Legal Services Bill [HL]

House of Lords

Session 2006 - 07
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Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)
262

(f)
after sub-paragraph (4) insert—
    “(5)
The money to which this paragraph applies is money
(including money held on trust) held or received for clients
or other persons.”
122
For paragraph 8 (accountants’ reports) substitute —
5
“8
Section 34 of the Act of 1974 applies in relation to registered
foreign lawyers as it applies in relation to solicitors.”
123
In paragraph 14 (appeal against conditions or refusals)—
(a)
in sub-paragraph (1) for “Master of the Rolls” substitute “High
Court”,
10
(b)
omit sub-paragraph (2),
(c)
in sub-paragraph (3)—
(i)
omit “to him”,
(ii)
for “Master of the Rolls” substitute “High Court”, and
(iii)
for “he” substitute “it”, and
15
(d)
after that sub-paragraph insert—
    “(4)
The decision of the High Court on an appeal under this
paragraph shall be final.”
124
In paragraph 15 (jurisdiction and powers of disciplinary tribunal)—
(a)
after sub-paragraph (3) insert—
20
   “(3A)
Any person who alleges that a registered foreign lawyer
has knowingly acted in contravention of any order under
section 43(2) of the Act of 1974 or of any conditions subject
to which a permission has been granted under such an
order may make a complaint to the Tribunal.”,
25
(b)
in sub-paragraph (4)(c), omit “not exceeding £5,000”, and
(c)
omit sub-paragraph (5).
125
In paragraph 16(2) (foreign lawyers assisting Tribunal) for “Master of the
Rolls” substitute “Legal Services Board”.
126
In paragraph 17 (appeals from Tribunal)—
30
(a)
in sub-paragraph (1) for “lie—” to the end substitute “lie to the High
Court”,
(b)
in sub-paragraph (2)—
(i)
omit “and the Master of the Rolls”, and
(ii)
for “they” substitute “it”,
35
(c)
in sub-paragraph (3) for “of the Master of the Rolls on an appeal
under this paragraph” substitute “of the High Court on an appeal in
the case of an order on an application under paragraph 15(2)(d) or
(e), or the refusal of any such application,”, and
(d)
omit sub-paragraph (4).
40

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
263

Schedule 17
Section 174

Licensed conveyancing
Administration of Justice Act 1985 (c. 61)
1
Part 2 of the Administration of Justice Act 1985 (licensed conveyancing) is
amended as follows.
5
2
In section 11 (provision of conveyancing services by licensed
conveyancers)—
(a)
in subsection (1) for “by persons” to the end substitute “and other
services by persons who hold licences in force under this Part or who
are recognised bodies.”,
10
(b)
for subsection (3) substitute—
“(3)
References in this Part to conveyancing services are
references to—
(a)
the preparation of transfers, conveyances, contracts
and other documents in connection with, and other
15
services ancillary to, the disposition or acquisition of
estates or interests in land, and
(b)
any other activities which are reserved instrument
activities for the purposes of the Legal Services Act
2007 (see section 12 of and Schedule 2 to that Act).
20
(3A)
For the purposes of subsection (3)—
(a)
“disposition”
(i)
does not include a testamentary disposition or
any disposition in the case of such a lease as is
referred to in section 54(2) of the Law of
25
Property Act 1925 (short leases), but
(ii)
subject to that, includes in the case of leases
both their grant and their assignment, and
(b)
“acquisition” has a corresponding meaning.”, and
(c)
omit subsection (4).
30
3
In section 12 (establishment of the Council), omit subsection (2).
4     (1)
Section 15 (issue of licences by Council) is amended as follows.
      (2)
In subsection (3)(b), for “21” substitute “42”.
      (3)
In subsection (4), for “the period of” to the end substitute “such period,
beginning with the date of issue of the licence, as may be specified in the
35
licence.”
      (4)
Omit subsections (7) and (8).
5     (1)
Section 16 (conditional licences) is amended as follows.
      (2)
In subsection (1)—
(a)
after paragraph (c) insert—
40
“(ca)
after the Investigating Committee established under
section 24 has made any order in his case under
section 24A;”, and

