Legal Services Bill [HL]

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)
292

(i)
in the case of a recognised body which is a
partnership, to a former partner in the
partnership, and
(ii)
in any other case to a manager or former
manager of the recognised body.”
5
123
In paragraph 36 of that Schedule (privilege from disclosure etc)—
(a)
for sub-paragraph (1) substitute—
    “(1)
Where a recognised body acts as such for a client, any
communication, document, material or information is
privileged from disclosure in like manner as if the
10
recognised body had at all material times been a solicitor
acting for the client.”, and
(b)
in sub-paragraph (3) for “an officer” substitute “a manager”.
Part 3
The Courts and Legal Services Act 1990 (c. 41)
15
124
The Courts and Legal Services Act 1990 is amended in accordance with this
Part of this Schedule.
125
In section 89 (foreign lawyers: recognised bodies and partnerships with
solicitors)—
(a)
for subsection (3)(a)(iv) substitute—
20
“(iv)
sections 36 and 36A (compensation grants);
and”,
(b)
in subsection (5) for “Secretary of State” substitute “Lord
Chancellor”,
(c)
in paragraph (a) of that subsection for “the commencement of this
25
section” substitute “or in the same Session as the Legal Services Act
2007 was passed”,
(d)
in subsection (6) for “Secretary of State” substitute “Lord
Chancellor”,
(e)
in subsection (7) for “Secretary of State” (in both places) substitute
30
“Lord Chancellor”,
(f)
in paragraph (a) of that subsection for “the commencement of this
section” substitute “or in the same Session as the Legal Services Act
2007 was passed”,
(g)
in that subsection for “officers” substitute “managers”,
35
(h)
after subsection (8) insert—
“(8A)
Rules and regulations made by the Law Society under, or by
virtue of, this section or Schedule 14 which are not regulatory
arrangements within the meaning of the Legal Services Act
2007 are to be treated as such arrangements for the purposes
40
of that Act.”, and
(i)
in subsection (9), after the definition of “foreign lawyer” insert—
““manager”, in relation to a body, has the same meaning
as in the Legal Services Act 2007 (see section 207 of
that Act);”.
45

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)
293

126
Schedule 14 to that Act (foreign lawyers: partnerships and recognised
bodies) is amended as follows.
127
In paragraph 1 (interpretation) omit the definitions of “the Council” and
“controlled trust”.
128
In paragraph 2 (application for registration)—
5
(a)
for “Council” in each place substitute “Society”,
(b)
in sub-paragraph (1)(b) for “the Master of the Rolls” substitute “the
Legal Services Board”,
(c)
in sub-paragraph (2) for “Law Society” substitute “Society”,
(d)
omit sub-paragraph (3),
10
(e)
in sub-paragraph (4)—
(i)
for “Master of the Rolls” substitute “Legal Services Board”,
and
(ii)
in paragraph (a) after “including” insert “the form of the
register and”,
15
(f)
in that sub-paragraph, after paragraph (b) insert “and
(c)
the making available to the public of the
information contained in the register (including the
manner in which, and hours during which, the
information is to be made so available and whether
20
the information is to be made available free of
charge).”, and
(g)
omit sub-paragraph (5).
129
After paragraph 2 insert—
“2A   (1)
The Society may direct that a foreign lawyer’s registration is to
25
have effect subject to such conditions as the Society thinks fit to
impose.
      (2)
A direction under sub-paragraph (1) may be given in respect of a
foreign lawyer
(a)
at the time he is first registered, or
30
(b)
at any time when the registration has effect.”
130
In paragraph 3 (duration of registration) in sub-paragraphs (2) and (3)(c) for
“Council” substitute “Society”.
131
In paragraph 5 (intervention in practices)—
(a)
in sub-paragraph (3)(a) and (b)—
35
(i)
for “Council have” substitute “Society has”, and
(ii)
omit “by virtue of his being a member of that partnership”,
(b)
after sub-paragraph (3)(b) insert—
“(ba)
the Society has reason to suspect dishonesty on the
part of the registered foreign lawyer (“L”) in
40
connection with—
(i)
the business of any person of whom L is or
was an employee, or of any body of which
L is or was a manager, or
(ii)
any business which is or was carried on by
45
L as a sole trader;”,
(c)
in sub-paragraph (3)(c) for “Council are” substitute “Society is”,

