Legal Services Bill [HL]

House of Lords

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Legal Services Bill [HL]

Legal Services Bill [HL]
Part 7 — Further provisions relating to the Board and the OLC
85

163
Data protection
In section 31 of the Data Protection Act 1998 (c. 29) (regulatory activity), after
subsection (4A) insert—
“(4B)
Personal data processed for the purposes of discharging any function
of the Legal Services Board are exempt from the subject information
5
provisions in any case to the extent to which the application of those
provisions to the data would be likely to prejudice the proper discharge
of the function.”
164
Use of information
Information obtained by the Board (whether in its capacity as an approved
10
regulator or licensing authority or otherwise) may be used by the Board for the
purposes of, or for any purpose connected with or incidental to, the exercise of
its functions.
Payments by Secretary of State
165
Funding
15
(1)
The Secretary of State may—
(a)
pay to the Board such sums as the Secretary of State may determine as
appropriate for the purpose of meeting the expenditure of the Board
incurred under or for the purposes of this Act (including any
expenditure incurred by it in its capacity as an approved regulator or
20
its capacity as a licensing authority), and
(b)
pay to the OLC such sums as the Secretary of State may determine as
appropriate for the purposes of meeting the expenditure of the OLC
incurred under or for the purposes of this Act.
(2)
The Secretary of State may—
25
(a)
determine the manner in which and times at which the sums
mentioned in subsection (1) are to be paid, and
(b)
impose conditions on the payment of those sums.
The levy
166
The levy
30
(1)
The Board must make rules providing for the imposition of a levy on leviable
bodies for the purpose of raising an amount corresponding to the aggregate
of—
(a)
the leviable Board expenditure,
(b)
the leviable OLC expenditure, and
35
(c)
the leviable Secretary of State expenditure.
(2)
A levy imposed under this section is payable to the Board.
(3)
Before making rules under this section, the Board must satisfy itself that the
apportionment of the levy as between different leviable bodies will be in
accordance with fair principles.
40

Legal Services Bill [HL]
Part 7 — Further provisions relating to the Board and the OLC
86

(4)
The Board may not make rules under this section except with the consent of the
Secretary of State.
(5)
“Leviable body” means—
(a)
an approved regulator,
(b)
the person designated under section 5(1) of the Compensation Act 2006
5
(c. 29) (the Regulator in relation to claims management services), or
(c)
any other person prescribed by the Secretary of State by order.
(6)
The “leviable Board expenditure” means the difference between—
(a)
the expenditure of the Board incurred under or for the purposes of this
Act or the Compensation Act 2006 (including any expenditure incurred
10
in connection with its establishment and any expenditure incurred by
it in its capacity as an approved regulator or its capacity as a licensing
authority), and
(b)
the aggregate of the amounts which the Board pays into the
Consolidated Fund under section 168(1)(a), (c) to (e) and (j) to (l) or by
15
virtue of regulations under paragraph 7(g) of the Schedule to the
Compensation Act 2006.
(7)
The “leviable OLC expenditure” means the difference between—
(a)
the expenditure of the OLC incurred under or for the purposes of this
Act (including any expenditure incurred in connection with its
20
establishment), and
(b)
the aggregate of the amounts which the OLC pays into the
Consolidated Fund under section 168(1)(g), (h) or (m).
(8)
The “leviable Secretary of State expenditure” means any expenditure incurred
by the Secretary of State in connection with the establishment of the Board or
25
the OLC (including expenditure incurred under or for the purposes of
paragraph 4 of Schedule 22 (Interim Chief Executive of the OLC)).
(9)
But the leviable Secretary of State expenditure does not include any
expenditure under section 165 (funding of Board and OLC).
(10)
In subsection (5) the reference to “an approved regulator” does not include the
30
Board where it is designated as an approved regulator under section 61.
167
The levy: supplementary provisions
(1)
In this section—
“leviable body” has the meaning given by section 166;
“the levy” means the levy payable by virtue of that section;
35
“the levy rules” means the rules made in accordance with that section.
(2)
The levy is to be payable at such rate and at such times as may be specified in
the levy rules.
(3)
The provision made in the levy rules for determining the amount of the levy
payable in respect of a particular period—
40
(a)
may require account to be taken of estimated as well as actual
expenditure and receipts, and
(b)
must require the Board to obtain the Secretary of State’s agreement to
the amount payable in respect of a particular period.

Legal Services Bill [HL]
Part 7 — Further provisions relating to the Board and the OLC
87

(4)
The levy rules may provide for different parts of the levy to be payable at
different rates.
(5)
Any amount which is owed to the Board in accordance with the levy rules may
be recovered as a debt due to the Board.
(6)
The levy rules must require the Board—
5
(a)
to calculate the amount of the levy payable by each leviable body,
(b)
to notify each leviable body of its liability to pay an amount of levy and
the time or times at which it becomes payable.
(7)
Without prejudice to subsections (2) to (6), the levy rules may—
(a)
make provision about the collection and recovery of the levy;
10
(b)
make provision about the circumstances in which any amount of the
levy payable may be waived;
(c)
provide that if the whole or any part of an amount of the levy payable
under the levy rules is not paid by the time when it is required to be
paid under the rules, the unpaid balance from time to time carries
15
interest at the rate determined by or in accordance with the levy rules.
Payments into the Consolidated Fund
168
Amounts payable into the Consolidated Fund
(1)
The following must be paid into the Consolidated Fund—
(a)
any application fee received by the Board;
20
(b)
any sum received by the Board under sections 36 to 39 (financial
penalties and interest);
(c)
amounts paid to the Board under section 48(8) or 49(5) (charges for
providing draft and final policy statements);
(d)
any sums received by the Board in its capacity as an approved regulator
25
by virtue of rules within section 63(2)(f) (practising fees etc);
(e)
any sums received by the Board in its capacity as a licensing authority
by virtue of its licensing rules within paragraph 1, 4, 6, 7 or 21 of
Schedule 11 or by virtue of paragraph 17 or 18 of Schedule 14;
(f)
any sums received by the Board in its capacity as a licensing authority
30
under sections 93 to 95 (financial penalties and interest);
(g)
any charges received by the OLC by virtue of rules under section 133
(charges payable by respondents), together with any interest payable in
accordance with those rules;
(h)
any amount payable to the OLC in accordance with scheme rules
35
within subsection (3)(i) of section 130 (costs of OLC payable by the
complainant or the respondent in relation to a complaint), together
with any interest payable on such an amount under subsection (6) of
that section;
(i)
any sum received by the Board in accordance with rules under section
40
166 (the levy);
(j)
amounts paid to the Board under section 158(4)(c) (charges for
providing copies of guidance);
(k)
any amount payable to the Board under arrangements entered under
section 159 (voluntary arrangements);
45
(l)
amounts paid to the Board under subsection (7) of section 195 (charges
for providing copies of rules and draft rules);

