House of Commons Amendments

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

1581

House of Commons

Notices of Amendments

given on

Friday 29th June 2007

Consideration of Bill

Legal Services Bill [Lords], As Amended

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

1

Page  2,  line  9  [Clause  1],  at end insert—

‘(ca)
That authorised persons should not act where there is a conflict between

the interests of two or more of their clients, or between the authorised

person and their client.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

2

Page  2,  line  27  [Clause  3],  leave out ‘so far as is reasonably practicable’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

3

Page  2,  line  34  [Clause  3],  at end insert—

‘(4)
In assessing what is proportionate in the regulation of approved regulators the

Board shall have regard, inter alia, to—

(a)
the regulator’s resources (including voluntary resources) and the effect

on them of the Board’s acts;

(b)
the effect on regulatory fees;

(c)
the extent to which the Board’s acts might discourage entry to or

retention in the regulated sector;

(d)
the extent to which the number of persons regulated by a regulator might

be reduced in consequence of the Board’s acts;

(e)
the extent to which the regulator might be disadvantaged and another

regulator might derive an advantage, in particular through the movement

Notices of Amendments: 29th June 2007
1582

Legal Services Bill [Lords], continued

between regulators of regulated persons as a consequence of the Board’s

acts.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

4

Page  2,  line  36  [Clause  3],  at end insert—

‘(4)
The role of the Board is to ensure that the approved regulators act in a way which

is compatible with the regulatory objectives.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

5

Page  2,  line  36  [Clause  3],  at end insert—

‘(4)
In considering what degree of protection may be appropriate for consumers, the

Board must have regard to the differing degrees of experience and expertise that

different consumers may have in relation to different kinds of regulated activity.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

6

Page  3,  line  37  [Clause  8],  at end insert—

‘( )
The approval of the Lord Chancellor is required for the appointment of a person

to be the chairman or to be another member of the Panel.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

7

Page  4,  line  25  [Clause  8],  after ‘appointed’, insert ‘by the Board following public

advertisement and selection by the prevailing standards for selection of members of

public bodies and’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

8

Page  5,  line  19  [Clause  11],  at end add—

‘(4)
It shall be the duty of the Board (subject to subsection (5))—

(a)
to provide the Consumer Panel with all such information as, having

regard, in particular, to the need to preserve commercial confidentiality,

the Board considers appropriate to disclose to the Panel for the purpose

of enabling the Panel to carry out their functions; and

(b)
to provide the Panel with all such further information as the Panel may

require.

Notices of Amendments: 29th June 2007
1583

Legal Services Bill [Lords], continued

(5)
The Board is not required to provide information by virtue of subsection (4)(b) if,

having regard to—

(a)
the need to preserve commercial confidentiality, and

(b)
any other matters that appear to the Board to be relevant,


it is reasonable for the Board to refuse to disclose it to the Panel.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

9

Page  15,  line  31  [Clause  30],  at end insert—

‘(3A)
When making rules under subsections (1) to (3), the Board must satisfy itself that

approved regulators have established organisational structures and procedural

practices which distinguish sufficiently clearly between their regulatory and

representative functions.’.

Seperation of funds proportionately

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

nc1

To move the following Clause:—

‘(1)
In exercising its functions under sections 29 and 30, the Board shall pay particular

regard to what is proportionate.

(2)
Without prejudice to subsection (1), nothing in sections 29 or 30 shall exclude—

(a)
the exercise of or involvement in regulatory and representative functions

by the same persons or bodies within an approved regulator;

(b)
the exercise of regulatory and representative functions from common

premises.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

10

Page  18,  line  32  [Clause  36],  at end add—

‘(4A)
As soon as practicable after deciding to publish a statement, the Board must give

notice to the approved regulator stating that it has reached that decision and

setting out the terms in which the statement is to be published; and the Board must

not publish the statement until after the expiry of seven days beginning with the

day on which notice is given under this subsection.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

11

Page  20,  line  22  [Clause  39],  at end insert—

Notices of Amendments: 29th June 2007
1584

Legal Services Bill [Lords], continued

‘(da)
that the imposition of the penalty on any ground that would give rise to a

claim for judicial review.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

12

Page  20,  line  45  [Clause  39],  leave out subsection (7).

Appeal against public censure

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

NC2

To move the following Clause:—

‘(1)
An approved regulator in respect of whom the Board decides to publish a

statement under section 35 may appeal to the court on one or more of the appeal

grounds.

(2)
The appeal grounds are —

(a)
that the decision was not within the power of the Board under section 35;

(b)
that any of the requirements of section 36 have not been complied with

in relation to the imposition of the penalty and the interests of the

approved regulator have been substantially prejudiced by the non-

compliance;

(c)
that in all circumstances, the publication of a statement under section 35

is, or the terms of the statement published or to be published are (or

would be), manifestly unreasonable or inappropriate;

(d)
that the decision is unlawful on any ground that would give rise to a claim

for judicial review.

