Legal Services Act 2007 (c. 29)

(The document as of February, 2008)

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" 24A Determination of allegations by Investigating Committee

(1) Where, on hearing an allegation by virtue of section 24(1A)(a), the Investigating Committee are satisfied that a licensed conveyancer--

(a) has, while holding a licence in force under this Part, failed to comply with any condition to which that licence was subject, or

(b) has failed to comply with any rules made by the Council under this Part,

the Committee may, if they think fit, make an order directing the payment by the licensed conveyancer of a penalty to be forfeited to Her Majesty.

(2) In relation to proceedings before the Investigating Committee by virtue of section 24(1A)(a), the Committee may make such order as they consider fit as to the payment of costs by--

(a) the Council,

(b) the licensed conveyancer against whom the proceedings were brought, or

(c) if the person on whose allegation the proceedings were brought was heard (in person, or through a representative) by the Committee in the course of the proceedings, that person.

(3) In subsection (2), for the purposes of paragraph (a) or (b) of that subsection, the reference to costs includes costs incurred in connection with a preliminary investigation of the allegation under section 24(1A).

(4) The amount of any penalty required to be paid under subsection (1) may not exceed such amount as may be prescribed by rules made by the Council for the purposes of this subsection.

(5) Paragraphs 1, 2(1) and (3) and 4 of Schedule 4 have effect in relation to--

(a) proceedings for the hearing and determination of an allegation by the Investigating Committee, as they have effect in relation to proceedings before the Discipline and Appeals Committee under section 26, and

(b) orders of the Investigating Committee, as they have effect in relation to orders of the Discipline and Appeals Committee.

(6) A person against whom an order is made by the Investigating Committee by virtue of subsection (1) may appeal to the Discipline and Appeals Committee, and on any such appeal the Discipline and Appeals Committee may make such order as they think fit.

(7) Where an order is made by the Investigating Committee by virtue of subsection (2), a person listed in paragraphs (a) to (c) of that subsection may appeal to the Discipline and Appeals Committee, and on any such appeal the Discipline and Appeals Committee may make such order as they think fit.

(8) Where an order is made by the Discipline and Appeals Committee under subsection (6) or (7)--

(a) a party to the appeal, or

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

may appeal against the order to the High Court.

(9) On an appeal under subsection (8) the High Court may make such order as it thinks fit.

(10) The decision of the High Court on an appeal under subsection (8) shall be final. "

14 In section 25 (the Discipline and Appeals Committee), in subsection (1)(b) for "sections 27 to" substitute "section 24A, 27, 28 or".

15 (1) Section 26 (proceedings in disciplinary cases) is amended as follows.

(2) In subsection (1) after "allegation" insert "referred to them under section 24(1A)(b)".

(3) In subsection (2)--

(a) in paragraph (e), for "£3,000" substitute "such amount as may be prescribed by rules made by the Council for the purposes of this paragraph",

(b) for paragraph (f) substitute--

" (f) an order reprimanding the licensed conveyancer. " , and

(4) After subsection (2) insert--

" (2A) In relation to proceedings before the Discipline and Appeals Committee under this section, the Committee may make such order as they consider fit as to the payment of costs by--

(a) the Council;

(b) the licensed conveyancer against whom the proceedings were brought;

(c) if the person on whose allegation the proceedings were brought was heard (in person, or through a representative) by the Committee in the course of the proceedings, that person.

(2B) In subsection (2A), for the purposes of paragraph (a) or (b) of that subsection, the reference to costs includes costs incurred in connection with a preliminary investigation of the allegation under section 24(1A). "

(5) Omit subsections (5) and (6).

(6) After subsection (7) insert--

" (7A) Where the Discipline and Appeals Committee make an order under subsection (2A), a person listed in paragraphs (a) to (c) of that subsection may appeal to the High Court, and on any such appeal the High Court may make such order as it thinks fit. "

(7) In subsection (8), after "(7)" insert "or (7A)".

