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 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
229

3
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—
5
(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,
10
a solicitor is not to be regarded as practising as a sole solicitor in such
circumstances as may be prescribed by the rules.
(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.”
15
4
In section 2 (training regulations)—
(a)
in subsection (1) omit “, with the concurrence of the Secretary of
State, the Lord Chief Justice and the Master of the Rolls,”,
(b)
in subsection (3)(a)—
(i)
in sub-paragraph (i) omit “, whether by service under articles
20
or otherwise,”,
(ii)
in sub-paragraph (v) omit “articles may be discharged or”,
and
(iii)
in that sub-paragraph after “be” (in the second place) insert
“started or”, and
25
(c)
omit subsections (4) and (5).
5
In section 3 (admission as solicitor), in subsection (2)—
(a)
for “Master of the Rolls” (in each place) substitute “Society”, and
(b)
for “his” substitute “its”.
6
In section 6 (keeping of the roll) omit subsections (2) to (4).
30
7
In section 7 (entry of name and restoration of name struck off)—
(a)
for paragraph (a) substitute—
“(a)
of written evidence of admission of any person as a
solicitor by the Society,”, and
(b)
for “Council” substitute “Society”.
35
8     (1)
Section 8 (removal or restoration of name at solicitor’s request) is amended
as follows.
      (2)
In subsection (2) for “Council” substitute “Society”.
      (3)
In subsection (4) for “Master of the Rolls” substitute “High Court”.
      (4)
After that subsection insert—
40
“(4A)
In relation to an appeal under subsection (4) the High Court may
make such order as it thinks fit as to payment of costs.
(4B)
The decision of the High Court on an appeal under subsection (4)
shall be final.”

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
230

      (5)
Omit subsection (5).
9
For sections 9 and 10 (applications for and issue of practising certificates)
substitute—
“9
Applications for practising certificates
(1)
A person whose name is on the roll may apply to the Society to be
5
issued with a practising certificate.
(2)
An application under this section may include an application for a
sole solicitor endorsement.
(3)
An application under this section must be—
(a)
made in accordance with regulations under section 28, and
10
(b)
accompanied by the appropriate fee.
(4)
“The appropriate fee”, in relation to an application, means—
(a)
any fee payable under subsection (1) of section 11 in respect
of the practising certificate applied for, and
(b)
any additional fee payable under subsection (4) of that
15
section in respect of the application.
10
The issue of practising certificates
(1)
Subject to the following provisions of this section, where an
application is made in accordance with section 9, the Society must
issue a practising certificate to the applicant if it is satisfied that the
20
applicant—
(a)
is not suspended from practice, and
(b)
is complying with any prescribed requirements imposed on
the applicant.
(2)
A practising certificate issued to an applicant of a prescribed
25
description must be issued subject to any conditions prescribed in
relation to applicants of that description.
(3)
In such circumstances as may be prescribed, the Society must, if it
considers it is in the public interest to do so—
(a)
refuse to issue a practising certificate under this section, or
30
(b)
where it decides to issue a practising certificate, issue it
subject to one or more conditions.
(4)
The conditions which may be imposed include—
(a)
conditions requiring the person to whom the certificate is
issued to take specified steps that will, in the opinion of the
35
Society, be conducive to the carrying on by that person of an
efficient practice as a solicitor (including, if the certificate has
a sole solicitor endorsement, an efficient practice as a sole
solicitor);
(b)
conditions which prohibit that person from taking any
40
specified steps, except with the approval of the Society.
(5)
In this section —
“prescribed” means prescribed by regulations under section 28;
“specified”, in relation to a condition imposed on a practising
certificate, means specified in the condition.”
45

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
231

10
After section 10 (as inserted by paragraph 9) insert—
“10A
Register of holders of practising certificates
(1)
The Society must keep a register of all solicitors who hold practising
certificates.
(2)
The register must contain—
5
(a)
the full name of each solicitor who holds a practising
certificate,
(b)
in relation to each solicitor who holds a practising certificate,
a statement as to whether there is in force a sole solicitor
endorsement, and
10
(c)
such other information as may be specified in regulations
under section 28(1)(d).”
11
For section 11 (fee payable on issue of practising certificate) substitute—
“11
Fee payable on issue of practising certificates
(1)
Before a practising certificate is issued, there must be paid to the
15
Society in respect of the certificate 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 respect of different circumstances.
(3)
Subsection (4) applies where a solicitor makes an application for a
20
practising certificate if—
(a)
the solicitor has failed to deliver an accountant’s report
required by rules under section 34(1) by such time or in such
circumstances as may be prescribed by those rules, and
(b)
a practising certificate has not been issued by the Society to
25
the solicitor since the Society became aware of the failure.
(4)
Where this subsection applies, the solicitor’s application must be
accompanied by an additional fee of such amount as the Society from
time to time determines.”
12
Omit section 12 (discretion of Society with respect to issue of practising
30
certificates in special cases).
13
Omit section 12A (additional fee payable by certain solicitors on applying
for practising certificates).
14
For section 13 (appeals in connection with issue of practising certificates)
substitute—
35
“13
Appeals etc in connection with the issue of practising certificates
(1)
A person who makes an application under section 9 may appeal to
the High Court against—
(a)
a decision to refuse the application for a practising certificate,
(b)
if the application included an application for a sole solicitor
40
endorsement, a decision to refuse the application for the
endorsement, or
(c)
a decision to impose a condition on a practising certificate
issued in consequence of the application.

