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Legal Services Bill [HL]


Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)

278

 

107        

In paragraph 26 of that Schedule (taxations with respect to contentious

business)—

(a)   

in the paragraph heading for “Taxations” substitute “Assessments”,

(b)   

the existing paragraph becomes sub-paragraph (1) and in that sub-

paragraph —

5

(i)   

for “taxation” substitute “assessment”,

(ii)   

for “taxing officer” substitute “costs officer”,

(iii)   

after “the body” (in the second place) insert “or any manager

or employee of the body”, and

(iv)   

for “any solicitor, being an officer” substitute “any authorised

10

person, being a manager”, and

(c)   

after that sub-paragraph insert—

    “(2)  

In this paragraph “authorised person” means an

authorised person, in relation to an activity which is a

reserved legal activity, within the meaning of the Legal

15

Services Act 2007.”

108        

In paragraph 28 (power of court to order recognised body to pay over

clients’ money) after “client” (in the third place) insert “or any manager or

employee of such a body”.

109        

For paragraph 29 of that Schedule (actions to recover costs) substitute—

20

“29   (1)  

Subsection (2A) of section 69 of the 1974 Act shall have effect in

relation to a bill of costs delivered by a recognised body as if for

paragraphs (a) and (b) there were substituted—

“(a)   

signed on behalf of the recognised body by any manager or

employee of the body authorised by it to do so, or

25

(b)   

enclosed in, or accompanied by, a letter which is so signed

and refers to the bill.”

      (2)  

Subsection (2E) of that section shall have effect in relation to such

a bill as if for “the solicitor” there were substituted “the recognised

body”.”

30

110        

In paragraph 30 (power of Society to inspect files relating to certain

proceedings), for paragraph (b) substitute—

“(b)   

for the appointment of an administrative receiver within

the meaning of section 251 of the Insolvency Act 1986; or”.

111        

In paragraph 31 of that Schedule (bank accounts)—

35

(a)   

omit “or (2)”, and

(b)   

after “bank” insert “or building society”.

112        

After that paragraph insert—

“31A       

Where rules made under section 32(1) of the 1974 Act are applied

to managers or employees in accordance with section 9(2)(fb) of

40

this Act, section 85 of the 1974 Act shall apply in relation to a

manager or employee to whom the rules are applied who keeps an

account with a bank or building society in pursuance of any such

rules as it applies in relation to a solicitor who keeps such an

account in pursuance of rules under section 32.”

45

 

 

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)

279

 

113   (1)  

Paragraph 32 of that Schedule (intervention by Society) is amended as

follows.

      (2)  

In sub-paragraph (1)(a)—

(a)   

for “Council are” substitute “Society is”,

(b)   

after “recognised body” insert “or a manager of such a body”, and

5

(c)   

for “it” substitute “the body or manager”.

      (3)  

Omit sub-paragraph (1)(b).

      (4)  

For sub-paragraph (1)(c) substitute—

“(c)   

a relevant insolvency event occurs in relation to a

recognised body; or”.

10

      (5)  

In sub-paragraph (1)(d)—

(a)   

for “Council have” substitute “Society has”,

(b)   

for “officer” substitute “manager”, and

(c)   

for “that body’s” to the end substitute—

“(i)   

that body’s business,

15

(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

20

(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; or”.

      (6)  

After sub-paragraph (1)(d) insert—

25

“(e)   

the Society is satisfied that it is necessary to exercise the

powers conferred by Part 2 of Schedule 1 to the 1974 Act

(or any of them) in relation to a recognised body to

protect—

(i)   

the interests of clients (or former or potential

30

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

35

employee of the recognised body is or was a trustee

in that person’s capacity as such a manager or

employee;”.

      (7)  

After sub-paragraph (1) insert—

   “(1A)  

For the purposes of this paragraph a relevant insolvency event

40

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

45

paragraph 1(2)(b) of Schedule B1 to that Act;

 

 

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)

280

 

(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

5

a creditors’ voluntary winding up);

(e)   

an order for the winding up of the body is made.”

      (8)  

Omit sub-paragraph (2).

114        

For paragraph 33 of that Schedule (further grounds for intervention)—

(a)   

for paragraph (a) substitute—

10

“(a)   

the Society is satisfied that there has been undue

delay—

(i)   

on the part of a recognised body in

connection with any matter in which it is or

was acting on behalf of a client or with any

15

trust of which it is or was a trustee, or

(ii)   

on the part of a person who is or was a

manager or employee of a recognised body

in connection with any trust of which the

manager or employee is or was a trustee in

20

his capacity as such a manager or

employee;”, and

(b)   

in paragraph (c) for “Council regard” substitute “Society regards”.

