Public Bill Committee: 26th June 2007

492

Legal Services Bill [Lords], continued

‘(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).

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”,’.

Public Bill Committee: 26th June 2007

493

Legal Services Bill [Lords], continued

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.

(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.

Public Bill Committee: 26th June 2007

494

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

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’.

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.

Public Bill Committee: 26th June 2007

495

Legal Services Bill [Lords], continued

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—

‘(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).

Public Bill Committee: 26th June 2007

496

Legal Services Bill [Lords], continued

(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—

(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.”’.

Members’ explanatory statement

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,’.

Members’ explanatory statement

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’.

Members’ explanatory statement

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.

Public Bill Committee: 26th June 2007

497

Legal Services Bill [Lords], continued

Bridget Prentice

66

Schedule  16,  page  244,  line  6,  after ‘solicitor’, insert ‘, or an employee of a

solicitor,’.

Members’ explanatory statement

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’.

Members’ explanatory statement

This amendment is consequential on amendment 66.

Bridget Prentice

186

Schedule  16,  page  244,  line  38,  leave out ‘in shares’.

Members’ explanatory statement

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’.

Members’ explanatory statement

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’.

Members’ explanatory statement

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)

’.

Members’ explanatory statement

This is a paving amendment for amendment 70.

Public Bill Committee: 26th June 2007

498

Legal Services Bill [Lords], continued

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.”’.

Members’ explanatory statement

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’.

Members’ explanatory statement

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)’.

Members’ explanatory statement

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.’.

Members’ explanatory statement

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’.

Members’ explanatory statement

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.

---

Revised 26 June 2007