|
| |
| |
(3) | This sub-paragraph applies to any manager or employee of the licensed |
| |
body who is an authorised person in relation to an activity which is a |
| |
| |
(4) | A licensed body must at all times have suitable arrangements in place to |
| |
ensure that non-authorised persons subject to the duty imposed by section |
| 5 |
90 in relation to the licensed body comply with that duty. |
| |
(5) | Licensing rules may make provision as to the arrangements which are |
| |
suitable for the purposes of rules made under sub-paragraphs (2) and (4). |
| |
| |
18 (1) | Licensing rules must include the following requirement. |
| 10 |
(2) | A licensed body may not employ a person who under this Part of this Act is |
| |
disqualified from being an employee of a licensed body. |
| |
Indemnification arrangements and compensation arrangements |
| |
19 (1) | For the purpose of giving effect to indemnification arrangements and |
| |
compensation arrangements, licensing rules may— |
| 15 |
(a) | authorise or require the licensing authority to establish and maintain |
| |
| |
(b) | authorise or require the licensing authority to take out and maintain |
| |
insurance with authorised insurers; |
| |
(c) | require licensed bodies or licensed bodies of any specific description |
| 20 |
to take out and maintain insurance with authorised insurers. |
| |
(2) | In this paragraph “authorised insurer” has the same meaning as in section |
| |
| |
| |
20 (1) | The licensing rules must make provision as to the treatment of money within |
| 25 |
sub-paragraph (2), and the keeping of accounts in respect of such money. |
| |
(2) | The money referred to in sub-paragraph (1) is money (including money held |
| |
on trust) which is received, held or dealt with by the licensed body, its |
| |
managers and employees for clients or other persons. |
| |
| 30 |
| |
| |
21 (1) | The licensing rules must require licensed bodies to pay periodical fees to the |
| |
| |
(2) | The rules may provide for the payment of different fees by different |
| 35 |
descriptions of licensed body. |
| |
| |
22 | The licensing rules must make provision as to— |
| |
| |
| |
|
| |
| |
(a) | the acts and omissions in respect of which the licensing authority |
| |
may impose a penalty under section 95, and |
| |
(b) | the criteria and procedure to be applied by the licensing authority in |
| |
determining whether to impose a penalty under that section, and the |
| |
| 5 |
| |
23 (1) | Licensing rules must make provision as to the criteria and procedure to be |
| |
applied by the licensing authority in determining whether a person should |
| |
be disqualified under section 99. |
| |
(2) | Licensing rules must make provision— |
| 10 |
(a) | for a review by the licensing authority of a determination by the |
| |
licensing authority that a person should be disqualified; |
| |
(b) | as to the criteria and procedure to be applied by the licensing |
| |
authority in determining whether a person’s disqualification should |
| |
| 15 |
(c) | requiring the licensing authority to notify the Board of any |
| |
determination by the licensing authority that a person should be |
| |
disqualified, of the results of any review of that determination, and |
| |
of any decision by the licensing authority that a person’s |
| |
disqualification should cease to be in force. |
| 20 |
Suspension or revocation of licence under section 101 |
| |
24 (1) | Licensing rules must make the following provision. |
| |
(2) | The licensing authority may suspend or revoke a licensed body’s licence |
| |
under section 101 in the following cases. |
| |
(3) | The first case is that the licensed body becomes a body which is not a |
| 25 |
| |
(4) | The second case is that the licensed body fails to comply with licensing rules |
| |
made under paragraph 16 (carrying on of licensed activities). |
| |
(5) | The third case is that— |
| |
(a) | a non-authorised person holds a restricted interest in the licensed |
| 30 |
| |
(i) | as a result of the person taking a step in circumstances where |
| |
that constitutes an offence under paragraph 24(1) of Schedule |
| |
13 (whether or not the person is charged with or convicted of |
| |
an offence under that paragraph), |
| 35 |
(ii) | in breach of conditions imposed under paragraph 17, 28, or |
| |
| |
(iii) | the person’s holding of which is subject to an objection by the |
| |
licensing authority under paragraph 31 or 36 of that |
| |
| 40 |
(b) | if the relevant licensing rules make the provision mentioned in |
| |
paragraph 38(1)(a) of that Schedule, a non-authorised person has |
| |
under those rules an interest in shares in the body which exceeds the |
| |
| |
(c) | if the relevant licensing rules make the provision mentioned in |
| 45 |
paragraph 38(1)(b) of that Schedule, the total proportion of shares in |
| |
| |
| |
|
| |
| |
the licensed body in which non-authorised persons have an interest |
| |
exceeds the limit specified in the rules. |
| |
(6) | The fourth case is that a non-authorised person subject to the duty in section |
| |
90 in relation to the licensed body fails to comply with that duty. |
