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Notices of Amendments: 11th October 2007                

1729

 

Legal Services Bill [Lords], continued

 
 

Mr Secretary Straw

 

86

 

Page  53,  line  5  [Clause  93],  after ‘who’ insert ‘has an interest or an indirect interest

 

or’.

 


 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

16

 

Page  57,  line  14  [Clause  104],  after ‘body’, insert ‘which is not licensed by the

 

Law Society’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

17

 

Page  57,  line  17  [Clause  104],  after ‘body’, insert ‘which is not licensed by the

 

Council for Licensed Conveyancers’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

39

 

Page  57,  line  24  [Clause  105],  leave out ‘an independent’ and insert ‘a’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

40

 

Page  57,  line  26  [Clause  105],  leave out ‘an independent’ and insert ‘a’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

41

 

Page  57,  line  29  [Clause  106],  leave out ‘an independent’ and insert ‘a’.

 


 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

148

 

Page  59,  line  21  [Clause  108],  leave out subsection (2) and insert—


 
 

Notices of Amendments: 11th October 2007                

1730

 

Legal Services Bill [Lords], continued

 
 

‘(2)    

The management condition is that—

 

(a)    

the number of managers of the body who are non-authorised persons is

 

less than 25 per cent. of the total number of managers; or

 

(b)    

the managers who are non-authorised individuals who provide services

 

directly or indirectly to clients within their own professional training, are

 

members of one or more recognised professional bodies and do not

 

account for more than 50 per cent. on a headcount of managers.’.

 

Mr Secretary Straw

 

87

 

Page  59,  line  22  [Clause  108],  leave out ‘non-authorised persons’ and insert

 

‘within subsection (3A)’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

149

 

Page  59,  line  23  [Clause  108],  leave out subsection (3) and insert—

 

‘(3)    

The ownership condition for B satisfying the management condition set out in

 

subsection 2(a) is that—

 

(a)    

only managers of B can hold shares or exercise voting rights or control

 

unless they are authorised persons, and

 

(b)    

the proportion of shares in B held by persons who are non-authorised

 

managers is less than 25 per cent., and

 

(c)    

the proportion of the voting rights in B which persons who are non-

 

authorised managers are entitled to exercise, or control the exercise of, is

 

than 25 per cent., and

 

(d)    

if B has a parent undertaking (“P”)—

 

(i)    

the proportion of shares in P held by persons who are non-

 

authorised managers is less than 25 per cent., and

 

(ii)    

the proportion of the voting rights in P which non-authorised non

 

managers are entitled to exercise, or control the exercise of, is

 

less than 25 per cent.’.

 

Mr Secretary Straw

 

88

 

Page  59,  line  24  [Clause  108],  leave out ‘non-authorised persons’ and insert

 

‘persons within subsection (3A)’.

 

Mr Secretary Straw

 

89

 

Page  59,  line  26  [Clause  108],  leave out ‘non-authorised’ and insert ‘such’.

 

Mr Secretary Straw

 

90

 

Page  59,  line  29  [Clause  108],  leave out ‘non-authorised’ and insert ‘such’.

 

Mr Secretary Straw

 

91

 

Page  59,  line  31  [Clause  108],  leave out ‘non-authorised’ and insert ‘such’.


 
 

Notices of Amendments: 11th October 2007                

1731

 

Legal Services Bill [Lords], continued

 
 

Mr Secretary Straw

 

92

 

Page  59,  line  33  [Clause  108],  at end insert—

 

‘(3A)    

The persons within this subsection are—

 

(a)    

non-authorised persons;

 

(b)    

licensed bodies.’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

150

 

Page  59,  line  33  [Clause  108],  at end insert—

 

‘(3A)    

The ownership condition for B satisfying the management condition set out in

 

subsection 2(b) is that shares and voting rights in B—

 

(a)    

are only held by authorised persons, or managers who are members of

 

recognised professional bodies, and

 

(b)    

the percentage of shares held or proportion of voting rights exercised by

 

non-authorised managers does not account for more than 50 per cent.’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

151

 

Page  59,  line  36  [Clause  108],  at end insert—

 

‘(4A)    

For the purposes of this section “recognised professional body” means a body

 

(other than an approved regulator), incorporated by Royal Charter, and which

 

makes provision for—

 

(a)    

testing the competence of those seeking admission to membership of the

 

body as a condition for such admission; and

 

(b)    

imposing and maintaining professional and ethical standards for its

 

members, as well as imposing sanctions for non-compliance with those

 

standards.

