| Legal Services Bill [Lords] - continued | House of Commons |
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Bridget Prentice 196 Schedule 16, page 272, line 35, leave out ‘in shares’. This amendment is related to amendment 111. It replaces the concept of persons with an interest in shares in a recognised body with persons with an interest in the body, as defined in Clause 72 of the Bill. Bridget Prentice 197 Schedule 16, page 275, line 47, at end insert— ‘() For this purpose a person has an interest in a body if the person has an interest in the body within the meaning of Part 5 the Legal Services Act 2007 (see sections jx09 and j615 of that Act).’. This amendment inserts a definition of “interest in the body”. The definition refers to the definition of interest in a body in Clause 72 of the Bill. Bridget Prentice 198 Schedule 17, page 295, line 2, leave out ‘of the persons within subsection (5)’ and insert ‘director of the body’. This amendment adjusts the management and control condition in sub-paragraph (4) to provide that at least one of the directors must be a licensed conveyancer. See also amendment 199. Bridget Prentice 199 Schedule 17, page 295, leave out lines 4 to 6. This amendment is related to amendment 198, which adjusts the management and control condition such that sub-paragraph (5) is no longer necessary. Bridget Prentice 200 Schedule 17, page 295, line 17, after ‘managers’, insert ‘or employees’. This amendment alters the definition of “relevant legal services” to refer to employees who are authorised persons, rather than just managers who are authorised persons. Bridget Prentice 201 Schedule 17, page 295, line 23, leave out ‘in shares’. This amendment is related to amendment 111. It adjusts the meaning of interest in a recognised body to refer to the definition of interest in a body in Clause 72 of the Bill, rather than the former “interest in shares” in a body. Bridget Prentice 202 Schedule 24, page 371, line 14, at end insert—
This amendment adds independent trade union to the index of defined expressions. Bridget Prentice 203 Schedule 24, page 371, line 14, at end insert—
This amendment adds indirect interest to the list of defined expressions. Bridget Prentice 204 Schedule 24, page 371, line 15, column 1, leave out ‘in shares’. This amendment is related to amendment 111, which now contains the defined expression interest in a body, rather than interest in shares in a body. Bridget Prentice 205 Schedule 24, page 373, leave out line 2. This amendment deletes trade union from the index of defined expressions. Mr Jonathan Djanogly
206 Clause 3, page 2, line 25, leave out ‘So far as is reasonably practicable.’. To ensure that the Legal Services Board’s duty to act in a way which is compatible with the regulatory objectives is qualified. Mr Jonathan Djanogly
207 Clause 1, page 2, line 7, at end insert— ‘(ca) That authorised persons should not act where there is a conflict between the interests of two or more of their clients, or between the authorised person and their client.’. This amendment would ensure that the avoidance of conflict of interest is included within the professional principles, promotion of which is (by virtue of Clause 1(1)(h)) one of the regulatory objectives. Mr Jonathan Djanogly
208 Clause 8, page 4, line 3, at end insert— ‘(ba) Corporate users of such services.’. These amendments are designed to make clear that the Consumer Panel should include representatives of corporate users of legal services, as well as individuals and small businesses, and to disapply the prohibition on authorised persons serving as members of the Consumer Panel so far as any representative of corporate users of legal services is concerned. Mr Jonathan Djanogly
209 Clause 8, page 4, line 11, at beginning insert ‘save in respect of a person appointed to represent corporate users of reserved legal activities.’. See statement for amendment 208. Mr Jonathan Djanogly
210 Clause 12, page 5, line 26, at end insert— ‘(ea) preparation of wills’. To add will-writing to the list of reserved legal activities which can only be carried out by authorised persons. Mr Jonathan Djanogly
211 Schedule 11, page 183, line 8, at end insert— ‘( ) Licensing rules may provide the fees to cover the whole cost to the licensing authority of dealing with the application, whether the application is granted or not.’. The amendment is intended to make it clear that licensing rules can put the whole cost of dealing with an application on the individual applicant, rather than leaving part to be borne by the licensing authority itself (and hence by other firms regulated by that licensing authority). Mr Jonathan Djanogly
212 Schedule 13, page 197, line 11, at end insert ‘Licensing rules must provide that, in determining whether the requirements of sub-paragraph 1 are met, the burden of proof rests on the person who wishes to hold the restricted interest.’. This amendment is designed to make clear that the onus of demonstrating ‘fitness to own’ rests on the applicant, rather than it being for the licensing authority to demonstrate that a person was not fit and proper before it could withhold approval. Advice and research functions of the Practitioner Panel Mr Jonathan Djanogly
NC1 To move the following Clause:— ‘(1) The Practitioner Panel may, at the request of the Board— (a) carry out research for the Board; (b) give advice to the Board. (2) The Board must consider any advice given and the results of any research carried out under this section. (3) The Practitioner Panel may publish such information as it thinks fit about advice it gives, and about the results of research carried out by it, under this section.’. Mr Jonathan Djanogly