| |
(7) | The fifth case is that the licensed body, or a manager or employee of the |
| 5 |
licensed body, fails to comply with the duties imposed by section 177. |
| |
(8) | The sixth case is that— |
| |
(a) | the licensed body fails to comply with licensing rules made under |
| |
paragraph 9(3) or 18 (prohibition on disqualified managers and |
| |
| 10 |
(b) | the manager or employee concerned was disqualified as a result of |
| |
breach of a duty within section 99(4)(c) or (d). |
| |
(9) | The seventh case is that the licensed body is unable to comply with licensing |
| |
| |
(a) | paragraph 11 (requirement for Head of Legal Practice), or |
| 15 |
(b) | paragraph 13 (requirement for Head of Finance and |
| |
| |
(10) | Before suspending or revoking a licence in accordance with sub-paragraph |
| |
(2), the licensing authority must give the licensed body notice of its |
| |
| 20 |
(11) | The licensing authority may not suspend or revoke the licence before the end |
| |
of the period of 28 days beginning with the day on which the notice is given |
| |
to the licensed body (or any longer period specified in the notice). |
| |
25 | Licensing rules may make provision about other circumstances in which the |
| |
licensing authority may exercise its power under section 101 to suspend or |
| 25 |
| |
26 (1) | Licensing rules must make provision about the criteria and procedure the |
| |
licensing authority will apply in deciding whether to suspend or revoke a |
| |
licence, or to end the suspension of a licence, under section 101. |
| |
(2) | They must make provision for a review by the licensing authority of a |
| 30 |
decision by the licensing authority to suspend or revoke a licence. |
| |
| |
| |
Entitlement to make an application for a licence to the Board |
| |
| |
1 (1) | A licensable body may apply to the Board for a decision that the body is |
| 35 |
entitled to make an application for a licence to the Board acting in its |
| |
capacity as a licensing authority. |
| |
(2) | An application under sub-paragraph (1) may be made only on one of the |
| |
grounds specified in this paragraph. |
| |
(3) | The first ground is that— |
| 40 |
(a) | there is no competent licensing authority, and |
| |
| |
| |
|
| |
| |
(b) | there is no potentially competent licensing authority. |
| |
(4) | The second ground is that— |
| |
(a) | each competent licensing authority has determined that it does not |
| |
have suitable regulatory arrangements, |
| |
(b) | if one or more competent licensing authorities have made an |
| 5 |
application to the Board under Part 3 of Schedule 4 for the approval |
| |
of alterations of their regulatory arrangements, each of those |
| |
authorities has determined that it will not have suitable regulatory |
| |
arrangements if the application is granted, and |
| |
(c) | each potentially competent licensing authority has determined that |
| 10 |
it will not have suitable regulatory arrangements if it becomes a |
| |
competent licensing authority. |
| |
(5) | The third ground applies only in relation to a licensable body within sub- |
| |
paragraph (6), and is that— |
| |
(a) | the body has made an application for a licence to each competent |
| 15 |
licensing authority which has suitable regulatory arrangements, and |
| |
(b) | no such licensing authority is prepared to grant the body a licence on |
| |
terms which are appropriate to that body, having regard to the |
| |
matters in section 106(5)(a) to (c) and any other matter specified in |
| |
rules made by the Board for the purposes of this sub-paragraph. |
| 20 |
(6) | The licensable bodies within this sub-paragraph are— |
| |
(a) | a not for profit body; |
| |
(b) | a community interest company; |
| |
| |
(d) | if an order under section 106(1)(e) so provides in relation to a |
| 25 |
description of body prescribed under that section, a body of that |
| |
| |
Board’s decision on an application under paragraph 1 |
| |
2 (1) | On an application under paragraph 1 the Board must, before the end of the |
| |
decision period, decide whether the licensable body is entitled to make an |
| 30 |
application for a licence to the Board acting in its capacity as a licensing |
| |
| |
(2) | The decision period is— |
| |
(a) | in relation to an application on the first ground, the period of 14 days |
| |
beginning with the day on which the application is made, |
| 35 |
(b) | in relation to an application on the second ground, the period of 28 |
| |
days beginning with the day on which the application is made, and |
| |
(c) | in relation to an application on the third ground, the period of 60 |
| |
days beginning with the day on which the application is made. |
| |
(3) | The Board must give a notice to the licensable body— |
| 40 |
(a) | stating its decision, and |
| |
(b) | giving reasons for its decision. |
| |
(4) | The Board must make rules providing for a review of any decision made by |
| |
| |
(5) | The rules may in particular provide that if the Board decides to grant the |
| 45 |
application, the Board may review that decision if the ground on which the |
| |
| |