16 In section 27 (removal of disqualification from holding a licence), after subsection (2) insert--

" (3) In relation to proceedings on an application under subsection (1), the Discipline and Appeals Committee may make such order as they consider fit as to the payment of costs by--

(a) the Council;

(b) the applicant. "

17 In section 28 (revocation of licence on grounds of fraud or error), after subsection (4) insert--

" (5) In relation to proceedings for the revocation of a licence under subsection (1), the Discipline and Appeals Committee may make such order as they consider fit as to the payment of costs by--

(a) the Council;

(b) the licensed conveyancer to whose licence the proceedings relate.

(6) In relation to proceedings on an application under subsection (2), the Discipline and Appeals Committee may make such order as they consider fit as to the payment of costs by--

(a) the Council;

(b) the applicant. "

18 In section 29 (appeals from decisions of Council in relation to licences)--

(a) in subsection (1), omit "or" at the end of paragraph (b),

(b) in that subsection, at the end of paragraph (c) insert " or

(d) refuses an application made by that person under section 17A, " , and

" (ba) in the case of an appeal under subsection (1)(d), by order direct the Council to grant the application; " .

19 (1) Section 31 (application of Schedule 5) is amended as follows.

(2) In subsection (2) omit--

(a) "or complaint" (in each place), and

(b) "or paragraph (b)".

(3) In subsection (3), for "and 12" substitute "to 12A".

(4) In subsection (4) omit "or complaint".

20 (1) Section 32 (provision of conveyancing services by recognised bodies) is amended as follows.

(2) In subsection (1)(a) for "by licensed" (in the first place) to the end substitute "of conveyancing services bodies;".

(3) In subsection (1)(b) for "such services" substitute "conveyancing services or other relevant legal services".

(4) After subsection (1)(b) insert--

" (ba) prescribing the Council's arrangements for authorising recognised bodies, for the purposes of the Legal Services Act 2007, to carry on reserved instrument activities, or the administration of oaths, within the meaning of that Act; " .

(5) In subsection (1)(c) for "conditions" substitute "requirements".

(6) In subsection (2) omit "corporate".

(7) In subsection (3)--

(a) in paragraph (a) after "section" insert ", or for the renewal of such recognition,",

(b) after that paragraph insert--

" (aa) for the payment of fees in connection with other applications under the rules; " ,

" (c) about the time when any recognition granted under this section, or renewal of such recognition, takes effect and the period for which it is (subject to the provisions of this Part) to remain in force;

(ca) for the suspension or revocation of any such recognition, on such grounds and in such circumstances as may be prescribed in the rules;

(cb) about the effect on the recognition of a partnership or other unincorporated body ("the existing body") of any change in its membership, including provision for the existing body's recognition to be transferred where the existing body ceases to exist and another body succeeds to the whole or substantially the whole of its business; " ,

(d) omit paragraph (d),

(e) in paragraph (e)--

(i) for "a list" substitute "a register",

(ii) omit "corporate", and

(iii) for ", and for the" to the end substitute "and such other information relating to those bodies as may be specified in the rules;",

(f) after that paragraph insert--

" (ea) for information (or information of a specified description) on such a register to be made available to the public, and about the manner in which and times at which, information is to be made so available; " ,

(g) after paragraph (f) insert--

" (fa) about the education and training requirements to be met by managers and employees of recognised bodies;

(fb) for rules made under any other provision of this Part to have effect in relation to managers and employees of recognised bodies with such additions, omissions or other modifications as appear to the Council to be necessary or expedient; " , and

(h) in paragraph (g) after "recognised bodies" insert "or managers or employees of such bodies".

(8) After subsection (3) insert--

" (3A) Rules made by the Council may provide for the Council to grant a body recognition under this section subject to one or more conditions.

(3B) At any time while a body is recognised under this section, the Council may, in such circumstances as may be prescribed, direct that the body's recognition is to have effect subject to such conditions as the Council may think fit.

"Prescribed" means prescribed by rules made by the Council.

