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Legal Services Bill [HL]


Legal Services Bill [HL]
Part 5 — Alternative business structures

53

 

94      

Enforcement of notices under section 93

(1)   

Where a person is unable to comply with a notice given to the person under

section 93, the person must give the licensing authority a notice to that effect

stating the reasons why the person cannot comply.

(2)   

If a person refuses or otherwise fails to comply with a notice under section 93,

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the licensing authority may apply to the High Court for an order requiring the

person to comply with the notice or with such directions for the like purpose

as may be contained in the order.

95      

Financial penalties

(1)   

A licensing authority may, in accordance with its licensing rules, impose on a

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licensed body, or a manager or employee of a licensed body, a penalty of such

amount as it considers appropriate.

(2)   

The amount must not exceed the maximum amount prescribed under

subsection (3).

(3)   

The Board must make rules prescribing the maximum amount of a penalty

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which may be imposed under this section.

(4)   

Rules may only be made under subsection (3) with the consent of the Lord

Chancellor.

(5)   

A penalty under this section is payable to the licensing authority.

(6)   

For the purposes of this section—

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(a)   

references to a licensed body are to a body which was a licensed body

at the time the act or omission in respect of which the penalty is

imposed occurred, and

(b)   

references to a manager or employee of a licensed body are to a person

who was a manager or employee of a licensed body at that time,

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(whether or not the body subsequently ceased to be a licensed body or the

person subsequently ceased to be a manager or employee).

(7)   

In sections 96 and 97 references to a “penalty” are to a penalty under this

section.

96      

Appeals against financial penalties

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(1)   

A person on whom a penalty is imposed under section 95 may, before the end

of such period as may be prescribed by rules made by the Board, appeal to the

relevant appellate body on one or more of the appeal grounds.

(2)   

The appeal grounds are—

(a)   

that the imposition of the penalty is unreasonable in all the

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circumstances of the case;

(b)   

that the amount of the penalty is unreasonable;

(c)   

that it is unreasonable of the licensing authority to require the penalty

imposed or any portion of it to be paid by the time or times by which it

was required to be paid.

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(3)   

On any such appeal, where the relevant appellate body considers it

appropriate to do so in all the circumstances of the case and is satisfied of one

or more of the appeal grounds, that body may—

 
 

Legal Services Bill [HL]
Part 5 — Alternative business structures

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(a)   

quash the penalty,

(b)   

substitute a penalty of such lesser amount as it considers appropriate,

or

(c)   

in the case of the appeal ground in subsection (2)(c), substitute for any

time imposed by the licensing authority a different time or times.

5

(4)   

Where the relevant appellate body substitutes a penalty of a lesser amount it

may require the payment of interest on the substituted penalty at such rate,

and from such time, as it considers just and equitable.

(5)   

Where the relevant appellate body specifies as a time by which the penalty, or

a portion of the penalty, is to be paid a time before the determination of the

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appeal under this section it may require the payment of interest on the penalty,

or portion, from that time at such rate as it considers just and equitable.

(6)   

A party to the appeal may appeal to the High Court on a point of law arising

from the decision of the relevant appellate body, but only with the permission

of the High Court.

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(7)   

The High Court may make such order as it thinks fit.

(8)   

Except as provided by this section, the validity of a penalty is not to be

questioned by any legal proceedings whatever.

97      

Recovery of financial penalties

(1)   

If the whole or any part of a penalty is not paid by the time by which, in

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accordance with licensing rules, it is required to be paid, the unpaid balance

from time to time carries interest at the rate for the time being specified in

section 17 of the Judgments Act 1838 (c. 110).

(2)   

Where a penalty, or any portion of it, has not been paid by the time by which,

in accordance with licensing rules, it is required to be paid and—

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(a)   

no appeal relating to the penalty has been made under section 96

during the period within which such an appeal can be made, or

(b)   

an appeal has been made under that section and determined or

withdrawn,

   

the licensing authority may recover from the person on whom the penalty was

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imposed, as a debt due to the licensing authority, any of the penalty and any

interest which has not been paid.

(3)   

A licensing authority must pay into the Consolidated Fund any sum received

by it as a penalty (or as interest on a penalty).

98      

Referral of employees etc to appropriate regulator

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(1)   

The relevant licensing authority may refer to an appropriate regulator any

matter relating to the conduct of—

(a)   

an employee or manager of a licensed body;

(b)   

a person designated as a licensed body’s Head of Legal Practice or

Head of Finance and Administration.