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)
294

(d)
after sub-paragraph (3)(e) insert—
“(ea)
the Society is satisfied that he has abandoned his
practice;”,
(e)
in sub-paragraph (3)(i)—
(i)
for “Council are” substitute “Society is”, and
5
(ii)
for “an officer” (in both places) substitute “a manager”,
(f)
after that sub-paragraph insert—
“(j)
the Society is satisfied that it is necessary to exercise
the intervention powers (or any of them) in relation
to the registered foreign lawyer to protect—
10
(i)
the interests of clients (or former or
potential clients) of the registered foreign
lawyer or the multi-national partnership, or
(ii)
the interests of the beneficiaries of any trust
of which the registered foreign lawyer is or
15
was a trustee.”,
(g)
omit sub-paragraph (4),
(h)
in sub-paragraph (5)(a) for “a complaint is made to the Society”
substitute “the Society is satisfied”,
(i)
in sub-paragraph (5)(a)(ii) for “controlled trust” substitute “trust”,
20
(j)
in sub-paragraph (5)(c) for “Council regard” substitute “Society
regards”, and
(k)
after sub-paragraph (9) insert—
   “(10)
In this paragraph “manager”, in relation to a recognised
body, has the same meaning as in the Legal Services Act
25
2007 (see section 207 of that Act).”
132
For paragraph 6 (compensation fund) substitute—
“6
Section 36 of the 1974 Act applies in relation to registered foreign
lawyers as if for paragraphs (a) and (b) of subsection (1) there were
substituted—
30
“(a)
an act or omission of a registered foreign lawyer or former
registered foreign lawyer;
(b)
an act or omission of an employee or former employee of a
registered foreign lawyer or former registered foreign
lawyer;”.”
35
133
For paragraph 7 (contributions to fund) substitute—
“7
Section 36A(2) and (3) of the 1974 Act applies in relation to
registered foreign lawyers as it applies in relation to solicitors.”
134
For paragraph 8 (accountants’ reports) substitute —
“8
Section 34 of the Act of 1974 applies in relation to registered
40
foreign lawyers as it applies in relation to solicitors.”
135
In paragraph 14 (appeal against conditions or refusals)—
(a)
in sub-paragraph (1)—
(i)
for “Master of the Rolls” substitute “High Court”, and
(ii)
for “2(3)” substitute “2A”,
45
(b)
omit sub-paragraph (2),

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
295

(c)
in sub-paragraph (3)—
(i)
omit “to him”,
(ii)
for “Master of the Rolls” substitute “High Court”, and
(iii)
for “he” substitute “it”, and
(d)
after that sub-paragraph insert—
5
    “(4)
In relation to an appeal under this paragraph the High
Court may make such order as it thinks fit as to payment
of costs.
      (5)
The decision of the High Court on an appeal under this
paragraph shall be final.”
10
136
In paragraph 15 (jurisdiction and powers of disciplinary tribunal)—
(a)
after sub-paragraph (3) insert—
   “(3A)
Any person who alleges that a registered foreign lawyer
has knowingly acted in contravention of any order under
section 43(2) of the Act of 1974 or of any conditions subject
15
to which a permission has been granted under such an
order may make a complaint to the Tribunal.”,
(b)
in sub-paragraph (4)(c), omit “not exceeding £5,000”, and
(c)
omit sub-paragraph (5).
137
In paragraph 16(2) (foreign lawyers assisting Tribunal) for “Master of the
20
Rolls” substitute “Legal Services Board”.
138
In paragraph 17 (appeals from Tribunal)—
(a)
in sub-paragraph (1) for “lie—” to the end substitute “lie to the High
Court”,
(b)
in sub-paragraph (2)—
25
(i)
omit “and the Master of the Rolls”, and
(ii)
for “they” substitute “it”,
(c)
in sub-paragraph (3) for “of the Master of the Rolls on an appeal
under this paragraph” substitute “of the High Court on an appeal in
the case of an order on an application under paragraph 15(2)(d) or
30
(e), or the refusal of any such application,”, and
(d)
omit sub-paragraph (4).
Schedule 17
Section 182

Licensed conveyancing
Part 1
35
Administration of Justice Act 1985 (c. 61)
1
Part 2 of the Administration of Justice Act 1985 (licensed conveyancing) is
amended in accordance with this Part.
2
In section 11 (provision of conveyancing services by licensed
conveyancers)—
40

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
296

(a)
in subsection (1) for “by persons” to the end substitute “and other
services by persons who hold licences in force under this Part or who
are recognised bodies.”,
(b)
for subsection (3) substitute—
“(3)
References in this Part to conveyancing services are
5
references to—
(a)
the preparation of transfers, conveyances, contracts
and other documents in connection with, and other
services ancillary to, the disposition or acquisition of
estates or interests in land, and
10
(b)
any other activities which are reserved instrument
activities for the purposes of the Legal Services Act
2007 (see section 12 of and Schedule 2 to that Act).
(3A)
For the purposes of subsection (3)—
(a)
“disposition”
15
(i)
does not include a testamentary disposition or
any disposition in the case of such a lease as is
referred to in section 54(2) of the Law of
Property Act 1925 (short leases), but
(ii)
subject to that, includes in the case of leases
20
both their grant and their assignment, and
(b)
“acquisition” has a corresponding meaning.”, and
(c)
omit subsection (4).
3
In section 12 (establishment of the Council), omit subsection (2).
4     (1)
Section 15 (issue of licences by Council) is amended as follows.
25
      (2)
In subsection (3)(b), for “21” substitute “42”.
      (3)
In subsection (4), for “the period of” to the end substitute “such period,
beginning with the date of issue of the licence, as may be specified in the
licence.”
      (4)
Omit subsections (7) and (8).
30
5     (1)
Section 16 (conditional licences) is amended as follows.
      (2)
In subsection (1)—
(a)
after paragraph (c) insert—
“(ca)
after the Investigating Committee established under
section 24 has made any order in his case under
35
section 24A;”, and
(b)
after paragraph (e) insert—
“(ea)
when, having been required by rules made under
section 22 to deliver to the Council a report by an
accountant, he has not delivered such a report within
40
the period required by the rules;
(eb)
after having been disqualified under section 99 of the
Legal Services Act 2007 (disqualification from being
manager or employee of a licensed body etc);
(ec)
after his holding of a restricted interest in a licensed
45
body has been approved subject to conditions under
paragraph 17, 28 or 33 of Schedule 13 to that Act

