Legal Services Bill [HL]

House of Commons

Session 2006 - 07
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Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
285

(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
5
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
10
(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”
15
(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
20
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.
25
      (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).
30
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
35
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
40
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
45
body has been approved subject to conditions under
paragraph 17, 28 or 33 of Schedule 13 to that Act

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
286

(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),”.
5
      (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;
10
(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—
15
“(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
20
as in Schedule 13 to that Act (ownership of licensed bodies).”
6
After section 16 insert—
“16A
Additional fee payable by certain persons when applying for licences
(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
25
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
30
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—
35
“(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
40
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”.

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
287

      (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—
5
“17A
Variation of conditions
(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—
10
(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
15
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
20
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
25
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
30
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
35
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—
40
(a)
by order terminate the suspension either unconditionally or
subject to such conditions as the Council may think fit, or
(b)
refuse the application.

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
288

(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
5
(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
10
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—
15
“(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
20
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.
25
      (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
30
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)”,
35
(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
40
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).

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
289

      (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
5
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
10
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
15
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
20
(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)
25
shall be final.”
13
After section 24 insert—
“24A
Determination of allegations by Investigating Committee
(1)
Where, on hearing an allegation by virtue of section 24(1A)(a), the
Investigating Committee are satisfied that a licensed conveyancer—
30
(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,
35

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
40
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
45
brought was heard (in person, or through a representative)

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
290

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
5
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
10
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
15
(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
20
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
25
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,
30

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.”
35
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)”.
40
      (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”,

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
291

(b)
for paragraph (f) substitute—
“(f)
an order reprimanding the licensed conveyancer.”,
and
(c)
omit paragraph (g).
      (4)
After subsection (2) insert—
5
“(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
10
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.
15
(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).
20
      (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.”
25
      (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
30
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—
35
“(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
40
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;
45