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 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
299

(2G)
If on an application by a licensed conveyancer under subsection (2E)
the Council refuses the application or terminates the suspension
subject to conditions, the licensed conveyancer may appeal against
the decision of the Council to the High Court which may—
(a)
affirm the decision, or
5
(b)
terminate the suspension either unconditionally or subject to
such conditions as it may think fit.
(2H)
In relation to an appeal under subsection (2G) the High Court may
make such order as it thinks fit as to payment of costs.”
10
In section 20 (rules as to professional practice, conduct and discipline), in
10
subsection (1) omit “, in pursuance of its general duty referred to in section
12(2),”.
11
In section 22 (keeping of accounts and establishment of client accounts)—
(a)
in subsection (3)(a) omit “qualified”, and
(b)
for subsections (4) and (5) substitute—
15
“(4)
Provision made in rules by virtue of subsection (3)(a) may
provide that the reports delivered to the Council must be
reports given by accountants in respect of whom
requirements prescribed by the rules are met.”
12    (1)
Section 24 (preliminary investigation of disciplinary cases) is amended as
20
follows.
      (2)
In subsection (1)—
(a)
for “preliminary investigation” substitute “consideration”,
(b)
omit paragraph (b), and
(c)
omit from “with a view” to the end.
25
      (3)
After subsection (1) insert—
“(1A)
The Investigating Committee shall make a preliminary investigation
of such an allegation and—
(a)
hear and determine the allegation, or
(b)
refer the allegation to the Discipline and Appeals Committee
30
established under section 25 for hearing and determination
by that Committee under section 26.”
      (4)
Omit subsection (2).
      (5)
In subsection (3) omit—
(a)
“or (2)”,
35
(b)
“or complaint” (in both places), and
(c)
“or paragraph (b)”.
      (6)
After subsection (4) insert—
“(4A)
The Council shall make rules as to the cases in which the
Investigating Committee may hear and determine an allegation, and
40
the cases in which they must refer an allegation to the Discipline and
Appeals Committee.”
      (7)
In subsection (5) omit “or complaint” (in both places).

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
300

      (8)
After that subsection insert—
“(6)
Before making a direction under subsection (5), the Investigating
Committee must give the licensed conveyancer an opportunity to
make representations against the making of the proposed direction.
(7)
In relation to proceedings under subsection (6), the Investigating
5
Committee may make such order as they think fit as to the payment
of costs by—
(a)
the Council, or
(b)
the licensed conveyancer.
(8)
Where a direction under subsection (5) has been made, the licensed
10
conveyancer may appeal to the Discipline and Appeals Committee,
and on any such appeal the Committee may make such order as they
think fit.
(9)
Where an order has been made under subsection (7) the Council or
the licensed conveyancer may appeal to the Discipline and Appeals
15
Committee, and on any such appeal the Committee may make such
order as they think fit.
(10)
Where an order is made by the Discipline and Appeals Committee
under subsections (8) or (9)—
(a)
the person against whom the order is made, and
20
(b)
if not within paragraph (a), the Council,

may appeal against the order to the High Court.
(11)
On an appeal under subsection (10) the High Court may make such
order as it thinks fit.
(12)
The decision of the High Court on an appeal under subsection (10)
25
shall be final.”
13
After section 24 insert—
“24A
Determination of allegations by Investigating Committee
(1)
Where, on hearing an allegation by virtue of section 24(1A)(a), the
Investigating Committee are satisfied that a licensed conveyancer—
30
(a)
has, while holding a licence in force under this Part, failed to
comply with any condition to which that licence was subject,
or
(b)
has failed to comply with any rules made by the Council
under this Part,
35

the Committee may, if they think fit, make an order directing the
payment by the licensed conveyancer of a penalty to be forfeited to
Her Majesty.
(2)
In relation to proceedings before the Investigating Committee by
virtue of section 24(1A)(a), the Committee may make such order as
40
they consider fit as to the payment of costs by—
(a)
the Council,
(b)
the licensed conveyancer against whom the proceedings
were brought, or
(c)
if the person on whose allegation the proceedings were
45
brought was heard (in person, or through a representative)