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
232

(2)
A person who holds a practising certificate subject to a condition
within section 10(4)(b) may appeal to the High Court against any
decision by the Society to refuse to approve the taking of any step for
the purposes of that condition.
(3)
The Society may make rules which provide, as respects any
5
application under section 9 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.
(4)
On an appeal under subsection (1), the High Court may—
10
(a)
affirm the decision of the Society,
(b)
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,
15
(c)
direct the Society to issue a certificate to the applicant free
from conditions or subject to such conditions as the High
Court may think fit,
(d)
direct the Society not to issue a certificate,
(e)
if a certificate has been issued, by order suspend it,
20
(f)
if the certificate has been endorsed with a sole solicitor
endorsement, by order suspend the endorsement, or
(g)
make such other order as the High Court thinks fit.
(5)
On an appeal under subsection (2), the High Court may—
(a)
affirm the decision of the Society,
25
(b)
direct the Society to approve the taking of one or more steps
for the purposes of a condition within section 10(4)(b), or
(c)
make such other order as the High Court thinks fit.
(6)
In relation to an appeal under this section the High Court may make
such order as it thinks fit as to payment of costs.
30
(7)
The decision of the High Court on an appeal under subsection (1) or
(2) shall be final.”
15
After section 13 insert—
“13ZA
Application to practise as sole practitioner while practising certificate
in force
35
(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
40
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
45

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
233

(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
5
applicants of that description.

“Prescribed” means prescribed by regulations under section
28(3B)(f).
(6)
A person who makes an application under this section may appeal to
the High Court against—
10
(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
15
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,
20
(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.
25
(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
30
(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.
35
(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.”
40
16    (1)
Section 13A (imposition of conditions while practising certificates are in
force) is amended as follows.

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
234

      (2)
For subsections (2) to (5) substitute—
“(2)
The power conferred by subsection (1) is exercisable in relation to a
solicitor at any time during the period for which the solicitor’s
current certificate is in force if—
(a)
under section 13ZA the Society grants a sole solicitor
5
endorsement, or
(b)
it appears to the Society that the case is of a prescribed
description.
(3)
“Prescribed” means prescribed by regulations under section 28.”
      (3)
In subsection (6) for “Master” to the end substitute “High Court against the
10
decision of the Society.”
      (4)
In subsection (7)—
(a)
for “Master of the Rolls” (in both places) substitute “High Court”,
and
(b)
for “he” substitute “it”.
15
      (5)
After that subsection insert—
“(7A)
The decision of the High Court on an appeal under subsection (6)
shall be final.”
      (6)
For subsection (8) substitute—
“(8)
Subsections (4) and (5) of section 10 apply for the purposes of
20
subsection (1) of this section as they apply for the purposes of that
section.”
      (7)
After that subsection insert—
“(9)
A solicitor who holds a practising certificate subject to a condition
imposed under subsection (1) which prohibits that solicitor from
25
taking any steps specified in the condition, except with the approval
of the Society, may appeal to the High Court against any decision by
the Society to refuse to approve the taking of any step for the
purposes of that condition.
(10)
On an appeal under subsection (9), the High Court may—
30
(a)
affirm the decision of the Society,
(b)
direct the Society to approve the taking of one or more steps
for the purposes of the condition, or
(c)
make such other order as the High Court thinks fit.
(11)
The decision of the High Court on an appeal under subsection (9)
35
shall be final.
(12)
In relation to an appeal under this section the High Court may make
such order as it thinks fit as to payment of costs.”
17
In section 13B (suspension of practising certificates where solicitors
convicted of fraud or serious crime)—
40
(a)
in subsection (1), after “practising certificate” insert “or sole solicitor
endorsement”,
(b)
in subsection (6), after “practice” insert “or from practice as a sole
solicitor”,

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)
235

(c)
in subsection (7) for “Master of the Rolls” substitute “High Court”,
(d)
in subsection (8)—
(i)
for “Master of the Rolls” (in both places) substitute “High
Court”,
(ii)
in paragraph (b), for “shall not be suspended but” substitute
5
“or sole solicitor endorsement shall not be suspended, but
that the appellant’s certificate”, and
(iii)
in paragraph (d) for “he” substitute “it”, and
(e)
after that subsection insert—
“(9)
In relation to an appeal under subsection (7) the High Court
10
may make such order as it thinks fit as to payment of costs.
(10)
The decision of the High Court on an appeal under
subsection (7) shall be final.”
18
Omit section 14 (commencement, expiry and replacement of practising
certificates).
15
19
In section 15 (suspension of practising certificates), in subsection (1A)—
(a)
after “6(1)” insert “, 6A(1)”,
(b)
after “1(1)(a)(i),” insert “(aa),”, and
(c)
after “section” insert “31 or”.
20    (1)
Section 16 (duration of suspension of practising certificates) is amended as
20
follows.
      (2)
For subsection (1) substitute—
“(1)
Where a practising certificate is suspended, it expires on such date as
may be prescribed by regulations under section 28.”
      (3)
In subsection (3)(c) for “the replacement date of the certificate” substitute
25
“the date on which his certificate will expire”.
      (4)
In subsection (5)—
(a)
for “Master of the Rolls, who” substitute “High Court, which”, and
(b)
in paragraph (b) for “he” substitute “it”.
      (5)
After that subsection insert—
30
“(6)
In relation to an appeal under subsection (5) the High Court may
make such order as it thinks fit as to payment of costs.
(7)
The decision of the High Court on an appeal under subsection (5)
shall be final.”
21
In section 17 (publicity in relation to suspension of practising certificates), in
35
subsections (1) and (2) omit “in the London Gazette”.
22
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
40
sole solicitor endorsement of that solicitor for the time being in force.