Legal Services Bill [HL]

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
222

16
The licensing authority may do all things which are reasonably necessary to
facilitate the exercise of its powers under this Schedule.
Licensing authority’s costs
17    (1)
Any costs incurred by the licensing authority for the purposes of this
Schedule (including the costs of any person exercising powers under this
5
Schedule on behalf of the licensing authority)—
(a)
are to be paid by the licensed body, and
(b)
may be recovered from the licensed body as a debt owing to the
licensing authority.
      (2)
Sub-paragraph (1) is subject to any order for payment of costs that may be
10
made on an application to the court under this Schedule.
18    (1)
The High Court, on the application of the licensing authority, may order a
liable party to pay a specified proportion of the costs mentioned in
paragraph 17.
      (2)
For this purpose a “liable party” means—
15
(a)
if the licensed body is a partnership, any former partner in the
licensed body,
(b)
in any other case, any manager or former manager of the licensed
body.
      (3)
The High Court may make an order under this paragraph in respect of a
20
liable party only if it is satisfied that the conduct (or any part of the conduct)
by reason of which this Schedule applies was conduct carried on with the
consent or connivance of, or was attributable to any neglect on the part of,
the liable party.
      (4)
In this paragraph “specified” means specified in the order made by the High
25
Court.
Schedule 15
Section 114

The Office for Legal Complaints
Membership
1     (1)
The OLC is to consist of the following members—
30
(a)
a chairman appointed by the Board with the approval of the Lord
Chancellor, and
(b)
at least 6, but not more than 8, other persons appointed by the Board
after consultation with the chairman.
      (2)
The Lord Chancellor may by order amend sub-paragraph (1) by
35
substituting, for the limit on the maximum number of persons for the time
being specified in paragraph (b) of that sub-paragraph, a different limit.
2     (1)
In appointing members of the OLC, the Board must ensure that a majority of
the members of the OLC are lay persons.
      (2)
The chairman must be a lay person.
40

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
223

      (3)
In this Schedule a reference to a “lay person” is a reference to a person who
has never been—
(a)
an authorised person in relation to an activity which is a reserved
legal activity,
(b)
an advocate in Scotland,
5
(c)
a solicitor in Scotland,
(d)
a member of the Bar of Northern Ireland, or
(e)
a solicitor of the Court of Judicature of Northern Ireland.
      (4)
For the purposes of sub-paragraph (3), a person is deemed to have been an
authorised person in relation to an activity which is a reserved legal activity
10
if that person has before the appointed day been—
(a)
a barrister,
(b)
a solicitor,
(c)
a public notary,
(d)
a licensed conveyancer, or
15
(e)
granted a right of audience or right to conduct litigation in relation
to any proceedings by virtue of section 27(2)(a) or section 28(2)(a) of
the Courts and Legal Services Act 1990 (c. 41) (rights of audience and
rights to conduct litigation).
      (5)
For the purpose of sub-paragraph (4)—
20
“appointed day” means the day appointed for the coming into force of
section 13;
“licensed conveyancer” has the meaning given by section 11(2) of the
Administration of Justice Act 1985 (c. 61).
3     (1)
An ombudsman may be a member (but not chairman) of the OLC.
25
      (2)
In appointing members of the OLC, the Board must ensure that a majority of
the members of the OLC are not ombudsmen.
4
In appointing members of the OLC, the Board must have regard to the
desirability of securing that the OLC includes members who (between them)
have experience in or knowledge of—
30
(a)
the handling of complaints,
(b)
the provision of legal services,
(c)
legal education and legal training,
(d)
consumer affairs,
(e)
civil or criminal proceedings and the working of the courts,
35
(f)
the maintenance of the professional standards of persons who
provide legal services,
(g)
non-commercial legal services,
(h)
the differing needs of consumers, and
(i)
the provision of claims management services (within the meaning of
40
Part 2 of the Compensation Act 2006 (c. 29)).
Terms of appointment and tenure of members
5
A member of the OLC is to hold and vacate office in accordance with the
terms and conditions of the member’s appointment (subject to this
Schedule).
45
6     (1)
A member of the OLC must be appointed for a fixed period.