(3C) The conditions which may be imposed under subsection (3A) or (3B) include--

(a) conditions restricting the kinds of conveyancing services that may be provided by the body;

(b) conditions imposed by reference to criteria of general application;

(c) conditions requiring the body to take any specified steps that will, in the opinion of the Council, be conducive to the body carrying on an efficient business;

and conditions may be imposed despite the fact that they may result in expenditure being incurred by the body.

(3D) On an application made by a recognised body, the Council may, in such circumstances as may be prescribed, direct--

(a) the removal of a condition subject to which the body's recognition has effect;

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

(3E) For the purposes of subsection (3D)--

(a) section 14 applies in relation to an application under that subsection as it applies in relation to an application for a licence under this Part of this Act, and

(b) "prescribed" means prescribed by rules made by the Council.

(3F) Rules under subsection (3A) or (3B) may make provision about when conditions imposed take effect (including provision conferring power on the Council to direct that a condition is not to have effect until the conclusion of any appeal in relation to it).

(3G) Rules under this section may contain such incidental, supplemental, transitional or transitory provisions or savings as the Council considers necessary or expedient. "

(9) Omit subsections (4) and (5).

(10) In subsection (6)--

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

(b) for paragraph (b) substitute--

" (b) that a body's recognition under this section does not have effect subject to any conditions or has effect subject to any particular conditions, " .

(11) After subsection (7) insert--

" (8) In this section "conveyancing services body" and "relevant legal services" have the meaning given by section 32A.

(9) The Council is capable of being designated as a licensing authority for the purposes of, and subject to, Part 5 of the Legal Services Act 2007 (alternative business structures). "

21 After section 32 (provision of conveyancing by recognised bodies) insert--

" 32A Conveyancing services bodies

(1) For the purposes of section 32 a "conveyancing services body" means a body (corporate or unincorporate) in respect of which--

(a) the management and control condition, and

(b) the services condition,

are satisfied.

(2) The management and control condition is satisfied in the case of a partnership if at least one of the partners is a licensed conveyancer.

(3) The management and control condition is satisfied in the case of an unincorporated body (other than a partnership), or a body corporate which is managed by its members, if at least one of those members is a licensed conveyancer.

(4) The management and control condition is satisfied in the case of any other body corporate if at least one director of the body is a licensed conveyancer.

(5) The services condition is satisfied in respect of a body if the body is carrying on a business consisting of the provision of--

(a) conveyancing services, or

(b) conveyancing services and other relevant legal services.

(6) For the purposes of this section--

"authorised person" means an authorised person in relation to an activity which is a reserved legal activity (within the meaning of the Legal Services Act 2007);
"relevant legal services", in relation to a body, means--
(a)
conveyancing services, and
(b)
where authorised persons are managers or employees of, or have an interest in, the body, services such as are provided by individuals practising as such authorised persons (whether or not those services involve the carrying on of reserved legal activities within the meaning of the Legal Services Act 2007);

and a person has an interest in a body if the person has an interest in the body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act). "

22 For section 33 (legal professional privilege), substitute--

" 33 Legal professional privilege

(1) Subsection (2) applies where a licensed conveyancer or recognised body acts as such for a client.

(2) Any communication, document, material or information is privileged from disclosure in like manner as if the licensed conveyancer or body had at all material times been acting as the client's solicitor.

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

23 After that section insert--

" 33A Administration of oaths by licensed conveyancers

The Council may make rules prescribing its arrangements for authorising licensed conveyancers, for the purposes of the Legal Services Act 2007, to carry on activities which consist of the administration of oaths. "

24 In section 34 (modification of existing enactments relating to conveyancing etc), omit subsection (2)(c) to (e).

25 In section 35 (penalty for pretending to be a licensed conveyancer or recognised body), in subsection (2) omit "corporate".

26 In section 36 (offences by bodies corporate)--

(a) the existing section becomes subsection (1) of that section and in that subsection for "director" to "capacity" substitute "officer of the body corporate", and

(b) after that subsection insert--

" (2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with the member's functions of management as it applies to an officer of the body corporate.

