Legal Services Bill [HL]

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Part 6 — Legal Complaints
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115
The ombudsman scheme
(1)
The scheme provided for by this Part is to be administered by the OLC in
accordance with this Part and with scheme rules made under this Part.
(2)
In this Part “scheme rules” means rules made by the OLC.
(3)
The scheme is to be operated under a name (which must include the word
5
“ombudsman”) chosen by the OLC, and is referred to in this Act as “the
ombudsman scheme”.
116
General obligations
(1)
In discharging its functions the OLC must comply with the requirements of
this section.
10
(2)
The OLC must, so far as is reasonably practicable, act in a way—
(a)
which is compatible with the regulatory objectives, and
(b)
which it considers most appropriate for the purpose of meeting those
objectives.
(3)
The OLC must have regard to any principles appearing to it to represent the
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best practice of those who administer ombudsman schemes.
117
Corporate governance
In managing its affairs, the OLC must have regard to such generally accepted
principles of good corporate governance as it is reasonable to regard as
applicable to it.
20
118
Annual report
(1)
The OLC must prepare a report (“the annual report”) for each financial year.
(2)
The annual report must deal with—
(a)
the discharge of the functions of the OLC,
(b)
the extent to which, in the OLC’s opinion, the OLC has met the
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regulatory objectives, and
(c)
such other matters as the Board may from time to time direct.
(3)
The OLC must include in the annual report a copy of the report prepared by
the Chief Ombudsman under section 123 for the financial year in question.
(4)
As soon as reasonably practicable after the end of each financial year, the OLC
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must give the Board a copy of the annual report prepared for that year.
(5)
The Board must give a copy of the annual report to the Lord Chancellor.
(6)
The Lord Chancellor must lay a copy of the annual report before Parliament.
(7)
In this section “financial year” means—
(a)
the period beginning with the day on which the OLC is established and
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ending with the next following 31 March, and
(b)
each successive period of 12 months.

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119
Supplementary powers
The OLC may do anything calculated to facilitate, or incidental or conducive
to, the carrying out of any of its functions.
120
Reporting to the Board
(1)
The Board may require the OLC to prepare and give the Board, within a
5
specified period, a report in respect of any specified matter relating to the
functions of the OLC.
(2)
In subsection (1) “specified” means specified in the requirement.
(3)
The Board must publish any report given to it under this section.
121
Performance targets and monitoring
10
(1)
The Board may—
(a)
set one or more performance targets relating to the performance by the
OLC of any of its functions, or
(b)
direct the OLC to set one or more performance targets relating to the
performance by the OLC of any of its functions.
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(2)
A direction under subsection (1)(b) may impose conditions with which the
performance targets must conform.
(3)
The Board must publish any target set or direction given by it under this
section.
(4)
The OLC must publish any target set by it pursuant to a direction under
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subsection (1)(b).
(5)
The Board may take such steps as it regards as appropriate to monitor the
extent to which any performance target set under this section is being, or has
been, met.
The ombudsmen
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122
Appointment of the Chief Ombudsman and assistant ombudsmen
(1)
The OLC—
(a)
must appoint a person to act as Chief Ombudsman for the purposes of
the ombudsman scheme, and
(b)
may, with the consent of the Chief Ombudsman, appoint one or more
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other persons to act as assistant ombudsmen for those purposes.
(2)
The person appointed under subsection (1)(a) must be a lay person.
(3)
It is a condition of an appointment under subsection (1)(b) that the person
appointed must not during the appointment carry on any activity which is a
reserved legal activity for or in expectation of any fee, gain or reward.
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(4)
Each person appointed under subsection (1)(a) or (b) must be a person
appearing to the OLC to have appropriate qualifications and experience to act
as an ombudsman for the purposes of the ombudsman scheme.

