Public Bill Committee: 21st June 2007

413

Legal Services Bill [Lords], continued

Bridget Prentice

119

Clause  108,  page  59,  line  7,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the first branch of the ownership condition

for a low risk body, providing that the proportion of shares in B held by non-authorised persons is

less than 10%.

Bridget Prentice

120

Clause  108,  page  59,  line  9,  leave out ‘power’ and insert ‘rights’.

Members’ explanatory statement

This amendment refines the second branch of the ownership condition for a low risk body,

providing that the proportion of voting rights, rather than voting power, in B which non-authorised

persons are entitled to exercise, or control the exercise of, is less than 10%.

Bridget Prentice

121

Clause  108,  page  59,  line  12,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Members’ explanatory statement

This amendment is related to amendment 111. It refines the third branch of the ownership

condition for a low risk body, providing that the proportion of shares held by a non-authorised

person in a parent undertaking of B is less than 10%.

Bridget Prentice

122

Clause  108,  page  59,  line  14,  leave out ‘power’ and insert ‘rights’.

Members’ explanatory statement

This amendment refines the third branch of the ownership condition for a low risk body, providing

that the proportion of voting rights, rather than voting power, in a parent undertaking of B which

non-authorised persons are entitled to exercise, or control the exercise of, is less than 10%.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

273

Clause  108,  page  59,  line  16,  at end insert—

‘(3A)

The ownership condition for B satisfying the management condition set out in

paragraph 2(b) is that shares and voting power in B are only held by authorised

persons or members of recognised professional bodies.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 271.

Public Bill Committee: 21st June 2007

414

Legal Services Bill [Lords], continued

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

274

Clause  108,  page  59,  line  19,  at end insert—

‘“recognised professional body” means a body (other than an approved

regulator), incorporated by Royal Charter, which makes provision for—

(a)	testing the competence of those seeking admission to

membership of the body as a condition for such admission; and

(b)	imposing and maintaining professional and ethical standards for

its members, as well as imposing sanctions for non-compliance

with those standards.’.

Members’ explanatory statement

See Members’ explanatory statement for amendment 271.

Bridget Prentice

123

Clause  108,  page  59,  leave out lines 20 to 23.

Members’ explanatory statement

This amendment is related to amendments 120 and 122, which replace the concept of voting power.

A definition of voting power is therefore no longer needed.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

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”.

Public Bill Committee: 21st June 2007

415

Legal Services Bill [Lords], continued

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.

John Mann

283

Clause  113,  page  61,  line  35,  at end add—

‘(6)	Nothing in this Part is intended to prevent an application to the Solicitors’

Compensation Fund for redress in respect of a determination by an ombudsman

with which a solicitor respondent is unable or unwilling to comply.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

300

Schedule  15,  page  222,  line  35,  leave out sub-paragraph (2).

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

members 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.

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.’.

Public Bill Committee: 21st June 2007

416

Legal Services Bill [Lords], continued

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.

John Mann

285

Clause  121,  page  63,  line  11,  at end insert—

‘(za)

investigate the handling of complaints by the Office for Legal

Complaints (complaints under this subsection include those handled on

behalf of the Office for Legal Complaints and those referred to Approved

Regulators by the Office for Legal Compliants).’.

John Mann

286

Clause  121,  page  63,  line  24,  at end add—

‘(6)	The Board may take any steps it considers reasonably necessary to ensure the

OLC’s compliance with any obligations set under section 118(2)(a), (b) and (c).’.

John Mann

287

Clause  122,  page  63,  line  32,  at end insert—

‘(2A)

The majority of persons appointed under paragraph 1(b) must be lay persons.’.

Members’ explanatory statement

This amendment would ensure that a majority of assistant ombudsman must be lay people.

Public Bill Committee: 21st June 2007

417

Legal Services Bill [Lords], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

303

Clause  128,  page  65,  line  28,  at end insert ‘, or was a person giving legal advice or

assistance in the course of business but who is not otherwise covered by the provisions of

this Act.’.

John Mann

288

Clause  133,  page  68,  line  11,  at end insert—

‘(c)	The provision of an independent avenue of review for complainants who

consider that an approved regulator’s consideration of a regulatory issue

was inadequate or that its determination was unreasonable.’.

John Mann

289

Clause  133,  page  68,  line  17,  leave out ‘may’ and insert ‘must’.

John Mann

290

Clause  133,  page  68,  line  18,  leave out ‘specified’ and insert ‘all’.

John Mann

291

Clause  133,  page  68,  line  18,  at end insert ‘in which he considers it reasonable to do

so’.

John Mann

292

Clause  133,  page  68,  line  22,  at end insert ‘only by the Chief Ombudsman or an

assistant ombudsman.’.

John Mann

293

Clause  133,  page  68,  line  25,  at end insert ‘but not, for the avoidance of any doubt,

to an approved regulator.’.

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).

Public Bill Committee: 21st June 2007

418

Legal Services Bill [Lords], continued

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.

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.

John Mann

294

Clause  134,  page  70,  line  7,  leave out ‘any function’ and insert ‘only those

functions’.

Members’ explanatory statement

This amendment is intended to ensure that, in designing the scheme rules, powers of delegation

should be limited and decisions to delegate are not made ‘on the hoof’.

Bridget Prentice

10

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

Public Bill Committee: 21st June 2007

419

Legal Services Bill [Lords], continued

Members’ explanatory statement

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

circumstances 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 opinion the respondent failed to deal with the

complaint 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.

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

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

233

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

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Revised 21 June 2007