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)
292

(b)
the applicant.”
18
In section 29 (appeals from decisions of Council in relation to licences)—
(a)
in subsection (1), omit “or” at the end of paragraph (b),
(b)
in that subsection, at the end of paragraph (c) insert “or
(d)
refuses an application made by that person under
5
section 17A,”, and
(c)
in subsection (2), after paragraph (b) insert—
“(ba)
in the case of an appeal under subsection (1)(d), by
order direct the Council to grant the application;”.
19    (1)
Section 31 (application of Schedule 5) is amended as follows.
10
      (2)
In subsection (2) omit—
(a)
“or complaint” (in each place), and
(b)
“or paragraph (b)”.
      (3)
In subsection (3), for “and 12” substitute “to 12A”.
      (4)
In subsection (4) omit “or complaint”.
15
20    (1)
Section 32 (provision of conveyancing services by recognised bodies) is
amended as follows.
      (2)
In subsection (1)(a) for “by licensed” (in the first place) to the end substitute
“of conveyancing services bodies;”.
      (3)
In subsection (1)(b) for “such services” substitute “conveyancing services or
20
other relevant legal services”.
      (4)
After subsection (1)(b) insert—
“(ba)
prescribing the Council’s arrangements for authorising
recognised bodies, for the purposes of the Legal Services Act
2007, to carry on reserved instrument activities, or the
25
administration of oaths, within the meaning of that Act;”.
      (5)
In subsection (1)(c) for “conditions” substitute “requirements”.
      (6)
In subsection (2) omit “corporate”.
      (7)
In subsection (3)—
(a)
in paragraph (a) after “section” insert “, or for the renewal of such
30
recognition,”,
(b)
after that paragraph insert—
“(aa)
for the payment of fees in connection with other
applications under the rules;”,
(c)
for paragraph (c) substitute—
35
“(c)
about the time when any recognition granted under
this section, or renewal of such recognition, takes
effect and the period for which it is (subject to the
provisions of this Part) to remain in force;
(ca)
for the suspension or revocation of any such
40
recognition, on such grounds and in such
circumstances as may be prescribed in the rules;
(cb)
about the effect on the recognition of a partnership or
other unincorporated body (“the existing body”) of
any change in its membership, including provision
45

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
293

for the existing body’s recognition to be transferred
where the existing body ceases to exist and another
body succeeds to the whole or substantially the whole
of its business;”,
(d)
omit paragraph (d),
5
(e)
in paragraph (e)—
(i)
for “a list” substitute “a register”,
(ii)
omit “corporate”, and
(iii)
for “, and for the” to the end substitute “and such other
information relating to those bodies as may be specified in
10
the rules;”,
(f)
after that paragraph insert—
“(ea)
for information (or information of a specified
description) on such a register to be made available to
the public, and about the manner in which and times
15
at which, information is to be made so available;”,
(g)
after paragraph (f) insert—
“(fa)
about the education and training requirements to be
met by managers and employees of recognised
bodies;
20
(fb)
for rules made under any other provision of this Part
to have effect in relation to managers and employees
of recognised bodies with such additions, omissions
or other modifications as appear to the Council to be
necessary or expedient;”, and
25
(h)
in paragraph (g) after “recognised bodies” insert “or managers or
employees of such bodies”.
      (8)
After subsection (3) insert—
“(3A)
Rules made by the Council may provide for the Council to grant a
body recognition under this section subject to one or more
30
conditions.
(3B)
At any time while a body is recognised under this section, the
Council may, in such circumstances as may be prescribed, direct that
the body’s recognition is to have effect subject to such conditions as
the Council may think fit.
35

“Prescribed” means prescribed by rules made by the Council.
(3C)
The conditions which may be imposed under subsection (3A) or (3B)
include—
(a)
conditions restricting the kinds of conveyancing services that
may be provided by the body;
40
(b)
conditions imposed by reference to criteria of general
application;
(c)
conditions requiring the body to take any specified steps that
will, in the opinion of the Council, be conducive to the body
carrying on an efficient business;
45

and conditions may be imposed despite the fact that they may result
in expenditure being incurred by the body.
(3D)
On an application made by a recognised body, the Council may, in
such circumstances as may be prescribed, direct—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
294

