Legal Services Act 2007 (c. 29)

(The document as of February, 2008)

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(b) for "officer" substitute "manager", and

" (i) that body's business,

(ii) any trust of which that body is or was a trustee,

(iii) any trust of which the manager or employee is or was a trustee in his capacity as such a manager or employee, or

(iv) the business of another body in which the manager or employee is or was a manager or employee or the practice (or former practice) of the manager or employee; or " .

(5) After sub-paragraph (1)(d) insert--

" (e) the Society is satisfied that it is necessary to exercise the powers conferred by Part 2 of Schedule 1 to the 1974 Act (or any of them) in relation to a recognised body to protect--

(i) the interests of clients (or former or potential clients) of the recognised body,

(ii) the interests of the beneficiaries of any trust of which the recognised body is or was a trustee, or

(iii) the interests of the beneficiaries of any trust of which a person who is or was a manager or employee of the recognised body is or was a trustee in that person's capacity as such a manager or employee; " .

(6) After sub-paragraph (1) insert--

" (1A) For the purposes of this paragraph a relevant insolvency event occurs in relation to a recognised body if--

(a) a resolution for a voluntary winding-up of the body is passed without a declaration of solvency under section 89 of the Insolvency Act 1986;

(b) the body enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to that Act;

(d) a meeting of creditors is held in relation to the body under section 95 of that Act (creditors' meeting which has the effect of converting a members' voluntary winding up into a creditors' voluntary winding up);

(e) an order for the winding up of the body is made. "

(7) Omit sub-paragraph (2).

120 For paragraph 33 of that Schedule (further grounds for intervention)--

(a) for paragraph (a) substitute--

" (a) the Society is satisfied that there has been undue delay--

(i) on the part of a recognised body in connection with any matter in which it is or was acting on behalf of a client or with any trust of which it is or was a trustee, or

(ii) on the part of a person who is or was a manager or employee of a recognised body in connection with any trust of which the manager or employee is or was a trustee in his capacity as such a manager or employee; " , and

(b) in paragraph (c) for "Council regard" substitute "Society regards".

121 In paragraph 34 of that Schedule (powers of intervention on revocation of recognition etc), in sub-paragraph (1)--

(a) omit "corporate" (in both places), and

(b) in paragraph (a), after "revoked" insert "in accordance with rules under that section or".

122 In paragraph 35 of that Schedule (provision relating to the application of Part 2 of Schedule 1 to the Solicitors Act 1974)--

(a) in paragraph (a) omit "corporate", and

(b) omit "and" at the end of paragraph (b) and after paragraph (c) insert--

" (d) paragraph 6(2)(a) of that Schedule is to be construed as including a reference to sums of money held by or on behalf of the recognised body in connection with any trust of which a person who is or was a manager of the recognised body is or was a trustee in his capacity as such a manager;

(e) paragraph 9 of that Schedule is to be construed--

(i) as if sub-paragraph (1) included a reference to documents in the possession or under the control of the recognised body in connection with any trust of which a person who is or was a manager or employee of the recognised body is or was a trustee in his capacity as such a manager or employee, and

(ii) as applying to such a manager or employee and documents and property in his possession or under his control in connection with such a trust as it applies to a solicitor and documents and property in the possession or under the control of the solicitor;

(f) paragraph 11(1) of that Schedule is to be construed as including a power for the Society to apply to the High Court for an order for the appointment of a new trustee to a trust in substitution for a person who is a trustee, in his capacity as a manager or employee of the recognised body; and

(g) paragraph 13A of that Schedule is to be read as if the references to a former partner were references--

(i) in the case of a recognised body which is a partnership, to a former partner in the partnership, and

(ii) in any other case to a manager or former manager of the recognised body. "

123 In paragraph 36 of that Schedule (privilege from disclosure etc)--

(a) for sub-paragraph (1) substitute--

" (1) Where a recognised body acts as such for a client, any communication, document, material or information is privileged from disclosure in like manner as if the recognised body had at all material times been a solicitor acting for the client. " ,

