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Legal Services Bill [HL]


Legal Services Bill [HL]
Schedule 14 — Licensing authority’s powers of intervention

208

 

(b)   

information relevant to identifying any money held by the licensed

body or by another person on its behalf.

      (2)  

The High Court may make the order if it is satisfied that there is reason to

suspect—

(a)   

in a case within sub-paragraph (1)(a), that the person holds money

5

on behalf of the licensed body, and

(b)   

in a case within sub-paragraph (1)(b), that the person has the

information in question.

      (3)  

This paragraph is without prejudice to paragraphs 2 to 6.

Notice to produce or deliver documents

10

8     (1)  

The licensing authority may give notice to the licensed body requiring it to

produce or deliver all documents in its possession or under its control in

connection with—

(a)   

its activities as a licensed body,

(b)   

any trust of which it is or was a trustee, or

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(c)   

any trust of which a person who is or was a manager or employee of

the licensed body is or was a trustee in that person’s capacity as such

a manager or employee.

      (2)  

The notice may require the documents to be produced—

(a)   

to any person appointed by the licensing authority;

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(b)   

at a time and place to be fixed by the licensing authority.

      (3)  

The person appointed by the licensing authority may take possession of any

such documents on behalf of the licensing authority.

      (4)  

It is an offence for a person having possession of such documents to refuse,

neglect or otherwise fail to comply with a notice under sub-paragraph (1).

25

      (5)  

Sub-paragraph (4) does not apply where an application has been made to the

High Court under paragraph 9(1)(a).

      (6)  

A person who is guilty of an offence under sub-paragraph (4) is liable on

summary conviction to a fine not exceeding level 3 on the standard scale.

Order to produce or deliver documents

30

9     (1)  

The High Court may, on the application of the licensing authority, make an

order for production or delivery—

(a)   

in relation to a person required to produce documents under

paragraph 8 and the documents the person was required to produce;

(b)   

if it is satisfied that there is reason to suspect that documents in

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relation to which the powers in paragraph 8 are exercisable have

come into the possession or under the control of some person other

than the licensed body, in relation to that person and those

documents.

      (2)  

An order for production or delivery is an order—

40

(a)   

requiring a person to produce or deliver documents to any person

appointed by the licensing authority, at a time and place specified in

the order, and

 

 

Legal Services Bill [HL]
Schedule 14 — Licensing authority’s powers of intervention

209

 

(b)   

authorising the appointed person to take possession of the

documents on behalf of the licensing authority.

      (3)  

The court may, on the application of the licensing authority, authorise a

person appointed by the licensing authority to enter any premises (using

such force as is reasonably necessary) to search for and take possession of—

5

(a)   

any documents to which an order for production or delivery relates;

(b)   

any property—

(i)   

in the possession of or under the control of the licensed body,

or

(ii)   

in the case of an order under sub-paragraph (1)(b), which was

10

in the possession or under the control of that body and has

come into the possession or under the control of the person in

respect of whom the order is made,

   

which the licensing authority reasonably requires for the purpose of

accessing information contained in any such documents,

15

           

and to use property obtained under paragraph (b) for that purpose.

      (4)  

It may do so on making the order for production or delivery, or at any later

time.

Taking possession of documents etc under notice or order

10    (1)  

This paragraph applies where the licensing authority takes possession of

20

documents or any other property under paragraph 8 or 9.

      (2)  

On taking possession, it must give a notice to—

(a)   

the licensed body, and

(b)   

any other person from whom the documents or property were

received or from whose possession they were taken.

25

      (3)  

The notice must state that possession has been taken and specify the date on

which possession was taken.

      (4)  

A person to whom a notice under sub-paragraph (2) is given may apply to

the High Court for an order directing the licensing authority to deliver the

documents or other property to such person as the applicant requires.

30

      (5)  

An application under sub-paragraph (4) must be made within 8 days of the

licensing authority giving the person notice under sub-paragraph (2).

      (6)  

The person must give not less than 48 hours notice of the application—

(a)   

to the licensing authority, and

(b)   

if the notice under sub-paragraph (2) gives the name of a solicitor

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instructed by the licensing authority, to that solicitor.

      (7)  

The court may make any order it thinks fit.

Mail and other forms of communication

11    (1)  

The High Court, on the application of the licensing authority, may from time

to time make a communications redirection order.

40

      (2)  

A communications redirection order is an order that specified

communications to the licensed body are to be directed, in accordance with

 

 

Legal Services Bill [HL]
Schedule 14 — Licensing authority’s powers of intervention

210

 

the order, to the licensing authority or any person appointed by the licensing

authority.

      (3)  

For the purposes of this paragraph—

(a)   

“specified communications” means communications of such

description as are specified in the order;

5

(b)   

the descriptions of communications which may be so specified

include—

(i)   

communications in the form of a postal packet;

(ii)   

electronic communications;

(iii)   

communications by telephone.

10

      (4)  

A communications redirection order has effect for such time not exceeding

18 months as is specified in the order.