 

    

“member” of a recognised professional body means a member or member firm as

 

defined by the appropriate rules of such a body.’.

 


 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

38

 

Page  189,  line  42  [Schedule  12],  leave out ‘an independent’ and insert ‘a’.

 



 
 

Notices of Amendments: 11th October 2007                

1732

 

Legal Services Bill [Lords], continued

 
 

Mr Secretary Straw

 

107

 

Page  214,  line  3  [Schedule  14],  at end insert—

 

‘( )    

that a person has been appointed receiver or manager of property of the

 

licensed body;’.

 


 

nEW cLAUSE RELATING TO PART 6

 

Handling of complaints by approved regulator

 

Nick Herbert

 

Mr Henry Bellingham

 

Mr Jonathan Djanogly

 

Mr David Burrowes

 

nc5

 

To move the following Clause:—

 

‘(1)    

The Board may direct that complaints within the jurisdiction of the ombudsman

 

scheme and of such description as are specified in the direction shall be

 

determined by an approved regulator instead of an ombudsman.

 

(2)    

The Board may by further direction vary or withdraw a direction given under

 

subsection (1).

 

(3)    

Before giving a direction under this section the Board must consult—

 

(a)    

the OLC,

 

(b)    

the approved regulator concerned, and

 

(c)    

such other persons as the Board considers it reasonable to consult.

 

(4)    

If the Board gives a direction under this section, it must—

 

(a)    

give a copy to the OLC, the Secretary of State, the approved regulator

 

concerned, and any person consulted under subsection (3)(c), and

 

(b)    

publish the direction in the way it thinks fit.

 

(5)    

A direction under this section may include—

 

(a)    

transitional provision in relation to complaints already being dealt with

 

under the ombudsman scheme or by an approved regulator, and

 

(b)    

incidental, supplemental or consequential provision, including provision

 

applying a provision of or made under this Part, with or without

 

modifications, to the determination of a complaint by an approved

 

regulator.’.

 


 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr David Burrowes

 

153

 

Page  68,  line  37  [Clause  133],  leave out ‘may’ and insert ‘must’.


 
 

Notices of Amendments: 11th October 2007                

1733

 

Legal Services Bill [Lords], continued

 
 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr David Burrowes

 

154

 

Page  68,  line  41  [Clause  133],  leave out from ‘circumstances’ to end of line 43 and

 

insert ‘to another body with a view to it being determined by that body instead of by an

 

ombudsman, with particular regard to—

 

(i)    

mixed complaints provided by authorised persons under any part

 

of this Act;

 

(ii)    

whether determination of the complaint by a body other than the

 

ombudsman will be unduly prejudicial to the complainant or

 

authorised person;

 

(iii)    

provisions for managing a complainant’s dissatisfaction

 

regarding the determination of the complaint referred to another

 

body under this subsection.’.

 


 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

56

 

Page  69,  line  14  [Clause  133],  at end insert—

 

‘(ha)    

for an ombudsman to award costs against the respondent in favour of the

 

OLC for the purpose of providing a contribution to resources deployed in

 

dealing with the complaint if—

 

(i)    

the complaint against the respondent is determined or otherwise

 

resolved substantially in favour of the complainant, or

 

(ii)    

in the ombudsman’s opinion the respondent failed to deal with

 

the complaint in accordance with the regulatory arrangements

 

which the relevant approved regulator has made under section

 

112’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

57

 

Page  69,  line  48  [Clause  136],  after ‘(3)(h)’, insert ‘, (ha),’.

 


 

Mr Secretary Straw

 

93

 

Page  70,  line  43  [Clause  136],  at end insert—

 

‘(1A)    

The rules must provide for charges payable in relation to a complaint to be

 

reduced or waived (or partly or wholly refunded) where—

 

(a)    

the complaint is determined or otherwise resolved in favour of the

 

respondent, and


 
 

Notices of Amendments: 11th October 2007                

1734

 

Legal Services Bill [Lords], continued

 

5

(b)    

the ombudsman is satisfied that the respondent took all reasonable steps

 

to try to resolve the complaint under the respondent’s complaints

 

procedures.

