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Applications for licences |
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1 (1) | Licensing rules must make provision about the form and manner in which |
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applications for licences are to be made, and the fee which is to accompany |
| |
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(2) | They may make provision about— |
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(a) | the information which applications must contain, and |
| 10 |
(b) | the documents which must accompany applications. |
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Determination of applications |
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2 (1) | Licensing rules must make the following provision about the determination |
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of applications for licences. |
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(2) | Before the end of the decision period the licensing authority must— |
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(a) | decide the application, |
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(b) | notify the applicant of its decision, and |
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(c) | if it decides to refuse the application, set out in the notice the reasons |
| |
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(3) | The decision period is the period of 6 months beginning with the day on |
| 20 |
which the application is made to the licensing authority. |
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(4) | The licensing authority may, on one or more occasions, give the applicant a |
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notice (an “extension notice”) extending the decision period by a period |
| |
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(a) | an extension notice may only be given before the time when the |
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decision period would end, but for the extension notice, and |
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(b) | the total decision period must not exceed 9 months. |
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(6) | An extension notice must set out the reasons for the extension. |
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3 | Licensing rules must make provision for review by the licensing authority |
| |
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(a) | a decision to refuse an application for a licence; |
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(b) | if a licence is granted, the terms of the licence. |
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Period of licence and renewal |
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4 (1) | The licensing rules may make provision— |
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|
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(a) | limiting the period for which any licence is (subject to the provision |
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of this Part of this Schedule and of the licensing rules) to remain in |
| |
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(b) | about the renewal of licences, including provision about the form |
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and manner in which an application for the renewal is to be made, |
| 5 |
and the fee which is to accompany an application. |
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(2) | The licensing rules may make provision about— |
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(a) | the information which applications for renewal must contain, and |
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(b) | the documents which must accompany applications. |
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(3) | Licensing rules must provide that a licence issued to a licensed body by the |
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licensing authority ceases to have effect if the licensed body is issued with a |
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licence by another licensing authority. |
| |
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5 (1) | Licensing rules may make provision about the effect, on a licence issued to |
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a partnership or other unincorporated body (“the existing body”), of any |
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change in the membership of the existing body. |
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(2) | The provision which may be made includes provision for the existing body’s |
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licence to be transferred where the existing body ceases to exist and another |
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body succeeds to the whole or substantially the whole of its business. |
| |
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6 (1) | Licensing rules must make provision about the form and manner in which |
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applications are to be made for modification of the terms of a licence under |
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section 84, and the fee which is to accompany the application. |
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(2) | They may make provision as to the circumstances in which the licensing |
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authority may modify the terms of a licence under section 84 without an |
| 25 |
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(3) | They must make provision for review by the licensing authority of— |
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(a) | a decision to refuse an application for modification of the terms of a |
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(b) | if the licensing authority makes licensing rules under sub-paragraph |
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(2), a decision under those rules to modify the terms of a licence. |
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Modifications under section 104 or 105 |
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7 (1) | Licensing rules must make provision about the form and manner in which |
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applications are to be made under section 104 or 105, and the fee which is to |
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accompany the application. |
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(2) | They may make provision as to the matters to which the licensing authority |
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must have regard in determining whether to make an order under section |
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104, or to revoke or modify such an order. |
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(3) | They must make provision for review by the licensing authority of— |
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(a) | a decision to refuse an application under those sections; |
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(b) | the terms of any order made under section 104 or any decision under |
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|
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8 (1) | Licensing rules must make the following provision in relation to licensed |
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bodies to which section 104 applies (“special bodies”), and in relation to |
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which an order under section 104 has been made. |
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(2) | If a special body becomes a special body of a different kind, it must notify |
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the licensing authority of that fact before the end of the relevant period. |
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(3) | If a special body ceases to be a special body, it must notify the licensing |
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authority of that fact before the end of the relevant period. |
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(4) | The relevant period is the period of 30 days (or such longer period as may be |
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specified in licensing rules) beginning with the day on which the body first |
