Legal Services Act
2007
CHAPTER 29
Explanatory Notes have been produced to assist in the
understanding of this Act and are available separately
£37·50Legal Services Act 2007
CHAPTER 29
CONTENTS
PART 1
THE REGULATORY  OBJECTIVES
1T h e  r e g u l a t o r y  o b j e c t i v e s
PART 2
THE LEGAL  SERVICES  BOARD
Constitution
2 The Legal Services Board
General functions
3 The Board’s duty to promote the regulatory objectives etc
4 Standards of regulation, education and training5 Corporate governance6 Annual report7 Supplementary powers
Consumer Panel
8 The Consumer Panel
9 Committees and the procedure of the Consumer Panel
10 Representations by the Consumer Panel11 Advice and research functions of the Consumer PanelLegal Services Act 2007 (c. 29) ii
PART 3
RESERVED  LEGAL  ACTIVITIES
Reserved legal activities
12 Meaning of “reserved legal activity” and “legal activity”
Carrying on the activities
13 Entitlement to carry on a reserved legal activity
Offences
14 Offence to carry on a reserved legal activity if not entitled
15 Carrying on of a reserved legal activity: employers and employees etc16 Offence to carry on reserved legal activity through person not entitled17 Offence to pretend to be entitled
Interpretation
18 Authorised persons
19 Exempt persons20 Approved regulators and relevant approved regulators21 Regulatory arrangements
Continuity of existing rights and transitional protection
22 Continuity of existing rights to carry on reserved legal activities
23 Transitional protection for non-commercial bodies
Alteration of reserved legal activities
24 Extension of the reserved legal activities
25 Provisional designation as approved re gulators and licensing authorities
26 Recommendations that activities should cease to be reserved legal activities
P
ART 4
REGULATION  OF APPROVED  REGULATORS
Introductory
27 Regulatory and representative functions of approved regulators
General duties of approved regulators
28 Approved regulator’s duty to promote the regulatory objectives etc
Separation of regulatory and representative functions
29 Prohibition on the Board interfering with representative functions
30 Rules relating to the exercise of regulatory functionsLegal Services Act 2007 (c. 29) iii
Performance targets
31 Performance targets and monitoring
Directions
32 Directions
33 Directions: procedure34 Enforcement of directions
Censure
35 Public censure
36 Public censure: procedure
Financial penalties
37 Financial penalties
38 Financial penalties: procedure39 Appeals against financial penalties40 Recovery of financial penalties
Intervention
41 Intervention directions
42 Intervention directions: further provision43 Intervention directions: enforcement44 Revocation of intervention directions
Cancellation of approval
45 Cancellation of designation as approved regulator
46 Cancellation of designation: further provision47 The Board’s power to recommend orders made under section 4648 Cancellation of designation: powers of entry etc
Policy statements
49 The Board’s policy statements
50 Policy statements: procedure
Practising fees
51 Control of practising fees charged by approved regulators
Regulatory conflict
52 Regulatory conflict with approved regulators
53 Modification of provision made about regulatory conflict54 Regulatory conflict with other regulatory regimes
Information
55 Provision of information to the Board
56 Enforcement of notices under section 55Legal Services Act 2007 (c. 29) iv
Competition
57 Reports by the OFT
58 The Board’s response to OFT report59 Referral of report by the Lord Chancellor to the Competition Commission60 Duties of the Competition Commission61 Lord Chancellor’s power to give directions
The Board as approved regulator
62 The Board as an approved regulator
63 The Board’s designation under section 62(1)(a)64 Modification of the Board’s functions under section 62(1)(b)65 Cancellation of the Board’s designation under section 62(1)(c)66 The Board’s power to recommend orders made under section 6267 Effect of the Board’s designation as an approved regulator68 Regulatory conflict and the Board as approved regulator
Functions of approved regulators etc
69 Modification of the functions of approved regulators etc
70 Procedural requirements relating to recommendations under section 69
P
ART 5
ALTERNATIVE  BUSINESS  STRUCTURES
Introductory
71 Carrying on of activities by licensed bodies
72 “Licensable body”
Licensing authorities
73 Licensing authorities and relevant licensing authorities
74 Designation of approved regulator as licensing authority75 Automatic cancellation of designation as licensing authority76 Cancellation of designation as licensing authority by order77 Cancellation of designation: further provision78 The Board’s power to recommend orders made under section 7779 Cancellation of designation: powers of entry etc
Appeals
80 Functions of appellate bodies
81 Procedural requirements relating to recommendations under section 80
Policy statement
82 Licensing authority policy statement
Licensing rules
83 Licensing rulesLegal Services Act 2007 (c. 29) v
Licensing
84 Application for licence
85 Terms of licence86 Modification of licence87 Registers of licensed bodies88 Evidence of status
Ownership of licensed bodies
89 Ownership of licensed bodies
Regulation of licensed bodies
90 Duties of non-authorised persons
91 Duties of Head of Legal Practice92 Duties of Head of Finance and Administration93 Information94 Enforcement of notices under section 9395 Financial penalties96 Appeals against financial penalties97 Recovery of financial penalties98 Referral of employees etc to appropriate regulator99 Disqualification
100 Lists of disqualified persons101 Suspension and revocation of licence102 Intervention103 Regulatory conflict and the Board as licensing authority104 Prevention of regulatory conflict: accounts rules
Special kinds of body
105 Trade union exemptions
106 Power to modify application of licensing rules etc to special bodies107 Modifications under section 106: supplementary108 “Low risk body”109 Foreign bodies
Supplementary provision
110 Reporting requirements relating to Part 5
111 Interpretation of Part 5
P
ART 6
LEGAL  COMPLAINTS
Complaints procedures of authorised persons
112 Complaints procedures of authorised persons
Overview of the scheme
113 Overview of the schemeLegal Services Act 2007 (c. 29) vi
The Office for Legal Complaints
114 The Office for Legal Complaints
115 The ombudsman scheme116 General obligations117 Corporate governance118 Annual report119 Supplementary powers120 Reporting to the Board121 Performance targets and monitoring
The ombudsmen
122 Appointment of the Chief Ombudsman and assistant ombudsmen
123 Annual report of Chief Ombudsman124 Additional reports of Chief Ombudsman
Jurisdiction and operation of the ombudsman scheme
125 Jurisdiction of the ombudsman scheme
126 Complaints excluded because respondent’s complaints procedures not used127 Complaints excluded by scheme rules128 Parties129 Pre-commencement acts and omissions130 Orders under section 128131 Acts and omissions by employees etc132 Continuity of complaints133 Operation of the ombudsman scheme134 Delegation of an ombudsman’s functions135 Notification requirements136 Charges payable by respondents
Determinations under the scheme
137 Determination of complaints
138 Limitation on value of directions under the ombudsman scheme139 Alteration of limit140 Acceptance or rejection of determination141 Enforcement by complainant of directions under section 137142 Reporting court orders made against authorised persons
Reporting misconduct
143 Reporting possible misconduct to approved regulators
Co-operation with investigations
