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)
306

      (9)
After paragraph 7 (revocation of recognition on grounds of fraud or error)—
(a)
in sub-paragraph (1) and (2) omit “corporate”, and
(b)
after sub-paragraph (2) insert—
    “(3)
In relation to proceedings for the revocation of a
recognition under sub-paragraph (1), the Discipline and
5
Appeals Committee may make such order as they consider
fit as to the payment of costs by—
(a)
the Council;
(b)
the body to whose recognition the proceedings
relate.
10
      (4)
In relation to proceedings on an application under sub-
paragraph (2), the Discipline and Appeals Committee may
make such order as they consider fit as to the payment of
costs by—
(a)
the Council;
15
(b)
the applicant.”
     (10)
In paragraph 8 (appeal against decision of Council in relation to grant of
recognition)—
(a)
in sub-paragraph (1) omit “corporate”,
(b)
in paragraph (b) of that sub-paragraph for “restrictions” substitute
20
“conditions”,
(c)
after that paragraph insert “, or
(c)
decides to give a direction in relation
to that body under section 32(3B), or
(d)
refuses an application by that body
25
under section 32(3D),”,
(d)
in sub-paragraph (2) for “this paragraph” substitute “sub-paragraph
(1)(a) or (b)”,
(e)
in paragraph (a) of that sub-paragraph—
(i)
for “restrictions” (in first place) substitute “conditions”, and
30
(ii)
for “restrictions falling within subsection (3)(d) of that
section” substitute “conditions”, and
(f)
after that sub-paragraph insert—
   “(2A)
On an appeal under sub-paragraph (1)(c), the Discipline
and Appeals Committee may—
35
(a)
revoke the direction of the Council under section
32(3B),
(b)
direct that the body’s recognition is to have effect
subject to such conditions as may be specified by
the Council in the direction, or
40
(c)
affirm the decision of the Council,

and the Committee may make such order as to the
payment of costs by the Council or by that body as they
think fit.
     (2B)
On an appeal under sub-paragraph (1)(d), the Discipline
45
and Appeals Committee may—
(a)
direct the Council to grant the application, or
(b)
affirm the decision of the Council,

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
307


and the Committee may make such order as to the
payment of costs by the Council or by that body as they
think fit.”
     (11)
In paragraph 9 (rules of procedure etc) in sub-paragraph (1)—
(a)
for “, 2 and 3” substitute “and 2”, and
5
(b)
for “paragraph 4 or 5” substitute “paragraph 3A, 4 or 5”.
     (12)
In paragraph 10 (intervention by Council)—
(a)
in sub-paragraph (1), in paragraph (a) after “recognised body” insert
“or a manager of such a body”,
(b)
after that paragraph insert—
10
“(aa)
the Council is satisfied that a recognised body has
been carrying on business in breach of any
condition subject to which the body’s recognition
under section 32 of this Act has effect; or”,
(c)
for paragraph (c) of that sub-paragraph substitute—
15
“(c)
a relevant insolvency event occurs in relation to a
recognised body; or”,
(d)
in paragraph (d) of that sub-paragraph for “officer” substitute
“manager”,
(e)
in that paragraph for “that body’s” to the end of the paragraph
20
substitute—
“(i)
that body’s business,
(ii)
any trust of which that body is or was a
trustee,
(iii)
any trust of which the manager or
25
employee is or was a trustee in his capacity
as such a manager or employee, or
(iv)
the business of another body in which the
manager or employee is or was a manager
or employee or the practice (or former
30
practice) of the manager or employee;”,
(f)
after that paragraph insert “or
(e)
the Council is satisfied that it is necessary to
exercise the powers conferred by Part 2 of Schedule
5 (or any of them) in relation to a recognised body
35
to protect—
(i)
the interests of clients (or former or
potential clients) of the recognised body,
(ii)
the interests of the beneficiaries of any trust
of which the recognised body is or was a
40
trustee, or
(iii)
the interests of the beneficiaries of any trust
of which a person who is or was a manager
or employee of the recognised body is or
was a trustee in that person’s capacity as
45
such a manager or employee,”,
(g)
after sub-paragraph (1) insert—
   “(1A)
For the purposes of this paragraph a relevant insolvency
event occurs in relation to a recognised body if—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
308