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(5)
In this Act a reference to an “ombudsman” (except in the expressions
“ombudsman scheme”, “Chief Ombudsman” and “assistant ombudsman”) is a
reference to the Chief Ombudsman or an assistant ombudsman.
(6)
A person’s appointment as Chief Ombudsman ceases if that person ceases to
be a lay person.
5
(7)
The terms and conditions on which a person is appointed as an assistant
ombudsman must specify the consequences of a breach of the condition
imposed by subsection (3).
(8)
Subject to that, a person’s appointment as an ombudsman is to be on such
terms and conditions (including terms as to the duration and termination of a
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person’s appointment and as to remuneration) as the OLC considers—
(a)
consistent with ensuring the independence of the person appointed,
and
(b)
otherwise appropriate.
(9)
Appointment as an ombudsman does not confer the status of Crown servant.
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(10)
In this section “lay person” has the same meaning as in Schedule 15.
123
Annual report of Chief Ombudsman
(1)
The Chief Ombudsman must prepare a report for each financial year on the
discharge of the functions of the ombudsmen.
(2)
A report under this section must comply with any requirements specified by
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the OLC.
(3)
The OLC must publish any requirements specified for the purposes of
subsection (2).
(4)
As soon as reasonably practicable after the end of each financial year, the Chief
Ombudsman must give the OLC a copy of the report prepared under this
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section for the year.
(5)
In this section “financial year” has the meaning given by section 118(7).
124
Additional reports of Chief Ombudsman
(1)
The OLC may require the Chief Ombudsman to prepare and give the OLC,
within a specified period, a report in respect of any specified matter relating to
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the functions of the ombudsmen.
(2)
In subsection (1) “specified” means specified in the requirement.
Jurisdiction and operation of the ombudsman scheme
125
Jurisdiction of the ombudsman scheme
(1)
A complaint which relates to an act or omission of a person (“the respondent”)
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in carrying on an activity is within the jurisdiction of the ombudsman scheme
if—
(a)
the complaint is not excluded from the jurisdiction of the scheme by
section 126, or by scheme rules made under section 127,
(b)
the respondent is within section 128, and
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(c)
the complainant is within section 128 and wishes to have the complaint
dealt with under the scheme.
(2)
In subsection (1) references to an act or omission include an act or omission
which occurs before the coming into force of this section.
(3)
The right of a person to make a complaint under the ombudsman scheme, and
5
the jurisdiction of an ombudsman to investigate, consider and determine a
complaint, may not be limited or excluded by any contract term or by notice.
126
Complaints excluded because respondent’s complaints procedures not used
(1)
A complaint is excluded from the jurisdiction of the ombudsman scheme if the
complainant has not first used the respondent’s complaints procedures in
10
relation to the complaint.
(2)
The respondent’s complaints procedures are the procedures established by the
respondent, or which the respondent participates in or is subject to, in
accordance with regulatory arrangements (or licensing rules of the Board)
made in accordance with section 112.
15
(3)
Scheme rules may provide that subsection (1) does not apply in specified
circumstances.
127
Complaints excluded by scheme rules
(1)
Scheme rules may make provision excluding complaints of a description
specified in the rules from the jurisdiction of the ombudsman scheme.
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(2)
But they may not make provision excluding a complaint from the jurisdiction
of the ombudsman scheme on the ground that it relates to a matter which has
been or could be dealt with under the disciplinary arrangements of the
respondent’s relevant authorising body.
128
Parties
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(1)
The respondent is within this section if, at the relevant time, the respondent
was an authorised person in relation to an activity which was a reserved legal
activity (whether or not the act or omission relates to a reserved legal activity).
(2)
The complainant (“C”) is within this section if C—
(a)
meets the first and second conditions, and
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(b)
is not excluded by subsection (5).
(3)
The first condition is that C is—
(a)
an individual, or
(b)
a person (other than an individual) of a description prescribed by order
made by the Lord Chancellor in accordance with a recommendation
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made under section 130.
(4)
The second condition is that—
(a)
the services to which the complaint relates were provided by the
respondent to C;
(b)
the services to which the complaint relates were provided by the
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respondent to an authorised person who procured them on C’s behalf;

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(c)
the services to which the complaint relates were provided by the
respondent—
(i)
in the respondent’s capacity as a personal representative or
trustee, or
(ii)
to a person acting as a personal representative or trustee,
5

and C is a beneficiary of the estate or trust in question; or
(d)
C satisfies such other conditions, in relation to the services to which the
complaint relates, as may be prescribed by order made by the Lord
Chancellor in accordance with a recommendation made under section
130.
10
(5)
C is excluded if, at the relevant time—
(a)
C was an authorised person in relation to an activity which was a
reserved legal activity and the services to which the complaint relates
were procured by C on behalf of another person,
(b)
C was a public body or was acting on behalf of such a body in relation
15
to the services to which the complaint relates, or
(c)
C was a person prescribed, or of a description prescribed, as excluded
by order made by the Lord Chancellor in accordance with a
recommendation made under section 130.
(6)
In subsection (4)(b) “authorised person” means an authorised person in
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relation to any activity which is a reserved legal activity.
(7)
In this section—
“public body” means any government department, local authority or
other body constituted for purposes of the public services, local
government or the administration of justice;
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“relevant time”, in relation to a complaint, means the time when the act or
omission to which the complaint relates took place.
129
Pre-commencement acts and omissions
(1)
For the purposes of section 128 a person is to be regarded as an authorised
person in relation to an activity which is a reserved legal activity, at a time
30
before section 125 comes into force, if the person was at that time—
(a)
a person of the kind mentioned in paragraph 2(4) of Schedule 15,
(b)
a body recognised under section 9 or 32 of the Administration of Justice
Act 1985 (c. 61) (recognised bodies),
(c)
a legal partnership, a conveyancing partnership, a patent attorney body
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or a trade mark attorney body.
(2)
In this section—
“conveyancing partnership” has the meaning given by paragraph 11(5) of
Schedule 5;
“legal partnership” has the meaning given by paragraph 7(4) of that
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Schedule;
“patent attorney body” has the meaning given by paragraph 14(7) of that
Schedule;
“trade mark attorney body” has the meaning given by paragraph 16(7) of
that Schedule.
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