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(2)   

The licensing authority may also refer any matter relating to the conduct of

such a person to the Board.

(3)   

Appropriate regulators are—

 
 

Legal Services Bill [HL]
Part 5 — Alternative business structures

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(a)   

if the person is an authorised person in relation to a reserved legal

activity, any relevant approved regulator in relation to that person, and

(b)   

if the person carries on non-reserved activities, any person who

exercises regulatory functions in relation to the carrying on of such

activities by the person.

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99      

Disqualification

(1)   

A licensing authority may in accordance with its licensing rules disqualify a

person from one or more of the activities mentioned in subsection (2) if—

(a)   

the disqualification condition is satisfied in relation to the person, and

(b)   

the licensing authority is satisfied that it is undesirable for the person to

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engage in that activity or those activities.

(2)   

The activities are—

(a)   

acting as Head of Legal Practice of any licensed body,

(b)   

acting as Head of Finance and Administration of any licensed body,

(c)   

being a manager of any licensed body, or

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(d)   

being employed by any licensed body.

(3)   

The disqualification condition is satisfied in relation to a person if, in relation

to a licensed body licensed by the licensing authority, the person (intentionally

or through neglect)—

(a)   

breaches a relevant duty to which the person is subject, or

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(b)   

causes, or substantially contributes to, a significant breach of the terms

of the licensed body’s licence.

(4)   

The relevant duties are—

(a)   

the duties imposed on a Head of Legal Practice by section 91,

(b)   

the duties imposed on a Head of Finance and Administration by section

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92,

(c)   

the duties imposed by section 177 on regulated persons (within the

meaning of that section), and

(d)   

the duty imposed on non-authorised persons by section 90.

100     

Lists of disqualified persons

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(1)   

The Board must keep lists of persons who are disqualified from—

(a)   

acting as Head of Legal Practice of any licensed body,

(b)   

acting as Head of Finance and Administration of any licensed body,

(c)   

being a manager of any licensed body, or

(d)   

being employed by any licensed body.

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(2)   

A person is disqualified from acting in a way mentioned in subsection (1) if—

(a)   

the person has been disqualified from so acting by a licensing authority

under section 99, and

(b)   

the disqualification continues in force.

(3)   

The disqualification ceases to be in force if the appropriate licensing authority

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so determines, on a review or otherwise, in accordance with licensing rules

made under paragraph 23 of Schedule 11.

(4)   

The appropriate licensing authority is—

 
 

Legal Services Bill [HL]
Part 5 — Alternative business structures

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(a)   

the licensing authority which disqualified the person, or

(b)   

if the person was disqualified by an approved regulator which is no

longer designated as a licensing authority, the successor licensing

authority.

(5)   

The successor licensing authority is—

5

(a)   

the licensing authority which licenses the body in relation to which the

disqualification condition (within the meaning of section 99) was

satisfied in respect of the person, or

(b)   

if there is no such licensing authority, the licensing authority

designated by the Board on an application by the disqualified person.

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(6)   

The Board must publish the lists kept by it under subsection (1).

101     

Suspension and revocation of licence

(1)   

A licensing authority may, in accordance with its licensing rules, suspend or

revoke any licence granted by it under this Part.

(2)   

A licence is to be treated as not being in force at any time while it is suspended

15

under this section.

102     

Intervention

Schedule 14 confers powers of intervention on licensing authorities.

103     

Regulatory conflict and the Board as licensing authority

(1)   

Sections 52 and 54 (regulatory conflict between approved regulators and

20

between approved regulators and other regulators) apply in relation to the

Board in its capacity as a licensing authority and its licensing rules as they

apply in relation to an approved regulator (including the Board in its capacity

as approved regulator) and its regulatory arrangements.

(2)   

Section 68 (regulatory conflict and the Board as approved regulator) applies in

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relation to the Board in its capacity as a licensing authority and its licensing

rules as it applies in relation to the Board in its capacity as an approved

regulator and its regulatory arrangements.

104     

Prevention of regulatory conflict: accounts rules

(1)   

Where a licensed body carries on an activity through a solicitor, the rules made

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under paragraph 20 of Schedule 11 apply instead of those made under sections

32 to 34 of the Solicitors Act 1974 (c. 47).

(2)   

Where a licensed body carries on an activity through a licensed conveyancer,

the rules made under paragraph 20 of Schedule 11 apply instead of those made

under sections 22 and 23 of the Administration of Justice Act 1985 (c. 61).

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