Legal Services Bill [HL]

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Part 6 — Legal Complaints
83

158
Regulatory arrangements not prohibited by section 157
(1)
Section 157 does not prohibit the regulatory arrangements of an approved
regulator from making provision requiring, or authorising the approved
regulator to require, a relevant authorised person—
(a)
to investigate whether there are any persons who may have a claim
5
against the relevant authorised person in relation to a matter specified
by the approved regulator;
(b)
to provide the approved regulator with a report on the outcome of the
investigation;
(c)
to identify persons (“affected persons”) who may have such a claim;
10
(d)
to notify affected persons that they may have such a claim;
(e)
to provide affected persons with information about the relevant
authorised person’s complaints procedures and the ombudsman
scheme;
(f)
to ensure that the relevant authorised person’s complaints procedures
15
operate as if an affected person had made a complaint against the
relevant authorised person in respect of the act or omission to which the
claim relates.
(2)
For the purposes of subsection (1) “claim”, in relation to a relevant authorised
person, means a claim for redress resulting from an act or omission of that
20
person.
(3)
For the purposes of this section—
(a)
“relevant authorised person”, in relation to an approved regulator,
means a person authorised by that approved regulator to carry on an
activity which is a reserved legal activity, and
25
(b)
a relevant authorised person’s complaints procedures are the
procedures established by that person, or which that person
participates in or is subject to, in accordance with regulatory
arrangements made in accordance with section 112.
(4)
This section applies in relation to the Board in its capacity as a licensing
30
authority as it applies in relation to an approved regulator, and in relation to
the Board references to regulatory arrangements are to be read as references to
the Board’s licensing rules.
159
Legal Services Complaints Commissioner and Legal Services Ombudsman
(1)
The offices of Legal Services Complaints Commissioner and Legal Services
35
Ombudsman are abolished.
(2)
Accordingly—
(a)
sections 51 and 52 of, and Schedule 8 to, the Access to Justice Act 1999
(c. 22), and
(b)
sections 21 to 26 of, and Schedule 3 to, the Courts and Legal Services
40
Act 1990 (c. 41),

are repealed.

Legal Services Bill [HL]
Part 6 — Legal Complaints
84

Interpretation
160
Interpretation of Part 6
In this Part—
“complainant”, in relation to a complaint, means the person who makes
the complaint;
5
“relevant authorising body”, in relation to a person, means—
(a)
an approved regulator by which the person is authorised to
carry on an activity which is a reserved legal activity, or
(b)
where the person is authorised to carry on such an activity by
the Board in its capacity as a licensing authority, the Board;
10
“respondent”, in relation to a complaint, is to be construed in accordance
with section 125 (except that, where scheme rules of the kind
mentioned in section 133(3)(c) have effect, references to the
“respondent” include a person treated as a co-respondent under those
rules).
15
Claims management services
161
Extension of Part 6 to claims management services
(1)
For the purposes of this Part (and sections 1, 21 and 27 as they apply in relation
to this Part)—
(a)
the Claims Management Services Regulator is to be treated as an
20
approved regulator;
(b)
regulated claims management services are to be treated as a reserved
legal activity;
(c)
a person authorised by the Claims Management Services Regulator,
under Part 2 of the Compensation Act 2006 (c. 29), to provide regulated
25
claims management services is to be treated as an authorised person in
relation to that activity;
(d)
the Claims Management Services Regulator is to be treated as a relevant
authorising body in relation to such a person; and
(e)
regulations under section 9 of, and the Schedule to, the Compensation
30
Act 2006 (regulations about the functions of the Claims Management
Services Regulator etc) are to be treated as regulatory arrangements of
the Claims Management Services Regulator.
(2)
For the purposes of sections 112 and 145 (as extended by this section) a person
authorised by the Claims Management Services Regulator under Part 2 of the
35
Compensation Act 2006 to provide regulated claims management services is to
be treated as a “relevant authorised person” in relation to the Regulator.
(3)
Section 9 of, and the Schedule to, the Compensation Act 2006 (regulations
about the functions of the Claims Management Regulator etc) are subject to any
requirements imposed by this Part in relation to the regulatory arrangements
40
of the Claims Management Regulator.
(4)
In this section—
“Claims Management Services Regulator” means—
(a)
the person designated under section 5(1) of the Compensation
Act 2006, or
45