144 Duties to share information
145 Duties of authorised persons to co-operate with investigations146 Reporting failures to co-operate with an investigation to approved regulators
Information
147 Information and documents
148 Reporting failures to provide information or produce documentsLegal Services Act 2007 (c. 29) vii
149 Enforcement of requirements to provide information or produce documents
150 Reports of investigations151 Restricted information152 Disclosure of restricted information153 Data protection
Defamation
154 Protection from defamation claims
Scheme rules
155 Consent requirements for rules
156 The Board’s powers in respect of rules
Effect on existing arrangements for redress etc
157 Approved regulators not to make provision for redress
158 Regulatory arrangements not prohibited by section 157159 Legal Services Complaints Commissioner and Legal Services Ombudsman
Interpretation
160 Interpretation of Part 6
Claims management services
161 Extension of Part 6 to claims management services
P
ART 7
FURTHER  PROVISIONS  RELATING  TO THE BOARD  AND  THE OLC
Guidance
162 Guidance
Voluntary arrangements
163 Voluntary arrangements
164 Power to establish voluntary scheme for resolving complaints165 Procedure for making orders under section 164166 Operation of voluntary scheme
Disclosure and use of information
167 Restricted information
168 Disclosure of restricted information169 Disclosure of information to the Board170 Data protection171 Use of informationLegal Services Act 2007 (c. 29) viii
Payments by Lord Chancellor
172 Funding
The levy
173 The levy
174 The levy: supplementary provisions
Payments into the Consolidated Fund
175 Amounts payable into the Consolidated Fund
PART 8
MISCELLANEOUS  PROVISIONS  ABOUT  LAWYERS  ETC
Duties of regulated persons
176 Duties of regulated persons
Solicitors, the Law Society and the Disciplinary Tribunal
177 The Law Society, solicitors, recognised bodies and foreign lawyers
178 The Solicitors Disciplinary Tribunal: approval of rules179 Board’s power to give directions to the Tribunal180 Functions of the Tribunal
Other lawyers
181 Unqualified person not to pretend to be a barrister
182 Licensed conveyancers183 Commissioners for oaths184 Trade mark attorneys185 Patent attorneys186 Immigration advisers and immigration service providers187 Claims management services
Advocates and litigators
188 Duties of advocates and litigators
189 Employed advocates
Legal professional privilege
190 Legal professional privilege
Employees of housing management bodies
191 Rights of audience etc of employees of housing management bodies
Savings
192 Powers of court in respect of rights of audience and conduct of litigation
193 Solicitors to public departments and the City of LondonLegal Services Act 2007 (c. 29) ix
Pro bono representation
194 Payments in respect of pro bono representation
Scotland
195 Application of the Legal Profession and Legal Aid (Scotland) Act 2007
196 Scottish legal services ombudsman: functions
PART 9
GENERAL
Offences
197 Offences committed by bodies corporate and unincorporated bodies
198 Local weights and measures authorities
Protected functions of the Lord Chancellor
199 Protected functions of the Lord Chancellor
Notices etc
200 Notices and directions
201 Documents202 The giving of notices, directions and other documents203 The giving of notices, directions and other documents in electronic form
Orders, rules etc
204 Orders, regulations and rules
205 Consultation requirements for rules206 Parliamentary control of orders and regulations
Interpretation
207 Interpretation
Miscellaneous and supplementary
208 Minor and consequential provision etc
209 Transitional and transitory provision210 Repeals211 Commencement212 Extent213 Index of defined expressions214 Short title
Schedule 1 — The Legal Services BoardLegal Services Act 2007 (c. 29) x
Schedule 2 — The reserved legal activities
Schedule 3 — Exempt personsSchedule 4 — Approved regulators
Part 1 — Existing regulatorsPart 2 — Designation of bodies by orderPart 3 — Alteration of approved regul ator’s regulatory arrangements
Schedule 5 — Authorised persons
Part 1 — Continuity of rightsPart 2 — Rights during transitional periodPart 3 — Interpretation
Schedule 6 — Alteration of reserved legal activitiesSchedule 7 — Directions: procedureSchedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directionsPart 2 — Revoking intervention directions
Schedule 9 — Cancellation of designation as approved regulator
Schedule 10 — Designation of approved re gulators as licensing authorities
Part 1 — Designation of approved regulators by orderPart 2 — Cancellation of designation by order 
Schedule 11 — Licensing rules
Part 1 — Licensing procedurePart 2 — Structural requirementsPart 3 — Practice requirementsPart 4 — Regulation
Schedule 12 — Entitlement to make an a pplication for a licence to the Board
Schedule 13 — Ownership of licensed bodies
Part 1 — IntroductoryPart 2 — Approval of restricted interests on application for licencePart 3 — Approval of restricted interests after licence is issuedPart 4 — Additional restrictionsPart 5 — Enforcement
Schedule 14 — Licensing authorit y’s powers of intervention
Schedule 15 — The Office for Legal ComplaintsSchedule 16 — The Law Society, solicitors, recognised bodies and foreign
lawyers
Part 1 — The Solicitors Act 1974 (c. 47)Part 2 — The Administration of Justice Act 1985 (c. 61)Part 3 — The Courts and Legal Services Act 1990 (c. 41)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)Part 2 — Courts and Legal Services Act 1990 (c. 41)
Schedule 18 — Immigration advic e and immigration services
Part 1 — Qualifying regulatorsPart 2 — Amendments of the Immigration and Asylum Act 1999 (c. 33)Part 3 — Transitional provision
Schedule 19 — Claims management servicesSchedule 20 — Amendments in relation to the Legal Profession and Legal Aid
(Scotland) Act 2007 (asp 5)
Schedule 21 — Minor and consequential amendmentsSchedule 22 — Transitional and transitory provisionSchedule 23 — RepealsSchedule 24 — Index of defined expressionsELIZABETH II c. 29
Legal Services Act 2007
2007 CHAPTER 29
An Act to make provision for the establishment of the Legal Services Board
and in respect of its functions; to make provision for, and in connection with,
the regulation of persons who carry on  certain legal activities; to make
provision for the establishment of the Office for Legal Complaints and for ascheme to consider and determine legal complaints; to make provision about
claims management services and about immigration advice and immigration
services; to make provision in respect of legal representation provided free ofcharge; to make provision about the application of the Legal Profession and
Legal Aid (Scotland) Act 2007; to make provision about the Scottish legal
services ombudsman; and for connected purposes. [30th October 2007]
E IT ENACTED  by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:— 
PART 1
THE REGULATORY  OBJECTIVES
1 The regulatory objectives
(1) In this Act a reference to “the regul atory objectives” is a reference to the
objectives of—
(a) protecting and promoting the public interest;
(b) supporting the constitutional principle of the rule of law;
(c) improving access to justice;
(d) protecting and promoting the interests of consumers;
(e) promoting competition in the pr ovision of services within subsection
(2);
(f) encouraging an independent, strong, diverse and effective legal
profession;BLegal Services Act 2007 (c. 29)
Part 1 — The regulatory objectives2
(g) increasing public understanding of the citizen’s legal rights and duties;
(h) promoting and maintaining adher ence to the professional principles.
