House of Commons Amendments

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Public Bill Committee: 21st June 2007
427

Legal Services Bill [Lords], continued

Members’ explanatory statement

This amendment is related to amendment 44. It provides that the register of solicitors holding

practising certificates must state whether the practising certificate has a sole solicitor

endorsement.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

299

Schedule  16,  page  231,  line  22,  leave out from ‘if’ to end of line 27 and insert ‘he

has been required by rules made under section 35(1) to provide an accountant’s report and

has failed to provide such a report within the time period prescribed under those rules,’.

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

endorsement 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

certificates.

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.

Public Bill Committee: 21st June 2007
428

Legal Services Bill [Lords], continued

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—

(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,

Public Bill Committee: 21st June 2007
429

Legal Services Bill [Lords], continued

(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

criteria 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.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

305

Schedule  16,  page  232,  line  41,  leave out sub-paragraph (5).

Public Bill Committee: 21st June 2007
430

Legal Services Bill [Lords], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

306

Schedule  16,  page  233,  line  18,  at end insert—

  ‘(12)
The decision of the High Court on an appeal under subsection (6) or (9) shall

be final.’.

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.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

307

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

‘( )
in subsection (2) for “six” substitute “9”,

( )
in subsection (4) for “six” substitute “9”,’.

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

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.

Public Bill Committee: 21st June 2007
431

Legal Services Bill [Lords], continued

(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

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,”’.

Members’ explanatory statement

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’.

Public Bill Committee: 21st June 2007
432

Legal Services Bill [Lords], continued

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

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);’.

.

Members’ explanatory statement

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’.

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.

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”.’.

Members’ explanatory statement

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.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

308

Schedule  16,  page  238,  line  28,  at end insert—

Public Bill Committee: 21st June 2007
433

Legal Services Bill [Lords], continued

    ‘(3)
The rules may make different provision for different categories of solicitors

and for different circumstances.’.

Bridget Prentice

64

Schedule  16,  page  239,  line  7,  at end insert—


‘After section 34 insert—

“Sole solicitors

34A
Employees of solicitors

(1)
Rules made by the Society may provide for any rules made under

section 31, 32, 33A or 34 to have effect in relation to employees of

solicitors with such additions, omissions or other modifications as

appear to the Society to be necessary or expedient.

(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).

(3)
Except as provided by the rules, an employee to whom the rules are

applied is not liable to account to any client, other person or trust for

interest received by the employee on money held at a bank or building

society in an account which is for money received or held for, or on

account of—

(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).

(5)
The Society may disclose a report on or information about the

accounts of any employee of a solicitor obtained in pursuance of such

rules for use—