213 Clause 3, page 2, line 34, at end insert— ‘(4) In assessing what is proportionate in the regulation of approved regulators the Board shall have regard, inter alia, to— (a) the regulator’s resources (including voluntary resources) and the effect on them of the Board’s acts; (b) the effect on regulatory fees; (c) the extent to which the Board’s acts might discourage entry to or retention in the regulated sector; (d) the extent to which the number of persons regulated by a regulator might be reduced in consequence of the Board’s acts; (e) the extent to which the regulator might be disadvantaged and another regulatory might derive an advantage, in particular through the movement between regulators of regulated persons as a consequence of the Board’s acts’. Mr Jonathan Djanogly
214 Clause 3, page 2, line 34, at end insert— ‘(4) The role of the Board is to ensure that the approved regulators act in a way which is compatible with the regulatory objectives.’. Mr Jonathan Djanogly
215 Clause 4, page 3, line 1, at end insert— ‘( ) In relation to subsection (1)(b), the Board must satisfy itself that appropriate standards of education and training, including training in client care, are being maintained by approved regulators and, should it not be so satisfied in respect of any particular education and training scheme or schemes, the Board must consider withdrawal of its approval of that scheme or those schemes.’. Mr Jonathan Djanogly
216 Clause 4, page 2, line 36, leave out ‘assist in the maintenance and development’ and insert ‘ensure the development and maintenance’. Mr Jonathan Djanogly
217 Clause 1, page 1, line 10, at beginning insert ‘Subject to objectives (a) to (d).’. To ensure that the objective of promoting competition is expressly subordinate to the objectives of protecting and promoting the public interest; supporting the constitutional principle of the rule of law; improving access to justice; and protecting and promoting the interests of consumers. Paralegals Mr Jonathan Djanogly
NC2 To move the following Clause:— ‘(1) The Board must assist the maintenance and development of standards in relation to— (a) the training of paralegals employed by authorised or exempt persons and (b) the proper supervision and monitoring of paralegals. (2) For the purposes of this section a “paralegal” is a person providing legal advice, support, assistance or representation in accordance with regulations prescribed by the Lord Chancellor.’. Mr Jonathan Djanogly
218 Clause 8, page 4, line 21, leave out paragraph (a) and insert— ‘(a) appointed by the Board following public advertisement and selection by the prevailing standards for selection of members of public bodies and appointed on terms and conditions determined by the Board, and’. Mr Jonathan Djanogly
219 Clause 8, page 4, line 3, at end insert ‘, and (c) qualified but non-practising solicitors who, in their professional capacity, use or purchase services provided by persons who are authorised persons in relation to activities which are reserved legal activities.’. Mr Jonathan Djanogly
220 Clause 8, page 4, line 12, at end insert ‘, except for those authorised persons referred to under subsection 4(c).’. Professional representations Mr Jonathan Djanogly
NC3 To move the following Clause:— ‘Section 10 shall apply mutatis mutandis to representations by approved regulators whether in their regulatory or representive capacticity.’. Representations by the Practioner Panel Mr Jonathan Djanogly
NC4 To move the following Clause:— ‘(1) The Board must consider any representations made to it by the Practioner Panel. (2) If the Board disagrees with a view expressed, or proposal made, in the representations, it must give the Practioner Panel a notice to that effect stating its reasons for disagreeing. (3) The Practioner Panel may publish such information as it thinks fit about any representations made by it to the Board. (4) Where the Consumer Panel publishes information about any representations made by it, the Board must publish any notice it gives under subsection (2) in respect of those representations.’. The Practioner Panel Mr Jonathan Djanogly
NC5 To move the following Clause:— ‘(1) The Board must establish and maintain a panel of persons (to be known as “the Practioner Panel”) to represent the interests of practitioners and consult them on the extent to which its general policies and practices are consistent with its general duties under section 1. (2) The Board must appoint one of the members of the Practioner Panel to be the chairman of the Panel. (3) The Lord Chancellor’s approval is required for the appointment or dismissal of the chairman. (4) The Board must have regard to any representation made to it by the Practioner Panel. (5) The Board must appoint to the Practitioner Panel such— (a) individuals who are authorised persons, (b) persons representing authorised persons, as it considers appropriate. (6) The chairman and other members of the Practioner Panel are to be— (a) appointed on terms and conditions determined by the Board, and (b) paid by the Board in accordance with provision made by or under the terms of appointment.’. Committees and the procedure of the Practioner Panel Mr Jonathan Djanogly
NC6 To move the following Clause:— ‘(1) The Practioner Panel may make such arrangements as it thinks fit for committees established by the Panel to give advice to the Panel about matters relating to the carrying out of the Panel’s functions. (2) The Practioner Panel may make such other arrangements for regulating its own procedure, and for regulating the procedure of the committees established by it, as it thinks fit. (3) Those arrangements may include arrangements as to quorums and as to the making of decisions by a majority. (4) The committees established by the Practioner Panel may include committees the membership of which include persons who are not members of the Panel. (5) The membership of every committee established by the Practioner Panel must contain at least one person who is a member of the Panel. (6) Where a person who is not a member of the Practioner Panel is a member of a committee established by it, the Board may pay to that person such remuneration and expenses as the Board may determine.’. Mr Jonathan Djanogly
