Office of Public Sector Information

“(2A) On an appeal under sub-paragraph (1)(c), the Discipline and Appeals Committee may—

(a) revoke the direction of the Council under section 32(3B),

(b) direct that the body’s recognition is to have effect subject to such conditions as may be specified by the Council in the direction, or

(c) affirm the decision of the Council,

and the Committee may make such order as to the payment of costs by the Council or by that body as they think fit.

(2B) On an appeal under sub-paragraph (1)(d), the Discipline and Appeals Committee may—

(a) direct the Council to grant the application, or

(b) affirm the decision of the Council,

and the Committee may make such order as to the payment of costs by the Council or by that body as they think fit.”

(11) In paragraph 9 (rules of procedure etc) in sub-paragraph (1)—

(a) for “, 2 and 3” substitute “and 2”, and

(b) for “paragraph 4 or 5” substitute “paragraph 3A, 4 or 5”.

(12) In paragraph 10 (intervention by Council)—

(a) in sub-paragraph (1), in paragraph (a) after “recognised body” insert “or a manager of such a body”,

(b) after that paragraph insert—

“(aa) the Council is satisfied that a recognised body has been carrying on business in breach of any condition subject to which the body’s recognition under section 32 of this Act has effect; or”,

(c) for paragraph (c) of that sub-paragraph substitute—

“(c) a relevant insolvency event occurs in relation to a recognised body; or”,

(d) in paragraph (d) of that sub-paragraph for “officer” substitute “manager”,

(e) in that paragraph for “that body's” to the end of the paragraph substitute—

“(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;”,

(f) after that paragraph insert “or

(e) the Council is satisfied that it is necessary to exercise the powers conferred by Part 2 of Schedule 5 (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,”,

(g) 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;

(c) an administrative receiver within the meaning of section 251 of that Act is appointed;

(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.”, and

(h) omit sub-paragraph (2).

(13) For paragraph 11(a) substitute—

“(a) the Council is satisfied that there has been undue delay on the part of—

(i) 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) a person who is or was a manager or employee of a recognised body in connection with any trust of which he is or was a trustee in his capacity as such a manager or employee; and”.

(14) In paragraph 12(1) omit “corporate” (in both places).

(15) In paragraph 13—

(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 manager or employee of that body is or was a trustee in his capacity as such a manager or employee;

(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 that body is or was a trustee in his capacity as such a manager or employee, and

(ii) as applying to a person who is or was a manager or employee of the recognised body and documents and property in his possession or under his control in connection with such a trust as it applies to a recognised body and documents and property in the possession or under the control of that body;

(f) paragraph 10A(1) of that Schedule is to be construed as including power for the Council 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 12A 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.”

(16) In paragraph 14 (examination of files)—

(a) for sub-paragraph (1) substitute—

“(1) Where the Investigating Committee are satisfied that it is necessary to do so for the purpose of investigating any such allegation as is mentioned in paragraph 3(1)(a)(ii), (aa) or (ab), the Committee may give an information notice to a relevant person.

(1A) An information notice is a notice requiring the production or delivery to any person appointed by the Committee, at a time and a place to be fixed by the Committee, of all documents in the possession or under the control of the relevant person in connection with the matters to which the allegation relates (whether or not they relate also to other matters).

(1B) In this section “relevant person” means—

(a) in the case of an allegation against a recognised body, the recognised body or any of its managers or employees, and

(b) in the case of an allegation against a manager or employee of a recognised body, the manager or employee, the recognised body or any other manager or employee of the recognised body.”, and

(b) in sub-paragraph (2)—

(i) for “and 12” substitute “to 12A”,

(ii) for “sub-paragraph (1) of this paragraph” (except where it appears in paragraph (d)) substitute “sub-paragraphs (1) and (1A) of this paragraph”,

(iii) in paragraph (b) after “body” insert “, manager or employee”, and

(iv) in paragraph (d) for “sub-paragraph (1)” substitute “sub-paragraph (1A)”.

(17) Omit paragraph 15 (application of rules relating to accounts etc).

(18) In paragraph 16 (interest on client’s money)—

(a) in sub-paragraph (1)—

(i) after “recognised bodies” insert “or managers or employees of such bodies,”,

(ii) after “recognised body” insert “, manager or employee”,

(iii) for “it keeps” substitute “it or he keeps”,

(iv) for “its clients” substitute “clients of the recognised body”, and

(v) after “received by it” insert “or him”, and

(b) in sub-paragraph (2), for “and any of its clients” substitute “, or any manager or employee of such a body, and any of the clients of the recognised body”.

Part 2 Courts and Legal Services Act 1990 (c. 41)

33 The Courts and Legal Services Act 1990 is amended in accordance with this Part.

34 (1) Section 53 (the Council for Licensed Conveyancers) is amended as follows.

(2) For subsections (1) to (3) substitute—

“(1) The Council for Licensed Conveyancers has the powers necessary to enable it to become designated as an approved regulator in relation to one or more of the reserved legal activities within subsection (1A).

(1A) The reserved legal activities to which this subsection applies are—

(a) the exercise of a right of audience;

(b) the conduct of litigation;

(c) probate activities.

(2) If the Council becomes an approved regulator in relation to one or more of those activities, it may, in that capacity, authorise a person to carry on a relevant activity only if the person is a licensed conveyancer.

(3) Where the Council authorises a licensed conveyancer to carry on a relevant activity, it is to do so by issuing a licence to the licensed conveyancer.”

(3) Omit subsection (5).

(4) For subsection (6) substitute—

“(6) Where the Council exercises any of its powers in connection with—

(a) an application for designation as an approved regulator in relation to a reserved legal activity within subsection (1A), or

(b) the authorising of a person to carry on a relevant activity,

it is to do so subject to any requirements to which it is subject in accordance with the provisions of the Legal Services Act 2007.”