(3) Proceedings for an offence under this section alleged to have been committed by an unincorporated body are to be brought in the name of that body (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court relating to the service of documents have effect as if that body were a corporation.

(4) A fine imposed on an unincorporated body on its conviction of an offence under this section is to be paid out of the funds of that body.

(5) If an unincorporated body is charged with an offence under this section, section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 (procedure on charge of an offence against a corporation) have effect in like manner as in the case of a corporation so charged.

(6) Where an offence under this section committed by an unincorporated body (other than a partnership) is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer of the body or any member of its governing body, that officer or member as well as the unincorporated body is guilty of the offence and liable to be proceeded against and punished accordingly.

(7) Where an offence under this section committed by a partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, that partner as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.

(8) In this section "officer", in relation to a body corporate, means--

(a) any director, secretary or other similar officer of the body corporate, or

(b) any person who was purporting to act in any such capacity. "

27 In section 38 (rules)--

(a) omit subsection (1), and

(b) in subsection (2) for "such rules" substitute "rules made by the Council under this Part".

28 In section 39(1) (interpretation of Part 2)--

(a) in the definition of "client", in paragraph (a) omit "or his firm",

(b) omit the definitions of "director" and "officer",

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

(d) in the definition of "recognised body" omit "corporate".

29 (1) Schedule 3 (Council for Licensed Conveyancers: supplementary provisions) is amended as follows.

(2) In paragraph 2(1), for "elected or nominated" substitute "appointed".

(3) In paragraph 2(2), for "elect" substitute "appoint".

(4) Omit paragraph 2(3).

(5) Omit paragraph 3.

(6) In paragraph 4(1)--

(a) for "election or nomination" (in both places) substitute "appointment",

(b) for "election of" substitute "appointment of", and

(7) In paragraph 4(2), for "elected or nominated" (in each place) substitute "appointed".

(8) In paragraph 4(3), for the words from "Secretary of State" (in the first place) to the end substitute "Legal Services Board."

(9) In paragraph 4(4)--

(a) for "Secretary of State" (in both places) substitute "Legal Services Board",

(b) for "him" substitute "it", and

(10) In paragraph 9, for "election or nomination" substitute "appointment".

(11) In paragraph 10 for "Secretary of State" (in both places) substitute "Lord Chancellor".

(12) In paragraph 11(3) for "Secretary of State" substitute "Lord Chancellor".

30 (1) Schedule 4 (the Discipline and Appeals Committee: supplementary provisions) is amended as follows.

(2) In paragraph 1 (rules of procedure)--

(a) omit sub-paragraphs (3) and (4), and

(b) in sub-paragraph (5), for "paragraphs 2 and 3" substitute "paragraph 2".

(3) Omit paragraph 3.

31 (1) Schedule 5 (intervention in licensed conveyancer's practice) is amended as follows.

(2) In paragraph 1 (grounds for intervention)--

(a) in sub-paragraph (1)(a) after "practice" insert "or former practice or in connection with any trust of which that licensed conveyancer is or was a trustee",

(b) after that sub-paragraph insert--

" (aa) the Council has reason to suspect dishonesty on the part of a licensed conveyancer ("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) in sub-paragraph (1)(c), after "section" insert "20, 21(3)(c),",

(e) after sub-paragraph (1)(e) insert--

" (ea) the Council is satisfied that a licensed conveyancer has abandoned his practice;

(eb) the Council is satisfied that a licensed conveyancer has been practising in breach of any conditions subject to which his licence has effect; " ,

(f) in sub-paragraph (1)(f), after "illness" insert ", injury",

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

" (g) a licensed conveyancer lacks capacity (within the meaning of the Mental Capacity Act 2005) to act as a licensed conveyancer and powers under section 15 to 20 or section 48 of that Act are exercisable in relation to the licensed conveyancer; " ,

(h) after sub-paragraph (1)(h) insert--

" (i) the Council is satisfied that it is necessary to exercise the powers conferred by Part 2 of this Schedule (or any of them) in relation to a licensed conveyancer to protect--

(i) the interests of clients (or former or potential clients) of the licensed conveyancer or his firm, or

(ii) the interests of the beneficiaries of any trust of which the licensed conveyancer is or was a trustee. " , and

(i) omit sub-paragraph (2).