(a)
the removal of a condition subject to which the body’s
recognition has effect;
(b)
the variation of such a condition in the manner described in
the application.
(3E)
For the purposes of subsection (3D)—
5
(a)
section 14 applies in relation to an application under that
subsection as it applies in relation to an application for a
licence under this Part of this Act, and
(b)
“prescribed” means prescribed by rules made by the Council.
(3F)
Rules under subsection (3A) or (3B) may make provision about when
10
conditions imposed take effect (including provision conferring
power on the Council to direct that a condition is not to have effect
until the conclusion of any appeal in relation to it).
(3G)
Rules under this section may contain such incidental, supplemental,
transitional or transitory provisions or savings as the Council
15
considers necessary or expedient.”
      (9)
Omit subsections (4) and (5).
     (10)
In subsection (6)—
(a)
in paragraph (a) omit “corporate”, and
(b)
for paragraph (b) substitute—
20
“(b)
that a body’s recognition under this section does not
have effect subject to any conditions or has effect
subject to any particular conditions,”.
     (11)
After subsection (7) insert—
“(8)
In this section “conveyancing services body” and “relevant legal
25
services” have the meaning given by section 32A.
(9)
The Council is capable of being designated as a licensing authority
for the purposes of, and subject to, Part 5 of the Legal Services Act
2007 (alternative business structures).”
21
After section 32 (provision of conveyancing by recognised bodies) insert—
30
“32A
Conveyancing services bodies
(1)
For the purposes of section 32 a “conveyancing services body” means
a body (corporate or unincorporate) in respect of which—
(a)
the management and control condition, and
(b)
the services condition,
35

are satisfied.
(2)
The management and control condition is satisfied in the case of a
partnership if at least one of the partners is a licensed conveyancer.
(3)
The management and control condition is satisfied in the case of an
unincorporated body (other than a partnership), or a body corporate
40
which is managed by its members, if at least one of those members is
a licensed conveyancer.

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
295

(4)
The management and control condition is satisfied in the case of any
other body corporate if at least one of the persons within subsection
(5) is a licensed conveyancer.
(5)
Those persons are—
(a)
the directors of the body, and
5
(b)
the persons who have an interest in the body.
(6)
The services condition is satisfied in respect of a body if the body is
carrying on a business consisting of the provision of—
(a)
conveyancing services, or
(b)
conveyancing services and other relevant legal services.
10
(7)
For the purposes of this section—
“authorised person” means an authorised person in relation to
an activity which is a reserved legal activity (within the
meaning of the Legal Services Act 2007);
“relevant legal services”, in relation to a body, means—
15
(a)
conveyancing services, and
(b)
where authorised persons are managers of, or have an
interest in, the body, services such as are provided by
individuals practising as such authorised persons
(whether or not those services involve the carrying on
20
of reserved legal activities within the meaning of the
Legal Services Act 2007);

and a person has an interest in a body if the person has an interest in
shares in the body within the meaning of Part 5 of the Legal Services
Act 2007 (see sections 72 and 109 of that Act).”
25
22
In section 33 (legal professional privilege), that section becomes subsection
(1) and after that subsection insert—
“(2)
Subsection (1)(b) does not apply to a recognised body which holds a
licence under Part 5 of the Legal Services Act 2007 (alternative
business structures).”
30
23
After that section insert—
“33A
Administration of oaths by licensed conveyancers
The Council may make rules prescribing its arrangements for
authorising licensed conveyancers, for the purposes of the Legal
Services Act 2007, to carry on activities which consist of the
35
administration of oaths.”
24
In section 34 (modification of existing enactments relating to conveyancing
etc), omit subsection (2)(c) to (e).
25
In section 35 (penalty for pretending to be a licensed conveyancer or
recognised body), in subsection (2) omit “corporate”.
40
26
In section 36 (offences by bodies corporate)—
(a)
the existing section becomes subsection (1) of that section and in that
subsection for “director” to “capacity” substitute “officer of the body
corporate”, and

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
296

(b)
and after that subsection insert—
“(2)
Where the affairs of a body corporate are managed by its
members, subsection (1) applies in relation to the acts and
defaults of a member in connection with the member’s
functions of management as it applies to an officer of the
5
body corporate.
(3)
Proceedings for an offence under this section alleged to have
been committed by an unincorporated body are to be
brought in the name of that body (and not in that of any of its
members) and, for the purposes of any such proceedings, any
10
rules of court relating to the service of documents have effect
as if that body were a corporation.
(4)
A fine imposed on an unincorporated body on its conviction
of an offence under this section is to be paid out of the funds
of that body.
15
(5)
If an unincorporated body is charged with an offence under
this section, section 33 of the Criminal Justice Act 1925 and
Schedule 3 to the Magistrates’ Courts Act 1980 (procedure on
charge of an offence against a corporation) have effect in like
manner as in the case of a corporation so charged.
20
(6)
Where an offence under this section committed by an
unincorporated body (other than a partnership) is proved to
have been committed with the consent or connivance of, or to
be attributable to any neglect on the part of, any officer of the
body or any member of its governing body, that officer or
25
member as well as the unincorporated body is guilty of the
offence and liable to be proceeded against and punished
accordingly.
(7)
Where an offence under this section committed by a
partnership is proved to have been committed with the
30
consent or connivance of, or to be attributable to any neglect
on the part of, a partner, that partner as well as the
partnership is guilty of the offence and liable to be proceeded
against and punished accordingly.
(8)
In this section “officer”, in relation to a body corporate,
35
means—
(a)
any director, secretary or other similar officer of the
body corporate, or
(b)
any person who was purporting to act in any such
capacity.”
40
27
In section 38 (rules)—
(a)
omit subsection (1), and
(b)
in subsection (2) for “such rules” substitute “rules made by the
Council under this Part”.
28
In section 39(1) (interpretation of Part 2)—
45
(a)
in the definition of “client”, in paragraph (a) omit “or his firm”,
(b)
omit the definitions of “director” and “officer”,