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
224

      (2)
The period for which a member is appointed must not exceed 5 years.
      (3)
A person who has held office as a member may be re-appointed once only,
for a further period (whether consecutive or not) not exceeding 5 years.
7
If a member of the OLC who is a lay person becomes a person within
paragraph (a) to (e) of paragraph 2(3), that person ceases to be a member of
5
the OLC.
8     (1)
A member may at any time—
(a)
resign from office by giving notice to the Board;
(b)
be removed from office by the Board.
      (2)
The Board may not under sub-paragraph (1)(b) remove a member (including
10
the chairman) from office unless the Board is satisfied that the member—
(a)
has failed without reasonable excuse to discharge the functions of the
office for a continuous period of at least 6 months,
(b)
has been convicted of an offence,
(c)
is an undischarged bankrupt, or
15
(d)
is otherwise unfit to hold the office or unable to discharge its
functions.
      (3)
The chairman may be removed from office under sub-paragraph (1)(b) only
with the consent of the Lord Chancellor.
      (4)
The Board must consult the chairman before removing a member (other
20
than the chairman) under sub-paragraph (1)(b).
      (5)
The Board may not remove an ordinary member on the ground mentioned
in paragraph (a) of sub-paragraph (2) more than 3 months after the end of
the period mentioned in that paragraph.
9
The chairman ceases to be chairman upon ceasing to be a member of the
25
OLC.
Remuneration etc of members
10
The chairman and other members of the OLC are to be paid by the Board in
accordance with provision made by or under their terms of appointment.
Staff
30
11
The OLC may appoint such staff as it considers appropriate to assist in the
performance of its functions.
12
Staff appointed under paragraph 11 are to be—
(a)
appointed on terms and conditions determined by the OLC, and
(b)
paid by the OLC in accordance with provision made by or under the
35
terms of appointment.
13
A member of staff appointed under paragraph 11 may be a member (but not
chairman) of the OLC.
14
The terms and conditions on which an ombudsman, or any member of staff
appointed under paragraph 11, is appointed may provide for the OLC to
40
pay, or make payments towards the provision of, a pension, allowance or
gratuity to or in respect of that person.

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
225

Arrangements for assistance
15    (1)
The OLC may make arrangements with such persons as it considers
appropriate for assistance to be provided to it or to an ombudsman.
      (2)
Arrangements may include the paying of fees to such persons.
Committees
5
16    (1)
The OLC may establish committees.
      (2)
Any committee so established may establish sub-committees.
      (3)
Only members of the OLC may be members of a committee or sub-
committee.
      (4)
A majority of the members of a committee or sub-committee must be lay
10
persons.
Proceedings
17    (1)
The OLC may regulate its own procedure, and the procedure of its
committees and sub-committees, including quorum.
      (2)
But the quorum of a committee or sub-committee must not be less than 3.
15
      (3)
The OLC must publish any rules of procedure made under this paragraph.
      (4)
This paragraph is without prejudice to any other power the OLC has under
this Act to make rules.
18
The validity of any act of the OLC is not affected—
(a)
by a vacancy in the office of chairman or amongst the other members,
20
or
(b)
by a defect in the appointment or any disqualification of a person as
chairman or another member of the OLC.
Delegation of functions
19    (1)
The OLC may authorise—
25
(a)
the chairman or any other member of the OLC,
(b)
a committee or sub-committee of the OLC,
(c)
an ombudsman, or
(d)
a member of the OLC’s staff appointed under paragraph 11,

to exercise, on behalf of the OLC, such of its functions, in such
30
circumstances, as it may determine.
      (2)
Sub-paragraph (1) does not apply to—
(a)
the OLC’s functions under section 118(1) (annual report),
(b)
the OLC’s functions under section 122 (appointment of Chief
Ombudsman and assistant ombudsmen),
35
(c)
the OLC’s functions under paragraph 17 or 20 of this Schedule, or
(d)
any power or duty the OLC has to make rules under this Part of this
Act.
      (3)
A committee may delegate functions (including functions delegated to the
committee) to—
40

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
226

(a)
a sub-committee,
(b)
the chairman or any other member of the OLC,
(c)
an ombudsman, or
(d)
a member of the OLC’s staff appointed under paragraph 11.
Budget
5
20    (1)
The OLC must, before the start of each financial year, adopt an annual
budget which has been approved by the Board.
      (2)
The OLC may, with the approval of the Board, vary the budget for a financial
year at any time after its adoption.
      (3)
The annual budget must include an indication of—
10
(a)
the distribution of resources deployed in the operation of the
ombudsman scheme, and
(b)
the amounts of income of the OLC arising or expected to arise from
the operation of the scheme.
Land
15
21    (1)
During the initial 5 year period, the OLC must not acquire or dispose of an
interest in land, except with the approval of the Lord Chancellor.
      (2)
The initial 5 year period is the period of 5 years beginning with the day on
which the appointment of the first Interim Chief Executive under paragraph
10 of Schedule 22 takes effect or the day on which the first appointment of a
20
member of the OLC takes effect, whichever first occurs.
Borrowing
22    (1)
The OLC must not borrow money, except—
(a)
with the consent of the Board, or
(b)
in accordance with a general authorisation given by the Board.
25
      (2)
The Board may not consent or give a general authorisation for the purposes
of sub-paragraph (1), except with the consent of the Lord Chancellor.
Accounts
23    (1)
The OLC must—
(a)
keep proper accounts and proper records in relation to the accounts,
30
and
(b)
prepare in respect of each financial year a statement of accounts.
      (2)
Each statement of accounts must comply with any directions given by the
Lord Chancellor, with the approval of the Treasury, as to—
(a)
the information to be contained in it and the manner in which it is to
35
be presented;
(b)
the methods and principles according to which the statement is to be
prepared;
(c)
the additional information (if any) which is to be provided for the
information of Parliament.
40