(2) The services within this subsection are services such as are provided by
authorised persons (including services whic h do not involve the carrying on of
activities which are reserved legal activities).
(3) The “professional principles” are—
(a) that authorised persons should act with independence and integrity,
(b) that authorised persons should maintain proper standards of work,
(c) that authorised persons should act in the best interests of their clients,
(d) that persons who exercise before any court a right of audience, or
conduct litigation in relation to proceedings in any court, by virtue ofbeing authorised persons should comply with their duty to the court toact with independence in the interests of justice, and
(e) that the affairs of clients should be kept confidential.
(4) In this section “authorised persons” means authorised persons in relation to
activities which are reserved legal activities.
P
ART 2
THE LEGAL  SERVICES  BOARD
Constitution
2 The Legal Services Board
(1) There is to be a body corporate called the Legal Services Board (“the Board”).(2) Schedule 1 is about the Board.
General functions
3 The Board’s duty to promote the regulatory objectives etc
(1) In discharging its functions the Board must comply with the requirements of
this section.
(2) The Board must, so far as is reasonably practicable, act in a way—
(a) which is compatible with the regulatory objectives, and
(b) which the Board considers most appropriate for the purpose of meeting
those objectives.
(3) The Board must have regard to—
(a) the principles under which regulatory activities should be transparent,
accountable, proportionate, consistent and targeted only at cases inwhich action is needed, and
(b) any other principle appearing to it to represent the best regulatory
practice.Legal Services Act 2007 (c. 29)
Part 2 — The Legal Services Board3
4 Standards of regulation, education and training
The Board must assist in the maintenance and development of standards in
relation to—
(a) the regulation by approved regulators of persons authorised by them
to carry on activities which are reserved legal activities, and
(b) the education and training of persons so authorised.
5 Corporate governance
In managing its affairs, the Board must have regard to such generally accepted
p r i n c i p l e s  o f  g o o d  c o r p o r a t e  g o v e r n a n c e  a s  i t  i s  r e a s o n a b l e  t o  r e g a r d  a sapplicable to it.
6 Annual report
(1) The Board must prepare a report (“the annual report”) for each financial year.
(2) The annual report must deal with—
(a) the discharge of the Board’s functions,
(b) the extent to which, in the Board’s opinion, the Board has met the
regulatory objectives, and
(c) such other matters as the Lord Chancellor may from time to time direct.
(3) As soon as reasonably practicable after the end of each financial year, the Board
must give the Lord Chancellor a copy of the annual report prepared for that
year.
(4) The Lord Chancellor must lay a copy of the annual report before Parliament.
(5) In this section “financial year” means—
(a) the period beginning with the day on which the Board is established
and ending with the next following 31 March, and
(b) each successive period of 12 months.
7 Supplementary powers
The Board may do anything calculated to facilitate, or incidental or conducive
to, the carrying out of any of its functions.
Consumer Panel
8 The Consumer Panel
(1) The Board must establish and maintain a panel of persons (to be known as “the
Consumer Panel”) to represent the interests of consumers.
(2) The Consumer Panel is to consist of such consumers, or persons representing
the interests of consumers, as the Board may appoint with the approval of theLord Chancellor.
(3) The Board must appoint one of the members of the Consumer Panel to be the
chairman of the Panel.Legal Services Act 2007 (c. 29)
Part 2 — The Legal Services Board4
(4) The Board must secure that the membership of the Consumer Panel is such as
to give a fair degree of representation to both—
(a) those who are using (or are or may be contemplating using), in
connection with businesses carried on by them, services provided bypersons who are authorised persons in relation to activities which arereserved legal activities, and
(b) those who are using (or ar e or may be contemplating using) such
services otherwise than in connection with businesses carried on bythem.
(5) The Consumer Panel must not include any person who is—
(a) a member of the Board or of its staff;
(b) a member of the Office for Legal Complaints (see Part 6), an
ombudsman appointed by it or a member of its staff appointed underparagraph 13 of Schedule 15;
(c) a member of the governing body, or of the staff, of an approved
regulator;
(d) an authorised person in relation to an activity which is a reserved legal
activity;
(e) a person authorised, by a person designated under section 5(1) of the
Compensation Act 2006 (c. 29), to provide services which are regulatedclaims management services (within the meaning of that Act);
(f) an advocate in Scotland;
(g) a solicitor in Scotland;
(h) a member of the Bar of Northern Ireland; or
(i) a solicitor of the Court of Judicature of Northern Ireland.
(6) The chairman and other members of the Consumer Panel are to be—
(a) appointed for a fixed period, and on other terms and conditions,
determined by the Board, and
(b) paid by the Board in accordance with provision made by or under the
terms of appointment.
(7) But a person may be removed from office in accordance with those terms and
conditions only with the approval of the Lord Chancellor.
(8) A person who ceases to be chairman or another member of the Consumer Panel
may be re-appointed.
9 Committees and the procedure of the Consumer Panel
( 1 ) T h e  C o n s u m e r  P a n e l  m a y  m a k e  s u c h  a r r a n g e m e n t s  a s  i t  t h i n k s  f i t  f o r
committees established by the Panel to give advice to the Panel about mattersrelating to the carrying out of the Panel’s functions.
(2) The Consumer Panel may make such other arrangements for regulating its
own procedure, and for regulating the procedure of the committeesestablished by it, as it thinks fit.
(3) Those arrangements may include arrangements as to quorums and as to the
making of decisions by a majority.
(4) The committees established by the Consumer Panel may include committees
the membership of which includes persons who are not members of the Panel.Legal Services Act 2007 (c. 29)
Part 2 — The Legal Services Board5
(5) The membership of every committee established by the Consumer Panel must
contain at least one person who is a member of the Panel.
