| Legal Services Bill [Lords] - continued | House of Commons |
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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) ’. 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”,’. . 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— This amendment allows the High Court, on an appeal from a direction of the Law Society suspending 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. (2) For the purposes of this Act, a sole solicitor endorsement shall be deemed not to be in force at any time while it is suspended. (3) Subsection (2) is subject to section 13ZA(2). 17B Duration and publicity of suspension of sole solicitor endorsement (2) Where a solicitor’s sole solicitor endorsement is suspended— (a) by an order under section 13(4), or (b) by virtue of section 17A(1) in circumstances where the period of that suspension expires before the date on which his endorsement will expire, the solicitor may at any time before the endorsement expires apply to the Society to terminate the suspension. (3) Section 16(4) to (7) apply in relation to an application under subsection (2) as they apply in relation to an application under section 16(3). (4) Where a solicitor’s sole solicitor endorsement is suspended by an order under section 13(4) or by virtue of section 17A(1), the Society shall forthwith cause notice of that suspension to be published and a note of it to be entered against the name of the solicitor on the roll. (5) Where any suspension is terminated by virtue of section 16(4) or (5), as applied by subsection (3) of this section, the Society shall forthwith cause a note of that termination to be entered against the name of the solicitor on the roll and, if so requested in writing by the solicitor, a notice of it to be published.”’. This amendment provides that Tribunal orders to suspend a solicitor from practice as a sole solicitor operate to suspend his sole solicitor endorsement. It also makes provision for the duration of the suspension, and for publicity of the suspension. Bridget Prentice 58 Schedule 16, page 235, line 6, after ‘them”,’ insert— ‘( ) after that paragraph insert— “(ca) sole solicitor endorsements and applications for them,”’. This amendment is related to amendment 44. It provides that the Law Society’s power to make regulations under section 28 extends to sole solicitor endorsements and applications for them. Bridget Prentice 59 Schedule 16, page 235, line 22, after
‘certificates’, insert ‘or sole solicitor endorsements’. This amendment is related to amendment 44. It provides that the regulations powers under section 28(3B) extend to sole solicitor endorsements. Bridget Prentice 60 Schedule 16, page 235, line 24, after
‘certificates’, insert ‘or sole solicitor endorsements’. This amendment is related to amendments 44, 45 and 53. It provides that regulations may prescribe the manner and form of applications for sole solicitor endorsements. Bridget Prentice 61 Schedule 16, page 235, line 36, at end insert— ‘(ea) prescribe descriptions of applicants, and conditions in relation to them, for the purposes of section 13ZA(5) (circumstances in which a practising certificate endorsed with a sole solicitor endorsement after it was issued must be made subject to prescribed conditions);’. . This amendment is related to amendments 44 and 53. It enables the Law Society to make regulations prescribing descriptions of applicants and conditions that will apply to any applicants of prescribed descriptions, for the purposes of 13ZA(5). Bridget Prentice 62 Schedule 16, page 235, line 47, after
‘certificates’, insert ‘or sole solicitor endorsements’. This amendment is related to amendment 44. It enables the Law Society to make regulations about the commencement, duration, replacement, withdrawal and expiry of sole solicitor endorsements. Bridget Prentice 63 Schedule 16, page 237, line 33, at end insert ‘, and (c) after “solicitor” (in both places) insert “or any of his employees”.’. This amendment allows the Law Society to disclose a report or information about a solicitor’s accounts for use in investigating the possible commission of an offence by the solicitor’s employees. Bridget Prentice 64 Schedule 16, page 239, line 7, at end insert— ‘After section 34 insert— “Sole solicitors 34A Employees of solicitors (2) If any employee of a solicitor fails to comply with rules made under section 31 or 32, as they have effect in relation to the employee by virtue of subsection (1), any person may make a complaint in respect of that failure to the Tribunal. (3) If any employee of a solicitor fails to comply with rules made under section 34, as they have effect in relation to the employee by virtue of subsection (1), a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society. 34B Employees of solicitors: accounts rules etc (1) Where rules made under section 32(1) have effect in relation to employees of solicitors by virtue of section 34A(1), section 85 applies in relation to an employee to whom the rules have effect who keeps an account with a bank or building society in pursuance of such rules as it applies in relation to a solicitor who keeps such an account in pursuance of rules under section 32. (2) Subsection (3) applies where rules made under section 32— (a) contain any such provision as is referred to in section 33(1), and (b) have effect in relation to employees of solicitors by virtue of section 34A(1). (a) clients of the solicitor, other persons or trusts, generally, or (b) that client, person or trust, separately. (4) Subsection (5) applies where rules made under section 33A(1) have effect in relation to employees of solicitors by virtue of section 34A(1). (a) in investigating the possible commission of an offence by the solicitor or any employees of the solicitor, and (b) in connection with any prosecution of the solicitor or any employees of the solicitor consequent on the investigation. (6) Where rules made under section 34 have effect in relation to employees of solicitors by virtue of subsection (1), section 34(9) and (10) apply in relation to such an employee as they apply in relation to a solicitor.”’. This amendment gives the Law Society certain rule-making powers in relation to employees of sole solicitors; adapts certain accounts rules provisions in relation to such employees; provides for complaints to the Tribunal for certain breaches of these rules; and provides for disclosure of employees’ accounts information in certain circumstances. Bridget Prentice 65 Schedule 16, page 242, line 45, at end insert— ‘(ia) no employee of a solicitor shall employ or
