House of Lords portcullis
House of Lords
Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]


Legal Services Bill [HL]
Schedule 6 — Alteration of reserved legal activities

145

 

      (4)  

The OFT or the Consumer Panel may, for the purposes of giving advice

under this paragraph, request any person to provide it with such

information as may be specified by it.

6     (1)  

Before determining whether it is appropriate to hold a section 23

investigation or a section 25 investigation in respect of an activity the Board

5

may also seek the advice of the Lord Chief Justice.

      (2)  

If the Board has sought advice under paragraph 5, the Board may not seek

advice from the Lord Chief Justice until—

(a)   

the period for giving advice under paragraph 5 has ended, and

(b)   

it has given the Lord Chief Justice a copy of any advice duly given

10

under that paragraph.

      (3)  

If advice is sought under sub-paragraph (1), the Lord Chief Justice—

(a)   

must give the Board such advice as the Lord Chief Justice thinks fit,

within such reasonable period as may be specified by the Board, and

(b)   

may, for the purposes of giving that advice, request any person to

15

provide the Lord Chief Justice with such information as may be

specified by the Lord Chief Justice.

      (4)  

In deciding what advice to give, the Lord Chief Justice must, in particular,

have regard to the likely impact on the courts in England and Wales of the

making of an order under section 23 or (as the case may be) provision in

20

accordance with a recommendation under section 25, in respect of the

activity in question.

7     (1)  

The Board must consider, and publish, any advice given under paragraph 5

or 6.

      (2)  

Nothing in this paragraph operates to prevent a person who gives such

25

advice from publishing it.

Restrictions on refusing a paragraph 2 request

8     (1)  

This paragraph applies where—

(a)   

a request has been made under paragraph 2, and

(b)   

paragraph 3 applies to that request.

30

      (2)  

The Board may refuse the request only if—

(a)   

the consultation requirements are satisfied, and

(b)   

either the consent requirement is satisfied or the request was made

by the Secretary of State.

      (3)  

The consultation requirements are—

35

(a)   

that the Board has consulted the OFT, the Consumer Panel and the

Lord Chief Justice under paragraphs 5 and 6, and

(b)   

that—

(i)   

the Board has obtained advice from the OFT and the

Consumer Panel or the period within which that advice is

40

required to be given has expired, and

(ii)   

the Board has obtained advice from the Lord Chief Justice or

the period within which that advice is required to be given

has expired.

      (4)  

The consent requirement is that—

45

 

 

Legal Services Bill [HL]
Schedule 6 — Alteration of reserved legal activities

146

 

(a)   

the Board has given the Secretary of State a copy of any advice given

under paragraph 5 or 6, and

(b)   

the Secretary of State has consented to the Board’s refusal of the

request.

Decision to hold investigation

5

9     (1)  

This paragraph applies where the Board has decided, following inquiries

under paragraph 3 or 4, to hold a section 23 investigation or a section 25

investigation in respect of an activity.

      (2)  

The Board must, as soon as reasonably practicable, give notice of its decision

to—

10

(a)   

the Secretary of State,

(b)   

the OFT,

(c)   

the Consumer Panel, and

(d)   

the Lord Chief Justice,

           

and publish the notice.

15

      (3)  

The notice must—

(a)   

state the Board’s reasons for its decision to hold the investigation,

and

(b)   

contain a description (in general terms) of the procedure set out in

paragraphs 10 to 17 and in rules under this Schedule, including any

20

relevant time limits.

Duty to investigate and produce a provisional report within the investigation period

10    (1)  

This paragraph applies where the Board has given notice under paragraph

9(2) of—

(a)   

a decision to hold a section 23 investigation, or

25

(b)   

a decision to hold a section 25 investigation,

           

in respect of an activity.

      (2)  

The Board must within the investigation period—

(a)   

carry out such investigations as it considers appropriate for the

purposes of enabling it to produce a provisional report in respect of

30

the activity, and

(b)   

produce and publish such a report.

      (3)  

A provisional report is a report stating—

(a)   

in a case within sub-paragraph (1)(a), whether or not the Board is

minded to make a recommendation for the purposes of section 23

35

(recommendation that activity should become a reserved legal

activity);

(b)   

in a case within sub-paragraph (1)(b), whether or not the Board is

minded to make a recommendation for the purposes of section 25

(recommendation that activity should cease to be a reserved legal

40

activity).

      (4)  

A provisional report must also state the Board’s reasons for it being, or not

being, minded to make the recommendation in question.

 

 

Legal Services Bill [HL]
Schedule 6 — Alteration of reserved legal activities

147

 

“The investigation period”

11    (1)  

“The investigation period” means the period of 12 months beginning with

the day on which the notice was given under paragraph 9(2).

      (2)  

The Board may, before the end of the investigation period, issue a notice

extending that period by a period specified in the notice.

