Public Bill Committee: 14th June 2007

259

Legal Services Bill [Lords], continued

Mr David Kidney

275

Clause  108,  page  59,  line  23,  at end add—

‘(5)	For the purposes of subsection (4)—

“member” means a member or member firm as defined by the appropriate

rules of such a body.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 271.

Bridget Prentice

124

Clause  111,  page  60,  line  21,  leave out ‘in shares’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the test for whether a body falls under sub-

paragraph (d), by replacing the reference to persons “with an interest in shares” with a reference

to persons “with an interest”.

Bridget Prentice

125

Clause  111,  page  60,  line  24,  leave out sub-paragraph (ii) and insert—

‘(ii)

are bodies in which persons within paragraphs (a) to (c) are

entitled to exercise, or control the exercise of, more than 90% of

the voting rights.’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the test for whether a body falls under sub-

paragraph (d), providing that where a manager or person with an interest is a body, persons within

(a) – (c) must exercise or control the exercise of more than 90% of voting rights.

Bridget Prentice

42

Schedule  15,  page  224,  line  29,  at end insert—

‘The terms of appointment of the chairman or any other member may provide

for the Board to pay, or make payments towards the provision of, a pension,

allowance or gratuity to or in respect of that person.

If the Board thinks there are circumstances that make it right for a person

ceasing to hold office as chairman or another member to receive compensation,

the OLC may pay that person such compensation as the Board may

determine.’.

Members’ explanatory statement

This amendment provides that the terms of appointment of the chairman or other ordinary mem­

bers of the OLC may provide for pensions, allowances or gratuities. It also allows the OLC to pay

compensation to the chairman or other ordinary members in certain circumstances.

Public Bill Committee: 14th June 2007

260

Legal Services Bill [Lords], continued

Bridget Prentice

43

Schedule  15,  page  224,  line  42,  at end insert—

‘The OLC may pay compensation for loss of employment to or in respect of an

ombudsman (or former ombudsman), or a member (or former member) of staff

appointed under paragraph 11.’.

Members’ explanatory statement

This amendment allows the OLC to pay compensation to its ombudsmen or former ombudsmen, or

to its staff appointed under paragraph 11 of Schedule 15 or former staff, for loss of employment

with the OLC.

Simon Hughes

John Hemming

227

Schedule  15,  page  226,  line  15,  leave out paragraphs 21 and 22.

Members’ explanatory statement

To ensure the operational independence of the OLC.

Bridget Prentice

8

Clause  133,  page  68,  line  42,  leave out paragraph (i).

Members’ explanatory statement

This amendment reverses one made in the House of Lords enabling scheme rules to make provision

for the award of costs in favour of the OLC against the respondent to a complaint in additional

circumstances to those already specified in Clause 133(3).

Simon Hughes

John Hemming

228

Clause  133,  page  68,  line  44,  leave out from ‘complaint’ to end of line 4 on page

69.

Members’ explanatory statement

To ensure it is not possible for complainants to be liable to pay costs.

Simon Hughes

John Hemming

229

Clause  133,  page  69,  line  5,  leave out paragraph (j).

Members’ explanatory statement

See Members’ explanatory statement for amendment 228.

Public Bill Committee: 14th June 2007

261

Legal Services Bill [Lords], continued

Simon Hughes

John Hemming

230

Clause  133,  page  69,  line  14,  at end insert—

‘( )	for the identity of respondents to be published.’.

Members’ explanatory statement

To prompt the OLC to make rules about identifying those legal services providers it has upheld

complaints against.

Bridget Prentice

9

Clause  133,  page  69,  line  38,  leave out ‘, (i)’.

Members’ explanatory statement

This amendment is consequential on amendment 8, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

10

Clause  136,  page  70,  line  37,  leave out subsections (2) to (4).

Members’ explanatory statement

This amendment reverses amendments made in the House of Lords which— (a) limit the circum­

stances in which a complaint handling charge may be payable by the respondent to the complaint

and (b) require reduction, waiver or refund of charges in specific circumstances.

