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Public Bill Committee Proceedings: 26th June 2007          

44

 

Legal Services Bill-[Lords], continued

 
 

Clause, as amended, Agreed to.

 


 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  302

 

Clause  175,  page  93,  line  13,  at end insert—

 

‘( )    

A debt recovered under subsection (5) may only be recovered from practising

 

fees held by a regulator.’.

 

Clause Agreed to.

 

Clause 176 Agreed to.

 


 

Simon Hughes

 

John Hemming

 

Withdrawn  242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.’.

 

Clause Agreed to.

 

Clause 178 Agreed to.

 


 

Bridget Prentice

 

Agreed to  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 Proceedings: 26th June 2007          

45

 

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.”’.

 


 

 

Bridget Prentice

 

Agreed to  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.’.

 


 

 

Bridget Prentice

 

Agreed to  46

 

Schedule  16,  page  230,  line  13,  after ‘application’, insert ‘under this section’.

 

 

Bridget Prentice

 

Agreed to  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);’.

 

 

Bridget Prentice

 

Agreed to  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,’.

 


 

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Withdrawn  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

 

Agreed to  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’.

 


 


 
 

Public Bill Committee Proceedings: 26th June 2007          

46

 

Legal Services Bill-[Lords], continued

 
 

Bridget Prentice

 

Agreed to  50

 

Schedule  16,  page  232,  line  6,  leave out ‘for a practising certificate’ and insert

 

‘under section 9’.

 

 

Bridget Prentice

 

Agreed to  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,’.

 


 

 

Bridget Prentice

 

Agreed to  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,’.

 


 

 

Bridget Prentice

 

Agreed to  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—


 
 

Public Bill Committee Proceedings: 26th June 2007          

47

 

Legal Services Bill-[Lords], continued

 
 

(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.

 

(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.”’.

 


 

 

Bridget Prentice

 

Agreed to  54

 

Schedule  16,  page  232,  line  32,  after ‘if’, insert—

 

‘(a)    

under section 13ZA the Society grants a sole solicitor

 

endorsement, or

 

(b)    

’.

 


 

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  305

 

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


 
 

Public Bill Committee Proceedings: 26th June 2007          

48

 

Legal Services Bill-[Lords], continued

 
 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  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

 

Agreed to  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”,’.

 

.

 

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  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

 

Agreed to  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”,’.

 


 

 

Bridget Prentice

 

Agreed to  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.


 
 

Public Bill Committee Proceedings: 26th June 2007          

49

 

Legal Services Bill-[Lords], continued

 
 

(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.”’.

 


 

 

Bridget Prentice

 

Agreed to  58

 

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

 

‘( )    

after that paragraph insert—

 

“(ca)    

sole solicitor endorsements and applications for

 

them,”’.

 


 

 

Bridget Prentice

 

Agreed to  59

 

Schedule  16,  page  235,  line  22,  after ‘certificates’, insert ‘or sole solicitor

 

endorsements’.

 

 

Bridget Prentice

 

Agreed to  60

 

Schedule  16,  page  235,  line  24,  after ‘certificates’, insert ‘or sole solicitor

 

endorsements’.

 

 

Bridget Prentice

 

Agreed to  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);’.


 
 

Public Bill Committee Proceedings: 26th June 2007          

50

 

Legal Services Bill-[Lords], continued

 
 

.

 

 

Bridget Prentice

 

Agreed to  62

 

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

 

endorsements’.

 

 

Bridget Prentice

 

Agreed to  63

 

Schedule  16,  page  237,  line  33,  at end insert ‘, and

 

(c)    

after “solicitor” (in both places) insert “or any of his employees”.’.

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Tobias Ellwood

 

Not called  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

 

Agreed to  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—


 
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