(5) In subsection (8), for “Secretary of State” substitute “Lord Chancellor”.

(6) In subsection (9)—

(a) for “Secretary of State” substitute “Lord Chancellor”, and

(b) omit paragraph (e).

(7) After that subsection insert—

“(10) For the purposes of this section—

(a) “right of audience”, “conduct of litigation”, “probate activities” and “reserved legal activity” have the same meaning as in the Legal Services Act 2007;

(b) references to designation as an approved regulator are to designation as an approved regulator—

(i) by Part 1 of Schedule 4 to the Legal Services Act 2007, by virtue of an order under paragraph 5 of Schedule 22 to that Act, or

(ii) under Part 2 of Schedule 4 to that Act;

(c) “relevant activity” means an activity which is a reserved legal activity—

(i) which is within subsection (1A), and

(ii) in relation to which the Council is designated as an approved regulator by Part 1 of Schedule 4 to that Act (by virtue of an order under paragraph 5 of Schedule 22 to that Act) or under Part 2 of that Schedule.”

35 (1) Schedule 8 (licensed conveyancers) is amended as follows.

(2) In paragraph 1 (definitions)—

(a) in the definition of “advocacy licence” for “and constituting” to the end substitute “by which the Council authorises the licensed conveyancer concerned to exercise a right of audience;”,

(b) in the definition of “litigation licence” for “and constituting” to the end substitute “by which the Council authorises the licensed conveyancer concerned to carry on activities which constitute the conduct of litigation;”,

(c) in the definition of “probate licence” for “and constituting” to the end substitute “by which the Council authorises the licensed conveyancer concerned to carry on activities which constitute probate activities;”, and

(d) at the end insert—

““reserved legal activity” has the same meaning as in the Legal Services Act 2007 (see section 12 of and Schedule 2 to that Act).”

(3) In paragraph 2 (qualification regulations and rules of conduct), in sub-paragraph (1)—

(a) for “rules of conduct” substitute “conduct rules”, and

(b) for “granting of the rights or exemption” substitute “carrying on of the reserved legal activities”.

(4) In paragraph 4 (issue of licences), in sub-paragraph (1)—

(a) in paragraph (a) for “rules of conduct” substitute “conduct rules”, and

(b) in paragraph (c) for “provide the advocacy, litigation or probate services” substitute “carry on the reserved legal activities”.

(5) In paragraph 5 (conditional licences)—

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

“(d) after the Investigating Committee have made any order in his case under section 24A(1) of the Act of 1985 or the Discipline and Appeals Committee have made any order in his case under section 26(1) of that Act.”,

(b) in sub-paragraph (6)—

(i) in paragraph (a) for “service that may be provided” substitute “activities that may be carried on”, and

(ii) in paragraph (b) for “provides the additional services” substitute “carries on the additional activities”, and

(c) after sub-paragraph (7) insert—

“(8) Where a person applies for an advocacy, litigation or probate licence at a time when this paragraph has effect in relation to that person by reason of the circumstances mentioned in section 16(1)(ea) of the Act of 1985, section 16A(2) of that Act has effect as it has effect in relation to an application for a licence under Part 2 of that Act.”

(6) Omit paragraph 7 (code of conduct).

(7) In paragraph 9 (removal of disqualification from holding a licence) after sub-paragraph (2) insert—

“(3) In relation to proceedings on an application under sub-paragraph (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.”

(8) In paragraph 10 (revocation on grounds of error or fraud), after sub-paragraph (4) insert—

“(5) In relation to proceedings for the revocation of a licence under sub-paragraph (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 sub-paragraph (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.”

(9) Omit paragraph 11.

(10) In paragraph 12 (delegation of powers etc)—

(a) in sub-paragraph (1) for “Subject” to “enactment, the” substitute “The”,

(b) in that sub-paragraph, for paragraph (b) substitute—

“(b) by a sub-committee of such a committee; or

(c) by an individual (whether or not a member of the Council’s staff).”,

(c) after that sub-paragraph insert—

“(1A) Where by virtue of sub-paragraph (1) any function may be discharged by a committee, the committee may arrange for the discharge of that function by—

(a) a sub-committee of that committee; or

(b) an individual, whether or not a member of the Council’s staff.

(1B) Sub-paragraph (1A) is subject to any contrary direction given by the Council.

(1C) Arrangements made under sub-paragraph (1) or (1A) in respect of a function may provide that the function is to be exercised in accordance with the arrangements only (and not by the delegating body).

(1D) For this purpose “the delegating body” means—

(a) in the case of arrangements under sub-paragraph (1), the Council, and

(b) in the case of arrangements under sub-paragraph (1A), the committee.”,

(d) for sub-paragraph (3) substitute—

“(3) Any power conferred by sub-paragraph (1), (1A) or (2) may be exercised so as to impose restrictions or conditions on the body or individual by whom the function is to be discharged.”,

(e) for sub-paragraphs (6) and (7) substitute—

“(6) A committee or sub-committee established under this paragraph may include or consist of individuals other than—

(a) members of the Council;

(b) licensed conveyancers.

(7) A sub-committee of a committee established under this paragraph may also include or consist of individuals other than members of the committee.

(7A) The Council may make arrangements for the appointment and removal of members of any committee to be made other than by the Council.

(7B) A committee or sub-committee may regulate its own procedure, including quorum.”, and

(f) after sub-paragraph (9) insert—

“(10) This paragraph is subject to any provision to the contrary made by or under any enactment.”

(11) Omit paragraph 13 (Council’s intervention powers).