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Session 2006-07
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Notices of Amendments


given on

Thursday 7th June 2007

      For other Amendment(s) see the following page(s) of Supplement to Votes:
      1 and 3-66

Public Bill Committee


Legal Services Bill [Lords]


RESOLUTION OF THE PROGRAMMING SUB-COMMITTEE

       The Programming Sub-Committee appointed by the Speaker in respect of the Bill agreed the following Resolution at its meeting on Thursday 7th June (Standing Order No. 83C).

       That—

        (1) the Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday 12th June) meet—

        (a) at 4.00 p.m. on Tuesday 12th June;

        (b) at 9.00 a.m. and 1.00 p.m. on Thursday 14th June;

        (c) at 10.30 a.m. and 4.00 p.m. on Tuesday 19th June;

        (d) at 9.00 a.m. and 1.00 p.m. on Thursday 21st June;

        (e) at 10.30 a.m. and 4.00 p.m. on Tuesday 26th June;

        (f) at 9.00 a.m. and 1.00 p.m. on Thursday 28th June;

        (2) the proceedings shall be taken in the following order: Clauses 1 and 2; Schedule 1; Clauses 3 to 12; Schedule 2; Clauses 13 to 19; Schedule 3; Clause 20; Schedule 4; Clauses 21 and 22; Schedule 5; Clauses 23 to 26; Schedule 6; Clauses 27 to 33; Schedule 7; Clauses 34 to 44; Schedule 8; Clause 45; Schedule 9; Clauses 46 to 76; Schedule 10; Clauses 77 to 83; Schedule 11; Clause 84; Schedule 12; Clauses 85 to 89; Schedule 13; Clauses 90 to 102; Schedule 14; Clauses 103 to 114; Schedule 15; Clauses 115 to 178; Schedule 16; Clauses 179 to 183; Schedule 17; Clauses 184 to 187; Schedule 18; Clause 188; Schedule 19; Clause 189 to 196; Schedule 20; Clauses 197 to 215; Schedules 21 to 24; new Clauses and new Schedules; remaining proceedings on the Bill;

        (3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 4.00 p.m. on Thursday 28th June.

       Bridget Prentice has given notice of her intention to move a motion in terms of the Resolution of the Programming Sub-Committee.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

244

Clause 28, page 14, line 9, leave out ‘, so far as is reasonably practicable,’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

245

Clause 29, page 14, line 26, leave out ‘prejudiced’ and insert ‘improperly constrained or influenced’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

246

Clause 30, page 15, line 16, at end insert—

      ‘(3A) When making rules under subsections (1) to (3), the Board must satisfy itself that approved regulators have established organisational structures and procedural practices which distinguish sufficiently clearly between their regulatory and representative functions.’.

Seperation of funds proportionality

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

NC12

    To move the following Clause:—

      ‘(1) In exercising its functions under sections 29 and 30, the Board shall pay particular regard to what is proportionate.

      (2) Without prejudice to subsection (1), nothing in sections 29 or 30 shall exclude—

        (a) the exercise of or involvement in regulatory and representative functions by the same persons or bodies within an approved regulator;

        (b) the exercise of regulatory and representative functions from common premises.’.

Appeal against public censure

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

NC13

    To move the following Clause:—

      ‘(1) An approved regulator in respect of whom the Board decides to publish a statement under section 35 may appeal to the court on one or more of the appeal grounds.

      (2) The appeal grounds are —

        (a) that the decision was not within the power of the Board under section 35;

        (b) that any of the requirements of section 36 have not been complied with in relation to the imposition of the penalty and the interests of the approved regulator have been substantially prejudiced by the non-compliance;

        (c) that in all circumstances, the publication of a statement under section 35 is, or the terms of the statement published or to be published are (or would be), manifestly unreasonable or inappropriate;

        (d) that the decision is unlawful on any ground that would give rise to a claim for judicial review.

        (e) that the decsion is unlawful on any ground that would give rise to a claim for judicial review.

      (3) An appeal under subsection (1) must be made within the period of 42 days beginning with the day on which the notice was given to the approved regulator.

      (4) Where an appeal is made before the expiry of the 7-day period the Board must not (unless the court otherwise orders) publish the statement until the appeal has been withdrawn or dismissed.

