Legal Services Act 2007 (c. 29)

(The document as of February, 2008)

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(a) a body whose licence is suspended;

(b) a body to whom this Schedule continues to apply by virtue of sub-paragraph (5);

Money: prohibition on payment

2 (1) The licensing authority may apply to the High Court for an order under sub-paragraph (2), and the High Court may make the order if it thinks fit.

(2) The order is that a person holding money on behalf of the licensed body may not make any payment of the money, except with the leave of the court.

(3) An order under sub-paragraph (2) may take effect in relation to a person--

(a) whether or not the person is named in the order;

(b) however the money is held;

(4) But an order under sub-paragraph (2) does not take effect in relation to a person until the licensing authority--

(a) has given the person a copy of the order, and

(b) (in the case of a bank or other financial institution) has indicated the branches at which it believes money to which the order relates is held.

(5) A person is not to be treated as having disobeyed an order under sub-paragraph (2) by making a payment of money if the court is satisfied that the person--

(a) exercised due diligence to ascertain whether it was money to which the order related, and

(b) failed to ascertain that the order related to it.

Money etc: vesting in licensing authority

3 (1) The sums of money to which this paragraph applies, and the right to recover or receive them, vest in the licensing authority if the licensing authority decides that they should do so.

(2) This paragraph applies to all sums of money held by or on behalf of the licensed body in connection with--

(a) its activities as a licensed body,

(b) any trust of which it is or was a trustee, or

(c) any trust of which a person who is or was a manager or employee of the licensed body is or was a trustee in that person's capacity as such a manager or employee.

(3) Sub-paragraph (1) applies whether the sums were received by the person holding them before or after the licensing authority's decision.

(4) Those sums and that right are held by the licensing authority--

(a) on trust to exercise the powers conferred by this Schedule in relation to them, and

(b) subject to that and to rules under paragraph 6, on trust for the persons beneficially entitled.

(5) The licensing authority must give the licensed body, and any other person in possession of sums of money to which this paragraph applies--

(a) a copy of the licensing authority's decision, and

(b) a notice prohibiting the payment out of those sums.

(6) A person to whom a notice under sub-paragraph (5) is given may apply to the High Court for an order directing the licensing authority to withdraw the notice.

(7) An application under sub-paragraph (6) must be made within 8 days of the licensing authority giving the person notice under sub-paragraph (5).

(8) The person must give not less than 48 hours notice of any application under sub-paragraph (6)--

(a) to the licensing authority, and

(b) if the notice under sub-paragraph (5) gives the name of a solicitor instructed by the licensing authority, to that solicitor.

(9) If the court makes the order, it may make any other order it thinks fit with respect to the matter.

(10) It is an offence for a person to whom a notice has been given under sub-paragraph (5) to pay out sums of money at a time when such payment is prohibited by the notice.

(11) A person who is guilty of an offence under sub-paragraph (10) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

4 (1) Any rights to which this paragraph applies shall vest in the licensing authority if the licensing authority decides that they should do so.

(2) This paragraph applies to any right to recover or receive debts due to the licensed body in connection with its business.

(3) Any sums recovered by the licensing authority by virtue of the exercise of rights vested under sub-paragraph (1) vest in the licensing authority and are held by it--

(a) on trust to exercise the powers conferred by this Schedule in relation to them, and

(b) subject to that and to rules under paragraph 6, on trust for the persons beneficially entitled.

(4) The licensing authority must give the licensed body, and any other person who owes a debt to which the order applies a copy of the licensing authority's decision.

5 (1) If the licensing authority takes possession of any sum of money to which paragraph 3 applies or by virtue of paragraph 4, it must pay it into a special account in the name of the licensing authority or a person nominated on its behalf.

(2) A person nominated under sub-paragraph (1) holds that sum--

(a) on trust to permit the licensing authority to exercise the powers conferred by this Schedule in relation to it, and

(b) subject to that and rules under paragraph 6, on trust for the persons beneficially entitled.

(3) A bank or other financial institution at which a special account is kept is under no obligation to ascertain whether it is being dealt with properly.