5

      (3)  

More than one notice may be issued under sub-paragraph (2) but the total

investigation period must not exceed 16 months.

      (4)  

The Board may issue a notice under sub-paragraph (2) only after it has

consulted—

(a)   

the OFT,

10

(b)   

the Consumer Panel, and

(c)   

the Lord Chief Justice.

      (5)  

A notice under sub-paragraph (2) must state the Board’s reasons for

extending the investigation period.

      (6)  

The Board must publish any notice issued under sub-paragraph (2).

15

Supplementary provisions about the investigation

12    (1)  

This paragraph applies for the purposes of investigations under paragraph

10(2)(a).

      (2)  

The Board may make rules governing the making of oral and written

representations, and the giving of oral and written evidence, to the Board.

20

      (3)  

Rules under sub-paragraph (2) may (among other things) include—

(a)   

provision about the time and place at which any oral evidence is to

be given or oral representations are to be heard;

(b)   

provision about the period within which any written evidence is to

be given or written representations are to be made.

25

      (4)  

In relation to each investigation, the Board must determine if, and to what

extent—

(a)   

oral evidence or representations should be heard, and

(b)   

written evidence or representations should be received.

      (5)  

The Board must, so far as is reasonably practicable, consider any written or

30

oral representations duly made under this paragraph.

Consideration of the provisional report

13    (1)  

The Board may make rules governing the making to the Board of oral and

written representations in respect of provisional reports.

      (2)  

Rules under sub-paragraph (1) may (among other things) include—

35

(a)   

provision about the time and place at which any oral representations

are to be heard;

(b)   

provision about the period within which any written representations

are to be made.

      (3)  

The Board must exercise the power conferred by sub-paragraph (1) to make

40

provision—

 

 

Legal Services Bill [HL]
Schedule 6 — Alteration of reserved legal activities

148

 

(a)   

enabling written representations and, so far as is reasonably

practicable, oral representations to be made by affected practitioners,

and

(b)   

enabling written or oral representations to be made by bodies which

represent affected practitioners.

5

      (4)  

An “affected practitioner” is a person carrying on the activity in respect of

which the investigation is being held.

14    (1)  

For the purpose of making a decision under paragraph 16(1)(a) or (b), the

Board must, after publication of a provisional report, determine if and to

what extent further evidence should be heard or received.

10

      (2)  

The Board may make rules governing the giving of such evidence.

      (3)  

Rules under sub-paragraph (2) may (among other things) include—

(a)   

provision about the time and place at which any oral evidence is to

be given;

(b)   

provision about the period within which any written evidence is to

15

be given.

15         

The Board must, so far as is reasonably practicable, consider—

(a)   

any written or oral representations made in accordance with rules to

which paragraph 13(3) applies, and

(b)   

any other representations made in accordance with rules under

20

paragraph 13(1), and any written or oral evidence given in

accordance with rules under paragraph 14(2), which the Board

considers relevant.

Duty to prepare final report within the final reporting period

16    (1)  

After complying with paragraph 15, the Board must decide—

25

(a)   

in the case of a section 23 investigation, whether or not to make a

recommendation for the purposes of that section, and

(b)   

in the case of a section 25 investigation, whether or not to make a

recommendation for the purposes of that section.

      (2)  

The Board must prepare a report (“the final report”) which sets out—

30

(a)   

its decision and the reasons for it,

(b)   

where it decides to make a recommendation for the purposes of

section 23 or 25, that recommendation, and

(c)   

where it decides to make a recommendation for the purposes of

section 23, a statement of the provision which, in the Board’s

35

opinion, will need to be made by virtue of section 194(2) or in an

order under section 198 (power to make consequential provision,

transitional provision etc) if an order is made under section 23 in

accordance with that recommendation.

      (3)  

The Board must—

40

(a)   

give a copy of the final report to the Secretary of State, and

(b)   

publish that report.

      (4)  

The Board must comply with the obligations imposed by this paragraph

within the final reporting period.

 

 

Legal Services Bill [HL]
Schedule 7 — Directions: procedure

149

 

“The final reporting period”

17    (1)  

“The final reporting period” means the period of 3 months beginning with

the date on which the provisional report was published under paragraph

10(2).

      (2)  

The Board may, before the end of the final reporting period, issue a notice

5

extending that period by a period specified in the notice.

      (3)  

More than one notice may be issued under sub-paragraph (2), but the total

final reporting period must not exceed 5 months.

      (4)  

The Board may issue a notice under sub-paragraph (2) only after it has

consulted—

10

(a)   

the OFT,

(b)   

the Consumer Panel, and

(c)   

the Lord Chief Justice.

      (5)  

A notice under sub-paragraph (2) must state the Board’s reasons for

extending the final reporting period.

15

      (6)  

The Board must publish a notice issued under sub-paragraph (2).