(b) in sub-paragraph (3) for "an officer" substitute "a manager", and

" (4) This paragraph does not apply to a recognised body which holds a licence under Part 5 of the Legal Services Act 2007 (alternative business structures). "

Part 3 The Courts and Legal Services Act 1990 (c. 41)

124 The Courts and Legal Services Act 1990 is amended in accordance with this Part of this Schedule.

125 In section 89 (foreign lawyers: recognised bodies and partnerships with solicitors)--

(a) for subsection (3)(a)(iv) substitute--

" (iv) sections 36 and 36A (compensation grants); and " ,

(b) in subsection (4), for paragraphs (a) to (d) substitute "to make different provision with respect to registered foreign lawyers to the provision made with respect to solicitors.",

(d) in paragraph (a) of that subsection for "the commencement of this section" substitute "or in the same Session as the Legal Services Act 2007 was passed",

(e) in subsection (6) for "Secretary of State" substitute "Lord Chancellor",

(f) in subsection (7) for "Secretary of State" (in both places) substitute "Lord Chancellor",

(g) in paragraph (a) of that subsection for "the commencement of this section" substitute "or in the same Session as the Legal Services Act 2007 was passed",

(h) in that subsection for "officers" substitute "managers",

(i) after subsection (8) insert--

" (8A) Rules and regulations made by the Law Society under, or by virtue of, this section or Schedule 14 which are not regulatory arrangements within the meaning of the Legal Services Act 2007 are to be treated as such arrangements for the purposes of that Act. " , and

(j) in subsection (9), after the definition of "foreign lawyer" insert--

" "manager", in relation to a body, has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act); " .

126 Schedule 14 to that Act (foreign lawyers: partnerships and recognised bodies) is amended as follows.

127 In paragraph 1 (interpretation) omit the definitions of "the Council" and "controlled trust".

128 In paragraph 2 (application for registration)--

(a) for "Council" in each place substitute "Society",

(b) in sub-paragraph (1)(b) for "the Master of the Rolls" substitute "the Legal Services Board",

(i) for "Law Society" substitute "Society", and

(ii) for paragraphs (a) and (b) substitute "for members of that profession to be managers of recognised bodies.",

(d) omit sub-paragraph (3),

(e) in sub-paragraph (4)--

(i) for "Master of the Rolls" substitute "Legal Services Board", and

(ii) in paragraph (a) after "including" insert "the form of the register and",

(f) in that sub-paragraph, after paragraph (b) insert " and

(c) the making available to the public of the information contained in the register (including the manner in which, and hours during which, the information is to be made so available and whether the information is to be made available free of charge). " , and

(g) omit sub-paragraph (5).

129 After paragraph 2 insert--

" 2A (1) The Society may direct that a foreign lawyer's registration is to have effect subject to such conditions as the Society thinks fit to impose.

(2) A direction under sub-paragraph (1) may be given in respect of a foreign lawyer

(a) at the time he is first registered, or

(b) at any time when the registration has effect. "

130 In paragraph 3 (duration of registration) in sub-paragraphs (2) and (3)(c) for "Council" substitute "Society".

131 In paragraph 5 (intervention in practices)--

(a) in sub-paragraph (3)(a) and (b)--

(i) for "Council have" substitute "Society has", and

(ii) omit "by virtue of his being a member of that partnership",

(b) after sub-paragraph (3)(b) insert--

" (ba) the Society has reason to suspect dishonesty on the part of the registered foreign lawyer ("L") in connection with--

(i) the business of any person of whom L is or was an employee, or of any body of which L is or was a manager, or

(ii) any business which is or was carried on by L as a sole trader; " ,

(d) after sub-paragraph (3)(e) insert--

" (ea) the Society is satisfied that he has abandoned his practice; " ,

(e) in sub-paragraph (3)(i)--

(i) for "Council are" substitute "Society is", and

(ii) for "an officer" (in both places) substitute "a manager",

(f) after that sub-paragraph insert--

" (j) the Society is satisfied that it is necessary to exercise the intervention powers (or any of them) in relation to the registered foreign lawyer to protect--

