House of Commons Public Bill Committee Proceedings

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Session 2006 - 07
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Other Bills before Parliament

Public Bill Committee Proceedings: 26th June 2007
76

Legal Services Bill-[Lords], continued

(5)
The Board must appoint to the Practitioner Panel such—

(a)
individuals who are authorised persons,

(b)
persons representing authorised persons,

as it considers appropriate.

(6)
The chairman and other members of the Practioner Panel are to be—

(a)
appointed on terms and conditions determined by the Board, and

(b)
paid by the Board in accordance with provision made by or under the

terms of appointment.’.

Committees and the procedure of the Practioner Panel

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  NC6

To move the following Clause:—

‘(1)
The Practioner Panel may make such arrangements as it thinks fit for committees

established by the Panel to give advice to the Panel about matters relating to the

carrying out of the Panel’s functions.

(2)
The Practioner Panel may make such other arrangements for regulating its own

procedure, and for regulating the procedure of the committees established by it,

as it thinks fit.

(3)
Those arrangements may include arrangements as to quorums and as to the

making of decisions by a majority.

(4)
The committees established by the Practioner Panel may include committees the

membership of which include persons who are not members of the Panel.

(5)
The membership of every committee established by the Practioner Panel must

contain at least one person who is a member of the Panel.

(6)
Where a person who is not a member of the Practioner Panel is a member of a

committee established by it, the Board may pay to that person such remuneration

and expenses as the Board may determine.’.

Intervention directions

Simon Hughes

John Hemming

Not called  NC7

To move the following Clause:—

‘(1)
The Board may give the OLC an intervention direction in relation to any of its

functions if the Board is satisfied—

(a)
that despite notice it has failed to handle complaints about authorised

persons effectively and efficiently, and

Public Bill Committee Proceedings: 26th June 2007
77

Legal Services Bill-[Lords], continued

(b)
that, in the circumstance of the case, it is appropriate to give the

intervention direction.

(2)
An intervention direction, in relation to the function of the OLC, is a direction

that—

(a)
the function is to be exercised by the Board or a person nominated by it,

and

(b)
the OLC must comply with any instrument of the Board or its nominees

in relation to the exercise of the function.

(3)
The Board may not determine that it is appropriate to given an intervention

direction unless it is satisfied that the matter cannot be adequately addressed by

the Board exercising the powers available to it under section (Board’s functions

in relation to complaints).

(4)
The Board must make rules as to persons it may nominate for the purpose of

subsection (2)(a).’.

Board’s function in relation to complaints

Simon Hughes

John Hemming

Not called  NC8

To move the following Clause:—

‘(1)
If it appears to the Board that complaints about any authorised person are not

being handled effectively and efficiently by the OLC, the Board may exercise in

relation to the OLC such of the powers in subsection (2) as it considers necessary.

(2)
Those powers are—

(a)
to investigate the handling of complaints about authorised persons;

(b)
to make recommendations in relation to the handling of complaints about

authorised persons; and

(c)
to require the OLC to submit to the Board a plan for the handling of

complaints about authorised persons.

(3)
Where the Board requires the OLC to submit to it a plan for the handling of

complaints about authorised persons but the OLC—

(a)
fails to submit to the Board a plan which it considers adequate for

securing that such complaints are handled effectively and efficiently, or

(b)
submits to the Board such a plan but fails to handle complaints in

accordance with it

the Board may give directions to the OLC.’.

Directions

Simon Hughes

John Hemming

Not called  NC9

To move the following Clause:—

Public Bill Committee Proceedings: 26th June 2007
78

Legal Services Bill-[Lords], continued

‘(1)
This section applies if the Board is satisfied—

(a)
that the OLC has failed to meet the requirement of section (Board’s

functions in relation to complaints) (3)(a) or (b), or

(b)
that the OLC has failed to comply with any requirement imposed on it by

or under this Act (including this section) or any other enactment.