(6) Where a person who is not a member of the Consumer Panel is a member of a
committee established by it, the Board may pay to that person suchremuneration and expenses as the Board may determine.
10 Representations by the Consumer Panel
(1) The Board must consider any representations made to it by the Consumer
Panel.
(2) If the Board disagrees with a view expressed, or proposal made, in the
representations, it must give the Consumer Panel a notice to that effect statingits reasons for disagreeing.
(3) The Consumer Panel may publish such information as it thinks fit about any
representations made by it to the Board.
(4) Where the Consumer Panel publishes information about any representations
made by it, the Board must publish any notice it gives under subsection (2) inrespect of those representations.
11 Advice and research functions of the Consumer Panel
(1) The Consumer Panel may, at the request of the Board—
(a) carry out research for the Board;
(b) give advice to the Board.
(2) The Board must consider any advice given and the results of any research
carried out under this section.
(3) The Consumer Panel may publish such information as it thinks fit about advice
it gives, and about the results of research carried out by it, under this section.
P
ART 3
RESERVED  LEGAL  ACTIVITIES
Reserved legal activities
12 Meaning of “reserved legal activity” and “legal activity”
(1) In this Act “reserved legal activity” means—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
(c) reserved instrument activities;
(d) probate activities;
(e) notarial activities;
(f) the administration of oaths.
(2) Schedule 2 makes provision about what constitutes each of those activities.
(3) In this Act “legal activity” means—Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities6
(a) an activity which is a reserved legal activity within the meaning of this
Act as originally enacted, and
(b) any other activity which consists of one or both of the following—
(i) the provision of legal advice or assistance in connection with the
application of the law or with any form of resolution of legaldisputes;
(ii) the provision of representation in connection with any matter
concerning the application of the law or any form of resolutionof legal disputes.
(4) But “legal activity” does not include any activity of a judicial or quasi-judicial
nature (including acting as a mediator).
(5) For the purposes of subsection (3) “legal dispute” includes a dispute as to any
matter of fact the resolution of which is relevant to determining the nature ofany person’s legal rights or liabilities.
(6) Section 24 makes provision for adding legal activities to the reserved legal
activities.
Carrying on the activities
13 Entitlement to carry on a reserved legal activity
(1) The question whether a person is entitled to carry on an activity which is a
reserved legal activity is to be determined solely in accordance with theprovisions of this Act.
(2) A person is entitled to carry on an activity (“the relevant activity”) which is a
reserved legal activity where—
(a) the person is an authorised person in relation to the relevant activity, or
(b) the person is an exempt person in relation to that activity.
(3) Subsection (2) is subject to section 23 (transitional protection for non-
commercial bodies).
(4) Nothing in this section or section 23 affects section 84 of the Immigration and
Asylum Act 1999 (c. 33) (which prohibits the provision of immigration adviceand immigration services except by certain persons).
Offences
14 Offence to carry on a reserved legal activity if not entitled
(1) It is an offence for a person to carry on an activity (“the relevant activity”)
which is a reserved legal activity unless th at person is entitled to carry on the
relevant activity.
(2) In proceedings for an offence under subsection (1), it is a defence for the
accused to show that the accused did not know, and could not reasonably havebeen expected to know, that the offence was being committed.
(3) A person who is guilty of an offence under subsection (1) is liable—
(a) on summary conviction, to impris onment for a term not exceeding 12
months or a fine not exceeding the statutory maximum (or both), andLegal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities7
(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).
(4) A person who is guilty of an offence under subsection (1) by reason of an act
done in the purported exercise of a right of audience, or a right to conductlitigation, in relation to any proceedings or contemplated proceedings is alsoguilty of contempt of the court concerned and may be punished accordingly.
(5) In relation to an offence under subsection (1) committed before the
commencement of section 154(1) of th e Criminal Justice Act 2003 (c. 44), the
reference in subsection (3)(a) to 12 months is to be read as a reference to 6months.
15 Carrying on of a reserved legal activity: employers and employees etc
(1) This section applies for the interpretation of references in this Act to a person
carrying on an activity which is a reserved legal activity.
(2) References to a person carrying on an activity which is a reserved legal activity
include a person (“E”) who—
(a) is an employee of a person (“P”), and
(b) carries on the activity in E’s capacity as such an employee.
(3) For the purposes of subsection (2), it is irrelevant whether P is entitled to carry
on the activity.
(4) P does not carry on an activity (“the relevant activity”) which is a reserved legal
activity by virtue of E carrying it on in E’s capacity as an employee of P, unlessthe provision of relevant services to th e public or a section of the public (with
or without a view to profit) is part of P’s business.
(5) Relevant services are services which consist of or include the carrying on of the
relevant activity by employees of P in their capacity as employees of P.
(6) Where P is an independent trade union, persons provided with relevant
services do not constitute the public or a section of the public where—
(a) the persons are provided with the relevant services by virtue of their
membership or former membership of P or of another person’smembership or former membership of P, and
(b) the services are excepted membership services.
(7) Subject to subsection (8), “excepted membership services” means relevant
services which relate to or have a connection with—
(a) relevant activities of a member, or former member, of the independent
trade union;
(b) any other activities carried on for the purposes of or in connection with,
or arising from, such relevant activities;
(c) any event which has occurred (or is alleged to have occurred) in the
course of or in connection with such relevant activities or activitieswithin paragraph (b);
(d) activities carried on by a person for the purposes of or in connection
with, or arising from, the person’s membership of the independenttrade union;
and such other relevant services as the Lord Chancellor may by order specify.Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities8
(8) The Lord Chancellor may by order make provision about the circumstances in
which relevant services do or do not relate to, or have a connection with, thematters mentioned in paragraphs (a) to (d) of subsection (7).
(9) Subject to that, the Lord Chancellor may by order make provision about—
(a) what does or does not constitute a section of the public;
(b) the circumstances in which the provision of relevant services to the
public or a section of the public does or does not form part of P’sbusiness.
(10) The Lord Chancellor may make an order under subsection (7), (8) or (9) only
on the recommendation of the Board.
(11) If P is a body, references to an employee of P include references to a manager
of P.
(12) In subsection (7), “relevant activities”, in relation to a person who is or was a
member of an independent trade union, means any employment (includingself-employment), trade, occupation or other activity to which the person’smembership of the trade union relates or related.
16 Offence to carry on reserved legal activity through person not entitled
(1) Where subsection (2) applies it is an offence for a person (“P”) to carry on an
activity (“the relevant activity”) which is a reserved legal activity, despite Pbeing entitled to carry on the relevant activity.