(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 paragraph 1(2)(b) of Schedule B1 to that Act;
5
(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’
10
voluntary winding up into a creditors’ voluntary
winding up);
(e)
an order for the winding up of the body is made.”,
and
(h)
omit sub-paragraph (2).
15
     (13)
For paragraph 11(a) substitute—
“(a)
the Council is satisfied that there has been undue delay on
the part of—
(i)
a recognised body in connection with any matter in
which it is or was acting on behalf of a client or with
20
any trust of which it is or was a trustee, or
(ii)
a person who is or was a manager or employee of a
recognised body in connection with any trust of
which he is or was a trustee in his capacity as such
a manager or employee; and”.
25
     (14)
In paragraph 12(1) omit “corporate” (in both places).
     (15)
In paragraph 13—
(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 manager or employee of that body is or
35
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
that body is or was a trustee in his capacity
as such a manager or employee, and
45
(ii)
as applying to a person who is or was a
manager or employee of the recognised
body and documents and property in his
possession or under his control in
connection with such a trust as it applies to
50
a recognised body and documents and

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
309

property in the possession or under the
control of that body;
(f)
paragraph 10A(1) of that Schedule is to be
construed as including power for the Council to
apply to the High Court for an order for the
5
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 12A 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.”
     (16)
In paragraph 14 (examination of files)—
(a)
for sub-paragraph (1) substitute—
    “(1)
Where the Investigating Committee are satisfied that it is
20
necessary to do so for the purpose of investigating any
such allegation as is mentioned in paragraph 3(1)(a)(ii),
(aa) or (ab), the Committee may give an information notice
to a relevant person.
     (1A)
An information notice is a notice requiring the production
25
or delivery to any person appointed by the Committee, at
a time and a place to be fixed by the Committee, of all
documents in the possession or under the control of the
relevant person in connection with the matters to which
the allegation relates (whether or not they relate also to
30
other matters).
     (1B)
In this section “relevant person” means—
(a)
in the case of an allegation against a recognised
body, the recognised body or any of its managers
or employees, and
35
(b)
in the case of an allegation against a manager or
employee of a recognised body, the manager or
employee, the recognised body or any other
manager or employee of the recognised body.”,
and
40
(b)
in sub-paragraph (2)—
(i)
for “and 12” substitute “to 12A”,
(ii)
for “sub-paragraph (1) of this paragraph” (except where it
appears in paragraph (d)) substitute “sub-paragraphs (1) and
(1A) of this paragraph”,
45
(iii)
in paragraph (b) after “body” insert “, manager or employee”,
and
(iv)
in paragraph (d) for “sub-paragraph (1)” substitute “sub-
paragraph (1A)”.
     (17)
Omit paragraph 15 (application of rules relating to accounts etc).
50

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)
310

     (18)
In paragraph 16 (interest on client’s money)—
(a)
in sub-paragraph (1)—
(i)
after “recognised bodies” insert “or managers or employees
of such bodies,”,
(ii)
after “recognised body” insert “, manager or employee”,
5
(iii)
for “it keeps” substitute “it or he keeps”,
(iv)
for “its clients” substitute “clients of the recognised body”,
and
(v)
after “received by it” insert “or him”, and
(b)
in sub-paragraph (2), for “and any of its clients” substitute “, or any
10
manager or employee of such a body, and any of the clients of the
recognised body”.
Part 2
Courts and Legal Services Act 1990 (c. 41)
33
The Courts and Legal Services Act 1990 is amended in accordance with this
15
Part.
34    (1)
Section 53 (the Council for Licensed Conveyancers) is amended as follows.
      (2)
For subsections (1) to (3) substitute—
“(1)
The Council for Licensed Conveyancers has the powers necessary to
enable it to become designated as an approved regulator in relation
20
to one or more of the reserved legal activities within subsection (1A).
(1A)
The reserved legal activities to which this subsection applies are—
(a)
the exercise of a right of audience;
(b)
the conduct of litigation;
(c)
probate activities.
25
(2)
If the Council becomes an approved regulator in relation to one or
more of those activities, it may, in that capacity, authorise a person to
carry on a relevant activity only if the person is a licensed
conveyancer.
(3)
Where the Council authorises a licensed conveyancer to carry on a
30
relevant activity, it is to do so by issuing a licence to the licensed
conveyancer.”
      (3)
Omit subsection (5).
      (4)
For subsection (6) substitute—
“(6)
Where the Council exercises any of its powers in connection with—
35
(a)
an application for designation as an approved regulator in
relation to a reserved legal activity within subsection (1A), or
(b)
the authorising of a person to carry on a relevant activity,

it is to do so subject to any requirements to which it is subject in
accordance with the provisions of the Legal Services Act 2007.”
40
      (5)
In subsection (8), for “Secretary of State” substitute “Lord Chancellor”.
      (6)
In subsection (9)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)
311

