A Manchester firm has launched a new division to tap into the customer base of major retail, insurance and financial services companies.

Pannone is negotiating with several potential partners to join its ‘white label’ legal services division, known as Affinity Solutions, with one unnamed business already signed up and talks ongoing with a number of others.

The firm will offer services including employment advice, consumer disputes, conveyancing, remortgaging and fast-track accident and injury claims.

Pannone is the latest firm to announce its intentions ahead of the Legal Services Act coming fully into force in October, when companies can look for external investment and non-law firms can offer legal services for the first time.

Andrew Morton, leading the Affinity Solutions division of Pannone, predicted the industry has nothing to fear from new entrants, despite cynics warning of a doomsday scenario and claiming they will take business away from law firms.

He said: ‘A number of these new entrants to the marketplace know how to provide excellent service to their existing customers while arguably many in the legal sector do not.

‘So an organisation that places as much emphasis on good service as well as providing excellent legal advice has to be of benefit to the consumer.’

Last week national firm Irwin Mitchell announced its intention to seek external investment as it became one of the first to make public its plans for the LSA.