6 (1) The licensing authority may make rules governing its treatment of sums vested in it under paragraph 3 or 4(3).

(2) The rules may, in particular, make provision in respect of cases where the licensing authority, having taken such steps to do so as are reasonable in all the circumstances of the case, is unable to trace the person or persons beneficially entitled to any sum vested in the licensing authority under paragraph 3 or 4(3) (including provision which requires amounts to be paid into or out of any fund maintained by the licensing authority in connection with its compensation arrangements).

Money: information

7 (1) The licensing authority may apply to the High Court for an order requiring a person to give the licensing authority--

(a) information about any money held by the person on behalf of the licensed body, and the accounts in which it is held, or

(b) information relevant to identifying any money held by the licensed body or by another person on its behalf.

(2) The High Court may make the order if it is satisfied that there is reason to suspect--

(a) in a case within sub-paragraph (1)(a), that the person holds money on behalf of the licensed body, and

(b) in a case within sub-paragraph (1)(b), that the person has the information in question.

(3) This paragraph is without prejudice to paragraphs 2 to 6.

Notice to produce or deliver documents

8 (1) The licensing authority may give notice to the licensed body requiring it to produce or deliver all documents in its possession or under its control in connection with--

(a) its activities as a licensed body,

(b) any trust of which it is or was a trustee, or

(c) any trust of which a person who is or was a manager or employee of the licensed body is or was a trustee in that person's capacity as such a manager or employee.

(2) The notice may require the documents to be produced--

(a) to any person appointed by the licensing authority;

(b) at a time and place to be fixed by the licensing authority.

(3) The person appointed by the licensing authority may take possession of any such documents on behalf of the licensing authority.

(4) It is an offence for a person having possession of such documents to refuse, neglect or otherwise fail to comply with a notice under sub-paragraph (1).

(5) Sub-paragraph (4) does not apply where an application has been made to the High Court under paragraph 9(1)(a).

(6) A person who is guilty of an offence under sub-paragraph (4) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Order to produce or deliver documents

9 (1) The High Court may, on the application of the licensing authority, make an order for production or delivery--

(a) in relation to a person required to produce documents under paragraph 8 and the documents the person was required to produce;

(b) if it is satisfied that there is reason to suspect that documents in relation to which the powers in paragraph 8 are exercisable have come into the possession or under the control of some person other than the licensed body, in relation to that person and those documents.

(2) An order for production or delivery is an order--

(a) requiring a person to produce or deliver documents to any person appointed by the licensing authority, at a time and place specified in the order, and

(b) authorising the appointed person to take possession of the documents on behalf of the licensing authority.

(3) The court may, on the application of the licensing authority, authorise a person appointed by the licensing authority to enter any premises (using such force as is reasonably necessary) to search for and take possession of--

(a) any documents to which an order for production or delivery relates;

(b) any property--

(i) in the possession of or under the control of the licensed body, or

(ii) in the case of an order under sub-paragraph (1)(b), which was in the possession or under the control of that body and has come into the possession or under the control of the person in respect of whom the order is made,

which the licensing authority reasonably requires for the purpose of accessing information contained in any such documents,

and to use property obtained under paragraph (b) for that purpose.

(4) It may do so on making the order for production or delivery, or at any later time.

Taking possession of documents etc under notice or order

10 (1) This paragraph applies where the licensing authority takes possession of documents or any other property under paragraph 8 or 9.

(2) On taking possession, it must give a notice to--

(a) the licensed body, and

(b) any other person from whom the documents or property were received or from whose possession they were taken.

(3) The notice must state that possession has been taken and specify the date on which possession was taken.

(4) A person to whom a notice under sub-paragraph (2) is given may apply to the High Court for an order directing the licensing authority to deliver the documents or other property to such person as the applicant requires.

(5) An application under sub-paragraph (4) must be made within 8 days of the licensing authority giving the person notice under sub-paragraph (2).