| |
|
| |
| |
application was granted ceases to be made out before the Board (in its |
| |
capacity as a licensing authority) determines any application for a licence |
| |
made by the licensable body. |
| |
Licensing authority’s duty to make relevant determinations |
| |
3 (1) | A licensable body may apply to each competent licensing authority for— |
| 5 |
(a) | a determination as to whether the authority has suitable regulatory |
| |
| |
(b) | a statement as to whether the authority has made an application as |
| |
mentioned in paragraph 1(4)(b) and if it has, a determination as to |
| |
whether, if the application is granted, the authority will have suitable |
| 10 |
| |
(2) | A licensable body may apply to each potentially competent licensing |
| |
authority for a determination as to whether it will have suitable regulatory |
| |
arrangements in place if it becomes a competent licensing authority. |
| |
(3) | A competent (or potentially competent) licensing authority to which a |
| 15 |
licensable body makes an application under sub-paragraph (1) or (2) may |
| |
require the licensable body to provide it with such information in relation to |
| |
the licensable body as it may specify. |
| |
(4) | The authority may specify only information which it reasonably requires for |
| |
the purpose of making the determination applied for. |
| 20 |
(5) | A competent (or potentially competent) licensing authority to which an |
| |
application is made under sub-paragraph (1) or (2) must make the |
| |
determination before the end of— |
| |
(a) | the decision period, or |
| |
(b) | if it requires the licensable body to provide it with information under |
| 25 |
sub-paragraph (3), the period of 28 days beginning with the day on |
| |
which the information is provided. |
| |
(6) | The decision period, in relation to an application under sub-paragraph (1) or |
| |
(2), is the period of 28 days beginning with the day on which the application |
| |
| 30 |
| |
4 | In this Schedule references to the Board, unless otherwise stated, are to the |
| |
Board acting otherwise than in its capacity as a licensing authority or an |
| |
| |
“Competent licensing authority” |
| 35 |
5 | “Competent licensing authority”, in relation to a licensable body, means an |
| |
approved regulator designated as a licensing authority in relation to each |
| |
reserved legal activity which the licensable body proposes to carry on. |
| |
“Potentially competent licensing authority” |
| |
6 (1) | “Potentially competent licensing authority”, in relation to a licensable body, |
| 40 |
means an approved regulator— |
| |
(a) | which has made an application to the Board under Part 1 of Schedule |
| |
10 for a recommendation that the Lord Chancellor make a relevant |
| |
| |
| |
|
| |
| |
designation order, and whose application has not been determined, |
| |
| |
(b) | in respect of which the Board has made such a recommendation, but |
| |
in respect of which no relevant designation order (or decision not to |
| |
make such an order) has been made by the Lord Chancellor. |
| 5 |
(2) | A relevant designation order is an order— |
| |
(a) | designating the approved regulator as a licensing authority in |
| |
respect of one or more reserved legal activities, and |
| |
(b) | the effect of which will be that the approved regulator becomes a |
| |
competent licensing authority in relation to the licensable body. |
| 10 |
“Suitable regulatory arrangements” |
| |
7 (1) | “Suitable regulatory arrangements”, in relation to a licensable body and a |
| |
competent licensing authority, means regulatory arrangements which are |
| |
suitable in relation to the licensable body, having regard to— |
| |
(a) | the composition of the licensable body, including in particular the |
| 15 |
matters in sub-paragraph (2); |
| |
(b) | the services the licensable body proposes to provide; |
| |
(c) | if the licensable body proposes to carry on non-reserved activities, |
| |
any regulation to which the carrying on of such activities is subject; |
| |
(d) | the persons to whom the licensable body proposes to provide |
| 20 |
| |
| |
(a) | the kinds of authorised persons who are managers of, or have an |
| |
interest in shares in, the licensable body, |
| |
(b) | the proportion of persons who are managers of, or have an interest |
| 25 |
in shares in, the licensable body who are authorised persons or |
| |
authorised persons of a particular kind, |
| |
(c) | the kinds of non-authorised persons who are managers of, or have an |
| |
interest in shares in, the licensable body, and |
| |
(d) | the proportion of persons who are managers of, or have an interest |
| 30 |
in shares in, the licensable body who are non-authorised persons or |
| |
non-authorised persons of a particular kind. |
| |
(3) | In sub-paragraph (2)— |
| |
(a) | “authorised person” means a person who is an authorised person in |
| |
relation to any activity which is a reserved legal activity, and |
| 35 |
(b) | authorised persons are of different kinds if they are authorised to |
| |
carry on such activities by different approved regulators. |
| |
| |
| |
|