Costs

18         

The Board may pay such costs of a person as the Board considers reasonable

for the purpose of facilitating the giving of oral evidence or the making of

oral representations, by or on behalf of that person, in accordance with rules

20

made under this Schedule.

Schedule 7

Section 32

 

Directions: procedure

Introductory

1          

This Schedule applies where the Board proposes giving a direction to an

25

approved regulator under section 31.

Notification of the approved regulator

2     (1)  

The Board must give the approved regulator a notice (“a warning notice”)

accompanied by a copy of the proposed direction.

      (2)  

The warning notice must—

30

(a)   

state that the Board proposes to give the approved regulator a

direction in the form of the accompanying draft,

(b)   

specify why the Board is satisfied as mentioned in section 31(1) and

(2), and

(c)   

specify a period within which the approved regulator may make

35

representations with respect to the proposal.

      (3)  

The period specified under sub-paragraph (2)(c)—

 

 

Legal Services Bill [HL]
Schedule 7 — Directions: procedure

150

 

(a)   

must begin with the date on which the warning notice is given to the

approved regulator, and

(b)   

must not be less than 14 days.

      (4)  

The approved regulator may make to the Board—

(a)   

written representations, and

5

(b)   

if the Board authorises it to do so, oral representations,

           

about the proposed direction.

      (5)  

The Board must make rules governing the making of oral and written

representations.

      (6)  

The Board must consider any representations duly made by the approved

10

regulator.

      (7)  

Where oral representations are duly made, the Board must prepare a report

of those representations.

      (8)  

Before preparing that report, the Board must—

(a)   

give the approved regulator a reasonable opportunity to comment

15

on a draft of the report, and

(b)   

have regard to any comments duly made.

Board’s duty to seek advice

3     (1)  

After complying with paragraph 2, the Board must give each of the persons

listed in sub-paragraph (2)—

20

(a)   

a copy of the warning notice and the accompanying draft direction,

(b)   

a copy of any written representations duly made under paragraph 2

and a copy of the report (if any) prepared under that paragraph, and

(c)   

a notice specifying a period within which any advice under

paragraphs 4 to 7 must be given.

25

      (2)  

Those persons are—

(a)   

the Secretary of State,

(b)   

the OFT,

(c)   

the Consumer Panel,

(d)   

the Lord Chief Justice, and

30

(e)   

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

respect of the proposed direction.

      (3)  

In this Schedule, in relation to a proposed direction, “selected consultee”

means a person within sub-paragraph (2)(e).

Advice of the Secretary of State

35

4          

The Secretary of State must give the Board such advice as the Secretary of

State thinks fit in respect of the proposed direction.

Advice of Office of Fair Trading

5     (1)  

The OFT must give the Board such advice as it thinks fit regarding whether

the proposed direction should be given.

40

 

 

Legal Services Bill [HL]
Schedule 7 — Directions: procedure

151

 

      (2)  

In deciding what advice to give, the OFT must, in particular, have regard to

whether giving the proposed direction would (or would be likely to)

prevent, restrict or distort competition within the market for reserved legal

services to any significant extent.

Advice of the Consumer Panel

5

6     (1)  

The Consumer Panel must give the Board such advice as it thinks fit

regarding whether the proposed direction should be given.

      (2)  

In deciding what advice to give, the Consumer Panel must, in particular,

have regard to the likely impact of the proposed direction on consumers.

Advice of selected consultees

10

7          

A selected consultee may give the Board such advice as the selected

consultee thinks fit in respect of the proposed direction.

Advice of the Lord Chief Justice

8     (1)  

The Board must give the Lord Chief Justice—

(a)   

a copy of any advice duly given under paragraphs 4 to 7, and

15

(b)   

a notice specifying a period within which any advice under this

paragraph must be given.

      (2)  

The Lord Chief Justice must then give such advice as the Lord Chief Justice

thinks fit regarding whether the proposed direction should be given.

      (3)  

In deciding what advice to give, the Lord Chief Justice must, in particular,

20

have regard to the likely impact of the proposed direction on the courts in

England and Wales.

Consultees’ powers to request information

9          

A person (“the consultee”) to whom a copy of the warning notice is given

under paragraph 3(1) may, for the purposes of giving advice under

25

paragraphs 4 to 8, request the approved regulator or any other person to

provide the consultee with such additional information as may be specified

by the consultee.

Representations by approved regulator

10    (1)  

The Board must give the approved regulator a copy of any advice duly given

30

under paragraphs 4 to 8.

      (2)  

The approved regulator may make to the Board—

(a)   

written representations, and

(b)   

if the Board authorises it to do so, oral representations,

           

about the advice.

35

      (3)  

The Board must make rules governing the making of oral and written

representations.

      (4)  

Representations under this paragraph must be made within—

(a)   

the period of 28 days beginning with the day on which the copy of

the advice is given to the approved regulator, or

40

 

 

 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries

© Parliamentary copyright 2006
Revised 24 November 2006