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
297

(ownership of licensed bodies) or objected to under
paragraph 19, 31 or 36 of that Schedule;”.
      (3)
In subsection (4)—
(a)
after “paragraph” insert “(ca),”, and
(b)
after “(e),” insert “(ea), (eb), (ec),”.
5
      (4)
In subsection (5) for “or” at the end of paragraph (a) substitute—
“(aa)
pending the hearing and determination of any appeal
brought by the applicant under paragraph 18, 20, 29,
32, 34 or 37 of Schedule 13 to the Legal Services Act
2007;
10
(ab)
pending the review by a licensing authority, in
accordance with its licensing rules, of a determination
that the applicant should be disqualified under
section 99 of the Legal Services Act 2007; or”.
      (5)
After that subsection insert—
15
“(6)
In this section—
“licensed body”, “licensing authority” and “licensing rules”
have the same meaning as in the Legal Services Act 2007 (see
sections 71, 73 and 83 of that Act);
“restricted interest”, in relation to a body, has the same meaning
20
as in Schedule 13 to that Act (ownership of licensed bodies).”
6
After section 16 insert—
“16A
Additional fee payable by certain persons when applying for licences
(1)
This section applies where a person applies for a licence at a time
when section 16 has effect in relation to him by reason of the
25
circumstances mentioned in section 16(1)(ea).
(2)
The application must be accompanied by an additional fee of an
amount prescribed by rules made by the Council for the purposes of
this section.”
7     (1)
Section 17 (imposition of conditions during currency of licence) is amended
30
as follows.
      (2)
In subsection (2)(a)—
(a)
after “paragraph” insert “(ca),”, and
(b)
after “(e),” insert “(ea), (eb), (ec),”.
      (3)
In subsection (4), for “or” at the end of paragraph (a) substitute—
35
“(aa)
pending the hearing and determination of any appeal
brought by the licensed conveyancer under
paragraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to the
Legal Services Act 2007;
(ab)
pending the review by a licensing authority, in
40
accordance with its licensing rules, of a determination
that the licensed conveyancer should be disqualified
under section 99 of the Legal Services Act 2007; or”.

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
298

      (4)
After subsection (5) insert—
“(6)
In this section “licensing authority” and “licensing rules” have the
same meaning as in the Legal Services Act 2007 (see sections 73 and
83 of that Act).”
8
After section 17 insert—
5
“17A
Variation of conditions
(1)
This section applies where a licensed conveyancer’s licence has effect
subject to conditions.
(2)
On an application made by the licensed conveyancer, the Council
may in prescribed circumstances direct—
10
(a)
the removal of a condition;
(b)
the variation of a condition in the manner described in the
application.
(3)
“Prescribed” means prescribed by rules made by the Council.
(4)
Section 14 (applications for licences) applies in relation to an
15
application under this section as it applies in relation to applications
for a licence under this Part.”
9
In section 18 (suspension or termination of licences), after subsection (2)
insert—
“(2A)
Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5
20
has been exercised in relation to a licensed conveyancer by virtue of
paragraph 1(1)(a)(i), (aa), (c) or (e) of that Schedule, the exercise of
that power shall operate immediately to suspend any licence held by
that person under this Part.
(2B)
Subsection (2A) does not apply if, at the time when the power
25
referred to there is exercised, the Council directs that subsection (2A)
is not to apply in relation to the licensed conveyancer concerned.
(2C)
If, at the time when the power referred to in subsection (2A) is
exercised, the Council gives a direction to that effect, the licensed
conveyancer concerned may continue to act in relation to any matter
30
specified in the direction as if the licence had not been suspended by
virtue of subsection (2A), but subject to such conditions (if any) as the
Council sees fit to impose.
(2D)
Subject to subsection (2E), where a licence is suspended by virtue of
subsection (2A) the suspension of the licence shall continue until the
35
licence expires.
(2E)
The licensed conveyancer may, at any time before the licence expires,
apply to the Council to terminate the suspension.
(2F)
On an application under subsection (2E), the Council may in its
discretion—
40
(a)
by order terminate the suspension either unconditionally or
subject to such conditions as the Council may think fit, or
(b)
refuse the application.