(2)
If, in all the circumstances of the case, the Board is satisfied that it is appropriate

to do so, it may direct the OLC to take in a case within subsection (1)(a) or (b)

such steps as the Board considers will remedy the failure, mitigate its effect or

prevent its recurrence.

(3)
A direction under subsection (2) may only require the OLC to take steps which it

has the power to take.

(4)
For the purpose of this section, a direction to take steps includes a direction which

requires the OLC to refrain from taking a particular course of action.

(5)
The power to give a direction under this section is subject to any provision made

by or under any other enactment.

(6)
The Board may take steps as it regards as appropriate to monitor and investigate

the extent to which a direction under this section is being, or has been, complied

with.

(7)
Where the Board revokes a direction under this section, it must—

(a)
give the OLC notice of the revocation, and

(b)
publish that notice.’.

Board’s general duty to consult

Simon Hughes

John Hemming

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  NC10

To move the following Clause:—

‘The Board must make and maintain effective arrangements for consulting

representatives of practitioners and consumers on the extent to which its general

policies and practices are consistent with its duty under section 3.’.

Consultation

Simon Hughes

John Hemming

Not called  NC11

To move the following Clause:—

‘Arrangements under section (Board’s general duty to consult) must include

consultation in advance of the Board setting its workplan for each year, so as to

obtain the views of persons consulted on—

Public Bill Committee Proceedings: 26th June 2007
79

Legal Services Bill-[Lords], continued

(a)
the degree to which the Board’s proposed activities are appropriately

targeted on areas giving rise to the greatest regulatory concern, and

(b)
whether or not the proposed programme of works is proportionate,

having regard to the need to avoid imposing unnecessary regulatory

burdens.’.

Seperation of funds proportionality

Mr Henry Bellingham

Mr Jonathan Djanogly

Mr Tobias Ellwood

Not called  NC12

To move the following Clause:—

‘(1)
In exercising its functions under sections 29 and 30, the Board shall pay particular

regard to what is proportionate.

(2)
Without prejudice to subsection (1), nothing in sections 29 or 30 shall exclude—

(a)
the exercise of or involvement in regulatory and representative functions

by the same persons or bodies within an approved regulator;

(b)
the exercise of regulatory and representative functions from common

premises.’.

Appeal against public censure

Mr Henry Bellingham

Mr Jonathan Djanogly

Mr Tobias Ellwood

Not called  NC13

To move the following Clause:—

‘(1)
An approved regulator in respect of whom the Board decides to publish a

statement under section 35 may appeal to the court on one or more of the appeal

grounds.

(2)
The appeal grounds are —

(a)
that the decision was not within the power of the Board under section 35;

(b)
that any of the requirements of section 36 have not been complied with

in relation to the imposition of the penalty and the interests of the

approved regulator have been substantially prejudiced by the non-

compliance;

(c)
that in all circumstances, the publication of a statement under section 35

is, or the terms of the statement published or to be published are (or

would be), manifestly unreasonable or inappropriate;

(d)
that the decision is unlawful on any ground that would give rise to a claim

for judicial review.

(e)
that the decsion is unlawful on any ground that would give rise to a claim

for judicial review.

Public Bill Committee Proceedings: 26th June 2007
80

Legal Services Bill-[Lords], continued

(3)
An appeal under subsection (1) must be made within the period of 42 days

beginning with the day on which the notice was given to the approved regulator.

(4)
Where an appeal is made before the expiry of the 7-day period the Board must not

(unless the court otherwise orders) publish the statement until the appeal has been

withdrawn or dismissed.

(5)
On an appeal under subsection (1), where the court considers it appropriate to do

so in all the circumstances of the case and is satisfied of one or more of the appeal

grounds, the court may—

(a)
quash the decision to publish a statement, or

(b)
vary the terms of the statement (and, where the statement has been

published, direct the Board to publish to the same extent the statement as

varied).

(6)
In this section “the court” means the High Court.’.