115        

In paragraph 34 of that Schedule (powers of intervention on revocation of

recognition etc), in subsection (1) omit “corporate” (in both places).

25

116        

In paragraph 35 of that Schedule (provision relating to the application of

Part 2 of Schedule 1 to the Solicitors Act 1974)—

(a)   

in paragraph (a) omit “corporate”, and

(b)   

omit “and” at the end of paragraph (b) and after paragraph (c)

insert—

30

“(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 a manager or employee of the recognised

35

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

40

control of the recognised body in

connection with any trust of which a person

who is or was a manager or employee of the

recognised body is or was a trustee in his

capacity as such a manager or employee,

45

and

(ii)   

as applying to such a manager or employee

and documents and property in his

possession or under his control in

connection with such a trust as it applies to

50

 

 

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)

281

 

a solicitor and documents and property in

the possession or under the control of the

solicitor;

(f)   

paragraph 11(1) of that Schedule is to be construed

as including a power for the Society to apply to the

5

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 13A of that Schedule is to be read as if

10

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

15

(ii)   

in any other case to a manager or former

manager of the recognised body.”

117        

In paragraph 36 of that Schedule (privilege from disclosure etc) in sub-

paragraph (3) for “an officer” substitute “a manager”.

Part 3

20

The Courts and Legal Services Act 1990 (c. 41)

118        

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

Part of this Schedule.

119        

In section 89 (foreign lawyers: recognised bodies and partnerships with

solicitors)—

25

(a)   

for subsection (3)(a)(iv) substitute—

“(iv)   

sections 36 and 36A (compensation grants);

and”,

(b)   

in subsection (5) for “Secretary of State” substitute “Lord

Chancellor”,

30

(c)   

in paragraph (a) of that subsection for “the commencement of this

section” substitute “or in the same Session as the Legal Services Act

2007 was passed”,

(d)   

in subsection (6) for “Secretary of State” substitute “Lord

Chancellor”,

35

(e)   

in subsection (7) for “Secretary of State” (in both places) substitute

“Lord Chancellor”,

(f)   

in paragraph (a) of that subsection for “the commencement of this

section” substitute “or in the same Session as the Legal Services Act

2007 was passed”, and

40

(g)   

after subsection (8) insert—

“(8A)   

Rules and regulations made by the Law Society under, or by

virtue of, this section or Schedule 14 which are not regulatory

arrangements within the meaning of the Legal Services Act

2007 are to be treated as such arrangements for the purposes

45

of that Act.”

 

 

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)

282

 

120        

Schedule 14 to that Act (foreign lawyers: partnerships and recognised

bodies) is amended as follows.

121        

In paragraph 1 (interpretation) omit the definitions of “the Council” and

“controlled trust”.

122        

In paragraph 2 (application for registration)—

5

(a)   

for “Council” in each place substitute “Society”,

(b)   

in sub-paragraph (1)(b) for “the Master of the Rolls” substitute “the

Legal Services Board”,

(c)   

in sub-paragraph (2) for “Law Society” substitute “Society”,

(d)   

omit sub-paragraph (3),

10

(e)   

in sub-paragraph (4)—

(i)   

for “Master of the Rolls” substitute “Legal Services Board”,

and

(ii)   

in paragraph (a) after “including” insert “the form of the

register and”,

15

(f)   

in that sub-paragraph, after paragraph (b) insert “and

(c)   

the making available to the public of the

information contained in the register (including the

manner in which, and hours during which, the

information is to be made so available and whether

20

the information is to be made available free of

charge).”, and

(g)   

omit sub-paragraph (5).

123        

After paragraph 2 insert—

“2A   (1)  

The Society may direct that a foreign lawyer’s registration is to

25

have effect subject to such conditions as the Society thinks fit to

impose.

      (2)  

A direction under sub-paragraph (1) may be given in respect of a

foreign lawyer

(a)   

at the time he is first registered, or

30

(b)   

at any time when the registration has effect.”

124        

In paragraph 3 (duration of registration) in sub-paragraphs (2) and (3)(c) for

“Council” substitute “Society”.

