House of Commons Amendments

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Public Bill Committee: 14th June 2007
266

Legal Services Bill [Lords], continued

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’.

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.

Public Bill Committee: 14th June 2007
267

Legal Services Bill [Lords], continued

(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.

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.

Public Bill Committee: 14th June 2007
268

Legal Services Bill [Lords], continued

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.

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—

Public Bill Committee: 14th June 2007
269

Legal Services Bill [Lords], continued

“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—

(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.

Public Bill Committee: 14th June 2007
270

Legal Services Bill [Lords], continued

(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

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.

Public Bill Committee: 14th June 2007
271

Legal Services Bill [Lords], continued

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

(1)
Where a sole solicitor endorsement is suspended, it expires on such

date as may be prescribed by regulations under section 28.

(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.”’.

Members’ explanatory statement

This amendment provides that Tribunal orders to suspend a solicitor from practice as a sole solic

itor operate to suspend his sole solicitor endorsement. It also makes provision for the duration of

the suspension, and for publicity of the suspension.

Public Bill Committee: 14th June 2007
272

Legal Services Bill [Lords], continued

Bridget Prentice

58

Schedule  16,  page  235,  line  6,  after ‘them”,’ insert—

‘( )
after that paragraph insert—

“(ca)
sole solicitor endorsements and applications for

them,”’.

Members’ explanatory statement

This amendment is related to amendment 44. It provides that the Law Society’s power to make reg

ulations 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’.

Members’ explanatory statement

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’.

Members’ explanatory statement

This amendment is related to amendments 44, 45 and 53. It provides that regulations may pre

scribe 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);’.

.

Members’ explanatory statement

This amendment is related to amendments 44 and 53. It enables the Law Society to make regula

tions prescribing descriptions of applicants and conditions that will apply to any applicants of pre

scribed descriptions, for the purposes of 13ZA(5).

Bridget Prentice

62

Schedule  16,  page  235,  line  47,  after ‘certificates’, insert ‘or sole solicitor

endorsements’.

Members’ explanatory statement

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.