House of Commons Amendments

House of Commons

Session 2006 - 07
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Notices of Amendments: 8th June 2007
110

Legal Services Bill-[ Lords], continued

Bridget Prentice

13

Page  75,  line  27,  leave out Clause 143.

Members’ explanatory statement

This amendment leaves out Clause 143, which was inserted by amendment in the House of Lords,

and so reverses that amendment, which inserted provision enabling the Board to delegate to an

approved regulator or regulators the handling of complaints which would otherwise be deter

mined under the ombudsman scheme.

Simon Hughes

John Hemming

236

Clause  150,  page  80,  line  4,  leave out ‘a person (“the defaulter”)’ and insert ‘an

authorised person’.

Members’ explanatory statement

This amendment would ensure that the Office for Legal Complaints can enforce requirements to

provide information or produce documents only against an authorised person, and not against a

complainant.

Bridget Prentice

14

Clause  158,  page  83,  line  11,  leave out from ‘redress’ to end of line 13.

Members’ explanatory statement

This amendment is consequential on amendment 13, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

15

Clause  158,  page  83,  line  17,  leave out ‘and except as permitted by subsection (1)’.

Members’ explanatory statement

This amendment is consequential on amendment 13, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

16

Clause  173,  page  91,  line  25,  after ‘Act’, insert ‘or any other enactment’.

Members’ explanatory statement

This amendment extends the power to pay grants to the Board to cover its functions under “any

other enactment”. This ensures that grants can be paid in respect of Board expenditure resulting

Notices of Amendments: 8th June 2007
111

Legal Services Bill-[ Lords], continued

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

Simon Hughes

John Hemming

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.

Simon Hughes

John Hemming

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

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

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

241

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

Notices of Amendments: 8th June 2007
112

Legal Services Bill-[ Lords], continued

Members’ explanatory statement

See Members’ explanatory statement for amendment 238.

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.

Notices of Amendments: 8th June 2007
113

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.

Bridget Prentice

49

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

certificate,

( )
if the application included an application for a sole solicitor

endorsement, a decision to refuse the application for the

endorsement’.

Members’ explanatory statement

This amendment is related to amendment 45. It enables persons who have been refused endorse

ment as a sole solicitor to appeal against that decision.

Notices of Amendments: 8th June 2007
114

Legal Services Bill-[ Lords], continued

Bridget Prentice

50

Schedule  16,  page  232,  line  6,  leave out ‘for a practising certificate’ and insert

‘under section 9’.

Members’ explanatory statement

This amendment is consequential on amendment 45. It ensures that the Law Society’s rule making

powers under section 13(3) in relation to appeal procedures for applications neither granted nor

refused, extend to applications for endorsements, in addition to applications for practising certif

icates.

Bridget Prentice

51

Schedule  16,  page  232,  line  11,  at end insert—

‘( )
direct the Society to make a sole solicitor endorsement on the

applicant’s practising certificate and to issue that certificate

subject to such conditions (if any) as the High Court may think

fit,’.

Members’ explanatory statement

This amendment is related to amendment 49. It allows the High Court to direct the Law Society to

endorse the solicitor’s practising certificate, on an appeal under section 13, subject to any such

conditions (if any) as it thinks fit.

Bridget Prentice

52

Schedule  16,  page  232,  line  16,  after ‘it,’, insert—

‘( )
if the certificate has been endorsed with a sole solicitor

endorsement, by order suspend the endorsement,’.

Members’ explanatory statement

This amendment is related to amendment 49. It provides the High Court with the power to suspend

a sole solicitor endorsement, on an appeal under section 13.

Bridget Prentice

53

Schedule  16,  page  232,  line  26,  at end insert—


‘After section 13 insert—

“13ZA
  Application to practise as sole practitioner while practising

certificate in force

(1)
A solicitor whose practising certificate for the time being in force (his

“current certificate”) does not have a sole solicitor endorsement, may

apply to the Society for such an endorsement.

(2)
For the purposes of subsection (1) a practising certificate with a sole

solicitor endorsement which is suspended is to be treated as having

such an endorsement.

(3)
A solicitor may not apply under subsection (1) if he is suspended from

practice as a sole solicitor.