(a)
for “Secretary of State” substitute “Lord Chancellor”, and
(b)
omit paragraph (e).
      (7)
After that subsection insert—
“(10)
For the purposes of this section—
(a)
“right of audience”, “conduct of litigation”, “probate
5
activities” and “reserved legal activity” have the same
meaning as in the Legal Services Act 2007;
(b)
references to designation as an approved regulator are to
designation as an approved regulator—
(i)
by Part 1 of Schedule 4 to the Legal Services Act 2007,
10
by virtue of an order under paragraph 5 of Schedule
22 to that Act, or
(ii)
under Part 2 of Schedule 4 to that Act;
(c)
“relevant activity” means an activity which is a reserved legal
activity—
15
(i)
which is within subsection (1A), and
(ii)
in relation to which the Council is designated as an
approved regulator by Part 1 of Schedule 4 to that Act
(by virtue of an order under paragraph 5 of Schedule
22 to that Act) or under Part 2 of that Schedule.”
20
35    (1)
Schedule 8 (licensed conveyancers) is amended as follows.
      (2)
In paragraph 1 (definitions)—
(a)
in the definition of “advocacy licence” for “and constituting” to the
end substitute “by which the Council authorises the licensed
conveyancer concerned to exercise a right of audience;”,
25
(b)
in the definition of “litigation licence” for “and constituting” to the
end substitute “by which the Council authorises the licensed
conveyancer concerned to carry on activities which constitute the
conduct of litigation;”,
(c)
in the definition of “probate licence” for “and constituting” to the end
30
substitute “by which the Council authorises the licensed
conveyancer concerned to carry on activities which constitute
probate activities;”, and
(d)
at the end insert—
““reserved legal activity” has the same meaning as in the
35
Legal Services Act 2007 (see section 12 of and
Schedule 2 to that Act).”
      (3)
In paragraph 2 (qualification regulations and rules of conduct), in sub-
paragraph (1)—
(a)
for “rules of conduct” substitute “conduct rules”, and
40
(b)
for “granting of the rights or exemption” substitute “carrying on of
the reserved legal activities”.
      (4)
In paragraph 4 (issue of licences), in sub-paragraph (1)—
(a)
in paragraph (a) for “rules of conduct” substitute “conduct rules”,
and
45
(b)
in paragraph (c) for “provide the advocacy, litigation or probate
services” substitute “carry on the reserved legal activities”.
      (5)
In paragraph 5 (conditional licences)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)
312

(a)
for sub-paragraph (1)(d) substitute—
“(d)
after the Investigating Committee have made any
order in his case under section 24A(1) of the Act of
1985 or the Discipline and Appeals Committee
have made any order in his case under section 26(1)
5
of that Act.”,
(b)
in sub-paragraph (6)—
(i)
in paragraph (a) for “service that may be provided” substitute
“activities that may be carried on”, and
(ii)
in paragraph (b) for “provides the additional services”
10
substitute “carries on the additional activities”, and
(c)
after sub-paragraph (7) insert—
    “(8)
Where a person applies for an advocacy, litigation or
probate licence at a time when this paragraph has effect in
relation to that person by reason of the circumstances
15
mentioned in section 16(1)(ea) of the Act of 1985, section
16A(2) of that Act has effect as it has effect in relation to an
application for a licence under Part 2 of that Act.”
      (6)
Omit paragraph 7 (code of conduct).
      (7)
In paragraph 9 (removal of disqualification from holding a licence) after sub-
20
paragraph (2) insert—
    “(3)
In relation to proceedings on an application under sub-paragraph
(1), the Discipline and Appeals Committee may make such order
as they consider fit as to the payment of costs by—
(a)
the Council;
25
(b)
the applicant.”
      (8)
In paragraph 10 (revocation on grounds of error or fraud), after sub-
paragraph (4) insert—
    “(5)
In relation to proceedings for the revocation of a licence under
sub-paragraph (1), the Discipline and Appeals Committee may
30
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
relate.
35
      (6)
In relation to proceedings on an application under sub-paragraph
(2), 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 applicant.”
40
      (9)
Omit paragraph 11.
     (10)
In paragraph 12 (delegation of powers etc)—
(a)
in sub-paragraph (1) for “Subject” to “enactment, the” substitute
“The”,
(b)
in that sub-paragraph, for paragraph (b) substitute—
45
“(b)
by a sub-committee of such a committee; or