Office of Public Sector Information
Section 182
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
(c) omit subsection (4).
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—
(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—
(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
(c) omit from “with a view” to the end.
(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
(c) “or paragraph (b)”.
(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—
(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
(c) omit paragraph (g).
(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
(c) in subsection (2), after paragraph (b) insert—
“(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) for paragraph (c) substitute—
“(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—
(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—
conveyancing services, and
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).”
Legal Services Act 2007