Legal Services Bill [HL]
Part 8 — Miscellaneous provisions about lawyers etc
88

(m)
amounts paid to the OLC under that subsection.
(2)
In this section “application fee” means a fee within—
(a)
paragraph 3(3)(d) of Schedule 4 (application fees in respect of
designation as approved regulator);
(b)
section 44(3)(b) (application fees in respect of cancellation of
5
designation as approved regulator);
(c)
paragraph 1(4)(d) of Schedule 10 (application fees in respect of
designation as licensing authority);
(d)
section 75(3)(b) (application fees in respect of cancellation of
designation as licensing authority);
10
(e)
paragraph 2(4)(c) of Schedule 18 (application fees in respect of
designation as qualifying regulator for the purposes of Part 5 of the
Immigration and Asylum Act 1999 (c. 33)).
Part 8
Miscellaneous provisions about lawyers etc
15
Duties of regulated persons
169
Duties of regulated persons
(1)
A person who is a regulated person in relation to an approved regulator has a
duty to comply with the regulatory arrangements of the approved regulator as
they apply to that person.
20
(2)
A person is a regulated person in relation to an approved regulator if the
person—
(a)
is authorised by the approved regulator to carry on an activity which is
a reserved legal activity, or
(b)
is not so authorised, but is a manager or employee of a person (other
25
than an individual) who is so authorised.
(3)
This section applies in relation to the Board in its capacity as a licensing
authority and its licensing rules, as it applies in relation to an approved
regulator and its regulatory arrangements.
Solicitors, the Law Society and the Disciplinary Tribunal
30
170
The Law Society, solicitors, recognised bodies and foreign lawyers
Schedule 16 contains amendments of—
(a)
the Solicitors Act 1974 (c. 47),
(b)
Part 1 of the Administration of Justice Act 1985 (c. 61) (recognised
bodies), and
35
(c)
Schedule 14 to the Courts and Legal Services Act 1990 (c. 41) (foreign
lawyers: partnerships and recognised bodies).
171
The Solicitors Disciplinary Tribunal: approval of rules
(1)
If the Solicitors Disciplinary Tribunal (“the Tribunal”) makes an alteration of its
rules under section 46(9)(b) of the Solicitors Act 1974 (c. 47) (“the tribunal
40

Legal Services Bill [HL]
Part 8 — Miscellaneous provisions about lawyers etc
89

rules”), the alteration does not have effect unless it is approved for the
purposes of this Act.
(2)
An alteration is approved for the purposes of this Act if—
(a)
it is approved by the Board under Part 3 of Schedule 4 (alteration of
approved regulator’s regulatory arrangements),
5
(b)
it is an exempt alteration, or
(c)
it is an alteration made in compliance with a direction under section 31
(given by virtue of section 172).
(3)
For the purposes of subsection (2)(a), paragraphs 20 to 27 of Schedule 4
(procedure for approval of alterations to regulatory arrangements) apply in
10
relation to an application by the Tribunal for approval of an alteration or
alterations of the tribunal rules as they apply in relation to an application by an
approved regulator for approval of an alteration or alterations of its regulatory
arrangements, but as if—
(a)
paragraph 23 of that Schedule applied in relation to the Law Society as
15
well as the Tribunal,
(b)
in paragraph 25(3) (grounds for refusal of application), paragraphs (d)
and (e) were omitted, and
(c)
in paragraph 27(3) the reference to section 31 were a reference to that
section as applied (with modifications) by section 172.
20
(4)
For the purposes of subsection (2)(b), an exempt alteration is an alteration
which the Board has directed is to be treated as exempt for the purposes of this
section.
(5)
A direction under subsection (4) may be specific or general, and must be
published by the Board.
25
(6)
In this section references to an “alteration” of the tribunal rules include the
making of such rules and the modification of such rules.
172
Board’s power to give directions to the Tribunal
Sections 31 to 33 and Schedule 7 (Board’s powers to give directions) apply in
relation to the Tribunal as they apply in relation to an approved regulator, but
30
as if—
(a)
in section 31(1)—
(i)
paragraphs (a) and (c) were omitted, and
(ii)
in paragraph (b) after “failed” there were inserted “to perform
any of its functions to an adequate standard (or at all) or”,
35
(b)
in subsection (3)(b) of that section for “regulatory arrangements” there
were substituted “rules under section 46(9)(b) of the Solicitors Act
1974”,
(c)
section 33(3) were omitted, and
(d)
paragraphs 2 and 10 of Schedule 7 applied in relation to the Law
40
Society, as well as the Tribunal, where it is proposed to give the
Tribunal a direction under section 31.