      (5) On an appeal under subsection (1), where the court considers it appropriate to do so in all the circumstances of the case and is satisfied of one or more of the appeal grounds, the court may—

        (a) quash the decision to publish a statement, or

        (b) vary the terms of the statement (and, where the statement has been published, direct the Board to publish to the same extent the statement as varied).

      (6) In this section “the court” means the High Court.’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

247

Clause 36, page 18, line 15, at end add—

      ‘(4A) As soon as practicable after deciding to publish a statement, the Board must give notice to the approved regulator stating that it has reached that decision and setting out the terms in which the statement is to be published; and the Board must not publish the statement until after the expiry of 7 days beginning with the day on which notice is given under this subsection.’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

248

Clause 39, page 20, line 3, at end insert—

        ‘(da) that the imposition of the penalty on any ground that would give rise to a claim for judicial review.’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

249

Clause 39, page 20, line 27, leave out subsection (7).

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

250

Clause 47, page 25, line 27, leave out subsection (5) and insert—

      ‘(5) If the order which the Board intends to make differs from the draft published under subsection (2) in a way which in the opinion of the Board is material, the Board must, before making the order, publish the draft order along with a statement detailing the changes made and the reasons for those changes.’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

251

Clause 51, page 28, line 4, at end insert—

      ‘(2A) Practising fee income shall be kept separate from the other assets of a regulator.’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

252

Clause 54, page 30, line 27, at end insert—

      ‘(2A) An external regulatory body may make an application to an approved regulator under this section if it considers that the arrangements of the approved regulator—

        (a) frustrate the exercise of the external regulatory body’s requirements, or

        (b) conflict with the external regulatory body’s regulatory requirements, or

        (c) give rise to unnecessary duplication of regulatory requirements for the subjects of the external regulatory body.

      (2B) For the purposes of subsection (2A)(c) above, “subjects” means any individuals or entities subject to the regulatory powers and jurisdication of the external regulator.

      (2C) Where an application is made to an approved regulator under this section, the approved regulator must—

        (a) determine whether such regulatory conflict exists with the external regulatory body’s requirements and, where it so determines, take such steps as are reasonably practicable to address the regulatory conflict outlined by the external regulatory body, or,

        (b) in the absence of satisfactory resolution and where provisions for the resolution of external regulatory conflict provide, make an application to the Board under subsection (4).’.

Mr Henry Bellingham
Mr Jonathan Djanogly
Mr Tobias Ellwood

253

Clause 55, page 31, line 6, at end insert—

        ‘(d) shall give a reason and explanation for such notice.’.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

254

Clause 3, page 2, line 34, at end add—

      ‘(4) In considering what degree of protection may be appropriate for consumers, the Board must have regard to the differring degrees of experience and expertise that different consumers may have in relation to different kinds of regulated activity.’.

Members’ explanatory statement
This amendment is designed to ensure that regulation is proportionate and risk-based.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

255

Schedule 4, page 142, line 14, leave out sub-parargraph (3) and insert—

      ‘(3) Alterations are exempt unless the Board has directed that they are not to be treated as exempt for the purposes of this paragraph.’.

Members’ explanatory statement
This amendment is designed to reverse the presumption that the advance approval of the Legal Services Board should be required to changes to approved regulators’ regulatory arrangements.

Registration of non-authorised managers

Mr Jonathan Djangoly
Mr Henry Bellingham
Mr Tobais Ellwood

NC14

    To move the following Clause:—

      ‘(1) Any body “B” which carries on an activity under Section 13 of this Act, which is not a “licensable body” as defined in Section [71(1)] but which has at least one manager who is not an authorised person, must register any non-authorised manager with an approved regulator.

      (2) It is an offence for B to carry on an activity under Section 13 of this Act if B does not comply with the conditions of this section.

      (3) For the purposes of this section an approved regulator may refuse to register any non-authorised manager (M) of B if its is not satisfied that:

        (a) M does not provide services to clients, directly or indirectly, or

        (b) M will act in a manner consistent with the “professional principles” set out in Section 1(3).

      (4) No manager of B may be a person who has been disqualified from acting under Section 99.