 

(1B)    

The rules may make provision as to—

 

(a)    

the circumstances in which a complaint is to be treated as determined or

10

otherwise resolved in favour of the respondent (which may include

 

circumstances where a complaint is settled, withdrawn or abandoned (or

 

treated as withdrawn or abandoned by virtue of scheme rules));

 

(b)    

matters to be taken into account by the ombudsman for the purposes of

 

subsection (1A)(b).

15

(1C)    

The respondent’s complaints procedures are the procedures established by the

 

respondent, or which the respondent participates in or is subject to, in accordance

 

with regulatory arrangements (or licensing rules of the Board) made in

 

accordance with section 112.’.

 

As Amendments to Mr Secretary Straw’s proposed Amendment (No. 93):—

 

Mr David Heath

 

David Howarth

 

(a)

 

Line  2,  leave out ‘reduced or’.

 

Mr David Heath

 

David Howarth

 

(b)

 

Line  2,  leave out ‘or partly’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

58

 

Page  70,  line  43  [Clause  136],  at end insert—

 

‘(1A)    

The rules must provide for the OLC to reduce or waive a charge in circumstances

 

where—

 

(a)    

the complaint relates to activity undertaken otherwise than for reward, or

 

(b)    

it appears to the OLC that the amount of a charge, unless reduced or

 

waived, would be disproportionate having regard to the gravity or nature

 

of the complaint, the value (if any) of the subject matter of the activity to

 

which it relates, or the consideration payable for the services used by the

 

complainant which consist of or include that activity, or

 

(c)    

it appears to the OLC that the amount of a charge, unless reduced or

 

waived, would cause the respondent undue hardship.

 

(1B)    

The rules must also provide for the refund of the whole or part of a charge where

 

circumstances coming to the OLC’s attention since the charge was paid are such

 

that it appears to the OLC that the amount of the charge, unless wholly or partly

 

refunded—

 

(a)    

is disproportionate having regard to the gravity or nature of the

 

complaint, the value (if any) of the subject matter of the activity to which

 

it relates, or the consideration payable for the services used by the

 

complainant which consist of or include that activity, or

 

(b)    

causes the respondent undue hardship.


 
 

Notices of Amendments: 11th October 2007                

1735

 

Legal Services Bill [Lords], continued

 
 

(1C)    

Scheme rules must provide that any charge in relation to a complaint shall not

 

become payable by a respondent unless the complaint is determined or otherwise

 

resolved substantially in favour of the complainant.’.

 


 

Mr Secretary Straw

 

94

 

Page  71,  line  2  [Clause  136],  leave out ‘a particular case’ and insert ‘such other

 

circumstances as may be specified’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

59

 

Page  71,  line  2  [Clause  136],  after ‘case’, insert ‘(other than one to which rules

 

pursuant to subsection (1A) apply)’.

 

Mr Secretary Straw

 

95

 

Page  71,  line  5  [Clause  136],  leave out ‘refunded in specified circumstances’ and

 

insert ‘wholly or partly refunded in such other circumstances as may be specified’.

 

Nick Herbert

 

Mr Jonathan Djanogly

 

Mr Henry Bellingham

 

Mr Nick Hurd

 

60

 

Page  71,  line  5  [Clause  136],  after ‘circumstances’, insert ‘(other than

 

circumstances in which rules pursuant to subsection (1B) apply)’.

 


 

Mr Secretary Straw

 

96

 

Page  72,  line  15  [Clause  138],  leave out ‘£20,000’ and insert ‘£30,000’.

 

Mr Kevan Jones

 

John Mann

 

76

 

Page  72,  line  15  [Clause  138],  leave out ‘£20,000’ and insert ‘£50,000’.

 

Mr David Heath

 

David Howarth

 

145

 

Page  72,  line  15  [Clause  138],  at end insert ‘or a higher sum which the Lord

 

Chancellor may by order prescribe.’.


 
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