Legal Services Bill [HL]

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 7 — Directions: procedure
159

      (8)
Before preparing that report, the Board must—
(a)
give the approved regulator a reasonable opportunity to comment
on a draft of the report, and
(b)
have regard to any comments duly made.
Board’s duty to seek advice
5
3     (1)
After complying with paragraph 2, the Board must give each of the persons
listed in sub-paragraph (2)—
(a)
a copy of the warning notice and the accompanying draft direction,
(b)
a copy of any written representations duly made under paragraph 2
and a copy of the report (if any) prepared under that paragraph, and
10
(c)
a notice specifying a period within which any advice under
paragraphs 4 to 7 must be given.
      (2)
Those persons are—
(a)
the Lord Chancellor,
(b)
the OFT,
15
(c)
the Consumer Panel,
(d)
the Lord Chief Justice, and
(e)
such other persons as the Board considers it reasonable to consult in
respect of the proposed direction.
      (3)
In this Schedule, in relation to a proposed direction, “selected consultee”
20
means a person within sub-paragraph (2)(e).
Advice of the Lord Chancellor
4
The Lord Chancellor must give the Board such advice as the Lord
Chancellor thinks fit in respect of the proposed direction.
Advice of Office of Fair Trading
25
5     (1)
The OFT must give the Board such advice as it thinks fit regarding whether
the proposed direction should be given.
      (2)
In deciding what advice to give, the OFT must, in particular, have regard to
whether giving the proposed direction would (or would be likely to)
prevent, restrict or distort competition within the market for reserved legal
30
services to any significant extent.
Advice of the Consumer Panel
6     (1)
The Consumer Panel must give the Board such advice as it thinks fit
regarding whether the proposed direction should be given.
      (2)
In deciding what advice to give, the Consumer Panel must, in particular,
35
have regard to the likely impact of the proposed direction on consumers.
Advice of selected consultees
7
A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed direction.

Legal Services Bill [HL]
Schedule 7 — Directions: procedure
160

Advice of the Lord Chief Justice
8     (1)
The Board must give the Lord Chief Justice—
(a)
a copy of any advice duly given under paragraphs 4 to 7, and
(b)
a notice specifying a period within which any advice under this
paragraph must be given.
5
      (2)
The Lord Chief Justice must then give such advice as the Lord Chief Justice
thinks fit regarding whether the proposed direction should be given.
      (3)
In deciding what advice to give, the Lord Chief Justice must, in particular,
have regard to the likely impact of the proposed direction on the courts in
England and Wales.
10
Consultees’ powers to request information
9
A person (“the consultee”) to whom a copy of the warning notice is given
under paragraph 3(1) may, for the purposes of giving advice under
paragraphs 4 to 8, request the approved regulator or any other person to
provide the consultee with such additional information as may be specified
15
by the consultee.
Representations by approved regulator
10    (1)
The Board must give the approved regulator a copy of any advice duly given
under paragraphs 4 to 8.
      (2)
The approved regulator may make to the Board—
20
(a)
written representations, and
(b)
if the Board authorises it to do so, oral representations,

about the advice.
      (3)
The Board must make rules governing the making of oral and written
representations.
25
      (4)
Representations under this paragraph must be made within—
(a)
the period of 28 days beginning with the day on which the copy of
the advice is given to the approved regulator, or
(b)
such longer period as the Board may specify in a particular case.
      (5)
Where oral representations are made, the Board must prepare a report of
30
those representations.
      (6)
Before preparing that report, the Board must—
(a)
give the approved regulator a reasonable opportunity to comment
on a draft of the report, and
(b)
have regard to any comments duly made.
35
Publication of advice etc
11    (1)
The Board must, as soon as practicable after the end of the period within
which representations under paragraph 10 may be made, publish—
(a)
any advice duly given under paragraphs 4 to 8, and
(b)
any written representations duly made under paragraph 10 and the
40
report (if any) prepared under that paragraph.