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
297

(c)
at the appropriate place insert—
““manager”, in relation to a body, has the same meaning
as in the Legal Services Act 2007 (see section 208 of
that Act);”, and
(d)
in the definition of “recognised body” omit “corporate”.
5
29    (1)
Schedule 3 (Council for Licensed Conveyancers: supplementary provisions)
is amended as follows.
      (2)
In paragraph 2(1), for “elected or nominated” substitute “appointed”.
      (3)
In paragraph 2(2), for “elect” substitute “appoint”.
      (4)
Omit paragraph 2(3).
10
      (5)
Omit paragraph 3.
      (6)
In paragraph 4(1)—
(a)
for “election or nomination” (in both places) substitute
“appointment”,
(b)
for “election of” substitute “appointment of”, and
15
(c)
for “elected or nominated” substitute “appointed”.
      (7)
In paragraph 4(2), for “elected or nominated” (in each place) substitute
“appointed”.
      (8)
In paragraph 4(3), for the words from “Secretary of State” (in the first place)
to the end substitute “Legal Services Board.”
20
      (9)
In paragraph 4(4)—
(a)
for “Secretary of State” (in both places) substitute “Legal Services
Board”,
(b)
for “him” substitute “it”, and
(c)
for “he” (in both places) substitute “it”.
25
     (10)
In paragraph 9, for “election or nomination” substitute “appointment”.
     (11)
In paragraph 10 for “Secretary of State” (in both places) substitute “Lord
Chancellor”.
     (12)
In paragraph 11(3) for “Secretary of State” substitute “Lord Chancellor”.
30    (1)
Schedule 4 (the Discipline and Appeals Committee: supplementary
30
provisions) is amended as follows.
      (2)
In paragraph 1 (rules of procedure)—
(a)
omit sub-paragraphs (3) and (4), and
(b)
in sub-paragraph (5), for “paragraphs 2 and 3” substitute “paragraph
2”.
35
      (3)
Omit paragraph 3.
31    (1)
Schedule 5 (intervention in licensed conveyancer’s practice) is amended as
follows.
      (2)
In paragraph 1 (grounds for intervention)—
(a)
in sub-paragraph (1)(a) after “practice” insert “or former practice or
40
in connection with any trust of which that licensed conveyancer is or
was a trustee”,

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
298

(b)
after that sub-paragraph insert—
“(aa)
the Council has reason to suspect dishonesty on the
part of a licensed conveyancer (“L”) in connection
with—
(i)
the business of any person of whom L is or
5
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
L as a sole trader;”,
(c)
in sub-paragraph (1)(b) after “practice” insert “or in connection with
10
any trust”,
(d)
in sub-paragraph (1)(c), after “section” insert “20, 21(3)(c),”,
(e)
after sub-paragraph (1)(e) insert—
“(ea)
the Council is satisfied that a licensed conveyancer
has abandoned his practice;
15
(eb)
the Council is satisfied that a licensed conveyancer
has been practising in breach of any conditions
subject to which his licence has effect;”,
(f)
in sub-paragraph (1)(f) insert after “illness” insert “, injury”,
(g)
for sub-paragraph (1)(g) substitute—
20
“(g)
a licensed conveyancer lacks capacity (within the
meaning of the Mental Capacity Act 2005) to act as
a licensed conveyancer and powers under section
15 to 20 or section 48 of that Act are exercisable in
relation to the licensed conveyancer;”,
25
(h)
after sub-paragraph (1)(h) insert—
“(i)
the Council is satisfied that it is necessary to
exercise the powers conferred by Part 2 of this
Schedule (or any of them) in relation to a licensed
conveyancer to protect—
30
(i)
the interests of clients (or former or
potential clients) of the licensed
conveyancer or his firm, or
(ii)
the interests of the beneficiaries of any trust
of which the licensed conveyancer is or was
35
a trustee.”, and
(i)
omit sub-paragraph (2).
      (3)
In paragraph 3 (intervention following an undue delay)—
(a)
for “10(3)” substitute “10(9)”,
(b)
in paragraph (a) for “a complaint is made to the Council” substitute
40
“the Council is satisfied”,
(c)
in that paragraph for “was instructed” substitute “is or was acting”,
and
(d)
in that paragraph after “client” insert “or in connection with any
trust”.
45
      (4)
In paragraph 4(2) (continuation of powers after death etc of licensed
conveyancer)—
(a)
after “and (3)” insert “, 6A”,
(b)
for “and (5)” substitute “, (5) and (6)”, and
(c)
for “10(1)” substitute “10(2) and (7)”.
50