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
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      (3)
The OLC must give a copy of each statement of accounts to the Board before
the end of the month of August next following the financial year to which
the statement relates.
      (4)
The Board must give a copy of each statement received under sub-
paragraph (3)—
5
(a)
to the Lord Chancellor, and
(b)
to the Comptroller and Auditor General.
      (5)
The Comptroller and Auditor General must—
(a)
examine, certify and report on each statement of accounts which is
received under sub-paragraph (4), and
10
(b)
give a copy of the Comptroller and Auditor General’s report to the
Lord Chancellor.
      (6)
In respect of each financial year, the Lord Chancellor must lay before
Parliament a document consisting of—
(a)
a copy of the statement of accounts for that year, and
15
(b)
a copy of the Comptroller and Auditor General’s report on that
statement.
      (7)
“Financial year” means—
(a)
the period beginning with the day on which the OLC is established
and ending with the next following 31 March, and
20
(b)
each successive period of 12 months.
Status
24    (1)
The OLC is not to be regarded—
(a)
as the servant or agent of the Crown, or
(b)
as enjoying any status, immunity or privilege of the Crown.
25
      (2)
Accordingly—
(a)
the OLC’s property is not to be regarded as property of or held on
behalf of the Crown, and
(b)
the staff appointed under paragraph 11 are not to be regarded as
servants or agents of the Crown or as enjoying any status, immunity
30
or privilege of the Crown.
Application of seal and proof of instruments
25
The application of the seal of the OLC is to be authenticated by the signature
of any member of the OLC, or of its staff, who has been authorised (whether
generally or specifically) by the OLC for the purpose.
35
26
Any contract or instrument which, if entered into or executed by an
individual, would not need to be under seal, may be entered into or executed
on behalf of the OLC by any person who has been authorised (whether
generally or specifically) by the OLC for the purpose.
27
A document purporting to be duly executed under the seal of the OLC, or
40
signed on its behalf—
(a)
is to be received in evidence, and
(b)
is to be taken to be executed or signed in that way, unless the
contrary is proved.

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints
228

Disqualification
28    (1)
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (bodies of which all members are disqualified) at the appropriate
place insert—
“The Office for Legal Complaints.”
5
      (2)
In Part 3 of that Schedule (other disqualifying offices) at the appropriate
place insert—
“The Chief Ombudsman or an assistant ombudsman appointed
under section 122 of the Legal Services Act 2007 (Chief
Ombudsman and assistant ombudsmen appointed for the
10
purposes of the ombudsman scheme).”
      (3)
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (c. 25) (bodies of which all members are disqualified) at the
appropriate place insert—
“The Office for Legal Complaints.”
15
      (4)
In Part 3 of that Schedule (other disqualifying offices) at the appropriate
place insert—
“The Chief Ombudsman or an assistant ombudsman appointed
under section 122 of the Legal Services Act 2007 (Chief
Ombudsman and assistant ombudsmen appointed for the
20
purposes of the ombudsman scheme).”
Freedom of information
29
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (other
public bodies and offices which are public authorities) at the appropriate
place insert—
25
“The Office for Legal Complaints.”
Public records
30
In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public
records) at the appropriate place in Part 2 of the Table at the end of
paragraph 3 insert—
30
“The Office for Legal Complaints.”
Exemption from liability in damages
31    (1)
This paragraph applies to—
(a)
the OLC,
(b)
a member of the OLC,
35
(c)
an ombudsman, and
(d)
a member of the OLC’s staff appointed under paragraph 11.
      (2)
A person to whom this paragraph applies is not liable in damages for
anything done or omitted in the exercise or purported exercise of the
functions conferred on the person concerned by or by virtue of this or any
40
other enactment.
      (3)
But sub-paragraph (2) does not apply—
(a)
if it is shown that the act or omission was in bad faith, or