(4)
An application must be—

Notices of Amendments: 8th June 2007
115

Legal Services Bill-[ Lords], continued

(a)
made in accordance with regulations under section 28, and

(b)
accompanied by any fee payable under section 13ZB in

respect of the endorsement applied for.

(5)
Where a sole solicitor endorsement is granted to an applicant of a

prescribed description, the applicant’s practising certificate shall have

effect subject to any conditions prescribed in relation to applicants of

that description.


“Prescribed” means prescribed by regulations under section

28(3B)(ea).

(6)
A person who makes an application under this section may appeal to

the High Court against—

(a)
a decision to refuse the application, or

(b)
a decision to impose a condition on a practising certificate in

accordance with subsection (5).

(7)
The Society may by rules make provision, as respects any application

under this section that is neither granted nor refused by the Society

within such period as may be specified in the rules, for enabling an

appeal to be brought under this section in relation to the application as

if it had been refused by the Society.

(8)
On an appeal under this section the High Court may—

(a)
affirm the decision of the Society,

(b)
direct the Society to grant a sole solicitor endorsement,

(c)
direct that the applicant’s practising certificate is to have

effect subject to such conditions (if any) as the High Court

thinks fit, or

(d)
make such other order as the High Court thinks fit.

(9)
In relation to an appeal under this section the High Court may make

such order as it thinks fit as to payment of costs.

(10)
The decision of the High Court on an appeal under this section shall

be final.

13ZB
Fee payable on making of sole solicitor endorsement

(1)
Before a sole solicitor endorsement is granted under section 13ZA,

there must be paid to the Society in respect of the endorsement a fee

of such amount as the Society may from time to time determine.

(2)
Different fees may be specified for different categories of applicant

and in different circumstances.

(3)
If a fee payable under this section would not otherwise be a practising

fee for the purposes of section 51 of the Legal Services Act 2007, it is

to be treated for the purposes of that section as such a fee.

(4)
In subsection (3) “practising fee” has the meaning given by that

section.”’.

Members’ explanatory statement

This amendment provides that a person may apply for a sole solicitor endorsement at any time

while that person’s practising certificate is in force. It also makes provision as to applicable cri

teria and procedures for such applications, including imposition of conditions, fees payable and

Notices of Amendments: 8th June 2007
116

Legal Services Bill-[ Lords], continued

appeal procedures.

Bridget Prentice

54

Schedule  16,  page  232,  line  32,  after ‘if’, insert—

‘(a)
under section 13ZA the Society grants a sole solicitor

endorsement, or

(b)
’.

Members’ explanatory statement

This amendment is related to amendment 53. It ensures that the Law Society’s power to impose

conditions on practising certificates at any time while they are in force is exercisable on the grant

of a sole solicitor endorsement under section 13ZA.

Bridget Prentice

55

Schedule  16,  page  233,  line  22,  at end insert—

‘( )
in subsection (1), after “practising certificate” insert “or sole solicitor

endorsement”,

( )
in subsection (6), after “practice” insert “or from practice as a sole

solicitor”,’.

.

Members’ explanatory statement

This amendment ensures that the Law Society may suspend a person’s sole solicitor endorsement,

where applicable, (as well as his practising certificate), where that person has been convicted of

fraud or serious crime, or is the subject of an application to the Tribunal under section 47.

Bridget Prentice

56

Schedule  16,  page  233,  line  26,  after ‘Court”,’ insert—

‘( )
in paragraph (b), for “shall not be suspended but” substitute

“or sole solicitor endorsement shall not be suspended, but that

the appellant’s certificate”,’.

Members’ explanatory statement

This amendment allows the High Court, on an appeal from a direction of the Law Society suspend

ing a person’s sole solicitor endorsement, to direct that the endorsement shall not be suspended.

The Court may also direct that his practising certificate shall be subject to such conditions as it

thinks fit.

Bridget Prentice

57

Schedule  16,  page  234,  line  12,  at end insert—


‘After section 17 insert—

“17A
Suspension of sole solicitor endorsement

(1)
The making by the Tribunal or by the court of an order suspending a

solicitor from practice as a sole solicitor shall operate to suspend any

sole solicitor endorsement of that solicitor for the time being in force.