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Legal Services Bill [HL]


Legal Services Bill [HL]
Part 1 — The regulatory objectives

1

 

A

Bill

[AS AMENDED IN PUBLIC BILL COMMITTEE]

To

Make provision for the establishment of the Legal Services Board and in

respect of its functions; to make provision for, and in connection with, the

regulation of persons who carry on certain legal activities; to make provision

for the establishment of the Office for Legal Complaints and for a scheme to

consider and determine legal complaints; to make provision about claims

management services and about immigration advice and immigration

services; to make provision in respect of legal representation provided free of

charge; to make provision about the application of the Legal Profession and

Legal Aid (Scotland) Act 2007; to make provision about the Scottish legal

services ombudsman; and for connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

The regulatory objectives

1       

The regulatory objectives

(1)   

In this Act a reference to “the regulatory objectives” is a reference to the

objectives of—

5

(a)   

protecting and promoting the public interest;

(b)   

supporting the constitutional principle of the rule of law;

(c)   

improving access to justice;

(d)   

protecting and promoting the interests of consumers;

(e)   

promoting competition in the provision of services within subsection

10

(2);

(f)   

encouraging an independent, strong, diverse and effective legal

profession;

 
Bill 13554/2
 
 

Legal Services Bill [HL]
Part 2 — The Legal Services Board

2

 

(g)   

increasing public understanding of the citizen’s legal rights and duties;

(h)   

promoting and maintaining adherence to the professional principles.

(2)   

The services within this subsection are services such as are provided by

authorised persons (including services which do not involve the carrying on of

activities which are reserved legal activities).

5

(3)   

The “professional principles” are—

(a)   

that authorised persons should act with independence and integrity,

(b)   

that authorised persons should maintain proper standards of work,

(c)   

that authorised persons should act in the best interests of their clients,

(d)   

that persons who exercise before any court a right of audience, or

10

conduct litigation in relation to proceedings in any court, by virtue of

being authorised persons should comply with their duty to the court to

act with independence in the interests of justice, and

(e)   

that the affairs of clients should be kept confidential.

(4)   

In this section “authorised persons” means authorised persons in relation to

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activities which are reserved legal activities.

Part 2

The Legal Services Board

Constitution

2       

The Legal Services Board

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(1)   

There is to be a body corporate called the Legal Services Board (“the Board”).

(2)   

Schedule 1 is about the Board.

General functions

3       

The Board’s duty to promote the regulatory objectives etc

(1)   

In discharging its functions the Board must comply with the requirements of

25

this section.

(2)   

The Board must, so far as is reasonably practicable, act in a way—

(a)   

which is compatible with the regulatory objectives, and

(b)   

which the Board considers most appropriate for the purpose of meeting

those objectives.

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(3)   

The Board must have regard to—

(a)   

the principles under which regulatory activities should be transparent,

accountable, proportionate, consistent and targeted only at cases in

which action is needed, and

(b)   

any other principle appearing to it to represent the best regulatory

35

practice.

 
 

Legal Services Bill [HL]
Part 2 — The Legal Services Board

3

 

4       

Standards of regulation, education and training

The Board must assist in the maintenance and development of standards in

relation to—

(a)   

the regulation by approved regulators of persons authorised by them

to carry on activities which are reserved legal activities, and

5

(b)   

the education and training of persons so authorised.

5       

Corporate governance

In managing its affairs, the Board must have regard to such generally accepted

principles of good corporate governance as it is reasonable to regard as

applicable to it.

10

6       

Annual report

(1)   

The Board must prepare a report (“the annual report”) for each financial year.

(2)   

The annual report must deal with—

(a)   

the discharge of the Board’s functions,

(b)   

the extent to which, in the Board’s opinion, the Board has met the

15

regulatory objectives, and

(c)   

such other matters as the Lord Chancellor may from time to time direct.

(3)   

As soon as reasonably practicable after the end of each financial year, the Board

must give the Lord Chancellor a copy of the annual report prepared for that

year.

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(4)   

The Lord Chancellor must lay a copy of the annual report before Parliament.

(5)   

In this section “financial year” means—

(a)   

the period beginning with the day on which the Board is established

and ending with the next following 31 March, and

(b)   

each successive period of 12 months.

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7       

Supplementary powers

The Board may do anything calculated to facilitate, or incidental or conducive

to, the carrying out of any of its functions.

Consumer Panel

8       

The Consumer Panel

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(1)   

The Board must establish and maintain a panel of persons (to be known as “the

Consumer Panel”) to represent the interests of consumers.

(2)   

The Board must appoint to the Consumer Panel such consumers, or persons

representing the interests of consumers, as the Board considers appropriate.

(3)   

The Board must appoint one of the members of the Consumer Panel to be the

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chairman of the Panel.

(4)   

The Board must secure that the membership of the Consumer Panel is such as

to give a fair degree of representation to both—

 
 

Legal Services Bill [HL]
Part 2 — The Legal Services Board

4

 

(a)   

those who are using (or are or may be contemplating using), in

connection with businesses carried on by them, services provided by

persons who are authorised persons in relation to activities which are

reserved legal activities, and

(b)   

those who are using (or are or may be contemplating using) such

5

services otherwise than in connection with businesses carried on by

them.

(5)   

The Consumer Panel must not include any person who is—

(a)   

a member of the Board or of its staff;

(b)   

a member of the Office for Legal Complaints (see Part 6), an

10

ombudsman appointed by it or a member of its staff appointed under

paragraph 13 of Schedule 15;

(c)   

a member of the governing body, or of the staff, of an approved

regulator;

(d)   

an authorised person in relation to an activity which is a reserved legal

15

activity;

(e)   

a person authorised, by a person designated under section 5(1) of the

Compensation Act 2006 (c. 29), to provide services which are regulated

claims management services (within the meaning of that Act);

(f)   

an advocate in Scotland;

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(g)   

a solicitor in Scotland;

(h)   

a member of the Bar of Northern Ireland; or

(i)   

a solicitor of the Court of Judicature of Northern Ireland.

(6)   

The chairman and other members of the Consumer Panel are to be—

(a)   

appointed on terms and conditions determined by the Board, and

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(b)   

paid by the Board in accordance with provision made by or under the

terms of appointment.

9       

Committees and the procedure of the Consumer Panel

(1)   

The Consumer Panel may make such arrangements as it thinks fit for

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

30

relating to the carrying out of the Panel’s functions.

(2)   

The Consumer 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

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making of decisions by a majority.

(4)   

The committees established by the Consumer Panel may include committees

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

(5)   

The membership of every committee established by the Consumer Panel must

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

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(6)   

Where a person who is not a member of the Consumer 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.

 
 

 
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