Legal Services Bill [HL]
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions
161

      (2)
Nothing in sub-paragraph (1) operates—
(a)
to prevent a person who gives advice under paragraphs 4 to 8 from
publishing that advice, or
(b)
to prevent a person who makes representations under paragraph 10
from publishing those representations.
5
      (3)
A person (“the publisher”) publishing any such material (whether under
sub-paragraph (1) or otherwise) must, so far as practicable, exclude any
matter which relates to the private affairs of a particular individual the
publication of which, in the opinion of the publisher, would or might
seriously and prejudicially affect the interests of that individual.
10
Decision by the Board
12    (1)
After considering—
(a)
any advice duly given under paragraphs 4 to 8,
(b)
any representations duly made under paragraph 10, and
(c)
any other information which the Board considers relevant,
15

the Board must decide whether to give the approved regulator the proposed
direction.
      (2)
The Board must give notice of its decision (“the decision notice”) to the
approved regulator.
      (3)
Where the Board decides to give the proposed direction, the decision notice
20
must—
(a)
contain the direction,
(b)
state the time at which the direction is to take effect, and
(c)
specify the Board’s reasons for the decision to give the direction.
      (4)
The Board must publish the decision notice.
25
Schedule 8
Sections 41 and 44

Intervention directions: procedure
Part 1
Giving intervention directions
Introductory
30
1     (1)
This Part of this Schedule applies where the Board proposes giving an
intervention direction to an approved regulator in respect of a regulatory
function.
      (2)
In this Schedule “intervention direction” has the same meaning as in section
41.
35
Notification of the approved regulator
2     (1)
The Board must give the approved regulator a notice (“a warning notice”)
accompanied by a draft of the proposed intervention direction.

Legal Services Bill [HL]
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions
162

      (2)
The warning notice must—
(a)
state that the Board proposes to give the approved regulator an
intervention direction in the form of the accompanying draft and the
time when it is proposed that direction should take effect, and
(b)
state the reasons why the Board is satisfied of the matters mentioned
5
in section 41(1)(a) and (b).
      (3)
The Board must publish a copy of the warning notice.
      (4)
The approved regulator may make to the Board—
(a)
written representations, and
(b)
if the Board authorises it to do so, oral representations,
10

about the proposed intervention direction.
      (5)
The Board must make rules governing the making of written and oral
representations.
      (6)
Any representations under sub-paragraph (4) must be made before the end
of—
15
(a)
the period of 28 days beginning with the day on which the warning
notice is given to the approved regulator, or
(b)
such longer period as the Board may specify in a particular case.
      (7)
Where oral representations are duly made under this paragraph, the Board
must prepare a report of those representations.
20
      (8)
Before preparing that report, the Board must—
(a)
give the approved regulator a reasonable opportunity to comment
on a draft of the report, and
(b)
have regard to any comments duly made.
Board’s duty to seek advice
25
3     (1)
After complying with paragraph 2, the Board must give each of the persons
listed in sub-paragraph (2)—
(a)
a copy of the warning notice and the accompanying draft,
(b)
a copy of any written representations duly made under paragraph 2
and a copy of the report (if any) prepared under that paragraph, and
30
(c)
a notice specifying a period within which any advice under
paragraphs 4 to 7 must be given.
      (2)
Those persons are—
(a)
the Lord Chancellor,
(b)
the OFT,
35
(c)
the Consumer Panel,
(d)
the Lord Chief Justice, and
(e)
such other persons as the Board considers it reasonable to consult in
respect of the proposed intervention direction.
      (3)
In this Part of this Schedule, in relation to a proposed intervention direction,
40
“selected consultee” means a person within sub-paragraph (2)(e).

Legal Services Bill [HL]
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions
163

Advice of the Lord Chancellor
4
The Lord Chancellor must give the Board such advice as the Lord
Chancellor thinks fit in respect of the proposed intervention direction.
Advice of Office of Fair Trading
5     (1)
The OFT must give the Board such advice as it thinks fit regarding whether
5
the proposed intervention direction should be given.
      (2)
In deciding what advice to give, the OFT must, in particular, have regard to
whether giving the proposed intervention direction would (or would be
likely to) prevent, restrict or distort competition within the market for
reserved legal services to any significant extent.
10
Advice of the Consumer Panel
6     (1)
The Consumer Panel must give the Board such advice as it thinks fit
regarding whether the proposed intervention direction should be given.
      (2)
In deciding what advice to give, the Consumer Panel must, in particular,
have regard to the likely impact of the proposed direction on consumers.
15
Advice of selected consultees
7
A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed intervention direction.
Advice of the Lord Chief Justice
8     (1)
The Board must give the Lord Chief Justice—
20
(a)
a copy of any advice duly given under paragraphs 4 to 7, and
(b)
a notice specifying a period within which any advice under this
paragraph must be given.
      (2)
The Lord Chief Justice must then give such advice as the Lord Chief Justice
thinks fit regarding whether the proposed intervention direction should be
25
given.
      (3)
In deciding what advice to give, the Lord Chief Justice must, in particular,
have regard to the likely impact of the proposed intervention direction on
the courts in England and Wales.
Consultees’ powers to request information
30
9
A person (“the consultee”) to whom a copy of the warning notice is given
under paragraph 3(1) may, for the purposes of giving advice under
paragraphs 4 to 8, request the approved regulator or any other person to
provide the consultee with such additional information as may be specified
by the consultee.
35
Representations by the approved regulator etc
10    (1)
The Board must—
(a)
give the approved regulator a copy of any advice duly given under
paragraphs 4 to 8, and

