Public Bill Committee: 19th June 2007

350

Legal Services Bill-[Lords], continued

from functions it has under other Acts by virtue of amendments of those Acts made by the Bill.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

301

Clause  174,  page  92,  line  6,  at end insert—

‘( )	In apportioning or imposing a levy the Board shall have regard to—

(a)	the extent to which any resulting increase in the regulatory fees of a

Regulator will be reasonable and proportionate in comparison to the fees

already levied on relevant regulated persons;

(b)	the extent to which the levy might discourage entry to or retention in the

regulated sector;

(c)	the extent to which the number of persons regulated by a regulator might

be reduced in consequence of the amount of the levy;

(d)	the extent to which the regulator might be disadvantaged and another

regulator might derive an advantage, in particular through the movement

between regulators of regulated persons as a consequence of any

differences in the levy imposed;

(e)	the likely ability of the Regulator to raise the levy from Regulated

Persons;

(f)	the impact of the levy on the Regulator’s viability.’.

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

237

Clause  174,  page  92,  line  14,  after ‘means’, insert ‘two-thirds of’.

Members’ explanatory statement

To ensure that the Government meets one-third of the running costs of the Legal Services Board.

Bridget Prentice

17

Clause  174,  page  92,  line  16,  leave out ‘the Compensation Act 2006’ and insert

‘any other enactment’.

Members’ explanatory statement

This amendment extends the “leviable Board expenditure” to include expenditure for the purposes

of the Board’s functions under “any other enactment”. This ensures that the levy can recover

amounts in respect of Board expenditure resulting from functions it has under other Acts by virtue

of amendments of those Acts made by the Bill.

Public Bill Committee: 19th June 2007

351

Legal Services Bill-[Lords], continued

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

238

Clause  174,  page  92,  line  16,  leave out ‘including’ and insert ‘excluding’.

Members’ explanatory statement

This amendment, together with amendments 239 to 241, is designed to ensure that the start up costs

of the new arrangements are borne by the Government, rather than being transferred to the legal

profession.

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

239

Clause  174,  page  92,  line  17,  leave out ‘and’ and insert ‘but including’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 238.

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

240

Clause  174,  page  92,  line  26,  leave out ‘including’ and insert ‘excluding’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 238.

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

241

Clause  174,  page  92,  line  33,  leave out ‘means’ and insert ‘excludes’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 238.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

302

Clause  175,  page  93,  line  13,  at end insert—

Public Bill Committee: 19th June 2007

352

Legal Services Bill-[Lords], continued

‘( )	A debt recovered under subsection (5) may only b e recovgered from paractising

fees held by a regulator.’.

Simon Hughes

John Hemming

242

Clause  177,  page  94,  line  33,  at end insert—

‘( )	The duty to comply with regulatory arrangements overrides any obligations

which a person may have, including to shareholders (otherwise than under the

criminal law), if those obligations are inconsistent with the duty to comply with

the regulatory arrangements.’.

Members’ explanatory statement

This amendment is intended to put beyond doubt that for all those within the regulated sector, the

duty to comply with regulatory arrangements is paramount—irrespective of any other obligations

which would otherwise apply, except for those under the criminal law.

Bridget Prentice

44

Schedule  16,  page  229,  line  17,  at end insert—

‘After section 1A insert—

“1B	Restriction on practice as sole solicitor

(1)	Rules under section 31 (rules as to professional practice etc) must

provide that a solicitor may not practise as a sole solicitor unless he has

in force—

(a)	a practising certificate, and

(b)	an endorsement of that certificate by the Society authorising

him to practise as a sole solicitor (a “sole solicitor

endorsement”).

(2)	The rules may provide that, for the purposes of the rules and this Act,

a solicitor is not to be regarded as practising as a sole solicitor in such

circumstances as may be prescribed by the rules.

(3)	The rules must prescribe the circumstances in which a solicitor may be

regarded by the Society as suitable to be authorised to practise as a sole

solicitor.”’.

Members’ explanatory statement

This amendment provides that Law Society rules must provide that a person may not practise as a

sole solicitor without having a practising certificate and without a sole solicitor endorsement of

that certificate. Rules must prescribe the circumstances in which a solicitor will be suitable for

such authorisation.

Public Bill Committee: 19th June 2007

353

Legal Services Bill-[Lords], continued

Bridget Prentice

45

Schedule  16,  page  230,  line  12,  at end insert—

‘(1A)

An application under this section may include an application for a sole

solicitor endorsement.’.

Members’ explanatory statement

This amendment is related to amendment 44. It ensures that applications for practising certificates

under section 9 may include applications for a sole solicitor endorsement.

Bridget Prentice

46

Schedule  16,  page  230,  line  13,  after ‘application’, insert ‘under this section’.

Members’ explanatory statement

This amendment clarifies that the requirements which must be complied with in section 9(2) relate

specifically to applications under section 9.

Bridget Prentice

47

Schedule  16,  page  230,  line  41,  at end insert ‘(including, if the certificate has a sole

solicitor endorsement, an efficient practice as a sole solicitor);’.

Members’ explanatory statement

This amendment is related to amendment 44. It gives the Law Society the power to impose condi­

tions, where a solicitor has a sole solicitor endorsement, requiring specific steps which will be con­

ducive to efficient practise as a sole solicitor.

Bridget Prentice

48

Schedule  16,  page  231,  line  11,  after ‘certificate,’, insert—

‘( )	in relation to each solicitor who holds a practising certificate,

a statement as to whether there is in force a sole solicitor

endorsement,’.

Members’ explanatory statement

This amendment is related to amendment 44. It provides that the register of solicitors holding prac­

tising certificates must state whether the practising certificate has a sole solicitor endorsement.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

299

Schedule  16,  page  231,  line  22,  leave out from ‘if’ to end of line 27 and insert ‘he

has been required by rules made under section 35(1) to provide an accountant’s report and

has failed to provide such a report within the time period prescribed under those rules,’.

Bridget Prentice

49

Schedule  16,  page  231,  line  40,  after ‘application’, insert ‘for a practising

certificate,

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Revised 19 June 2007