(6) The person must give not less than 48 hours notice of the application--

(a) to the licensing authority, and

(b) if the notice under sub-paragraph (2) gives the name of a solicitor instructed by the licensing authority, to that solicitor.

(7) The court may make any order it thinks fit.

Mail and other forms of communication

11 (1) The High Court, on the application of the licensing authority, may from time to time make a communications redirection order.

(2) A communications redirection order is an order that specified communications to the licensed body are to be directed, in accordance with the order, to the licensing authority or any person appointed by the licensing authority.

(3) For the purposes of this paragraph--

(a) "specified communications" means communications of such description as are specified in the order;

(b) the descriptions of communications which may be so specified include--

(i) communications in the form of a postal packet;

(ii) electronic communications;

(iii) communications by telephone.

(4) A communications redirection order has effect for such time not exceeding 18 months as is specified in the order.

(5) Where a communications redirection order has effect, the licensing authority or the person appointed by the licensing authority may take possession or receipt of the communications redirected in accordance with the order.

(6) Where a communications redirection order is made the licensing authority must pay to the designated payee the like charges (if any) as would have been payable for the redirection of the communications to which the order relates if the addressee--

(a) had permanently ceased to occupy or use the premises or other destination of the communications, and

(b) had applied to the designated payee to redirect the communications as mentioned in the order.

(7) For this purpose "the designated payee" means--

(a) in the case of an order relating to postal packets, the postal operator concerned, and

(b) in any other case, the person specified in the order as the designated payee.

(8) The High Court may, on the application of the licensing authority, authorise the licensing authority, or a person appointed by it, to take such steps as may be specified in the order in relation to any website purporting to be or have been maintained by or on behalf of the licensed body, if the High Court is satisfied that the taking of those steps is necessary to protect the public interest or the interests of clients (or potential or former clients) of the licensed body.

(9) In this paragraph "postal operator" and "postal packet" have the meaning given by section 125(1) of the Postal Services Act 2000 (c. 26).

(10) This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 1(2)(e).

Use of documents in licensing authority's possession

12 (1) The licensing authority may apply to the High Court for an order as to the disposal or destruction of any document or other property in its possession by virtue of paragraph 8, 9 or 11.

(2) The court may make any order it thinks fit.

13 (1) The licensing authority may take copies of or extracts from any documents in its possession by virtue of paragraph 8, 9 or 11.

(2) If the licensing authority proposes to deliver such documents to any person, it may make the delivery conditional on the person giving a reasonable undertaking to supply copies or extracts to the licensing authority.

(3) Sub-paragraphs (1) and (2) are subject to any order made by the court under paragraph 10 or 12.

Trusts

14 (1) If the licensed body is a trustee of any trust, the licensing authority may apply to the High Court for an order for the appointment of a new trustee in substitution for it.

(2) If a person who is a manager or employee of the licensed body is a trustee of any trust in that person's capacity as such a manager or employee, the licensing authority may apply to the High Court for an order for the appointment of a new trustee in substitution for that person.

(3) The Trustee Act 1925 (c. 19) has effect in relation to an appointment of a new trustee under this paragraph as it has effect in relation to an appointment under section 41 of that Act.

General powers of licensing authority

15 The powers conferred by this Schedule in relation to sums of money, documents or other property may be exercised despite any lien on them or right to their possession.

16 The licensing authority may do all things which are reasonably necessary to facilitate the exercise of its powers under this Schedule.

Licensing authority's costs

17 (1) Any costs incurred by the licensing authority for the purposes of this Schedule (including the costs of any person exercising powers under this Schedule on behalf of the licensing authority)--

(a) are to be paid by the licensed body, and

(b) may be recovered from the licensed body as a debt owing to the licensing authority.

(2) Sub-paragraph (1) is subject to any order for payment of costs that may be made on an application to the court under this Schedule.

18 (1) The High Court, on the application of the licensing authority, may order a liable party to pay a specified proportion of the costs mentioned in paragraph 17.

(2) For this purpose a "liable party" means--

(a) if the licensed body is a partnership, any former partner in the licensed body,

(b) in any other case, any manager or former manager of the licensed body.