(i) the interests of clients (or former or potential clients) of the registered foreign lawyer or the multi-national partnership, or

(ii) the interests of the beneficiaries of any trust of which the registered foreign lawyer is or was a trustee. " ,

(g) omit sub-paragraph (4),

(h) in sub-paragraph (5)(a) for "a complaint is made to the Society" substitute "the Society is satisfied",

(i) in sub-paragraph (5)(a)(ii) for "controlled trust" substitute "trust",

(j) in sub-paragraph (5)(c) for "Council regard" substitute "Society regards", and

(k) after sub-paragraph (9) insert--

" (10) In this paragraph "manager", in relation to a recognised body, has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act). "

132 For paragraph 6 (compensation fund) substitute--

" 6 Section 36 of the 1974 Act applies in relation to registered foreign lawyers as if for paragraphs (a) and (b) of subsection (1) there were substituted--

" (a) an act or omission of a registered foreign lawyer or former registered foreign lawyer;

(b) an act or omission of an employee or former employee of a registered foreign lawyer or former registered foreign lawyer; " . "

133 For paragraph 7 (contributions to fund) substitute--

" 7 Section 36A(2) and (3) of the 1974 Act applies in relation to registered foreign lawyers as it applies in relation to solicitors. "

134 For paragraph 8 (accountants' reports) substitute --

" 8 Section 34 of the Act of 1974 applies in relation to registered foreign lawyers as it applies in relation to solicitors. "

135 In paragraph 14 (appeal against conditions or refusals)--

(a) in sub-paragraph (1)--

(i) for "Master of the Rolls" substitute "High Court", and

(ii) for "2(3)" substitute "2A",

(b) omit sub-paragraph (2),

(i) omit "to him",

(ii) for "Master of the Rolls" substitute "High Court", and

(iii) for "he" substitute "it", and

(d) after that sub-paragraph insert--

" (4) In relation to an appeal under this paragraph the High Court may make such order as it thinks fit as to payment of costs.

(5) The decision of the High Court on an appeal under this paragraph shall be final. "

136 In paragraph 15 (jurisdiction and powers of disciplinary tribunal)--

(a) after sub-paragraph (3) insert--

" (3A) Any person who alleges that a registered foreign lawyer has knowingly acted in contravention of any order under section 43(2) of the Act of 1974 or of any conditions subject to which a permission has been granted under such an order may make a complaint to the Tribunal. " ,

(b) in sub-paragraph (4)(c), omit "not exceeding £5,000", and

137 In paragraph 16(2) (foreign lawyers assisting Tribunal) for "Master of the Rolls" substitute "Legal Services Board".

138 In paragraph 17 (appeals from Tribunal)--

(a) in sub-paragraph (1) for "lie--" to the end substitute "lie to the High Court",

(b) in sub-paragraph (2)--

(i) omit "and the Master of the Rolls", and

(ii) for "they" substitute "it",

(c) in sub-paragraph (3) for "of the Master of the Rolls on an appeal under this paragraph" substitute "of the High Court on an appeal in the case of an order on an application under paragraph 15(2)(d) or (e), or the refusal of any such application,", and

(d) omit sub-paragraph (4).

Section 182

SCHEDULE 17 Licensed conveyancing

Part 1 Administration of Justice Act 1985 (c. 61)

1 Part 2 of the Administration of Justice Act 1985 (licensed conveyancing) is amended in accordance with this Part.

2 In section 11 (provision of conveyancing services by licensed conveyancers)--

(a) in subsection (1) for "by persons" to the end substitute "and other services by persons who hold licences in force under this Part or who are recognised bodies.",

(b) for subsection (3) substitute--

" (3) References in this Part to conveyancing services are references to--

(a) the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land, and

(b) any other activities which are reserved instrument activities for the purposes of the Legal Services Act 2007 (see section 12 of and Schedule 2 to that Act).