(2) This subsection applies if—
(a) P carries on the relevant activity by virtue of an employee of P (“E”)
carrying it on in E’s capacity as such an employee, and
(b) in carrying on the relevant activity, E commits an offence under section
14.
(3) If P is a body, references in subsection (2) to an employee of P include
references to a manager of P.
(4) In proceedings for an offence under subsection (1), it is a defence for the
accused to show that the accused took all reasonable precautions and exercisedall due diligence to avoid committing the offence.
(5) A person who is guilty of an offence under subsection (1) is liable—
(a) on summary conviction, to impris onment for a term not exceeding 12
months or a fine not exceeding the statutory maximum (or both), and
(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).
(6) A person who is guilty of an offence under subsection (1) by reason of an act
done in the purported exercise of a right of audience, or a right to conductlitigation, in relation to any proceedings or contemplated proceedings is alsoguilty of contempt of the court concerned and may be punished accordingly.
(7) In relation to an offence under subsection (1) committed before the
commencement of section 154(1) of th e Criminal Justice Act 2003 (c. 44), the
reference in subsection (5)(a) to 12 months is to be read as a reference to 6months.Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities9
17 Offence to pretend to be entitled
(1) It is an offence for a person—
(a) wilfully to pretend to be entitled to carry on any activity which is a
reserved legal activity when that person is not so entitled, or
(b) with the intention of implying falsely that that person is so entitled, to
take or use any name, title or description.
(2) A person who is guilty of an offence under subsection (1) is liable—
(a) on summary conviction, to impris onment for a term not exceeding 12
months or a fine not exceeding the statutory maximum (or both), and
(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).
(3) In relation to an offence under subsection (1) committed before the
commencement of section 154(1) of th e Criminal Justice Act 2003 (c. 44), the
reference in subsection (2)(a) to 12 months is to be read as a reference to 6months.
Interpretation
18 Authorised persons
(1) For the purposes of this Act “authorised person”, in relation to an activity (“the
relevant activity”) which is a reserved legal activity, means —
(a) a person who is authorised to carry on the relevant activity by a
relevant approved regulator in relation to the relevant activity (otherthan by virtue of a licence under Part 5), or
(b) a licensable body which, by virt ue of such a licence, is authorised to
carry on the relevant activity by a licensing authority in relation to thereserved legal activity.
(2) A licensable body may not be authorised to carry on the relevant activity as
mentioned in subsection (1)(a).
(3) But where a body (“A”) which is authorised as mentioned in subsection (1)(a)
becomes a licensable body, the body is deemed by virtue of this subsection tocontinue to be so authorised from that time until the earliest of the followingevents—
(a) the end of the period of 90 days beginning with the day on which that
time falls;
(b) the time from which the relevant approved regulator determines this
subsection is to cease to apply to A;
(c) the time when A ceases to be a licensable body.
(4) Subsection (2) is subject to Part 2 of Schedule 5 (by virtue of which licensable
bodies may be deemed to be authorised as mentioned in subsection (1)(a) inrelation to certain activities during a transitional period).
(5) A person other than a licensable body may not be authorised to carry on the
relevant activity as mentioned in subsection (1)(b).
(6) But where a body (“L”) which is authorised as mentioned in subsection (1)(b)
ceases to be a licensable body, the body is deemed by virtue of this subsection
to continue to be so authorised from that time until the earliest of the following
events—Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities10
(a) the end of the period of 90 days beginning with the day on which that
time falls;
(b) the time from which the relevan t licensing authority determines this
subsection is to cease to apply to L;
(c) the time when L becomes a licensable body.
19 Exempt persons
In this Act, “exempt person”, in relation to an activity (“the relevant activity”)
which is a reserved legal activity, means a person who, for the purposes ofcarrying on the relevant activity, is an exempt person by virtue of—
(a) Schedule 3 (exempt persons), or
(b) paragraph 13 or 18 of Schedule 5 (additional categories of exempt
persons during transitional period).
20 Approved regulators and relevant approved regulators
(1) In this Act, the following expressions have the meaning given by this section—
“approved regulator”;“relevant approved regulator”.
(2) “Approved regulator” means—
(a) a body which is designated as an approved regulator by Part 1 of
Schedule 4 or under Part 2 of that Schedule (or both) and whoseregulatory arrangements are approved for the purposes of this Act, and
(b) if an order under section 62(1)(a) has effect, the Board.
(3) An approved regulator is a “relevant approved regulator” in relation to an
activity which is a reserved legal activity if—
(a) the approved regulator is designated by Part 1, or under Part 2, of
Schedule 4 in relation to that reserved legal activity, or
(b) where the approved regulator is th e Board, it is designated in relation
to that reserved legal activity by an order under section 62(1)(a).
(4) An approved regulator is a “relevant approved regulator” in relation to a
person if the person is authorised by the approved regulator to carry on anactivity which is a reserved legal activity.
(5) Schedule 4 makes provision with respect to approved regulators other than the
Board.
In that Schedule—
(a) Part 1 designates certain bodies as approved regulators in relation to
certain reserved legal activities,
(b) Part 2 makes provision for bodies to be designated by order as
approved regulators in relation to one or more reserved legal activities,and
(c) Part 3 makes provision relating to the approval of changes to an
approved regulator’s regulatory arrangements.
(6) An approved regulator may authorise persons to carry on any activity which
is a reserved legal activity in respect of which it is a relevant approvedregulator.Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities11
21 Regulatory arrangements
(1) In this Act references to the “regulatory arrangements” of a body are to—
(a) its arrangements for authorising persons to carry on reserved legal
activities,
(b) its arrangements (if any) for authorising persons to provide
immigration advice or immigration services,
(c) its practice rules,
(d) its conduct rules,
(e) its disciplinary arrangements in relation to regulated persons
(including its discipline rules),
(f) its qualification regulations,
(g) its indemnification arrangements,
(h) its compensation arrangements,
(i) any of its other rules or regulations (however they may be described),
and any other arrangements, which apply to or in relation to regulatedpersons, other than those made for the purposes of any function thebody has to represent or promote the interests of persons regulated byit, and
(j) its licensing rules (if any), so far as not within paragraphs (a) to (i),
(whether or not those arrangements, rules or regulations are contained in, or
made under, an enactment).
