The BSB said it recognised that the development of ABSs was a core objective of the Act, but a ‘properly functioning regulatory regime’ was equally important.

BSB chair Ruth Deech said: ‘The BSB is keen to embrace the new dimensions for the provision of legal services set out in the Legal Services Act, yet we also believe that this should be preceded by careful evidence-based consideration of the issues.

‘This is particularly important in order to ensure that we meet the objectives of responsible regulation, the benefits of which include promoting access to justice, consumer choice, competition, and encouraging an independent, strong, diverse and effective legal profession.

‘We must collect evidence, as we are now doing, because getting the regulation of legal services right is a once in a generation decision. The new research will contribute to the evidence needed to assist the BSB in reaching a properly balanced and considered decision and we expect to make this in November, depending on the evidence.’

The BSB’s research will be carried out by Europe Economics.