(3) The High Court may make an order under this paragraph in respect of a liable party only if it is satisfied that the conduct (or any part of the conduct) by reason of which this Schedule applies was conduct carried on with the consent or connivance of, or was attributable to any neglect on the part of, the liable party.

(4) In this paragraph "specified" means specified in the order made by the High Court.

Section 114

SCHEDULE 15 The Office for Legal Complaints

Membership

1 (1) The OLC is to consist of the following members--

(a) a chairman appointed by the Board with the approval of the Lord Chancellor, and

(b) at least 6, but not more than 8, other persons appointed by the Board after consultation with the chairman.

(2) The Lord Chancellor may by order amend sub-paragraph (1) by substituting, for the limit on the maximum number of persons for the time being specified in paragraph (b) of that sub-paragraph, a different limit.

2 (1) In appointing members of the OLC, the Board must ensure that a majority of the members of the OLC are lay persons.

(2) The chairman must be a lay person.

(3) In this Schedule a reference to a "lay person" is a reference to a person who has never been--

(a) an authorised person in relation to an activity which is a reserved legal activity,

(b) an advocate in Scotland,

(d) a member of the Bar of Northern Ireland, or

(e) a solicitor of the Court of Judicature of Northern Ireland.

(4) For the purposes of sub-paragraph (3), a person is deemed to have been an authorised person in relation to an activity which is a reserved legal activity if that person has before the appointed day been--

(a) a barrister,

(b) a solicitor,

(d) a licensed conveyancer,

(e) granted a certificate issued by the Institute of Legal Executives authorising the person to practise as a legal executive,

(f) a registered patent attorney, within the meaning given by section 275(1) of the Copyright, Designs and Patents Act 1988 (c. 48),

(g) a registered trade mark attorney, within the meaning of the Trade Marks Act 1994 (c. 26), or

(h) granted a right of audience or right to conduct litigation in relation to any proceedings by virtue of section 27(2)(a) or section 28(2)(a) of the Courts and Legal Services Act 1990 (c. 41) (rights of audience and rights to conduct litigation).

(5) For the purpose of sub-paragraph (4)--

"appointed day" means the day appointed for the coming into force of section 13;
"licensed conveyancer" has the meaning given by section 11(2) of the Administration of Justice Act 1985 (c. 61).

3 (1) An ombudsman may be a member (but not chairman) of the OLC.

(2) In appointing members of the OLC, the Board must ensure that a majority of the members of the OLC are not ombudsmen.

4 In appointing members of the OLC, the Board must have regard to the desirability of securing that the OLC includes members who (between them) have experience in or knowledge of--

(a) the handling of complaints,

(b) the provision of legal services,

(d) consumer affairs,

(e) civil or criminal proceedings and the working of the courts,

(f) the maintenance of the professional standards of persons who provide legal services,

(g) non-commercial legal services,

(h) the differing needs of consumers, and

(i) the provision of claims management services (within the meaning of Part 2 of the Compensation Act 2006 (c. 29)).

Terms of appointment and tenure of members

5 A member of the OLC is to hold and vacate office in accordance with the terms and conditions of the member's appointment (subject to this Schedule).

6 (1) A member of the OLC must be appointed for a fixed period.

(2) The period for which a member is appointed must not exceed 5 years.

(3) A person who has held office as a member may be re-appointed once only, for a further period (whether consecutive or not) not exceeding 5 years.

7 If a member of the OLC who is a lay person becomes a person within paragraph (a) to (e) of paragraph 2(3), that person ceases to be a member of the OLC.

8 (1) A member may at any time--

(a) resign from office by giving notice to the Board;

(b) be removed from office by the Board.

(2) The Board may not under sub-paragraph (1)(b) remove a member (including the chairman) from office unless the Board is satisfied that the member--

(a) has failed without reasonable excuse to discharge the functions of the office for a continuous period of at least 6 months,

(b) has been convicted of an offence,

(d) is otherwise unfit to hold the office or unable to discharge its functions.

