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Public Bill Committee Proceedings: 19th June 2007          

18

 

Legal Services Bill-[Lords], continued

 
 

(a)    

take account of the desirability of resolving informally matters which

 

arise between the Board and an approved regulator, and

 

(b)    

specify how, in exercising the functions mentioned in that subsection, the

 

Board will comply with the requirements of section 3(3) (regulatory

 

activities to be proportionate, consistent and targeted only at cases in

 

which action is needed, etc).’.

 

 

Clause Agreed to.

 

Clause 50 Agreed to.

 


 

Mr Henry Bellingham

 

Mr Jonathan Djanogly

 

Mr Tobias Ellwood

 

Withdrawn  251

 

Clause  51,  page  28,  line  4,  at end insert—

 

‘(2A)    

Practising fee income shall be kept separate from the other assets of a regulator.’.

 

Clause Agreed to.

 

Clauses 52 and 53 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Withdrawn  258

 

Clause  54,  page  30,  line  21,  at end insert—

 

‘(1A)    

An approved regulator must consider any request made by an external regulatory

 

body for the approved regulator to reconsider any provision made by its

 

regulatory arrangements on the grounds that the provision either—

 

(a)    

conflicts with a requirement of a regulatory provision made by the

 

external regulatory body, or

 

(b)    

unnecessarily duplicates any regulatory provision made by that external

 

regulator.’.

 

 

Mr Henry Bellingham

 

Mr Jonathan Djanogly

 

Mr Tobias Ellwood

 

Not called  252

 

Clause  54,  page  30,  line  27,  at end insert—

 

‘(2A)    

An external regulatory body may make an application to an approved regulator

 

under this section if it considers that the arrangements of the approved

 

regulator—

 

(a)    

frustrate the exercise of the external regulatory body’s requirements, or

 

(b)    

conflict with the external regulatory body’s regulatory requirements, or


 
 

Public Bill Committee Proceedings: 19th June 2007          

19

 

Legal Services Bill-[Lords], continued

 
 

(c)    

give rise to unnecessary duplication of regulatory requirements for the

 

subjects of the external regulatory body.

 

(2B)    

For the purposes of subsection (2A)(c) above, “subjects” means any individuals

 

or entities subject to the regulatory powers and jurisdication of the external

 

regulator.

 

(2C)    

Where an application is made to an approved regulator under this section, the

 

approved regulator must—

 

(a)    

determine whether such regulatory conflict exists with the external

 

regulatory body’s requirements and, where it so determines, take such

 

steps as are reasonably practicable to address the regulatory conflict

 

outlined by the external regulatory body, or,

 

(b)    

in the absence of satisfactory resolution and where provisions for the

 

resolution of external regulatory conflict provide, make an application to

 

the Board under subsection (4).’.

 

Clause Agreed to.

 


 

Mr Henry Bellingham

 

Mr Jonathan Djanogly

 

Mr Tobias Ellwood

 

Simon Hughes

 

John Hemming

 

Withdrawn  253

 

Clause  55,  page  31,  line  6,  at end insert—

 

‘(d)    

shall give a reason and explanation for such notice.’.

 

Clause Agreed to.

 


 

John Mann

 

Withdrawn  281

 

Clause  56,  page  31,  line  31,  at end add—

 

‘(4)    

Without prejudice to subsection (2) the Board may, in exceptional circumstances

 

and as a temporary measure, issue an order requiring the approved regulator to

 

comply with the notice or with such directions as would have been contained in

 

the order had a successful application been made.’.

 

 

Clause Agreed to.

 

Clauses 57 to 62 Agreed to.

 



 
 

Public Bill Committee Proceedings: 19th June 2007          

20

 

Legal Services Bill-[Lords], continued

 
 

Simon Hughes

 

John Hemming

 

Mr Henry Bellingham

 

Mr Jonathan Djanogly

 

Mr Tobias Ellwood

 

Withdrawn  226

 

Clause  63,  page  35,  line  4,  at end insert ‘and, in either case, no other approved

 

regulator is suitable and willing to regulate the activity in question.’.

 

 

Clause Agreed to.

 

Clauses 64 to 70 Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  268

 

Clause  71,  page  41,  line  8,  at end insert ‘, provided that a body is not a “licensable

 

body” if the only managers who are non-authorised persons are individuals who do not

 

directly provide any services to consumers.’.

 

John Mann

 

Not moved  282

 

Clause  71,  page  41,  line  8,  at end add—

 

‘(3)    

Without prejudice to the powers vested in the board by this Part of this Act, the

 

Board must seek to ensure that, as far as is practicable, licenses to permit

 

alternative business structures for the provision of legal services are issued on an

 

incremental basis, in order to reduce the risk of a disruption of the market for legal

 

services.’.

 

 

Clause Agreed to.

 


 

Bridget Prentice

 

Agreed to  111

 

Clause  72,  page  41,  line  10,  leave out subsections (1) and (2) and insert—

 

‘(1)    

A body (“B”) is a licensable body if a non-authorised person—

 

(a)    

is a manager of B, or

 

(b)    

has an interest in B.

 

(2)    

A body (“B”) is also a licensable body if—

 

(a)    

another body (“A”) is a manager of B, or has an interest in B, and

 

(b)    

non-authorised persons are entitled to exercise, or control the exercise of,

 

at least 10% of the voting rights in A.

 

(2A)    

For the purposes of this Act, a person has an interest in a body if—

 

(a)    

the person holds shares in the body, or


 
 

Public Bill Committee Proceedings: 19th June 2007          

21

 

Legal Services Bill-[Lords], continued

 
 

(b)    

the person is entitled to exercise, or control the exercise of, voting rights

 

in the body.

 

(2B)    

A body may be licensable by virtue of both subsection (1) and subsection (2).

 

(2C)    

For the purposes of this Act, a non-authorised person has an indirect interest in a

 

licensable body if the body is licensable by virtue of subsection (2) and the non-

 

authorised person is entitled to exercise, or control the exercise of, voting rights

 

in A.’.

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  257

 

Clause  72,  page  41,  line  10,  leave out subsection (1) and insert—

 

‘(1)    

For the purposes of this Act, a body is a “licensable body” if—

 

(a)    

at least one manager of the body is an individual who is a non-authorised

 

person who provides services directly or indirectly to clients; or

 

(b)    

more than 25 per cent. of the managers of the body are individuals who

 

are not authorised persons regardless of whether they provide services

 

directly or indirectly to clients; or

 

(c)    

at least one person who has an interest in shares in the body is a non-

 

authorised person and is not a manager of that body.’.

 

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  259

 

Clause  72,  page  41,  line  13,  at end insert—

 

‘(1A)    

A body is not a licensable body if it is regulated under section 9(A) of the

 

Administration of Justice Act 1985.’.

 

 

Bridget Prentice

 

Agreed to  112

 

Clause  72,  page  41,  line  26,  at end insert ‘, and references to the holding of shares,

 

or to a shareholding, are to be construed accordingly.’.

 

Clause, as amended, Agreed to.

 

Clauses 73 to 76 Agreed to.

 

Schedule 10 Agreed to.

 

Clauses 77 to 82 Agreed to.

 

[Adjourned till Thursday at 9.00 a.m.


 
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