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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

 

 

 
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