Legal Services Bill [HL]
Part 7 — Further provisions relating to the Board and the OLC
85

(b)
at a time when no person is so designated, the Board;
“regulated claims management services” has the same meaning as in Part
2 of the Compensation Act 2006 (c. 29).
Part 7
Further provisions relating to the Board and the OLC
5
Guidance
162
Guidance
(1)
The Board may give guidance—
(a)
about the operation of this Act and of any order made under it;
(b)
about the operation of any rules made by the Board under this Act;
10
(c)
about any matter relating to the Board’s functions;
(d)
for the purpose of meeting the regulatory objectives;
(e)
about the content of licensing rules;
(f)
about any other matters about which it appears to the Board to be
desirable to give guidance.
15
(2)
Guidance under this section may consist of such information and advice as the
Board considers appropriate.
(3)
The Board may give financial or other assistance to persons giving information
or advice of a kind which the Board could give under this section.
(4)
The Board may—
20
(a)
publish its guidance,
(b)
offer copies of its published guidance for sale at a reasonable price, and
(c)
if it gives guidance in response to a request made by any person, make
a reasonable charge for that guidance.
(5)
When exercising its functions, the Board may have regard to the extent to
25
which an approved regulator has complied with any guidance issued under
this section which is applicable to the approved regulator.
(6)
When exercising its functions—
(a)
in its capacity as an approved regulator by virtue of an order under
section 62(1)(a), or
30
(b)
in its capacity as a licensing authority under Part 5,

the Board must have regard to any guidance it has issued under this section.
Voluntary arrangements
163
Voluntary arrangements
(1)
The Board may enter into arrangements with any person under which the
35
Board is to provide assistance for the purpose of improving standards of
service and promoting best practice in connection with the carrying on of any
legal activity.
(2)
These arrangements may (among other things) provide for the Board to give
advice on—
40

Legal Services Bill [HL]
Part 7 — Further provisions relating to the Board and the OLC
86

(a)
the best regulatory practice, or
(b)
the contents of codes of practice or other voluntary arrangements.
(3)
Arrangements under this section may include provision as to the terms on
which assistance is to be provided by the Board (including provision as to
payment).
5
(4)
Where the Board enters into arrangements under this section, it must publish
a statement giving details of the arrangements and explaining what they are
intended to achieve.
164
Power to establish voluntary scheme for resolving complaints
(1)
This section and section 166 provide for a scheme under which legal services
10
complaints may be resolved quickly and with minimum formality by an
independent person.
(2)
The OLC may make rules (“voluntary scheme rules”) establishing such a
scheme (“the voluntary scheme”), but only in relation to such kinds of legal
services complaints as may be specified by order made by the Lord Chancellor
15
for the purposes of this section.
(3)
An order under subsection (2) may in particular specify a kind of legal services
complaint by reference to the description of the complainant, of the
respondent, or of the legal services to which the complaint relates.
(4)
“Legal services complaint” means a complaint which relates to an act or
20
omission of an eligible person (“the respondent”) in the course of that person
providing legal services.
(5)
For that purpose a person is eligible if at the time the act or omission took place
there was no activity in relation to which the person—
(a)
was an authorised person, or
25
(b)
is to be regarded as having been such a person by virtue of section 129.
(6)
Under the voluntary scheme—
(a)
redress may be provided to the complainant, but
(b)
no disciplinary action may be taken against the respondent.
(7)
Voluntary scheme rules may confer functions on ombudsmen for the purposes
30
of the voluntary scheme.
(8)
Section 131 applies for the purposes of the voluntary scheme as it applies for
the purposes of the ombudsman scheme.
(9)
Sections 155 and 156 apply in relation to voluntary scheme rules as they apply
in relation to scheme rules.
35
(10)
In this section—
“legal services” means services provided by a person which consist of or
include legal activities carried on by, or on behalf of, that person;
“the voluntary scheme” and “voluntary scheme rules” have the meaning
given by subsection (2).
40