      (5) B will cease to be entitled to carry on an activity under Section 13 of this Act if B knowingly carries on reserved activities whilst a person, disqualified under Section 99, continues to be a manager of B.’.

Members’ explanatory statement
This would enable practices to have 25% or less on a headcount of managers who are not lawyers and who are not providing services to clients (so called Legal Practice Plus), to be operational from enactment alongside other forms of LDP.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

256

Clause 18, page 8, line 32, at end insert—

        ‘(c) A body, which is not a licensable body, but which carries on a relevant activity by virtue of Section [Registration of non-authorised managers]’.

Members’ explanatory statement
See Members’ explanatory statement for NC14.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

257

Clause 72, page 41, line 10, leave out subsection (1) and insert—

      ‘(1) For the purposes of this Act, a body is a “licensable body” if—

        (a) at least one manager of the body is an individual who is a non-authorised person who provides services directly or indirectly to clients; or

        (b) more than 25 per cent. of the managers of the body are individuals who are not authorised persons regardless of whether they provide services directly or indirectly to clients; or

        (c) at least one person who has an interest in shares in the body is a non-authorised person and is not a manager of that body.’.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

258

Clause 54, page 30, line 21, at end insert—

      ‘(1A) An approved regulator must consider any request made by an external regulatory body for the approved regulator to reconsider any provision made by its regulatory arrangements on the grounds that the provision either—

        (a) conflicts with a requirement of a regulatory provision made by the external regulatory body, or

        (b) unnecessarily duplicates any regulatory provision made by that external regulator.’.

Members’ explanatory statement
This amendment would bring parity between the different forms of conflict an approved regulator might face - either with external regulators or with approved regulators.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

259

Clause 72, page 41, line 13, at end insert—

      ‘(1A) A body is not a licensable body if it is regulated under section 9(A) of the Administration of Justice Act 1985.’.

Members’ explanatory statement
This purpose of this amendment is to enable Legal Disciplinary Practices to be regulated under the Law Society’s ordinary regulatory regime providing at least three-quarters of their members are lawyers; substantial majority of lawyers; they do not have external ownership; and any non-lawyer partners or members do not provide services direct to clients.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

260

Schedule 16, page 264, line 35, leave out paragraphs (a) and (b) and insert—
‘at least three-quarters of the partners are authorised persons or are registered foreign lawyers, and any other partners do not directly provide services to clients.’.

Members’ explanatory statement
See Members’ explanatory statement for amendment 259.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

261

Schedule 16, page 264, line 43, leave out paragraphs (a) and (b) and insert—
‘at least three-quarters of the members of the body are authorised persons or are registered foreign lawyers, and any other members do not directly provide services to clients.’.

Members’ explanatory statement
See Members’ explanatory statement for amendment 259.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

262

Schedule 16, page 265, line 6, leave out paragraphs (a) and (b) and insert—
‘at least three-quarters of the persons within subsection (5) are authorised persons or are registered foreign lawyers, and any other members do not directly provide services to clients.’.

Members’ explanatory statement
See Members’ explanatory statement for amendment 259.

Mr Kevan Jones

263

Clause 30, page 15, line 8, at end insert—

        ‘( ) that the majority of the ordinary members of a committee that an approved regulator authorises to exercise its regulatory functions are lay persons.’.

Mr Kevan Jones

264

Schedule 1, page 121, line 19, leave out ‘first’.

Mr Kevan Jones

265

Clause 138, page 72, line 32, leave out ‘£20,000’ and insert ‘£50,000’.

Mr Kevan Jones

266

Clause 138, page 72, line 39, leave out subsection (3).

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

267

Clause 4, page 2, line 36, at beginning insert ‘(1)’.

Mr Jonathan Djanogly
Mr Henry Bellingham
Mr Tobias Ellwood

268

Clause 71, page 41, line 8, at end insert ‘, provided that a body is not a “licensable body” if the only managers who are non-authorised persons are individuals who do not directly provide any services to consumers.’.

Members’ explanatory statement
To ensure that a law firm or LLP will not become an ABS solely because it wishes to appoint as a manager non-lawyer professionals. This will apply only if these appointees only provide services to their firms internally and do not directly provide services to clients of the firm.

 
 
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Prepared: 8 June 2007