      (5)  

Where a communications redirection order has effect, the licensing

authority or the person appointed by the licensing authority may take

possession or receipt of the communications redirected in accordance with

15

the order.

      (6)  

Where a communications redirection order is made the licensing authority

must pay to the designated payee the like charges (if any) as would have

been payable for the redirection of the communications to which the order

relates if the addressee—

20

(a)   

had permanently ceased to occupy or use the premises or other

destination of the communications, and

(b)   

had applied to the designated payee to redirect the communications

as mentioned in the order

      (7)  

For this purpose “the designated payee” means—

25

(a)   

in the case of an order relating to postal packets, the postal operator

concerned, and

(b)   

in any other case, the person specified in the order as the designated

payee.

      (8)  

The High Court may, on the application of the licensing authority, authorise

30

the licensing authority, or a person appointed by it, to take such steps as may

be specified in the order in relation to any website purporting to be or have

been maintained by or on behalf of the licensed body, if the High Court is

satisfied that the taking of those steps is necessary to protect the public

interest or the interests of clients (or potential or former clients) of the

35

licensed body.

      (9)  

In this paragraph “postal operator” and “postal packet” have the meaning

given by section 125(1) of the Postal Services Act 2000 (c. 26).

     (10)  

This paragraph does not apply where the powers conferred by this Part of

this Schedule are exercisable by virtue of paragraph 1(2)(e).

40

Use of documents in licensing authority’s possession

12    (1)  

The licensing authority may apply to the High Court for an order as to the

disposal or destruction of any document or other property in its possession

by virtue of paragraph 8, 9 or 11.

      (2)  

The court may make any order it thinks fit.

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Legal Services Bill [HL]
Schedule 14 — Licensing authority’s powers of intervention

211

 

13    (1)  

The licensing authority may take copies of or extracts from any documents

in its possession by virtue of paragraph 8, 9 or 11.

      (2)  

If the licensing authority proposes to deliver such documents to any person,

it may make the delivery conditional on the person giving a reasonable

undertaking to supply copies or extracts to the licensing authority.

5

      (3)  

Sub-paragraphs (1) and (2) are subject to any order made by the court under

paragraph 10 or 12.

Trusts

14    (1)  

If the licensed body is a trustee of any trust, the licensing authority may

apply to the High Court for an order for the appointment of a new trustee in

10

substitution for it.

      (2)  

If a person who is a manager or employee of the licensed body is a trustee of

any trust in that person’s capacity as such a manager or employee, the

licensing authority may apply to the High Court for an order for the

appointment of a new trustee in substitution for that person.

15

      (3)  

The Trustee Act 1925 (c. 19) has effect in relation to an appointment of a new

trustee under this paragraph as it has effect in relation to an appointment

under section 41 of that Act.

General powers of licensing authority

15         

The powers conferred by this Schedule in relation to sums of money,

20

documents or other property may be exercised despite any lien on them or

right to their possession.

16         

The licensing authority may do all things which are reasonably necessary to

facilitate the exercise of its powers under this Schedule.

Licensing authority’s costs

25

17    (1)  

Any costs incurred by the licensing authority for the purposes of this

Schedule (including the costs of any person exercising powers under this

Schedule on behalf of the licensing authority)—

(a)   

are to be paid by the licensed body, and

(b)   

may be recovered from the licensed body as a debt owing to the

30

licensing authority.

      (2)  

Sub-paragraph (1) is subject to any order for payment of costs that may be

made on an application to the court under this Schedule.

18    (1)  

The High Court, on the application of the licensing authority, may order a

liable party to pay a specified proportion of the costs mentioned in

35

paragraph 17.

      (2)  

For this purpose a “liable party” means—

(a)   

if the licensed body is a partnership, any former partner in the

licensed body,

(b)   

in any other case, any manager or former manager of the licensed

40

body.

 

 

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints

212

 

      (3)  

The High Court may make an order under this paragraph in respect of a

liable party only if it is satisfied that the conduct (or any part of the conduct)

by reason of which this Schedule applies was conduct carried on with the

consent or connivance of, or was attributable to any neglect on the part of,

the liable party.

5

      (4)  

In this paragraph “specified” means specified in the order made by the High

Court.

Schedule 15

Section 111

 

The Office for Legal Complaints

Membership

10

1     (1)  

The OLC is to consist of the following members—

(a)   

a chairman appointed by the Board with the approval of the

Secretary of State, and

(b)   

at least 6, but not more than 8, other persons appointed by the Board

after consultation with the chairman.

15

      (2)  

The Secretary of State may by order amend sub-paragraph (1) by

substituting, for the limit on the maximum number of persons for the time

being specified in paragraph (b) of that sub-paragraph, a different limit.

2     (1)  

In appointing members of the OLC, the Board must ensure that a majority of

the members of the OLC are lay persons.

20

      (2)  

The chairman must be a lay person.