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
264

(b)
after paragraph (e) insert—
“(ea)
when, having been required by rules made under
section 22 to deliver to the Council a report by a
qualified accountant, he has not delivered such a
report within the period required by the rules;”.
5
      (3)
In subsection (4)—
(a)
after “paragraph” insert “(ca),”, and
(b)
after “(e),” insert “(ea),”.
6
After section 16 insert—
“16A
Additional fee payable by certain persons when applying for licences
10
(1)
This section applies where a person applies for a licence at a time
when section 16 has effect in relation to him by reason of the
circumstances mentioned in section 16(1)(ea).
(2)
The application must be accompanied by an additional fee of an
amount prescribed by rules made by the Council for the purposes of
15
this section.”
7
In section 17(2)(a) (imposition of conditions during currency of licence)—
(a)
after “paragraph” insert “(ca),”, and
(b)
after “(e),” insert “(ea),”.
8
In section 18 (suspension or termination of licences), after subsection (2)
20
insert—
“(2A)
Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5
has been exercised in relation to a licensed conveyancer by virtue of
paragraph 1(1)(a)(i), (c) or (e) of that Schedule, the exercise of that
power shall operate immediately to suspend any licence held by that
25
person under this Part.
(2B)
Subsection (2A) does not apply if, at the time when the power
referred to there is exercised, the Council directs that subsection (2A)
is not to apply in relation to the licensed conveyancer concerned.
(2C)
If, at the time when the power referred to in subsection (2A) is
30
exercised, the Council gives a direction to that effect, the licensed
conveyancer concerned may continue to act in relation to any matter
specified in the direction as if the licence had not been suspended by
virtue of subsection (2A), but subject to such conditions (if any) as the
Council sees fit to impose.
35
(2D)
Subject to subsection (2E), where a licence is suspended by virtue of
subsection (2A) the suspension of the licence shall continue until the
licence expires.
(2E)
The licensed conveyancer may, at any time before the licence expires,
apply to the Council to terminate the suspension.
40
(2F)
On an application under subsection (2E), the Council may in its
discretion—
(a)
by order terminate the suspension either unconditionally or
subject to such conditions as the Council may think fit, or
(b)
refuse the application.
45

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
265

(2G)
If on an application by a licensed conveyancer under subsection (2E)
the Council refuses the application or terminates the suspension
subject to conditions, the licensed conveyancer may appeal against
the decision of the Council to the High Court which may—
(a)
affirm the decision, or
5
(b)
terminate the suspension either conditionally or subject to
such conditions as it may think fit.
(2H)
In relation to an appeal under subsection (2G) the High Court may
make such order as it thinks fit as to payment of costs.”
9
In section 20 (rules as to professional practice, conduct and discipline), in
10
subsection (1) omit “, in pursuance of its general duty referred to in section
12(2),”.
10    (1)
Section 24 (preliminary investigation of disciplinary cases) is amended as
follows.
      (2)
In subsection (1)—
15
(a)
for “preliminary investigation” substitute “consideration”, and
(b)
omit from “with a view” to the end.
      (3)
After subsection (1) insert—
“(1A)
The Investigating Committee shall make a preliminary investigation
of such an allegation and—
20
(a)
hear and determine the allegation, or
(b)
refer the allegation to the Discipline and Appeals Committee
established under section 25 for hearing and determination
by that Committee under section 26.”
      (4)
After subsection (4) insert—
25
“(4A)
The Council shall make rules as to the cases in which the
Investigating Committee may hear and determine an allegation, and
the cases in which they must refer an allegation to the Discipline and
Appeals Committee.”
      (5)
After subsection (5) insert—
30
“(6)
Before making a direction under subsection (5), the Investigating
Committee must give the licensed conveyancer an opportunity to
make representations against the making of the proposed direction.
(7)
In relation to proceedings under subsection (6), the Investigating
Committee may make such order as they think fit as to the payment
35
of costs by—
(a)
the Council, or
(b)
the licensed conveyancer.
(8)
Where a direction under subsection (5) has been made, the licensed
conveyancer may appeal to the Discipline and Appeals Committee,
40
and on any such appeal the Committee may make such order as they
think fit.
(9)
Where an order has been made under subsection (7) the Council or
the licensed conveyancer may appeal to the Discipline and Appeals

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
266

Committee, and on any such appeal the Committee may make such
order as they think fit.
(10)
Where an order is made by the Discipline and Appeals Committee
under subsections (8) or (9)—
(a)
the person against whom the order is made, and
5
(b)
if not within paragraph (a), the Council,

may appeal against the order to the High Court.
(11)
On an appeal under subsection (10) the High Court may make such
order as it thinks fit.
(12)
The decision of the High Court on an appeal under subsection (10)
10
shall be final.”
11
After section 24 insert—
“24A
Determination of allegations by Investigating Committee
(1)
Where, on hearing an allegation by virtue of section 24(1A)(a), the
Investigating Committee are satisfied that a licensed conveyancer—
15
(a)
has, while holding a licence in force under this Part, failed to
comply with any condition to which that licence was subject,
or
(b)
has failed to comply with any rules made by the Council
under this Part,
20

the Committee may, if they think fit, make an order directing the
payment by the licensed conveyancer of a penalty to be forfeited to
Her Majesty.
(2)
In relation to proceedings before the Investigating Committee by
virtue of section 24(1A)(a), the Committee may make such order as
25
they consider fit as to the payment of costs by—
(a)
the Council,
(b)
the licensed conveyancer against whom the proceedings
were brought, or
(c)
if the person on whose allegation the proceedings were
30
brought was heard (in person, or through a representative)
by the Committee in the course of the proceedings, that
person.
(3)
The amount of any penalty required to be paid under subsection (1)
may not exceed such amount as may be prescribed by rules made by
35
the Council for the purposes of this subsection.
(4)
Paragraphs 1, 2(1) and (3) and 4 of Schedule 4 have effect in relation
to—
(a)
proceedings for the hearing and determination of an
allegation by the Investigating Committee, as they have effect
40
in relation to proceedings before the Discipline and Appeals
Committee under section 26, and
(b)
orders of the Investigating Committee, as they have effect in
relation to orders of the Discipline and Appeals Committee.
(5)
A person against whom an order is made by the Investigating
45
Committee by virtue of subsection (1) may appeal to the Discipline

