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 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
299

      (5)
In paragraph 6 (vesting of sums in Council)—
(a)
in sub-paragraph (1) after “thereto” insert “and to rules under
paragraph 6B”, and
(b)
in sub-paragraph (2)(a) after “practice” insert “or former practice or
with any trust of which he is or was a trustee”.
5
      (6)
After paragraph 6 insert—
“6A   (1)
Without prejudice to paragraph 5, if the Council passes a
resolution to the effect that any rights to which this paragraph
applies shall vest in the Council, those rights shall vest
accordingly.
10
      (2)
This paragraph applies to any right to recover or receive debts due
to the licensed conveyancer or his firm in connection with his
practice or former practice.
      (3)
Any sums recovered by the Council by virtue of the exercise of
rights vested under sub-paragraph (1) shall vest in the Council
15
and shall be held by it on trust to exercise in relation to them the
powers conferred by this Part of this Schedule and, subject to those
powers and to rules under paragraph 6B, upon trust for the
persons beneficially entitled to them.
      (4)
The Council shall serve on the licensed conveyancer or his firm,
20
and any person who owes a debt to which the order applies a
certified copy of the Council’s resolution.
6B    (1)
The Council may make rules governing its treatment of sums
vested in it under paragraph 6 or 6A(3).
      (2)
The rules may, in particular, make provision in respect of cases
25
where the Council, having taken such steps to do so as are
reasonable in all the circumstances of the case, is unable to trace
the person or persons beneficially entitled to any sum vested in the
Council under paragraph 6 or 6A(3) (including provision which
requires amounts to be paid into or out of a fund maintained
30
under section 21).”
      (7)
In paragraph 7(1) (holding of sums vested in Council) after “thereto” insert
“and to rules under paragraph 6B”.
      (8)
In paragraph 8 for “holds money” to the end substitute—
“(a)
holds money on behalf of the licensed conveyancer or his
35
firm, or
(b)
has information which is relevant to identifying any
money held by or on behalf of the licensed conveyancer or
his firm,

the court may require that person to give the Council information
40
as to any such money and the accounts in which it is held.”
      (9)
In paragraph 9 (documents)—
(a)
in sub-paragraph (1)(a)—
(i)
after “possession” insert “or under the control”, and
(ii)
after “practice” insert “or former practice or with any trust of
45
which the licensed conveyancer is or was a trustee”,
(b)
in sub-paragraph (1)(b)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
300

(i)
after “possession” insert “or under the control”, and
(ii)
for “to which the complaint relates” substitute “of which the
Council is satisfied”,
(c)
in sub-paragraph (3) after “possession” insert “or control”,
(d)
in sub-paragraph (5) after “possession” insert “or are under the
5
control”,
(e)
after that sub-paragraph insert—
   “(5A)
In the case of a document which consists of information
which is stored in electronic form, the requirement
imposed by a notice under sub-paragraph (1) or an order
10
under sub-paragraph (4) or (5), is a requirement to produce
or deliver the information in a form in which it is legible or
from which it can readily be produced in a legible form.”,
(f)
in sub-paragraph (6) after “possession of” insert “(a)”,
(g)
at the end of that sub-paragraph insert—
15
“(b)
any property—
(i)
in the possession or under the control of the
licensed conveyancer or his firm, or
(ii)
in the case of an order under sub-paragraph
(5), which was in the possession or under
20
the control of such a person and has come
into the possession or under the control of
the person in respect of whom the order is
made,

which the Council reasonably requires for the
25
purpose of accessing information contained in such
documents,

and to use property obtained under paragraph (b) for that
purpose.”,
(h)
in sub-paragraph (7) after “documents” insert “or other property”,
30
(i)
in sub-paragraph (8) after “documents” insert “or other property”,
and
(j)
in sub-paragraph (10) after “documents” insert “or other property”.
     (10)
For paragraph 10 (mail) substitute—
“Redirection of communications
35
10    (1)
The High Court, on the application of the Council, may from time
to time make a communications redirection order.
      (2)
A communications redirection order is an order that specified
communications to the licensed conveyancer or his firm are to be
directed, in accordance with the order, to the Council, or any
40
person appointed by the Council.
      (3)
For the purposes of this paragraph—
(a)
“specified communications” means communications of
such description as are specified in the order;
(b)
the descriptions of communications which may be so
45
specified include—
(i)
communications in the form of a postal packet;