125        

In paragraph 5 (intervention in practices)—

(a)   

in sub-paragraph (3)(a) and (b)—

35

(i)   

for “Council have” substitute “Society has”, and

(ii)   

omit “by virtue of his being a member of that partnership”,

(b)   

after sub-paragraph (3)(b) insert—

“(ba)   

the Society has reason to suspect dishonesty on the

part of the registered foreign lawyer (“L”) in

40

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

45

L as a sole trader;”,

(c)   

in sub-paragraph (3)(c) for “Council are” substitute “Society is”,

 

 

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)

283

 

(d)   

after sub-paragraph (3)(e) insert—

“(ea)   

the Society is satisfied that he has abandoned his

practice;”,

(e)   

in sub-paragraph (3)(i)—

(i)   

for “Council are” substitute “Society is”, and

5

(ii)   

for “an officer” (in both places) substitute “a manager”,

(f)   

after that sub-paragraph insert—

“(j)   

the Society is satisfied that it is necessary to exercise

the intervention powers (or any of them) in relation

to the registered foreign lawyer to protect—

10

(i)   

the interests of clients (or former or

potential clients) of the registered foreign

lawyer or the multi-national partnership, or

(ii)   

the interests of the beneficiaries of any trust

of which the registered foreign lawyer is or

15

was a trustee.”,

(g)   

omit sub-paragraph (4),

(h)   

in sub-paragraph (5)(a) for “a complaint is made to the Society”

substitute “the Society is satisfied”,

(i)   

in sub-paragraph (5)(a)(ii) for “controlled trust” substitute “trust”,

20

(j)   

in sub-paragraph (5)(c) for “Council regard” substitute “Society

regards”, and

(k)   

after sub-paragraph (9) insert—

   “(10)  

In this paragraph “manager”, in relation to a recognised

body, has the same meaning as in the Legal Services Act

25

2007 (see section 208 of that Act).”

126        

For paragraph 6 (compensation fund) substitute—

“6         

Section 36 of the 1974 Act applies in relation to registered foreign

lawyers as if for paragraphs (a) and (b) of subsection (1) there were

substituted—

30

“(a)   

an act or omission of a registered foreign lawyer or former

registered foreign lawyer;

(b)   

an act or omission of an employee or former employee of a

registered foreign lawyer or former registered foreign

lawyer;”.

35

127        

For paragraph 7 (contributions to fund) substitute—

“7         

Section 36A(2) and (3) of the 1974 Act applies in relation to

registered foreign lawyers as it applies in relation to solicitors.”

128        

For paragraph 8 (accountants’ reports) substitute —

“8         

Section 34 of the Act of 1974 applies in relation to registered

40

foreign lawyers as it applies in relation to solicitors.”

129        

In paragraph 14 (appeal against conditions or refusals)—

(a)   

in sub-paragraph (1)—

(i)   

for “Master of the Rolls” substitute “High Court”, and

(ii)   

for “2(3)” substitute “2A”,

45

(b)   

omit sub-paragraph (2),

 

 

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)

284

 

(c)   

in sub-paragraph (3)—

(i)   

omit “to him”,

(ii)   

for “Master of the Rolls” substitute “High Court”, and

(iii)   

for “he” substitute “it”, and

(d)   

after that sub-paragraph insert—

5

    “(4)  

In relation to an appeal under this paragraph the High

Court may make such order as it thinks fit as to payment

of costs.

      (5)  

The decision of the High Court on an appeal under this

paragraph shall be final.”

10

130        

In paragraph 15 (jurisdiction and powers of disciplinary tribunal)—

(a)   

after sub-paragraph (3) insert—

   “(3A)  

Any person who alleges that a registered foreign lawyer

has knowingly acted in contravention of any order under

section 43(2) of the Act of 1974 or of any conditions subject

15

to which a permission has been granted under such an

order may make a complaint to the Tribunal.”,

(b)   

in sub-paragraph (4)(c), omit “not exceeding £5,000”, and

(c)   

omit sub-paragraph (5).

131        

In paragraph 16(2) (foreign lawyers assisting Tribunal) for “Master of the

20

Rolls” substitute “Legal Services Board”.

132        

In paragraph 17 (appeals from Tribunal)—

(a)   

in sub-paragraph (1) for “lie—” to the end substitute “lie to the High

Court”,

(b)   

in sub-paragraph (2)—

25

(i)   

omit “and the Master of the Rolls”, and

(ii)   

for “they” substitute “it”,

(c)   

in sub-paragraph (3) for “of the Master of the Rolls on an appeal

under this paragraph” substitute “of the High Court on an appeal in

the case of an order on an application under paragraph 15(2)(d) or

30

(e), or the refusal of any such application,”, and

(d)   

omit sub-paragraph (4).

Schedule 17

Section 183

 

Licensed conveyancing

Part 1

35

Administration of Justice Act 1985 (c. 61)

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)—

40

 

 

 
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