Simon Hughes

John Hemming

231

Clause  136,  page  70,  line  39,  leave out paragraphs (a) to (c) and insert—

‘(a)	the complaint against the respondent is determined or otherwise resolved

at least partially in favour of the complaint; or

(b)	in the ombudsman’s in accordance with the regulatory arrangements

which the approved regulator has made under section 112.’.

Members’ explanatory statement

This series of amendments requires the OLC to set rules enabling charges payable by respondents

to be reduced or waived and indicates appropriate conditions for these to apply.

Simon Hughes

John Hemming

232

Clause  136,  page  71,  line  5,  leave out subsections (3) and (4).

Members’ explanatory statement

See Members explanatory statement for amendment 231.

Public Bill Committee: 14th June 2007

262

Legal Services Bill [Lords], continued

Bridget Prentice

11

Clause  136,  page  71,  leave out line 19.

Members’ explanatory statement

This amendment is consequential on amendment 10, removing a reference back to the provision

which that amendment removes.

Bridget Prentice

12

Clause  136,  page  71,  line  22,  leave out from ‘circumstances’ to end of line 23.

Members’ explanatory statement

This amendment is consequential on amendment 10, removing a reference back to the provision

which that amendment removes.

Simon Hughes

John Hemming

233

Clause  137,  page  71,  line  34,  at end insert—

‘( )	In considering what is fair and reasonable in the circumstances, the Ombudsman

shall take into account the relevant levels of damages awarded by courts in similar

circumstances, and relevant codes of practices, professional rules, standards and

guidance.’.

Members’ explanatory statement

This amendment is intended to give guidance to the OLC as to the way in which it should determine

what is ‘fair and reasonable’ when exercising its powers under the Act.

Simon Hughes

John Hemming

234

Clause  138,  page  72,  line  32,  leave out ‘£20,000’ and insert ‘£100,000’.

Members’ explanatory statement

To increase the maximum amount of redress that can be awarded by the OLC ombudsman to

£100,000.

Mr Kevan Jones

265

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

Public Bill Committee: 14th June 2007

263

Legal Services Bill [Lords], continued

Mr Kevan Jones

266

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

Simon Hughes

John Hemming

235

Clause  140,  page  74,  line  19,  after ‘complaint’, insert ‘either while the ombudsman

is considering the complaint or’.

Members’ explanatory statement

To stop respondents from beginning or continuing legal proceedings against a complainant while

the OLC is considering the case (or vice versa).

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.

Mr David Kidney

276

Clause  144,  page  76,  line  17,  leave out ‘may’ and insert ‘must’.

Members’ explanatory statement

This amendment requires the approved regulator to report back to the OLC ombudsman on the

action taken in respect of a referral for consideration of disciplinary action and to require the om­

budsman to send a copy of the approved regulator’s report to the complainant.

Mr David Kidney

277

Clause  144,  page  76,  line  19,  at end insert ‘A copy of the report made to the

ombudsman under this section must be sent to the complainant by the ombudsman.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 276.

Public Bill Committee: 14th June 2007

264

Legal Services Bill [Lords], continued

Mr David Kidney

270

Clause  144,  page  76,  line  30,  at end add—

‘(6)	The ombudsman may, when so requested by a compainant, make a request to the

relevant authorising body to review the decision it has made in respect of a report

to the ombudsman under subsection (2) and notified to the ombudsman under

subsection (3), and may request the relevant authorising body to notify the

ombudsman of the result of any such review.’.

Members’ explanatory statement

This amendment would give a complainant, at the discretion of the OLC ombudsman, the option

of requesting a review of the action taken by an approved regulatior in respect of a referral to it

for consideration of disciplinary action against a member.

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.

Public Bill Committee: 14th June 2007

265

Legal Services Bill [Lords], continued

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

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.

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Revised 14 June 2007