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
301

(ii)
electronic communications;
(iii)
communications by telephone.
      (4)
A communications redirection order has effect for such time not
exceeding 18 months as is specified in the order.
      (5)
Where a communications redirection order has effect, the Council
5
or the person appointed by the Council may take possession or
receipt of the communications redirected in accordance with the
order.
      (6)
Where a communications redirection order is made the Council
must pay to—
10
(a)
in the case of an order relating to postal packets, the postal
operator concerned, and
(b)
in any other case, the person specified in the order,

the like charges (if any) as would have been payable for the
redirection of the communications to which the order relates if the
15
addressee had permanently ceased to occupy or use the premises
or other destination of the communications and had applied to the
postal operator or the specified person (as the case may be) to
redirect the communications to him as mentioned in the order.
      (7)
The High Court may, on the application of the Council, authorise
20
the Council, or a person appointed by it, to take such steps as may
be specified in the order in relation to any website purporting to
be or have been maintained by or on behalf of the licensed
conveyancer or his firm if the High Court is satisfied that the
taking of those steps is necessary to protect the public interest or
25
the interests of clients (or potential or former clients) of the
licensed conveyancer or his firm.
      (8)
In this paragraph—
“postal operator” has the meaning given by section 125(1) of
the Postal Services Act 2000;
30
“postal packet” has the meaning given by section 125(1) of the
Postal Services Act 2000.
      (9)
This paragraph does not apply where the powers conferred by this
Part of this Schedule are exercisable by virtue of paragraph 3.”
     (11)
After paragraph 10 insert—
35
“Trusts
10A   (1)
If the licensed conveyancer or his personal representative is a
trustee of a trust, the Council may apply to the High Court for an
order for the appointment of a new trustee in substitution for him.
      (2)
The Trustee Act 1925 has effect in relation to an appointment of a
40
new trustee under this paragraph as it has effect in relation to an
appointment under section 41 of that Act.”
     (12)
In paragraph 11 (liens) for “and documents” substitute “, documents and
other property”.

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
302

     (13)
After paragraph 12 (costs) insert—
“12A  (1)
The High Court, on the application of the Council, may order a
former partner of the licensed conveyancer to pay a specified
proportion of the costs mentioned in paragraph 12.
      (2)
The High Court may make an order under this paragraph only if
5
it is satisfied that the conduct (or any part of the conduct) by
reason of which the powers conferred by this Part were exercisable
in relation to the licensed conveyancer was conduct carried on
with the consent or connivance of, or was attributable to any
neglect on the part of, the former partner.
10
      (3)
In this paragraph “specified” means specified in the order made
by the High Court.”
32    (1)
Schedule 6 (bodies recognised under section 32: supplementary provisions)
is amended as follows.
      (2)
In paragraph 1—
15
(a)
omit “corporate” (in both places), and
(b)
in sub-paragraph (2) omit—
(i)
“or complaint” (in both places), and
(ii)
“or (b)”.
      (3)
In paragraph 2 (disciplinary control of recognised bodies) after “24” insert “,
20
24A”.
      (4)
In paragraph 3—
(a)
in sub-paragraph (1), in paragraph (a)(i) omit “by any court in the
United Kingdom”,
(b)
after paragraph (a) of that sub-paragraph insert—
25
“(aa)
it is alleged that a manager or employee of a
recognised body who is not a licensed conveyancer
has failed to comply with any rules applicable to
him by virtue of section 32;
(ab)
it is alleged that a recognised body (while a
30
recognised body) has failed to comply with a
condition subject to which its recognition has
effect.”,
(c)
in that sub-paragraph omit—
(i)
paragraph (b), and
35
(ii)
from “with a view” to the end, and
(d)
after sub-paragraph (1) insert—
   “(1A)
After making such an investigation, the Investigating
Committee may—
(a)
hear and determine the allegation, or
40
(b)
refer the allegation to the Discipline and Appeals
Committee for hearing and determination by that
Committee under paragraph 4.
     (1B)
The Council shall make rules as to the cases in which the
Investigating Committee may hear and determine an
45
allegation, and the cases in which they must refer an
allegation to the Discipline and Appeals Committee.”

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
303

      (5)
After paragraph 3 insert—
“3A   (1)
Where, on hearing an allegation by virtue of paragraph 3(1A)(a),
the Investigating Committee are satisfied—
(a)
in a case within paragraph 3(1)(a), that a recognised body
has failed to comply with any such rules as are mentioned
5
in sub-paragraph (ii) of that paragraph, or
(b)
in a case within paragraph 3(1)(aa), that a manager or
employee has failed to comply with any such rules as are
mentioned in that paragraph, or
(c)
in a case within paragraph 3(1)(ab), that a recognised body
10
has failed to comply with any condition mentioned in that
paragraph,

the Committee may make an order directing the payment by the
recognised body, manager or employee of a penalty to be forfeited
to Her Majesty.
15
      (2)
In relation to proceedings before the Investigating Committee by
virtue of paragraph 3(1A)(a), the Committee may make such order
as they consider fit as to the payment of costs by—
(a)
the Council;
(b)
the recognised body, manager or employee against whom
20
the proceedings 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.
25
      (3)
In sub-paragraph (2), for the purposes of paragraph (a) or (b) of
that sub-paragraph, the reference to costs includes costs incurred
in connection with a preliminary investigation of the allegation
under paragraph 3.
      (4)
The amount of any penalty required to be paid under sub-
30
paragraph (1) may not exceed such amount as is prescribed by
rules made by the Council for the purposes of this sub-paragraph.
      (5)
Paragraphs 1, 2(1) and (3) and 4 of Schedule 4 have effect in
relation to—
(a)
proceedings for the hearing and determination of an
35
allegation by the Investigating Committee, as they have
effect in relation to proceedings before the Discipline and
Appeals Committee under section 26, and
(b)
orders of the Investigating Committee, as they have effect
in relation to orders of the Discipline and Appeals
40
Committee.
      (6)
A person against whom an order is made by the Investigating
Committee by virtue of sub-paragraph (1) may appeal to the
Discipline and Appeals Committee, and on any such appeal the
Discipline and Appeals Committee may make such order as they
45
think fit.
      (7)
If an order is made by the Investigating Committee by virtue of
sub-paragraph (2), a person listed in paragraphs (a) to (c) of that
sub-paragraph may appeal to the Discipline and Appeals