      (3)  

In this Schedule a reference to a “lay person” is a reference to a person who

has never been—

(a)   

an authorised person in relation to an activity which is a reserved

legal activity,

25

(b)   

an advocate in Scotland,

(c)   

a solicitor in Scotland,

(d)   

a member of the Bar of Northern Ireland, or

(e)   

a solicitor of the Court of Judicature of Northern Ireland.

      (4)  

For the purposes of sub-paragraph (3), a person is deemed to have been an

30

authorised person in relation to an activity which is a reserved legal activity

if that person has before the appointed day been—

(a)   

a barrister,

(b)   

a solicitor,

(c)   

a public notary,

35

(d)   

a licensed conveyancer, or

(e)   

granted a right of audience or right to conduct litigation in relation

to any proceedings by virtue of section 27(2)(a) or section 28(2)(a) of

the Courts and Legal Services Act 1990 (c. 41) (rights of audience and

rights to conduct litigation).

40

      (5)  

For the purpose of sub-paragraph (4)—

 

 

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints

213

 

“appointed day” means the day appointed for the coming into force of

section 13;

“licensed conveyancer” has the meaning given by section 11(2) of the

Administration of Justice Act 1985 (c. 61).

3     (1)  

An ombudsman may be a member (but not chairman) of the OLC.

5

      (2)  

In appointing members of the OLC, the Board must ensure that a majority of

the members of the OLC are not ombudsmen.

4          

In appointing members of the OLC, the Board must have regard to the

desirability of securing that the OLC includes members who (between them)

have experience in or knowledge of—

10

(a)   

the handling of complaints,

(b)   

the provision of legal services,

(c)   

legal education and legal training,

(d)   

consumer affairs,

(e)   

civil or criminal proceedings and the working of the courts,

15

(f)   

the maintenance of the professional standards of persons who

provide legal services,

(g)   

non-commercial legal services,

(h)   

the differing needs of consumers, and

(i)   

the provision of claims management services (within the meaning of

20

Part 2 of the Compensation Act 2006 (c. 29)).

Terms of appointment and tenure of members

5          

A member of the OLC is to hold and vacate office in accordance with the

terms and conditions of the member’s appointment (subject to this

Schedule).

25

6     (1)  

A member of the OLC must be appointed for a fixed period.

      (2)  

The period for which a member is appointed must not exceed 5 years.

      (3)  

A person who has held office as a member may be re-appointed once only,

for a further period (whether consecutive or not) not exceeding 5 years.

7          

If a member of the OLC who is a lay person becomes a person within

30

paragraph (a) to (e) of paragraph 2(3), that person ceases to be a member of

the OLC.

8     (1)  

A member may at any time—

(a)   

resign from office by giving notice to the Board;

(b)   

be removed from office by the Board.

35

      (2)  

The Board may not under sub-paragraph (1)(b) remove a member (including

the chairman) from office unless the Board is satisfied that the member—

(a)   

has failed without reasonable excuse to discharge the functions of the

office for a continuous period of at least 6 months,

(b)   

has been convicted of an offence,

40

(c)   

is an undischarged bankrupt, or

(d)   

is otherwise unfit to hold the office or unable to discharge its

functions.

 

 

Legal Services Bill [HL]
Schedule 15 — The Office for Legal Complaints

214

 

      (3)  

The chairman may be removed from office under sub-paragraph (1)(b) only

with the consent of the Secretary of State.

      (4)  

The Board must consult the chairman before removing a member (other

than the chairman) under sub-paragraph (1)(b).

      (5)  

The Board may not remove an ordinary member on the ground mentioned

5

in paragraph (a) of sub-paragraph (2) more than 3 months after the end of

the period mentioned in that paragraph.

9          

The chairman ceases to be chairman upon ceasing to be a member of the

OLC.

Remuneration etc of members

10

10         

The chairman and other members of the OLC are to be paid by the Board in

accordance with provision made by or under their terms of appointment.

Staff

11         

The OLC may appoint such staff as it considers appropriate to assist in the

performance of its functions.

15

12         

Staff appointed under paragraph 11 are to be—

(a)   

appointed on terms and conditions determined by the OLC, and

(b)   

paid by the OLC in accordance with provision made by or under the

terms of appointment.

13         

A member of staff appointed under paragraph 11 may be a member (but not

20

chairman) of the OLC.

14         

The terms and conditions on which an ombudsman, or any member of staff

appointed under paragraph 11, is appointed may provide for the OLC to

pay, or make payments towards the provision of, a pension, allowance or

gratuity to or in respect of that person.

25

Arrangements for assistance

15    (1)  

The OLC may make arrangements with such persons as it considers

appropriate for assistance to be provided to it or to an ombudsman.

      (2)  

Arrangements may include the paying of fees to such persons.

Committees

30

16    (1)  

The OLC may establish committees.

      (2)  

Any committee so established may establish sub-committees.

      (3)  

Only members of the OLC may be members of a committee or sub-

committee.

      (4)  

A majority of the members of a committee or sub-committee must be lay

35

persons.

 

 

 
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