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An online legal services pioneer has described the current rules preventing solicitors from practising at unregulated firms as “insane”. Former solicitor Tessa Shepperson backed plans by the Solicitors Regulation Authority to change the rules – a move strongly resisted by the Law Society.

The founder of an unregulated law firm offering advice to SMEs has said there is a “massive space” for similar companies to move into the market. Robert Taylor, founder of Business Law Online, said small businesses wanted a “much more commercial” approach.

This is a “considerable failure” of the legal services market to meet the needs of small businesses, a major lobbying group has told the Competition and Markets Authority. The Federation of Small Business said the barriers small businesses face in resolving legal problems were “numerous”.