(2) In this Act—
“compensation arrangements”, in relation to a body, means arrangements
to provide for grants or other payments for the purposes of relieving ormitigating losses or hardship suffered by persons in consequence of—
(a) negligence or fraud or other dishonesty on the part of any
persons whom the body has authorised to carry on activitieswhich constitute a reserved legal activity, or of employees oftheirs, in connection with their activities as such authorisedpersons, and
(b) failure, on the part of regulated persons, to account for money
received by them in connection with their activities as suchregulated persons;
“conduct rules”, in relation to a body, means any rules or regulations
(however they may be described) as to the conduct required ofregulated persons;
“discipline rules”, in relation to a body, means any rules or regulations
(however they may be described) as to the disciplining of regulatedpersons;
“indemnification arrangements”, in relation to a body, means
arrangements for the purpose of ensuring the indemnification of thosewho are or were regulated persons against losses arising from claims inrelation to any description of civil liability incurred by them, or byemployees or former employees of theirs, in connection with theiractivities as such regulated persons;
“practice rules”, in relation to a body, means any rules or regulations
(however they may be described) which govern the practice ofregulated persons;
“qualification regulations”, in relation to a body, means—
(a) any rules or regulations relating to—Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities12
(i) the education and training which persons must receive,
or
(ii) any other requirements which must be met by or in
respect of them,
in order for them to be authorised by the body to carry on an
activity which is a reserved legal activity,
(b) any rules or regulations relating to—
(i) the education and training which persons must receive,
or
(ii) any other requirements which must be met by or in
respect of them,
in order for them to be authorised by the body to provide
immigration advice or i mmigration services, and
(c) any other rules or regulations relating to the education and
training which regulated persons must receive or any otherrequirements which must be met by or in respect of them,
(however they may be described).
(3) In this section “regulated persons”, in relation to a body, means any class of
persons which consists of or includes—
(a) persons who are authorised by the body to carry on an activity which
is a reserved legal activity;
(b) persons who are not so authorised, but are employees of a person who
is so authorised.
(4) In relation to an authorised person other than an individual, references in
subsection (2) and (3) to employees of the person include managers of theperson.
Continuity of existing rights and transitional protection
22 Continuity of existing rights to carry on reserved legal activities
Schedule 5 makes provision for the continuity of existing rights and for certain
persons to be deemed, during a transitional period, to be authorised byapproved regulators to carry on certain activities.
23 Transitional protection for non-commercial bodies
(1) During the transitional period, a body within subsection (2) is entitled to carry
on any activity which is a reserved legal activity.
(2)  The bodies are—
(a) a not for profit body,
(b) a community interest company, or
(c) an independent trade union.
(3) The transitional period is the period which—
(a) begins with the day appointed for the coming into force of section 13,
and
(b) ends with the day appointed by the Lord Chancellor by order for the
purposes of this paragraph.Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities13
(4) Different days may be appointed under subsection (3)(b) for different
purposes.
(5) An order may be made under subsection (3)(b) only on the recommendation of
the Board.
Alteration of reserved legal activities
24 Extension of the reserved legal activities
(1) The Lord Chancellor may, by order, amend section 12 or Schedule 2 (reserved
legal activities) so as to add any legal activity to the activities which arereserved legal activities for the purposes of this Act.
(2) An order under subsection (1) may be made only on the recommendation of
the Board.
(3) Schedule 6 makes provision about the making of recommendations for the
purposes of this section.
(4) Where a recommendation is made in relation to an activity, the Lord
Chancellor must—
(a) consider the report containing the recommendation given to the Lord
Chancellor under paragraph 16(3)(a) of that Schedule,
(b) decide whether or not to make an order under this section in respect of
the activity, and
(c) publish a notice of that decision,
within the period of 90 days beginning with the day on which the report was
given to the Lord Chancellor.
(5) Where the Lord Chancellor decides not to make an order under this section in
respect of an activity, the notice under subsection (4)(c) must state the reasonsfor that decision.
25 Provisional designation as approved regulators and licensing authorities
(1) The Lord Chancellor may, by order, make provision—
(a) enabling applications to be made, considered and determined under
Part 2 of Schedule 4 or Part 1 of Schedule 10 in relation to a provisionalreserved activity, as if the activity were a reserved legal activity;
(b) enabling provisional designation orders to be made by the Lord
Chancellor in respect of a provisional reserved activity, as if the activitywere a reserved legal activity.
(2) An order under subsection (1) may, in particular, provide that Part 2 of
Schedule 4 or Part 1 of Schedule 10 is to apply, in relation to such cases as maybe specified by the order, with such modifications as may be so specified.
(3) The Lord Chancellor may also, by order, make provision—
(a) for the purpose of enabling applications for authorisation to carry on an
activity which is a provisional reserved activity to be made to andconsidered and determined by—
(i) a body in respect of which a provisional designation order is
made, or
(ii) the Board in its capacity as a licensing authority;Legal Services Act 2007 (c. 29)
Part 3 — Reserved legal activities14
(b) for the purpose of enabling persons to be deemed to be authorised to
carry on an activity which is a new reserved legal activity by a relevantapproved regulator in relation to the activity, or by the Board in itscapacity as a licensing authority, for a period specified in the order.
(4) For this purpose—
“provisional reserved activity” means an activity in respect of which a
provisional report under paragraph 10 of Schedule 6 states that theBoard is minded to make a recommendation for the purposes of section24;
“provisional designation order” means an order made by the Lord
Chancellor under Part 2 of Schedule 4 or Part 1 of Schedule 10 which isconditional upon the Lord Chancellor making an order under section24 in respect of the provisional reserved activity, pursuant to arecommendation made by the Board following the provisional report;
“new reserved legal activity” means a legal activity which has become a
reserved legal activity by virtue of an order under section 24.
26 Recommendations that activities should cease to be reserved legal activities
(1) The Board may recommend that an activity should cease to be a reserved legal
activity.
(2) Schedule 6 makes provision about the making of recommendations for the
purposes of this section.
(3) The Lord Chancellor must consider any recommendation made by the Board
for the purposes of this section (b ut nothing in section  208 (minor and
consequential provision etc) authorises the Lord Chancellor to give effect to
such a recommendation).
(4) Where the Lord Chancellor disagrees with a recommendation (or any part of
it), the Lord Chancellor must publish a notice to that effect which must includethe Lord Chancellor’s reasons for disagreeing.
P
ART 4
REGULATION  OF APPROVED  REGULATORS
Introductory
27 Regulatory and representative functions of approved regulators
(1) In this Act references to the “regulatory functions” of an approved regulator
are to any functions the approved regulator has—
(a) under or in relation to its regulatory arrangements, or
(b) in connection with the making or alteration of those arrangements.