Legal Services Bill [HL]
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions
164

(b)
publish that advice together with any written representations duly
made by the approved regulator under paragraph 2 and the report
(if any) prepared under that paragraph.
      (2)
The approved regulator and any body within sub-paragraph (3) may make
to the Board—
5
(a)
written representations, and
(b)
if the Board authorises it to do so, oral representations,

about the advice.
      (3)
A body is within this sub-paragraph if it represents persons authorised by
the approved regulator to carry on activities which are reserved legal
10
activities.
      (4)
The Board may allow any other person to make written or oral
representations about the advice.
      (5)
The Board must make rules governing the making of oral and written
representations.
15
      (6)
Representations under this paragraph must be made within—
(a)
the period of 28 days beginning with the day on which the
representations and advice are published under sub-paragraph
(1)(b), or
(b)
such longer period as the Board may specify in a particular case.
20
      (7)
Where oral representations are made, the Board must prepare a report of
those representations.
      (8)
Before preparing that report, the Board must—
(a)
give each person who made oral representations a reasonable
opportunity to comment on a draft of the report of those
25
representations, and
(b)
have regard to any comments duly made.
      (9)
The Board must, as soon as reasonably practicable after the end of the period
within which representations may be made under this paragraph, publish
any written representations duly made and the report (if any) prepared
30
under sub-paragraph (7).
Further provision about publishing of advice and representations
11    (1)
Nothing in paragraph 10 operates—
(a)
to prevent a person who gives advice under paragraphs 4 to 8 from
publishing that advice, or
35
(b)
to prevent a person who makes representations under paragraph 2
or 10 from publishing those representations.
      (2)
A person (“the publisher”) publishing any such material (whether under
paragraph 10 or otherwise) must, so far as practicable, exclude any matter
which relates to the private affairs of a particular individual the publication
40
of which, in the opinion of the publisher, would or might seriously and
prejudicially affect the interests of that individual.
Decision by the Board
12    (1)
After considering—

Legal Services Bill [HL]
Schedule 8 — Intervention directions: procedure
Part 2 — Revoking intervention directions
165

(a)
any advice duly given under paragraphs 4 to 8,
(b)
any representations duly made under paragraph 2 or 10, and
(c)
any other information which the Board considers relevant,

the Board must decide whether to give an intervention direction.
      (2)
Where it decides to give an intervention direction, it may decide—
5
(a)
to give an intervention direction in the form of the proposed
intervention direction, or
(b)
to amend the form of the proposed intervention direction and give
an intervention direction in that amended form.
      (3)
The Board must give notice of its decision (“the decision notice”) to the
10
approved regulator.
      (4)
Where the Board decides to give an intervention direction, the decision
notice must—
(a)
contain the intervention direction,
(b)
state the time at which the intervention direction is to take effect,
15
(c)
specify the reasons why the Board is satisfied of the matters
mentioned in section 41(1)(a) and (b), and
(d)
if the decision is under sub-paragraph (2)(b), set out the nature of any
amendments made and the reasons for them.
      (5)
The time specified under sub-paragraph (4)(b) must not be before—
20
(a)
the time specified in the warning notice in accordance with
paragraph 2(2)(a), or
(b)
the time the decision notice is given to the approved regulator.
      (6)
The Board must publish the decision notice.
Part 2
25
Revoking intervention directions
Introductory
13    (1)
Where an intervention direction has effect in respect of a regulatory function
of an approved regulator—
(a)
the approved regulator may apply to the Board for the Board to
30
revoke the direction, or
(b)
the Board may give the approved regulator a notice stating the
Board’s intention to revoke the direction.
      (2)
An application under sub-paragraph (1)(a) must—
(a)
be made in the form and manner specified by the Board, and
35
(b)
be accompanied by such material as the applicant considers is likely
to be needed for the purposes of this Part of this Schedule.
Board’s duty to seek advice
14    (1)
Where the Board has received an application under paragraph 13(1)(a), it
must give each of the persons listed in sub-paragraph (3)—
40
(a)
a copy of the application,
(b)
a copy of any material which accompanied it, and