221 Clause 8, page 3, line 31, at end insert— ‘( ) The approval of the Lord Chancellor is required
for the appointment of a person to be the chairman or to be another
member of the Panel.’. To make the Lord Chancellor responsible for approving appointments to the Consumer Panel, in order to safeguard the Panel’s independence. Mr Jonathan Djanogly
222 Clause 11, page 5, line 10, after
‘Board’, insert ‘or on its own intiative’. To enable the Consumer Panel to carry out research and give advice to the Board on its own initiative, rather than only being permitted to do so at the Board’s request. Mr Jonathan Djanogly
223 Clause 11, page 5, line 12, at end insert— ‘( ) In acting on its own intiative under subsection
(1), the Consumer Panel shall not impose any costs on any of the approved
regulators.’. Mr Jonathan Djanogly
224 Clause 11, page 5, line 16, at end add— ‘(4) It shall be the duty of the Board (subject to subsection (5))— (a) to provide the Consumer Panel with all such information as, having regard, in particular, to the need to preserve commercial confidentiality, the Board considers appropriate to disclose to the Panel for the purpose of enabling the Panel to carry out their functions; and (b) to provide the Panel with all such further information as the Panel may require. (5) The Board is not required to provide information by virtue of subsection (4)(b) if, having regard to— (a) the need to preserve commercial confidentiality, and (b) any other matters that appear to the Board to be relevant, it is reasonable for the Board to refuse to disclose it to the Panel.’ To ensure the Consumer Panel has access to the information it needs to carry out its functions, which is held by the Board, subject to appropriate restrictions. Simon Hughes
225 Clause 37, page 18, line 30, at end insert— ‘( ) The Board may not determine that it is appropriate
to impose a penalty unless it is satisified that the matter cannot be
adequately addressed by the Board exercising the powers available to
it under sections 31 to 36.’. To ensure that the Legal Services Board does not impose financial penalties where lesser sanctions would suffice. Simon Hughes
226 Clause 63, page 35, line 4, at
end insert ‘and, in either case, no other approved regulator is
suitable and willing to regulate the activity in question.’. To ensure that the Legal Services Board directly regulates the legal services only as a last resort, where there is no other approved regulator which could regulate the activity in question. Simon Hughes
227 Schedule 15, page 226, line 15, leave
out paragraphs 21 and 22. To ensure the operational independence of the OLC in the public perception. Intervention directions Simon Hughes
NC7 To move the following Clause:— ‘(1) The Board may give the OLC an intervention direction in relation to any of its functions if the Board is satisfied— (a) that despite notice it has failed to handle complaints about authorised persons effectively and efficiently, and (b) that, in the circumstance of the case, it is appropriate to give the intervention direction. (2) An intervention direction, in relation to the function of the OLC, is a direction that— (a) the function is to be exercised by the Board or a person nominated by it, and (b) the OLC must comply with any instrument of the Board or its nominees in relation to the exercise of the function. (3) The Board may not determine that it is appropriate to given an intervention direction unless it is satisfied that the matter cannot be adequately addressed by the Board exercising the powers available to it under section (Board’s functions in relation to complaints). (4) The Board must make rules as to persons it may nominate for the purpose of subsection (2)(a).’. Currently, the Legal Services Board has no powers to investigate the Office for Legal Complaints. There is no provision for the Board to intervene if it believes that the OLC is not handling complaints properly. The amendments above transfer to the Board the current powers of the Legal services Complaints Commissioner. Board’s function in relation to complaints Simon Hughes
NC8 To move the following Clause:— ‘(1) If it appears to the Board that complaints about any authorised person are not being handled effectively and efficiently by the OLC, the Board may exercise in relation to the OLC such of the powers in subsection (2) as it considers necessary. (2) Those powers are— (a) to investigate the handling of complaints about authorised persons; (b) to make recommendations in relation to the handling of complaints about authorised persons; and (c) to require the OLC to submit to the Board a plan for the handling of complaints about authorised persons. (3) Where the Board requires the OLC to submit to it a plan for the handling of complaints about authorised persons but the OLC— (a) fails to submit to the Board a plan which it considers adequate for securing that such complaints are handled effectively and efficiently, or (b) submits to the Board such a plan but fails to handle complaints in accordance with it the Board may give directions to the OLC.’. See Members’ explanatory statement for NC7. |
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