Solicitors are being urged to ring in and report any rival local firms they suspect of wrongdoing.

The Solicitors Regulation Authority said doomed business plans drawn up by rogue firms are taking millions of pounds from the compensation fund, and ruining the reputation of the legal profession.

The SRA is hosting a series of roadshows to discuss what the move to outcomes-focused regulation will mean in practical terms.

Speaking to solicitors at an event held last week, SRA board chair Charles Plant said there is an onus on firms themselves to inform the regulator where competitors breach the rules.

He said: ‘We have to be alive to the sort of problems there have been in the past and we need to be able, through the risk-based approach, to identify issues before they arrive.

‘It can come through firms in the area ringing us up and telling us – there is a burden on them to get in touch [with us].’

Plant added: ‘It [OFR] will not be welcomed by those who are incapable of running a viable business.

'There are of course those who are a threat to the profession and to their clients... By having proper management we will spot some of the problems before they arise.’