(3) The chairman may be removed from office under sub-paragraph (1)(b) only with the consent of the Lord Chancellor.

(4) The Board must consult the chairman before removing a member (other than the chairman) under sub-paragraph (1)(b).

(5) The Board may not remove an ordinary member on the ground mentioned in paragraph (a) of sub-paragraph (2) more than 3 months after the end of the period mentioned in that paragraph.

9 The chairman ceases to be chairman upon ceasing to be a member of the OLC.

Remuneration etc of members

10 The chairman and other members of the OLC are to be paid by the Board in accordance with provision made by or under their terms of appointment.

11 The terms of appointment of the chairman or any other member may provide for the Board to pay, or make payments towards the provision of, a pension, allowance or gratuity to or in respect of that person.

12 If the Board thinks there are circumstances that make it right for a person ceasing to hold office as chairman or another member to receive compensation, the OLC may pay that person such compensation as the Board may determine.

Staff

13 The OLC may appoint such staff as it considers appropriate to assist in the performance of its functions.

14 Staff appointed under paragraph 13 are to be--

(a) appointed on terms and conditions determined by the OLC, and

(b) paid by the OLC in accordance with provision made by or under the terms of appointment.

15 A member of staff appointed under paragraph 13 may be a member (but not chairman) of the OLC.

16 The terms and conditions on which an ombudsman, or any member of staff appointed under paragraph 13, is appointed may provide for the OLC to pay, or make payments towards the provision of, a pension, allowance or gratuity to or in respect of that person.

17 The OLC may pay compensation for loss of employment to or in respect of an ombudsman (or former ombudsman), or a member (or former member) of staff appointed under paragraph 13.

Arrangements for assistance

18 (1) The OLC may make arrangements with such persons as it considers appropriate for assistance to be provided to it or to an ombudsman.

(2) Arrangements may include the paying of fees to such persons.

(3) The persons with whom the OLC may make arrangements include approved regulators; and the arrangements it may make include arrangements for assistance to be provided to an ombudsman in relation to the investigation and consideration of a complaint.

Committees

19 (1) The OLC may establish committees.

(2) Any committee so established may establish sub-committees.

(3) Only members of the OLC may be members of a committee or sub-committee.

(4) A majority of the members of a committee or sub-committee must be lay persons.

Proceedings

20 (1) The OLC may regulate its own procedure, and the procedure of its committees and sub-committees, including quorum.

(2) But the quorum of a committee or sub-committee must not be less than 3.

(3) The OLC must publish any rules of procedure made under this paragraph.

(4) This paragraph is without prejudice to any other power the OLC has under this Act to make rules.

21 The validity of any act of the OLC is not affected--

(a) by a vacancy in the office of chairman or amongst the other members, or

(b) by a defect in the appointment or any disqualification of a person as chairman or another member of the OLC.

Delegation of functions

22 (1) The OLC may authorise--

(a) the chairman or any other member of the OLC,

(b) a committee or sub-committee of the OLC,

(d) a member of the OLC's staff appointed under paragraph 13,

to exercise, on behalf of the OLC, such of its functions, in such circumstances, as it may determine.

(2) Sub-paragraph (1) does not apply to--

(a) the OLC's functions under section 118(1) (annual report),

(b) the OLC's functions under section 122 (appointment of Chief Ombudsman and assistant ombudsmen),

(d) any power or duty the OLC has to make rules under this Part of this Act.

(3) A committee may delegate functions (including functions delegated to the committee) to--

(a) a sub-committee,

(b) the chairman or any other member of the OLC,

(d) a member of the OLC's staff appointed under paragraph 13.

Budget

23 (1) The OLC must, before the start of each financial year, adopt an annual budget which has been approved by the Board.

(2) The OLC may, with the approval of the Board, vary the budget for a financial year at any time after its adoption.

(3) The annual budget must include an indication of--

(a) the distribution of resources deployed in the operation of the ombudsman scheme, and

(b) the amounts of income of the OLC arising or expected to arise from the operation of the scheme.

Land

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