Registration of non-authorised managers

Mr Jonathan Djangoly

Mr Henry Bellingham

Mr Tobais Ellwood

Not called  NC14

To move the following Clause:—

‘(1)
Any body “B” which carries on an activity under Section 13 of this Act, which is

not a “licensable body” as defined in Section [71(1)] but which has at least one

manager who is not an authorised person, must register any non-authorised

manager with an approved regulator.

(2)
It is an offence for B to carry on an activity under Section 13 of this Act if B does

not comply with the conditions of this section.

(3)
For the purposes of this section an approved regulator may refuse to register any

non-authorised manager (M) of B if its is not satisfied that:

(a)
M does not provide services to clients, directly or indirectly, or

(b)
M will act in a manner consistent with the “professional principles” set

out in Section 1(3).

(4)
No manager of B may be a person who has been disqualified from acting under

Section 99.

(5)
B will cease to be entitled to carry on an activity under Section 13 of this Act if

B knowingly carries on reserved activities whilst a person, disqualified under

Section 99, continues to be a manager of B.’.

Public Bill Committee Proceedings: 26th June 2007
81

Legal Services Bill-[Lords], continued

Low risk and professional bodies

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  nc15

To move the following Clause:—

‘(1)
A licensing authority may apply to the Board to determine the status of a

recognised professional body if it is in any doubt as to whether that professional

body meets the criteria set down in this Act.

(2)
A licensing authority may apply to the Board to determine whether a body “B”,

which is “low risk” under section 108(2)(b) should not be treated as low risk if it

considers the services to be offered by B are inconsistent with the “professional

principles” set out in section 1(3).’.

Patent and trade mark agents

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  NC16

To move the following Clause:—

‘A body—

(a)
existing at the date this Act comes into force and entitled to use the

description “Registered Trade Mark Agents” or “Registered Patent

Agents”; and

(b)
which through the operation of section 72(1)(b) of this Act would

otherwise be a licensable body,

shall not be a licensable body unless it ceases to be entitled to use the said

descriptions.’.

Handling of complaints by an external regulator

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  NC17

To move the following Clause:—

‘(1)
The OLC may direct that part or all of a specific complaint within the jurisdiction

of the ombudsman scheme shall be determined by a relevant external regulator

where it concludes that—

Public Bill Committee Proceedings: 26th June 2007
82

Legal Services Bill-[Lords], continued

(a)
the complaint relates to matters which would more efficiently, cost

effectively or in the interests of the maintenance of justice be determined

by a relevant external regulator; or

(b)
the matters which give rise to the complaint cannot be divided into

service and misconduct matters without undue duplication of process,

provision of information or in the interests of justice should be

determined by an external regulator; and

(c)
the complainant, authorised person or either will not be unduly

prejudiced by the determination of the complaint by the relevant external

regulator.

(2)
Any such complaints the OLC refers to a relevant external regulator for

determination shall remain within the jurisdiction of the ombudsman scheme.

(3)
The OLC shall be free to vary or cancel any such direction made under subsection

(1) if it considers that the complaint is being handled in a manner inconsistent

with the provisions of the ombudsman scheme.

(4)
The OLC shall remain entitled to award compensation in addition to or instead of

any amount awarded by the relevant external regulator in respect of the complaint

if it determines that to do so would be in the interests of justice and consistent with

the provisions of the ombudsman scheme.

(5)
The OLC shall not direct that a complaint is to be determined by a relevant

external regulator unless it is satisfied—

(a)
that the external regulator has agreed to be subject to the jurisdiction of

the OLC for the purposes of handling the complaint; and

(b)
that the external regulator’s complaint handling and relevant associated

processes are appropriate for the purposes of the resolution of the

complaint.

(6)
For the purpose of this section “external regulator” means a person other than an

approved regulator who exercises regulatory functions in relation to a particular

description of persons with a view to ensuring compliance with statutory or non-

statutory rules by those persons.’.

Bridget Prentice

Agreed to

      That certain written evidence already reported to the House be appended to the

proceedings of the Committee.

Bill, as amended, to be reported.