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became a special body of a different kind, or ceased to be a special body. |
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(5) | Licensing rules may make provision requiring a special body to provide the |
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licensing authority with such information relevant to the matters mentioned |
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in section 104(5) as may be specified in the licensing rules. |
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9 (1) | Licensing rules must require a licensed body to comply with the following |
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requirement at all times. |
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(2) | At least one of the licensed body’s managers must be an individual who is |
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an authorised person in relation to a licensed activity. |
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(3) | No manager of the licensed body may be a person who under this Part of this |
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Act is disqualified from acting as a manager of a licensed body. |
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10 (1) | Licensing rules may make further provision as to— |
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(a) | the managers of licensed bodies, and |
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(b) | the arrangements for the management by them of the licensed body |
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(2) | They must not require all the managers of a licensed body to be authorised |
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persons in relation to a reserved legal activity. |
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11 (1) | Licensing rules must include the following requirements. |
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(2) | A licensed body must at all times have an individual— |
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(a) | who is designated as Head of Legal Practice, and |
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(b) | whose designation is approved by the licensing authority. |
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(3) | A designation of an individual as Head of Legal Practice has effect only |
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(a) | consents to the designation, |
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(b) | is an authorised person in relation to one or more of the licensed |
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(c) | is not under this Part of this Act disqualified from acting as Head of |
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Legal Practice of a licensed body. |
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|
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(4) | The licensing authority may approve a person’s designation only if it is |
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satisfied that the person is a fit and proper person to carry out the duties |
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imposed by section 89 in relation to that body. |
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(5) | The licensing authority may approve a person’s designation in the course of |
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determining an application for a licence under section 82. |
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(6) | If the licensing authority is satisfied that the person designated as a licensed |
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body’s Head of Legal Practice has breached a duty imposed by section 89, it |
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may withdraw its approval of that person’s designation. |
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12 (1) | Licensing rules must make provision about— |
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(a) | the procedures and criteria that will be applied by the licensing |
| 10 |
authority when determining under paragraph 11(4) whether an |
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individual is a fit and proper person; |
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(b) | the procedures and criteria that will be applied by the licensing |
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authority in determining under paragraph 11(6) whether to |
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(c) | the procedure which is to apply where a licensed body ceases to |
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comply with the requirement imposed by virtue of paragraph 11(2). |
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(2) | Rules made in accordance with sub-paragraph (1)(c) may in particular |
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provide that the requirement imposed by virtue of paragraph 11(2) is |
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suspended until such time as may be specified by the licensing authority if |
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the licensed body complies with such other requirements as may be |
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Head of Finance and Administration |
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13 (1) | Licensing rules must include the following requirements. |
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(2) | A licensed body must at all times have an individual— |
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(a) | who is designated as Head of Finance and Administration, and |
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(b) | whose designation is approved by the licensing authority. |
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(3) | A designation of an individual as Head of Finance and Administration has |
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effect only while the individual— |
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(a) | consents to the designation, and |
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(b) | is not under this Part of this Act disqualified from acting as Head of |
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Finance and Administration of a licensed body. |
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(4) | The licensing authority may approve a person’s designation only if it is |
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satisfied that the person is a fit and proper person to carry out the duties |
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imposed by section 90 in relation to that body. |
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(5) | The licensing authority may approve a person’s designation in the course of |
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determining an application for a licence under section 82. |
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(6) | If the licensing authority is satisfied that the person designated as a licensed |
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body’s Head of Finance and Administration has breached a duty imposed |
| |
by section 90, it may withdraw its approval of that person’s designation. |
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14 (1) | Licensing rules must make provision about— |
| |
(a) | the procedures and criteria that will be applied by the licensing |
| |
authority when determining under paragraph 13(4) whether an |
| |
individual is a fit and proper person; |
| |
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|
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(b) | the procedures and criteria that will be applied by the licensing |
| |
authority in determining under paragraph 13(6) whether to |
| |
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(c) | the procedure which is to apply where a licensed body ceases to |
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comply with the requirement imposed by virtue of paragraph 13(2). |
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(2) | The rules made in accordance with sub-paragraph (1)(c) may in particular |
| |
provide that the requirement imposed by virtue of sub-paragraph 13(2) is |
| |
suspended until such time as may be specified by the licensing authority if |
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the licensed body complies with such other requirements as may be |