(3A) For the purposes of subsection (3)--

(a) "disposition"

(i) does not include a testamentary disposition or any disposition in the case of such a lease as is referred to in section 54(2) of the Law of Property Act 1925 (short leases), but

(ii) subject to that, includes in the case of leases both their grant and their assignment, and

(b) "acquisition" has a corresponding meaning. " , and

3 In section 12 (establishment of the Council), omit subsection (2).

4 (1) Section 15 (issue of licences by Council) is amended as follows.

(2) In subsection (3)(b), for "21" substitute "42".

(3) In subsection (4), for "the period of" to the end substitute "such period, beginning with the date of issue of the licence, as may be specified in the licence."

(4) Omit subsections (7) and (8).

5 (1) Section 16 (conditional licences) is amended as follows.

(2) In subsection (1)--

(a) after paragraph (c) insert--

" (ca) after the Investigating Committee established under section 24 has made any order in his case under section 24A; " , and

(b) after paragraph (e) insert--

" (ea) when, having been required by rules made under section 22 to deliver to the Council a report by an accountant, he has not delivered such a report within the period required by the rules;

(eb) after having been disqualified under section 99 of the Legal Services Act 2007 (disqualification from being manager or employee of a licensed body etc);

(ec) after his holding of a restricted interest in a licensed body has been approved subject to conditions under paragraph 17, 28 or 33 of Schedule 13 to that Act (ownership of licensed bodies) or objected to under paragraph 19, 31 or 36 of that Schedule; " .

(3) In subsection (4)--

(a) after "paragraph" insert "(ca),", and

(b) after "(e)," insert "(ea), (eb), (ec),".

(4) In subsection (5) for "or" at the end of paragraph (a) substitute--

" (aa) pending the hearing and determination of any appeal brought by the applicant under paragraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to the Legal Services Act 2007;

(ab) pending the review by a licensing authority, in accordance with its licensing rules, of a determination that the applicant should be disqualified under section 99 of the Legal Services Act 2007; or " .

(5) After that subsection insert--

" (6) In this section--

"licensed body", "licensing authority" and "licensing rules" have the same meaning as in the Legal Services Act 2007 (see sections 71, 73 and 83 of that Act);
"restricted interest", in relation to a body, has the same meaning as in Schedule 13 to that Act (ownership of licensed bodies). "

6 After section 16 insert--

" 16A Additional fee payable by certain persons when applying for licences

(1) This section applies where a person applies for a licence at a time when section 16 has effect in relation to him by reason of the circumstances mentioned in section 16(1)(ea).

(2) The application must be accompanied by an additional fee of an amount prescribed by rules made by the Council for the purposes of this section. "

7 (1) Section 17 (imposition of conditions during currency of licence) is amended as follows.

(2) In subsection (2)(a)--

(a) after "paragraph" insert "(ca),", and

(b) after "(e)," insert "(ea), (eb), (ec),".

(3) In subsection (4), for "or" at the end of paragraph (a) substitute--

" (aa) pending the hearing and determination of any appeal brought by the licensed conveyancer under paragraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to the Legal Services Act 2007;

(ab) pending the review by a licensing authority, in accordance with its licensing rules, of a determination that the licensed conveyancer should be disqualified under section 99 of the Legal Services Act 2007; or " .

(4) After subsection (5) insert--

" (6) In this section "licensing authority" and "licensing rules" have the same meaning as in the Legal Services Act 2007 (see sections 73 and 83 of that Act). "

8 After section 17 insert--

" 17A Variation of conditions

(1) This section applies where a licensed conveyancer's licence has effect subject to conditions.

(2) On an application made by the licensed conveyancer, the Council may in prescribed circumstances direct--

(a) the removal of a condition;

(b) the variation of a condition in the manner described in the application.

(3) "Prescribed" means prescribed by rules made by the Council.

(4) Section 14 (applications for licences) applies in relation to an application under this section as it applies in relation to applications for a licence under this Part. "

9 In section 18 (suspension or termination of licences), after subsection (2) insert--

" (2A) Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5 has been exercised in relation to a licensed conveyancer by virtue of paragraph 1(1)(a)(i), (aa), (c) or (e) of that Schedule, the exercise of that power shall operate immediately to suspend any licence held by that person under this Part.