remunerate, in connection with the solicitor’s practice, the person
with respect to whom the order is made,’. This amendment allows the Law Society or the Tribunal to make an order, on one or more of the grounds set out in subsection (1), prohibiting an employee of a solicitor from employing or remunerating a person who is the subject of that order. Bridget Prentice 185 Schedule 16, page 243, line 45, leave out ‘in shares’. This amendment is related to amendment 111. It adjusts the definition 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 66 Schedule 16, page 244, line 6, after
‘solicitor’, insert ‘, or an employee of a solicitor,’. This amendment is related to amendment 65. As a result of this change a person commits an offence if he seeks or accepts employment or remuneration from not only a solicitor, but also an employee of a solicitor, without previously informing the solicitor or employee (see amendment 67) of the order. Bridget Prentice 67 Schedule 16, page 244, line 8, after
‘solicitor’, insert ‘or employee’. This amendment is consequential on amendment 66. Bridget Prentice 186 Schedule 16, page 244, line 38, leave out ‘in shares’. This amendment is related to amendment 111. It adjusts the definition 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 187 Schedule 16, page 245, line 5, leave out ‘in shares’. This amendment is related to amendment 111. It provides that section 44B applies to persons with an interest in a recognised body, rather than persons with an interest in shares in a recognised body. See also amendment 188. Bridget Prentice 68 Schedule 16, page 245, line 11, after
‘solicitor’, insert ‘or an employee of a solicitor’. This amendment allows the Law Society to give notice under section 44B for the purpose of ascertaining whether employees of sole solicitors have failed to comply with requirements imposed by or by virtue of the Solicitors Act 1974 or rules by the Law Society. Bridget Prentice 69 Schedule 16, page 245, line 38, after ‘purpose’, insert ‘— (a) ’. This is a paving amendment for amendment 70. Bridget Prentice 70 Schedule 16, page 245, line 49, at end insert ‘, and (b) the reference to the solicitor or his personal representative
in paragraph 13 of that Schedule is to be construed as a reference to
the person to whom the notice was given under this section.”’. This amendment ensures that paragraph 13 of Schedule 1 to the Solicitors Act 1974 (payment of Law Society’s costs) is applied with modifications for the purposes of enforcing the Law Society’s information powers. Bridget Prentice 71 Schedule 16, page 246, line 15, leave
out ‘reference’ and insert ‘references’. This amendment, combined with amendment 72, ensures that paragraph 9(6) of Schedule 1 to the Solicitors Act 1974 (powers of entry) applies with modifications for the purposes of enforcing the Law Society’s information powers. The modification became necessary because paragraph 9 was amended in the House of Lords (see paragraph 72(9)(g) of Schedule 16). Bridget Prentice 72 Schedule 16, page 246, line 15, after
‘9(5)’, insert ‘and (6)’. See explanatory statement for amendment 71. Bridget Prentice 73 Schedule 16, page 246, line 22, at end insert— ‘(7A) Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are exercisable in relation to a person within paragraph (a), (b), (c) or (d) of subsection (2), they continue to be so exercisable after the person has ceased to be a person within the paragraph in question.’. This amendment ensures that if a person to whom a notice requiring information is given ceases after the notice is given to be a solicitor, solicitor’s employee, recognised body or employee or manager of, or person with an interest in, a recognised body, the enforcement powers will nonetheless remain available. Bridget Prentice 188 Schedule 16, page 246, line 28, leave out ‘in shares’. This amendment is related to amendments 111 and 187. It provides that an interest in a recognised body (see amendment 187) has the same meaning as interest in a body in Clause 72 of the Bill. Bridget Prentice 74 Schedule 16, page 246, line 41, after ‘purpose’, insert ‘— (a) ’. This is a paving amendment for amendment 75. Bridget Prentice 75 Schedule 16, page 247, line 2, at end insert ‘, and (b) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.”’. This amendment ensures that paragraph 13 of Schedule 1 to the Solicitors Act 1974 (payment of Law Society’s costs) is applied with modifications for the purposes of enforcing the Law Society’s information powers. Bridget Prentice 76 Schedule 16, page 247, line 36, at end insert ‘, and (c) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.’. This amendment ensures that paragraph 13 of Schedule 1 to the Solicitors Act 1974 (payment of Law Society’s costs) is applied with modifications for the purposes of enforcing the Law Society’s information powers. Bridget Prentice 77 Schedule 16, page 248, line 39, at end insert— ‘(5) This section (other than subsection (2)(a)) applies in relation to an employee of a solicitor as it applies in relation to a solicitor.’