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
301

by the Committee in the course of the proceedings, that
person.
(3)
In subsection (2), for the purposes of paragraph (a) or (b) of that
subsection, the reference to costs includes costs incurred in
connection with a preliminary investigation of the allegation under
5
section 24(1A).
(4)
The amount of any penalty required to be paid under subsection (1)
may not exceed such amount as may be prescribed by rules made by
the Council for the purposes of this subsection.
(5)
Paragraphs 1, 2(1) and (3) and 4 of Schedule 4 have effect in relation
10
to—
(a)
proceedings for the hearing and determination of an
allegation by the Investigating Committee, as they have effect
in relation to proceedings before the Discipline and Appeals
Committee under section 26, and
15
(b)
orders of the Investigating Committee, as they have effect in
relation to orders of the Discipline and Appeals Committee.
(6)
A person against whom an order is made by the Investigating
Committee by virtue of subsection (1) may appeal to the Discipline
and Appeals Committee, and on any such appeal the Discipline and
20
Appeals Committee may make such order as they think fit.
(7)
Where an order is made by the Investigating Committee by virtue of
subsection (2), a person listed in paragraphs (a) to (c) of that
subsection may appeal to the Discipline and Appeals Committee,
and on any such appeal the Discipline and Appeals Committee may
25
make such order as they think fit.
(8)
Where an order is made by the Discipline and Appeals Committee
under subsection (6) or (7)—
(a)
a party to the appeal, or
(b)
if not within paragraph (a), the Council,
30

may appeal against the order to the High Court.
(9)
On an appeal under subsection (8) the High Court may make such
order as it thinks fit.
(10)
The decision of the High Court on an appeal under subsection (8)
shall be final.”
35
14
In section 25 (the Discipline and Appeals Committee), in subsection (1)(b)
for “sections 27 to” substitute “section 24A, 27, 28 or”.
15    (1)
Section 26 (proceedings in disciplinary cases) is amended as follows.
      (2)
In subsection (1) after “allegation” insert “referred to them under section
24(1A)(b)”.
40
      (3)
In subsection (2)—
(a)
in paragraph (e), for “£3,000” substitute “such amount as may be
prescribed by rules made by the Council for the purposes of this
paragraph”,

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
302

(b)
for paragraph (f) substitute—
“(f)
an order reprimanding the licensed conveyancer.”,
and
(c)
omit paragraph (g).
      (4)
After subsection (2) insert—
5
“(2A)
In relation to proceedings before the Discipline and Appeals
Committee under this section, the Committee may make such order
as they consider fit as to the payment of costs by—
(a)
the Council;
(b)
the licensed conveyancer against whom the proceedings
10
were brought;
(c)
if the person on whose allegation the proceedings were
brought was heard (in person, or through a representative)
by the Committee in the course of the proceedings, that
person.
15
(2B)
In subsection (2A), for the purposes of paragraph (a) or (b) of that
subsection, the reference to costs includes costs incurred in
connection with a preliminary investigation of the allegation under
section 24(1A).”
      (5)
Omit subsections (5) and (6).
20
      (6)
After subsection (7) insert—
“(7A)
Where the Discipline and Appeals Committee make an order under
subsection (2A), a person listed in paragraphs (a) to (c) of that
subsection may appeal to the High Court, and on any such appeal
the High Court may make such order as it thinks fit.”
25
      (7)
In subsection (8), after “(7)” insert “or (7A)”.
16
In section 27 (removal of disqualification from holding a licence), after
subsection (2) insert—
“(3)
In relation to proceedings on an application under subsection (1), the
Discipline and Appeals Committee may make such order as they
30
consider fit as to the payment of costs by—
(a)
the Council;
(b)
the applicant.”
17
In section 28 (revocation of licence on grounds of fraud or error), after
subsection (4) insert—
35
“(5)
In relation to proceedings for the revocation of a licence under
subsection (1), the Discipline and Appeals Committee may make
such order as they consider fit as to the payment of costs by—
(a)
the Council;
(b)
the licensed conveyancer to whose licence the proceedings
40
relate.
(6)
In relation to proceedings on an application under subsection (2), the
Discipline and Appeals Committee may make such order as they
consider fit as to the payment of costs by—
(a)
the Council;
45

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
303

(b)
the applicant.”
18
In section 29 (appeals from decisions of Council in relation to licences)—
(a)
in subsection (1), omit “or” at the end of paragraph (b),
(b)
in that subsection, at the end of paragraph (c) insert “or
(d)
refuses an application made by that person under
5
section 17A,”, and
(c)
in subsection (2), after paragraph (b) insert—
“(ba)
in the case of an appeal under subsection (1)(d), by
order direct the Council to grant the application;”.
19    (1)
Section 31 (application of Schedule 5) is amended as follows.
10
      (2)
In subsection (2) omit—
(a)
“or complaint” (in each place), and
(b)
“or paragraph (b)”.
      (3)
In subsection (3), for “and 12” substitute “to 12A”.
      (4)
In subsection (4) omit “or complaint”.
15
20    (1)
Section 32 (provision of conveyancing services by recognised bodies) is
amended as follows.
      (2)
In subsection (1)(a) for “by licensed” (in the first place) to the end substitute
“of conveyancing services bodies;”.
      (3)
In subsection (1)(b) for “such services” substitute “conveyancing services or
20
other relevant legal services”.
      (4)
After subsection (1)(b) insert—
“(ba)
prescribing the Council’s arrangements for authorising
recognised bodies, for the purposes of the Legal Services Act
2007, to carry on reserved instrument activities, or the
25
administration of oaths, within the meaning of that Act;”.
      (5)
In subsection (1)(c) for “conditions” substitute “requirements”.
      (6)
In subsection (2) omit “corporate”.
      (7)
In subsection (3)—
(a)
in paragraph (a) after “section” insert “, or for the renewal of such
30
recognition,”,
(b)
after that paragraph insert—
“(aa)
for the payment of fees in connection with other
applications under the rules;”,
(c)
for paragraph (c) substitute—
35
“(c)
about the time when any recognition granted under
this section, or renewal of such recognition, takes
effect and the period for which it is (subject to the
provisions of this Part) to remain in force;
(ca)
for the suspension or revocation of any such
40
recognition, on such grounds and in such
circumstances as may be prescribed in the rules;
(cb)
about the effect on the recognition of a partnership or
other unincorporated body (“the existing body”) of
any change in its membership, including provision
45

