The Legal Services Board today unveiled what it described as the ‘first credible framework’ to analyse the changing legal services market.

Consultancy Oxera was commissioned to help the board evaluate the impact of the Legal Services Act 2007 and the LSB itself. Its approach considers the provision of legal services with reference to three characteristics - type of client, type of problem and the legal service activity.

Firms are grouped for analysis with others that provide the same services for the same types of client, and can then be differentiated within those groups by more traditional data, including number of employees and turnover.

LSB chief executive Chris Kenny said: ‘We believe that this represents a step forward in thinking for the sector, providing for the first time a credible framework for analysis and supports the development of new industry nomenclature, to understand and describe the changes taking place.’

He added: ‘It also provides guidance on how to isolate, as far as possible, changes in the market driven by the LSB’s actions from those occurring as a result of unrelated market trends.’

Kenny said the legal services market is hugely complex, with customers ranging from an international corporate entity to a child, and the types of services they require differ widely.

The report is ‘an essential first step’ to understanding systematically how the provision of legal services is changing, he added.

Kenny wants frontline regulators to consider how the data they collect might fit in to the new framework, so that common regulatory risks can be identified and resolved.

The LSB will be carrying out pilot studies looking at the market for legal advice for firms based in and around the City of London and the provision of legal advice by third sector bodies.

The LSB has invited firms to provide feedback by email to: Alex Roy.