(3) In paragraph 3 (intervention following an undue delay)--

(a) for "10(3)" substitute "10(9)",

(b) in paragraph (a) for "a complaint is made to the Council" substitute "the Council is satisfied",

(d) in that paragraph after "client" insert "or in connection with any trust".

(4) In paragraph 4(2) (continuation of powers after death etc of licensed conveyancer)--

(a) after "and (3)" insert ", 6A",

(b) for "and (5)" substitute ", (5) and (6)", and

(5) In paragraph 6 (vesting of sums in Council)--

(a) in sub-paragraph (1) after "thereto" insert "and to rules under paragraph 6B", and

(b) in sub-paragraph (2)(a) after "practice" insert "or former practice or with any trust of which he is or was a trustee".

(6) After paragraph 6 insert--

" 6A (1) Without prejudice to paragraph 5, if the Council passes a resolution to the effect that any rights to which this paragraph applies shall vest in the Council, those rights shall vest accordingly.

(2) This paragraph applies to any right to recover or receive debts due to the licensed conveyancer or his firm in connection with his practice or former practice.

(3) Any sums recovered by the Council by virtue of the exercise of rights vested under sub-paragraph (1) shall vest in the Council and shall be held by it on trust to exercise in relation to them the powers conferred by this Part of this Schedule and, subject to those powers and to rules under paragraph 6B, upon trust for the persons beneficially entitled to them.

(4) The Council shall serve on the licensed conveyancer or his firm, and any person who owes a debt to which the order applies a certified copy of the Council's resolution.

6B (1) The Council may make rules governing its treatment of sums vested in it under paragraph 6 or 6A(3).

(2) The rules may, in particular, make provision in respect of cases where the Council, 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 Council under paragraph 6 or 6A(3) (including provision which requires amounts to be paid into or out of a fund maintained under section 21). "

(7) In paragraph 7(1) (holding of sums vested in Council) after "thereto" insert "and to rules under paragraph 6B".

(8) In paragraph 8 for "holds money" to the end substitute--

" (a) holds money on behalf of the licensed conveyancer or his firm, or

(b) has information which is relevant to identifying any money held by or on behalf of the licensed conveyancer or his firm,

the court may require that person to give the Council information as to any such money and the accounts in which it is held. "

(9) In paragraph 9 (documents)--

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

(i) after "possession" insert "or under the control", and

(ii) after "practice" insert "or former practice or with any trust of which the licensed conveyancer is or was a trustee",

(b) in sub-paragraph (1)(b)--

(i) after "possession" insert "or under the control", and

(ii) for "to which the complaint relates" substitute "of which the Council is satisfied",

(d) in sub-paragraph (5) after "possession" insert "or are under the control",

(e) after that sub-paragraph insert--

" (5A) In the case of a document which consists of information which is stored in electronic form, the requirement imposed by a notice under sub-paragraph (1) or an order under sub-paragraph (4) or (5), is a requirement to produce or deliver the information in a form in which it is legible or from which it can readily be produced in a legible form. " ,

(f) in sub-paragraph (6) after "possession of" insert "(a)",

(g) at the end of that sub-paragraph insert--

" (b) any property--

(i) in the possession or under the control of the licensed conveyancer or his firm, or

(ii) in the case of an order under sub-paragraph (5), which was in the possession or under the control of such a person and has come into the possession or under the control of the person in respect of whom the order is made,

which the Council reasonably requires for the purpose of accessing information contained in such documents,

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

(h) in sub-paragraph (7) after "documents" insert "or other property",

(i) in sub-paragraph (8) after "documents" insert "or other property", and

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