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| |
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15 (1) | Licensing rules must require a licensed body, other than one to which sub- |
| |
paragraph (3) applies, at all times to have a practising address in England |
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(2) | For this purpose “practising address”, in relation to a licensed body, means |
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an address from which the body provides services which consist of or |
| |
include the carrying on of reserved legal activities. |
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(3) | This sub-paragraph applies to a licensed body— |
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(a) | which is a company or limited liability partnership, and |
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(b) | the registered office of which is situated in England and Wales (or in |
| |
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16 | Licensing rules must provide that a licensed body may carry on a licensed |
| 25 |
activity only through a person who is entitled to carry on the activity. |
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Compliance with regulatory arrangements etc |
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17 (1) | Licensing rules must include the following provision. |
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(2) | A licensed body must at all times have suitable arrangements in place to |
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(a) | it, and its managers and employees, comply with the duties imposed |
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(b) | it, and any person to whom sub-paragraph (3) applies, maintain the |
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professional principles set out in section 1(3). |
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(3) | This sub-paragraph applies to any manager or employee of the licensed |
| 35 |
body who is an authorised person in relation to an activity which is a |
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(4) | A licensed body must at all times have suitable arrangements in place to |
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ensure that non-authorised persons subject to the duty imposed by section |
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88 in relation to the licensed body comply with that duty. |
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(5) | Licensing rules may make provision as to the arrangements which are |
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suitable for the purposes of rules made under sub-paragraphs (2) and (4). |
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|
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18 (1) | Licensing rules must include the following requirement. |
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(2) | A licensed body may not employ a person who under this Part of this Act is |
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disqualified from being an employee of a licensed body. |
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Indemnification arrangements and compensation arrangements |
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19 (1) | For the purpose of giving effect to indemnification arrangements and |
| |
compensation arrangements, licensing rules may— |
| |
(a) | authorise or require the licensing authority to establish and maintain |
| |
| |
(b) | authorise or require the licensing authority to take out and maintain |
| 10 |
insurance with authorised insurers; |
| |
(c) | require licensed bodies or licensed bodies of any specific description |
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to take out and maintain insurance with authorised insurers. |
| |
(2) | In this paragraph “authorised insurer” has the same meaning as in section |
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20 (1) | The licensing rules must make provision as to the treatment of money within |
| |
sub-paragraph (2), and the keeping of accounts in respect of such money. |
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(2) | The money referred to in sub-paragraph (1) is money (including money held |
| |
on trust) which is received, held or dealt with by the licensed body, its |
| 20 |
managers and employees for clients or other persons. |
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21 (1) | The licensing rules must require licensed bodies to pay periodical fees to the |
| 25 |
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(2) | The rules may provide for the payment of different fees by different |
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descriptions of licensed body. |
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22 | The licensing rules must make provision as to— |
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(a) | the acts and omissions in respect of which the licensing authority |
| |
may impose a penalty under section 93, and |
| |
(b) | the criteria and procedure to be applied by the licensing authority in |
| |
determining whether to impose a penalty under that section, and the |
| |
| 35 |
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23 (1) | Licensing rules must make provision as to the criteria and procedure to be |
| |
applied by the licensing authority in determining whether a person should |
| |
be disqualified under section 97. |
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|
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(2) | Licensing rules must make provision— |
| |
(a) | for a review by the licensing authority of a determination by the |
| |
licensing authority that a person should be disqualified; |
| |
(b) | as to the criteria and procedure to be applied by the licensing |
| |
authority in determining whether a person’s disqualification should |
| 5 |
| |
(c) | requiring the licensing authority to notify the Board of any |
| |
determination by the licensing authority that a person should be |
| |
disqualified, of the results of any review of that determination, and |
| |
of any decision by the licensing authority that a person’s |
| 10 |
disqualification should cease to be in force. |
| |
Suspension or revocation of licence under section 99 |
| |
24 (1) | Licensing rules must make the following provision. |
| |
(2) | The licensing authority may suspend or revoke a licensed body’s licence |
| |
under section 99 in the following cases. |
| 15 |
(3) | The first case is that the licensed body becomes a body which is not a |
| |
| |
(4) | The second case is that the licensed body fails to comply with licensing rules |
| |
made under paragraph 16 (carrying on of licensed activities). |
| |
(5) | The third case is that— |
| 20 |
(a) | a non-authorised person holds a restricted interest in the licensed |
| |
| |
(i) | as a result of the person taking a step in circumstances where |
| |
that constitutes an offence under paragraph 24(1) of Schedule |
| |
13 (whether or not the person is charged with or convicted of |
| 25 |
an offence under that paragraph), |
| |
(ii) | in breach of conditions imposed under paragraph 17, 28, or |
| |
| |
(iii) | the person’s holding of which is subject to an objection by the |
| |
licensing authority under paragraph 31 or 36 of that |
| 30 |
| |
(b) | if the relevant licensing rules make the provision mentioned in |
| |
paragraph 38(1)(a) of that Schedule, a non-authorised person has |
| |
under those rules an interest in shares in the body which exceeds the |
| |
| 35 |
(c) | if the relevant licensing rules make the provision mentioned in |
| |
paragraph 38(1)(b) of that Schedule, the total proportion of shares in |
| |
the licensed body in which non-authorised persons have an interest |
| |
exceeds the limit specified in the rules. |
| |
(6) | The fourth case is that a non-authorised person subject to the duty in section |
| 40 |
88 in relation to the licensed body fails to comply with that duty. |
| |
(7) | The fifth case is that the licensed body, or a manager or employee of the |
| |
licensed body, fails to comply with the duties imposed by section 169. |
| |
(8) | The sixth case is that— |
| |
(a) | the licensed body fails to comply with licensing rules made under |
| 45 |
paragraph 9(3) or 18 (prohibition on disqualified managers and |
| |
| |
| |
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|