(2) In this Act references to the “representative functions” of an approved
regulator are to any functions the approved regulator has in connection withthe representation, or promotion, of the interests of persons regulated by it.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators15
General duties of approved regulators
28 Approved regulator’s duty to promote the regulatory objectives etc
(1) In discharging its regulatory functions (whether in connection with a reserved
legal activity or otherwise) an approved regulator must comply with therequirements of this section.
(2) The approved regulator must, so far as is reasonably practicable, act in a way—
(a) which is compatible with the regulatory objectives, and
(b) which the approved regulator considers most appropriate for the
purpose of meeting those objectives.
(3) The approved regulator must have regard to—
(a) the principles under which regulatory activities should be transparent,
accountable, proportionate, consistent and targeted only at cases inwhich action is needed, and
(b) any other principle appearing to it to represent the best regulatory
practice.
Separation of regulatory and representative functions
29 Prohibition on the Board interfering with representative functions
(1) Nothing in this Act authorises the Board to exercise its functions in relation to
any representative function of an approved regulator.
(2) But subsection (1) does not prevent the Board exercising its functions for the
purpose of ensuring—
(a) that the exercise of an approved regulator’s regulatory functions is not
prejudiced by its representative functions, or
(b) that decisions relating to the exercise of an approved regulator’s
regulatory functions are, so far as reasonably practicable, takenindependently from decisions relating to the exercise of itsrepresentative functions.
30 Rules relating to the exercise of regulatory functions
(1) The Board must make rules (“internal governance rules”) setting out
requirements to be met by approved regulators for the purpose of ensuring—
(a) that the exercise of an approved regulator’s regulatory functions is not
prejudiced by its representative functions, and
(b) that decisions relating to the exercise of an approved regulator’s
regulatory functions are so far as reasonably practicable takenindependently from decisions relating to the exercise of itsrepresentative functions.
(2) The internal governance rules must require each approved regulator to have in
place arrangements which ensure—
(a) that the persons involved in the exercise of its regulatory functions are,
in that capacity, able to make representations to, be consulted by andenter into communications with the Board, the Consumer Panel, theOLC and other approved regulators, andLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators16
(b) that the exercise by those persons of those powers is not prejudiced by
the approved regulator’s representative functions and is, so far asreasonably practicable, independent from the exercise of thosefunctions.
(3) The internal governance rules must also require each approved regulator—
(a) to take such steps as are reasonably practicable to ensure that it
provides such resources as are reasonably required for or in connectionwith the exercise of its regulatory functions;
(b) to make such provision as is nece ssary to enable persons involved in
the exercise of its regulatory functions to be able to notify the Boardwhere they consider that their independence or effectiveness is beingprejudiced.
(4) The first set of rules under this section must be made before the day appointed
by the Lord Chancellor by order for the purposes of this section. 
Performance targets
31 Performance targets and monitoring
(1) The Board may—
(a) set one or more performance targets relating to the performance by an
approved regulator of any of its regulatory functions, or
(b) direct an approved regulator to set one or more performance targets
relating to the performance by the approved regulator of any of itsregulatory functions,
if the Board is satisfied that the conditions in subsection (2) are satisfied.
(2) Those conditions are—
(a) that an act or omission of the approved regulator (or a series of such
acts or omissions) has had, or is likely to have, an adverse impact onone or more of the regulatory objectives, and
(b) that it is appropriate to take the action proposed under subsection (1)
in all the circumstances of the case (including in particular the impactof taking the action on the other regulatory objectives).
(3) A direction under subsection (1)(b) may impose conditions with which the
performance targets must conform.
(4) If the Board proposes to take action under this section in respect of an
approved regulator it must give notice to the approved regulator—
(a) describing the action it proposes to take,
(b) specifying the acts or omissions to which the proposed action relates
and any other facts which, in the opinion of the Board, justify the takingof that action, and
(c) specifying the time (not being earlier than the end of the period of 28
days beginning with the day on which the notice is given) before whichrepresentations with respect to that action may be made.
(5) Before taking action under this section, the Board must consider any
representations which are duly made.
(6) In exercising its regulatory functions, an approved regulator must seek to meet
any performance target set for or by it under this section.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators17
(7) The Board must publish any target set or direction given by it under this
section.
(8) An approved regulator must publish any target set by it pursuant to a direction
under subsection (1)(b).
(9) The Board may take such steps as it regards as appropriate to monitor the
extent to which any performance target set under this section is being, or hasbeen, met.
Directions
32 Directions
(1) This section applies if the Board is satisfied—
(a) that an act or omission of an approved regulator (or a series of such acts
or omissions) has had, or is likely to have, an adverse impact on one ormore of the regulatory objectives,
(b) that an approved regulator has failed to comply with any requirement
imposed on it by or under this Act (including this section) or any otherenactment, or
(c) that an approved regulator—
(i) has failed to ensure that the exercise of its regulatory functions
is not prejudiced by any of its representative functions, or
(ii) has failed to ensure that decisions relating to the exercise of its
regulatory functions are, so far as reasonably practicable, takenindependently from decisions relating to the exercise of itsrepresentative functions.
(2) If, in all the circumstances of the case, the Board is satisfied that it is
appropriate to do so, it may direct the approved regulator to take—
(a) in a case within subsection (1)(a), such steps as the Board considers will
counter the adverse impact, mitigate its effect or prevent its occurrenceor recurrence;
(b) in a case within subsection (1)(b) or (c), such steps as the Board
considers will remedy the failure, mitigate its effect or prevent itsrecurrence.
(3) In a case within subsection (1)(a), before giving a direction under subsection (2)
the Board must in particular consider the impact of giving the direction on theother regulatory objectives.
(4) A direction under subsection (2)—
(a) may only require an approved regulator to take steps which it has
power to take;
(b) may require an approved regulator to take steps with a view to the
modification of any part of its regulatory arrangements.
(5) The Board may not exercise its powers under this section so as to give a
direction requiring an approved regula tor to take steps in respect of a specific
disciplinary case or other specific regulatory proceedings (as opposed to all, ora specified class of, such cases or proceedings).Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators18
(6) For the purposes of this section a direction to take steps includes a direction
which requires an approved regulator to refrain from taking a particularcourse of action.
(7) The power to give a direction under this section is subject to any provision
made by or under any other enactment.
(8) The Board may take such steps as it regards as appropriate to monitor the
extent to which a direction under this section is being, or has been, compliedwith.
(9) Where the Board revokes a direction under this section, it must—
(a) give the approved regulator to whom the direction was given notice of
the revocation, and
(b) publish that notice.
33 Directions: procedure
Schedule 7 makes provision about the procedure which must be complied with
before a direction is given under section 32.