(2B) Subsection (2A) does not apply if, at the time when the power referred to there is exercised, the Council directs that subsection (2A) is not to apply in relation to the licensed conveyancer concerned.

(2C) If, at the time when the power referred to in subsection (2A) is exercised, the Council gives a direction to that effect, the licensed conveyancer concerned may continue to act in relation to any matter specified in the direction as if the licence had not been suspended by virtue of subsection (2A), but subject to such conditions (if any) as the Council sees fit to impose.

(2D) Subject to subsection (2E), where a licence is suspended by virtue of subsection (2A) the suspension of the licence shall continue until the licence expires.

(2E) The licensed conveyancer may, at any time before the licence expires, apply to the Council to terminate the suspension.

(2F) On an application under subsection (2E), the Council may in its discretion--

(a) by order terminate the suspension either unconditionally or subject to such conditions as the Council may think fit, or

(b) refuse the application.

(2G) If on an application by a licensed conveyancer under subsection (2E) the Council refuses the application or terminates the suspension subject to conditions, the licensed conveyancer may appeal against the decision of the Council to the High Court which may--

(a) affirm the decision, or

(b) terminate the suspension either unconditionally or subject to such conditions as it may think fit.

(2H) In relation to an appeal under subsection (2G) the High Court may make such order as it thinks fit as to payment of costs. "

10 In section 20 (rules as to professional practice, conduct and discipline), in subsection (1) omit ", in pursuance of its general duty referred to in section 12(2),".

11 In section 22 (keeping of accounts and establishment of client accounts)--

(a) in subsection (3)(a) omit "qualified", and

(b) for subsections (4) and (5) substitute--

" (4) Provision made in rules by virtue of subsection (3)(a) may provide that the reports delivered to the Council must be reports given by accountants in respect of whom requirements prescribed by the rules are met. "

12 (1) Section 24 (preliminary investigation of disciplinary cases) is amended as follows.

(2) In subsection (1)--

(a) for "preliminary investigation" substitute "consideration",

(b) omit paragraph (b), and

(3) After subsection (1) insert--

" (1A) The Investigating Committee shall make a preliminary investigation of such an allegation and--

(a) hear and determine the allegation, or

(b) refer the allegation to the Discipline and Appeals Committee established under section 25 for hearing and determination by that Committee under section 26. "

(4) Omit subsection (2).

(5) In subsection (3) omit--

(a) "or (2)",

(b) "or complaint" (in both places), and

(6) After subsection (4) insert--

" (4A) The Council shall make rules as to the cases in which the Investigating Committee may hear and determine an allegation, and the cases in which they must refer an allegation to the Discipline and Appeals Committee. "

(7) In subsection (5) omit "or complaint" (in both places).

(8) After that subsection insert--

" (6) Before making a direction under subsection (5), the Investigating Committee must give the licensed conveyancer an opportunity to make representations against the making of the proposed direction.

(7) In relation to proceedings under subsection (6), the Investigating Committee may make such order as they think fit as to the payment of costs by--

(a) the Council, or

(b) the licensed conveyancer.

(8) Where a direction under subsection (5) has been made, the licensed conveyancer may appeal to the Discipline and Appeals Committee, and on any such appeal the Committee may make such order as they think fit.

(9) Where an order has been made under subsection (7) the Council or the licensed conveyancer may appeal to the Discipline and Appeals Committee, and on any such appeal the Committee may make such order as they think fit.

(10) Where an order is made by the Discipline and Appeals Committee under subsections (8) or (9)--

(a) the person against whom the order is made, and

(b) if not within paragraph (a), the Council,

may appeal against the order to the High Court.

(11) On an appeal under subsection (10) the High Court may make such order as it thinks fit.

(12) The decision of the High Court on an appeal under subsection (10) shall be final. "

13 After section 24 insert--

" 24A Determination of allegations by Investigating Committee

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