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
304

for the existing body’s recognition to be transferred
where the existing body ceases to exist and another
body succeeds to the whole or substantially the whole
of its business;”,
(d)
omit paragraph (d),
5
(e)
in paragraph (e)—
(i)
for “a list” substitute “a register”,
(ii)
omit “corporate”, and
(iii)
for “, and for the” to the end substitute “and such other
information relating to those bodies as may be specified in
10
the rules;”,
(f)
after that paragraph insert—
“(ea)
for information (or information of a specified
description) on such a register to be made available to
the public, and about the manner in which and times
15
at which, information is to be made so available;”,
(g)
after paragraph (f) insert—
“(fa)
about the education and training requirements to be
met by managers and employees of recognised
bodies;
20
(fb)
for rules made under any other provision of this Part
to have effect in relation to managers and employees
of recognised bodies with such additions, omissions
or other modifications as appear to the Council to be
necessary or expedient;”, and
25
(h)
in paragraph (g) after “recognised bodies” insert “or managers or
employees of such bodies”.
      (8)
After subsection (3) insert—
“(3A)
Rules made by the Council may provide for the Council to grant a
body recognition under this section subject to one or more
30
conditions.
(3B)
At any time while a body is recognised under this section, the
Council may, in such circumstances as may be prescribed, direct that
the body’s recognition is to have effect subject to such conditions as
the Council may think fit.
35

“Prescribed” means prescribed by rules made by the Council.
(3C)
The conditions which may be imposed under subsection (3A) or (3B)
include—
(a)
conditions restricting the kinds of conveyancing services that
may be provided by the body;
40
(b)
conditions imposed by reference to criteria of general
application;
(c)
conditions requiring the body to take any specified steps that
will, in the opinion of the Council, be conducive to the body
carrying on an efficient business;
45

and conditions may be imposed despite the fact that they may result
in expenditure being incurred by the body.
(3D)
On an application made by a recognised body, the Council may, in
such circumstances as may be prescribed, direct—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
305

(a)
the removal of a condition subject to which the body’s
recognition has effect;
(b)
the variation of such a condition in the manner described in
the application.
(3E)
For the purposes of subsection (3D)—
5
(a)
section 14 applies in relation to an application under that
subsection as it applies in relation to an application for a
licence under this Part of this Act, and
(b)
“prescribed” means prescribed by rules made by the Council.
(3F)
Rules under subsection (3A) or (3B) may make provision about when
10
conditions imposed take effect (including provision conferring
power on the Council to direct that a condition is not to have effect
until the conclusion of any appeal in relation to it).
(3G)
Rules under this section may contain such incidental, supplemental,
transitional or transitory provisions or savings as the Council
15
considers necessary or expedient.”
      (9)
Omit subsections (4) and (5).
     (10)
In subsection (6)—
(a)
in paragraph (a) omit “corporate”, and
(b)
for paragraph (b) substitute—
20
“(b)
that a body’s recognition under this section does not
have effect subject to any conditions or has effect
subject to any particular conditions,”.
     (11)
After subsection (7) insert—
“(8)
In this section “conveyancing services body” and “relevant legal
25
services” have the meaning given by section 32A.
(9)
The Council is capable of being designated as a licensing authority
for the purposes of, and subject to, Part 5 of the Legal Services Act
2007 (alternative business structures).”
21
After section 32 (provision of conveyancing by recognised bodies) insert—
30
“32A
Conveyancing services bodies
(1)
For the purposes of section 32 a “conveyancing services body” means
a body (corporate or unincorporate) in respect of which—
(a)
the management and control condition, and
(b)
the services condition,
35

are satisfied.
(2)
The management and control condition is satisfied in the case of a
partnership if at least one of the partners is a licensed conveyancer.
(3)
The management and control condition is satisfied in the case of an
unincorporated body (other than a partnership), or a body corporate
40
which is managed by its members, if at least one of those members is
a licensed conveyancer.