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
267

and Appeals Committee, and on any such appeal the Discipline and
Appeals Committee may make such order as they think fit.
(6)
Where an order is made by the Investigating Committee by virtue of
subsection (2), a person listed in paragraphs (a) to (c) of that
subsection may appeal to the Discipline and Appeals Committee,
5
and on any such appeal the Discipline and Appeals Committee may
make such order as they think fit.
(7)
Where an order is made by the Discipline and Appeals Committee
under subsection (5) or (6)—
(a)
a party to the appeal, or
10
(b)
if not within paragraph (a), the Council,

may appeal against the order to the High Court.
(8)
On an appeal under subsection (7) the High Court may make such
order as it thinks fit.
(9)
The decision of the High Court on an appeal under subsection (7)
15
shall be final.”
12    (1)
Section 26 (proceedings in disciplinary cases) is amended as follows.
      (2)
In subsection (1) after “allegation” insert “referred to them under section
24(1A)(b)”.
      (3)
In subsection (2)—
20
(a)
in paragraph (e), for “£3,000” substitute “such amount as may be
prescribed by rules made by the Council for the purposes of this
paragraph”,
(b)
for paragraph (f) substitute—
“(f)
an order reprimanding the licensed conveyancer.”,
25
and
(c)
omit paragraph (g).
      (4)
After subsection (2) insert—
“(2A)
In relation to proceedings before the Discipline and Appeals
Committee under this section, the Committee may make such order
30
as they consider fit as to the payment of costs by—
(a)
the Council;
(b)
the licensed conveyancer against whom the proceedings
were brought;
(c)
if the person on whose allegation the proceedings were
35
brought was heard (in person, or through a representative)
by the Committee in the course of the proceedings, that
person.”
      (5)
Omit subsections (5) and (6).
      (6)
After subsection (7) insert—
40
“(7A)
Where the Discipline and Appeals Committee make an order under
subsection (2A), a person listed in paragraphs (a) to (c) of that
subsection may appeal to the High Court, and on any such appeal
the High Court may make such order as it thinks fit.”
      (7)
In subsection (8), after “(7)” insert “or (7A)”.
45

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
268

13
In section 27 (removal of disqualification from holding a licence), after
subsection (2) insert—
“(3)
In relation to proceedings on an application under subsection (1), the
Discipline and Appeals Committee may make such order as they
consider fit as to the payment of costs by—
5
(a)
the Council;
(b)
the applicant.”
14
In section 28 (revocation of licence on grounds of fraud or error), after
subsection (4) insert—
“(5)
In relation to proceedings for the revocation of a licence under
10
subsection (1), the Discipline and Appeals Committee may make
such order as they consider fit as to the payment of costs by—
(a)
the Council;
(b)
the licensed conveyancer to whose licence the proceedings
relate.
15
(6)
In relation to proceedings on an application under subsection (2), the
Discipline and Appeals Committee may make such order as they
consider fit as to the payment of costs by—
(a)
the Council;
(b)
the applicant.”
20
15
In section 31(3) (application of Schedule 5) for “and 12” substitute “to 12A”.
16    (1)
Section 32 (provision of conveyancing services by recognised bodies) is
amended as follows.
      (2)
In subsection (1)(a) for “by licensed” (in the first place) to the end substitute
“of conveyancing services bodies;”.
25
      (3)
In subsection (1)(b) for “such services” substitute “conveyancing services or
other relevant legal services”.
      (4)
After subsection (1)(b) insert—
“(ba)
prescribing the Council’s arrangements for authorising
recognised bodies, for the purposes of the Legal Services Act
30
2007, to carry on reserved instrument activities, or the
administration of oaths, within the meaning of that Act;”.
      (5)
In subsection (2) omit “corporate”.
      (6)
In subsection (3)—
(a)
in paragraph (a) after “section” insert “, or for the renewal of such
35
recognition,”,
(b)
after that paragraph insert—
“(aa)
for the payment of fees in connection with other
applications under the rules;”,
(c)
for paragraph (c) substitute—
40
“(c)
about the time when any recognition granted under
this section, or renewal of such recognition, takes
effect and the period for which it is (subject to the
provisions of this Part) to remain in force;