(3)
An appeal under subsection (1) must be made within the period of 42 days

beginning with the day on which the notice was given to the approved regulator.

(4)
Where an appeal is made before the expiry of the 7-day period the Board must not

(unless the court otherwise orders) publish the statement until the appeal has been

withdrawn or dismissed.

(5)
On an appeal under subsection (1), where the court considers it appropriate to do

so in all the circumstances of the case and is satisfied of one or more of the appeal

grounds, the court may—

(a)
quash the decision to publish a statement, or

(b)
vary the terms of the statement (and, where the statement has been

published, direct the Board to publish to the same extent the statement as

varied).

(6)
In this section “the court” means the High Court.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

13

Page  30,  line  45  [Clause  54],  at end insert—

Notices of Amendments: 29th June 2007
1585

Legal Services Bill [Lords], continued

‘(1A)
An approved regulator must consider any request made by an external regulatory

body for the approved regulator to reconsider any provision made by its

regulatory arrangements on the grounds that the provision either—

(a)
conflicts with a requirement of a regulatory provision made by the

external regulatory body, or

(b)
unnecessarily duplicates any regulatory provision made by that external

regulator.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

14

Page  31,  line  6  [Clause  54],  at end insert—

‘(2A)
An external regulatory body may make an application to an approved regulator

under this section if it considers that the arrangements of the approved

regulator—

(a)
frustrate the exercise of the external regulatory body’s requirements, or

(b)
conflict with the external regulatory body’s regulatory requirements, or

(c)
give rise to unnecessary duplication of regulatory requirements for the

subjects of the external regulatory body.

(2B)
For the purposes of subsection (2A)(c) above, “subjects” means any individuals

or entities subject to the regulatory powers and jurisdication of the external

regulator.

(2C)
Where an application is made to an approved regulator under this section, the

approved regulator must—

(a)
determine whether such regulatory conflict exists with the external

regulatory body’s requirements and, where it so determines, take such

steps as are reasonably practicable to address the regulatory conflict

outlined by the external regulatory body, or,

(b)
in the absence of satisfactory resolution and where provisions for the

resolution of external regulatory conflict provide, make an application to

the Board under subsection (4).’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

15

Page  31,  line  27  [Clause  55],  at end insert—

‘(d)
shall give a reason and explanation for such notice.’.

Patent and trade mark agents

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

NC3

To move the following Clause:—

‘A body—

Notices of Amendments: 29th June 2007
1586

Legal Services Bill [Lords], continued

(a)
existing at the date this Act comes into force and entitled to use the

description “Registered Trade Mark Agents” or “Registered Patent

Agents”; and

(b)
which through the operation of section 72(1)(b) of this Act would

otherwise be a licensable body,

shall not be a licensable body unless it ceases to be entitled to use the said

descriptions.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

16

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

Law Society’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

17

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

Council for Licensed Conveyancers’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

18

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

‘(2)
The management condition is that—

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

less than 10% of the total number of managers; or

(b)
the managers who are non-authorised persons who provide services

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

members of one or more recognised professional bodies.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

19

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) is that—

(a)
the proportion of shares in B in which non-authorised non managers have

an interest is less than 10%, and

(b)
the proportion of the voting power in B which non-authorised non

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

10%, and

(c)
if B has a parent undertaking (“P”)—

(i)
the proportion of shares in P in which non-authorised non-

managers have an interest is less than 10%, and

Notices of Amendments: 29th June 2007
1587

Legal Services Bill [Lords], continued

(ii)
the proportion of the voting power in P which non-authorised

non-managers are entitled to exercise, or control the exercise of,

is less than 10%.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

20

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

‘(3A)
The ownership condition for B satisfying the management condition set out in

paragraph 2(b) is that shares and voting power in B are only held by authorised

persons or members of recognised professional bodies.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

21

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

‘“recognised professional body” means a body (other than an approved

regulator), incorporated by Royal Charter, 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.’.

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

22

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

‘(5)
For the purposes of subsection (4)—

“member” means a member or member firm as defined by the appropriate

rules of such a body.’.

Low risk and professional bodies

Mr Oliver Heald

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

nc4

To move the following Clause:—

‘(1)
A licensing authority may apply to the Board to determine the status of a

recognised professional body if it is in any doubt as to whether that professional

body meets the criteria set down in this Act.

(2)
A licensing authority may apply to the Board to determine whether a body “B”,

which is “low risk” under section 108(2)(b) should not be treated as low risk if it

considers the services to be offered by B are inconsistent with the “professional

principles” set out in section 1(3).’.