. This amendment is related to amendment 68. It enables the Law Society to charge the costs of an investigation into non-compliance with statutory requirements or rules to an employee of a sole solicitor who is the subject of such an investigation. Bridget Prentice 78 Schedule 16, page 248, line 39, at end insert— ‘After that section insert— 44D Disciplinary powers of the Society (1) This section applies where the Society is satisfied— (a) that a solicitor or an employee of a solicitor has failed to comply with a requirement imposed by or by virtue of this Act or any rules made by the Society, or (b) that there has been professional misconduct by a solicitor. (2) The Society may do one or both of the following— (a) give the person a written rebuke; (b) direct the person to pay a penalty not exceeding £2,000. (3) The Society may publish details of any action it has taken under subsection (2)(a) or (b), if it considers it to be in the public interest to do so. (4) Where the Society takes action against a person under subsection (2)(b), or decides to publish under subsection (3) details of any action taken under subsection (2)(a) or (b), it must notify the person in writing that it has done so. (5) A penalty imposed under subsection (2)(b) does not become payable until— (a) the end of the period during which an appeal against the decision to impose the penalty, or the amount of the penalty, may be made under section 44E, or (b) if such an appeal is made, such time as it is determined or withdrawn. (6) The Society may not publish under subsection (3) details of any action under subsection (2)(a) or (b)— (a) during the period within which an appeal against— (i) the decision to take the action, (ii) in the case of action under subsection (2)(b), the amount of the penalty, or (iii) the decision to publish the details, may be made under section 44E, or (b) if such an appeal has been made, until such time as it is determined or withdrawn. (7) The Society must make rules— (a) prescribing the circumstances in which the Society may decide to take action under subsection (2)(a) or (b); (b) about the practice and procedure to be followed by the Society in relation to such action; (c) governing the publication under subsection (3) of details of action taken under subsection (2)(a) or (b); and the Society may make such other rules in connection with the exercise of its powers under this section as it considers appropriate. (8) Before making rules under subsection (7), the Society must consult the Tribunal. (9) A penalty payable under this section may be recovered as a debt due to the Society, and is to be forfeited to Her Majesty. (10) The Lord Chancellor may, by order, amend paragraph (b) of subsection (2) so as to substitute for the amount for the time being specified in that paragraph such other amount as may be specified in the order. (11) Before making an order under subsection (10), the Lord Chancellor must consult the Society. (12) An order under subsection (10) is to be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. (13) This section is without prejudice to any power conferred on the Society or any other person to make an application or complaint to the Tribunal. 44E Appeals against disciplinary action under section 44D (1) A person may appeal against— (a) a decision by the Society to rebuke that person under section 44D(2)(a) if a decision is also made to publish details of the rebuke; (b) a decision by the Society to impose a penalty on that person under section 44D(2)(b) or the amount of that penalty; (c) a decision by the Society to publish under section 44D(3) details of any action taken against that person under section 44D(2)(a) or (b). (2) Subsections (9)(b), (10)(a) and (b), (11) and (12) of section 46 (Tribunal rules about procedure for hearings etc) apply in relation to appeals under this section as they apply in relation to applications or complaints, except that subsection (11) of that section is to be read as if for “the applicant” to “application)” there were substituted “any party to the appeal”. (3) Rules under section 46(9)(b) may, in particular, make provision about the period during which an appeal under this section may be made. (4) On an appeal under this section, the Tribunal has power to make such order as it thinks fit, and such an order may in particular— (a) affirm the decision of the Society; (b) revoke the decision of the Society; (c) in the case of a penalty imposed under section 44D(2)(b), vary the amount of the penalty; (d) in the case of a solicitor, contain provision for any of the matters mentioned in paragraphs (a) to (d) of section 47(2); (e) in the case of an employee of a solicitor, contain provision for any of the matters mentioned in section 47(2E); (f) make such provision as the Tribunal thinks fit as to payment of costs. (5) Where by virtue of subsection (4)(e) an order contains provision for any of the matters mentioned in section 47(2E)(c), section 47(2F) and (2G) apply as if the order had been made under section 47(2E)(c). (6) An appeal from the Tribunal shall lie to the High Court, at the instance of the Society or the person in respect of whom the order of the Tribunal was made. (7) The High Court shall have power to make such order on an appeal under this section as it may think fit. (8) Any decision of the High Court on an appeal under this section shall be final. (9) This section is without prejudice to any power conferred on the Tribunal in connection with an application or complaint made to it.”’. This amendment inserts new sections 44D and 44E into the Solicitors Act 1974 establishing a procedure that allows the Law Society to rebuke or fine a solicitor where he has breached a requirement of that Act or any rules made by the Society, or been found to have committed professional misconduct. |
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