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
304

Committee, and on any such appeal the Discipline and Appeals
Committee may make such order as they think fit.
      (8)
Where an order is made by the Discipline and Appeals Committee
under sub-paragraph (6) or (7)—
(a)
a party to the appeal, or
5
(b)
if not within paragraph (a), the Council,

may appeal against the order to the High Court.
      (9)
On an appeal under sub-paragraph (8) the High Court may make
such order as it thinks fit.
     (10)
The decision of the High Court on an appeal under sub-paragraph
10
(8) shall be final.”
      (6)
In paragraph 4—
(a)
in sub-paragraph (1) after “allegation” insert “within paragraph
3(1)(a) or (ab)”,
(b)
in that sub-paragraph, after paragraph (b) insert “, or
15
(c)
has failed to comply with any such
condition as is mentioned in
paragraph 3(1)(ab),”,
(c)
in sub-paragraph (2), in paragraph (b), for “£3,000” substitute “such
amount as may be prescribed by rules made by the Council for the
20
purposes of this sub-paragraph”,
(d)
after paragraph (b) of that sub-paragraph insert—
“(ba)
an order reprimanding that body;
(bb)
an order that the recognition of that body under
section 32 is to have effect subject to such conditions
25
as may be specified in the order;”,
(e)
omit paragraph (c) of that sub-paragraph,
(f)
after that sub-paragraph insert—
   “(2A)
Where on the hearing of any allegation within paragraph
3(1)(aa) the Discipline and Appeals Committee are
30
satisfied that a manager or employee has failed to comply
with any such rules as are mentioned in sub-paragraph (ii)
of that paragraph, the Committee may, if they think fit,
make one or more of the orders referred to in sub-
paragraph (2B).
35
     (2B)
Those orders are—
(a)
an order directing the payment by the manager or
employee of a penalty not exceeding such amount
as may be prescribed by rules made by the Council
for the purposes of this sub-paragraph;
40
(b)
an order requiring the Council to consider taking
such steps as the Committee may specify in relation
to the manager or employee;
(c)
an order requiring the Society to refer to an
appropriate regulator any matter relating to the
45
conduct of the manager or employee.
     (2C)
For the purposes of sub-paragraph (2B)(c) an “appropriate
regulator” in relation to a manager or employee means—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
305

(a)
if the person is an authorised person in relation to
a reserved legal activity for the purposes of the
Legal Services Act 2007, any relevant approved
regulator (within the meaning of that Act) in
relation to that person, and
5
(b)
if the person carries on activities which are not
reserved legal activities, any person who exercises
regulatory functions in relation to the carrying on
of such activities by the person.
     (2D)
In relation to proceedings under this paragraph, the
10
Committee may make such order as they consider fit as to
the payment of costs by—
(a)
the Council;
(b)
the recognised body or manager or employee
against whom the proceedings were brought;
15
(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.
     (2E)
In sub-paragraph (2D), for the purposes of paragraph (a)
20
or (b) of that sub-paragraph, the reference to costs includes
costs incurred in connection with a preliminary
investigation of the allegation under paragraph 3.”, and
(g)
omit sub-paragraphs (3), (3A) and (4).
      (7)
In paragraph 5—
25
(a)
in sub-paragraph (1)—
(i)
after “26” insert “or paragraph 4”, and
(ii)
for “director” (in each place) substitute “manager”,
(b)
in sub-paragraph (3) for “director” (in both places) substitute
“manager”, and
30
(c)
after sub-paragraph (3) insert—
    “(4)
In relation to proceedings for the revocation of a
recognition under sub-paragraph (1), the Discipline and
Appeals Committee may make such order as they consider
fit as to the payment of costs by—
35
(a)
the Council;
(b)
the body to whose recognition the proceedings
relate.”.
      (8)
In paragraph 6 (appeals against orders of the Committee)—
(a)
in sub-paragraph (1)—
40
(i)
for “body corporate” substitute “person”,
(ii)
after “4(1)” insert “or (2A)”, and
(iii)
for “5” substitute “5(1)”, and
(b)
after that sub-paragraph insert—
   “(1A)
Where an order is made by the Committee under
45
paragraph 4(2D) or 5(4) a person listed in that paragraph
may appeal to the High Court, and on any such appeal the
High Court may make such order as it thinks fit.”