34 Enforcement of directions
(1) If at any time it appears to the Board that an approved regulator has failed to
comply with a direction given under section 32, the Board may make anapplication to the High Court under this section.
(2) If, on an application under this section, the High Court decides that the
approved regulator has failed to comply with the direction in question, it mayorder the approved regulator to take such steps as the High Court directs forsecuring that the direction is complied with.
(3) This section is without prejudice to any other powers conferred on the Board
by this Part.
Censure
35 Public censure
(1) This section applies if the Board is satisfied—
(a) that an act or omission of an approved regulator (or a series of such acts
or omissions) has had, or is likely to have, an adverse impact on one ormore of the regulatory objectives, and
(b) that it is appropriate to act under this section in all the circumstances of
the case (including in particular the impact of so acting on the otherregulatory objectives).
(2) The Board may publish a statement censuring the approved regulator for the
act or omission (or series of acts or omissions).
36 Public censure: procedure
(1) If the Board proposes to publish a statement under section 35 in respect of an
approved regulator, it must give notice to the approved regulator—Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators19
(a) stating that the Board proposes to publish such a statement and setting
out the terms of the proposed statement,
(b) specifying the acts or omissions to which the proposed statement
relates, and
(c) specifying the time (not being earlier than the end of the period of 28
days beginning with the day on which the notice is given to theapproved regulator) before which representations with respect to theproposed statement may be made.
(2) Before publishing the statement, the Board must consider any representations
which are duly made.
(3) Before varying any proposed statement set out in a notice under subsection
(1)(a), the Board must give notice to the approved regulator—
(a) setting out the proposed variation and the reasons for it, and
(b) specifying the time (not being earlier than the end of the period of 28
days beginning with the day on which the notice is given to theapproved regulator) before which representations with respect to theproposed variation may be made.
(4) Before varying the proposal, the Board must consider any representations
which are duly made.
Financial penalties
37 Financial penalties
(1) This section applies if the Board is satisfied—
(a) that an approved regulator has failed to comply with a requirement to
which this section applies, and
(b) that, in all the circumstances of the case, it is appropriate to impose a
financial penalty on the approved regulator.
(2) This section applies to any requirement imposed on the approved regulator—
(a) by rules under section 30 (internal governance rules),
(b) by a direction given under section 32 (Board directions), or
(c) by section 51 (control of practising fees charged by approved
regulators) or by rules under that section.
(3) The Board may impose a penalty, in respect of the failure, of such an amount
as it considers appropriate, but not exceeding the maximum amountprescribed under subsection (4).
(4) The Board must make rules prescribing the maximum amount of a penalty
which may be imposed under this section.
(5) Rules may be made only under subsection (4) with the consent of the Lord
Chancellor.
(6) A penalty under this section is payable to the Board.
(7) In sections 38 to 40 references to a “penalty” are to a penalty under this section.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators20
38 Financial penalties: procedure
(1) If the Board proposes to impose a penalty on an approved regulator, it must
give notice to the approved regulator—
(a) stating that the Board proposes to impose a penalty and the amount of
the penalty proposed to be imposed,
(b) specifying the failure to which the proposed penalty relates,
(c) specifying the other facts which, in the Board’s opinion, justify the
imposition of a penalty and the amount of the penalty, and
(d) specifying the time (not being earlier than the end of the period of 21
days beginning with the day on which the notice is published undersubsection (8)) before which representations with respect to theproposed penalty may be made.
(2) Before imposing a penalty on an approved regulator, the Board must consider
any representations which are duly made.
(3) Where the Board proposes to vary the amount of a proposed penalty stated in
a notice under subsection (1)(a), the Board must give notice to the approvedregulator—
(a) setting out the proposed variation and the reasons for it, and
(b) specifying the time (not being earlier than the end of the period of 21
days beginning with the day on which the notice is published undersubsection (8)) before which representations with respect to theproposed variation may be made.
(4) Before varying the proposal, the Board must consider any representations
which are duly made.
(5) As soon as practicable after imposing a penalty, the Board must give notice to
the approved regulator—
(a) stating that it has imposed a penalty on the approved regulator and its
amount,
(b) specifying the failure to which the penalty relates,
(c) specifying the other facts which, in the Board’s opinion, justify the
imposition of the penalty and its amount, and
(d) specifying a time (not being earlier than the end of the period of 3
months beginning with the day on which the notice is given to theapproved regulator), before which the penalty is required to be paid.
(6) The approved regulator may, within the period of 21 days beginning with the
day on which it is given the notice under subsection (5), make an application
to the Board for it to specify different times by which different portions of thepenalty are to be paid.
(7) If an application is made under subsection  (6) in relation to a penalty, the
penalty is not required to be paid until the application has been determined.
(8) The Board must publish any notice given under this section.
39 Appeals against financial penalties
(1) An approved regulator on whom a penalty is imposed may appeal to the court
on one or more of the appeal grounds.
(2) The appeal grounds are—Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators21
(a) that the imposition of the penalty was not within the power of the
Board under section 37;
(b) that any of the requirements of section 38 have not been complied with
in relation to the imposition of the penalty and the interests of theapproved regulator have been substantially prejudiced by the non-compliance;
(c) that the amount of the penalty is unreasonable;
(d) that it was unreasonable of the Board to require the penalty imposed or
any portion of it to be paid by th e time or times by which it was
required to be paid.
(3) An appeal under subsection (1) must be made—
(a) within the period of 3 months beginning with the day on which the
notice under section 38(5) is given to the approved regulator in respectof the penalty, or
(b) where the appeal relates to a decision of the Board on an application by
the approved regulator under section 38(6), within the period of 3months beginning with the day on which the approved regulator isnotified of the decision.
(4) On any such appeal, where the court considers it appropriate to do so in all the
circumstances of the case and is satisfied of one or more of the appeal grounds,the court may—
(a) quash the penalty,
(b) substitute a penalty of such lesser amount as the court considers
appropriate, or
(c) in the case of the appeal ground in subsection (2)(d), substitute for any
time imposed by the Board a different time or times.
(5) Where the court substitutes a pen alty of a lesser amount it may require the
payment of interest on the substituted penalty at such rate, and from such time,as it considers just and equitable.
(6) Where the court specifies as a time by whic h the penalty, or a portion of the
penalty, is to be paid a time before the determination of the appeal under thissection, it may require the payment of intere st on the penalty, or portion, from
that time at such rate as it considers just and equitable.
(7) Except as provided by this section, the validity of a penalty is not to be
questioned by any legal proceedings whatever.
(8) In this section “the court” means the High Court.
40 Recovery of financial penalties
(1) If the whole or any part of a penalty is not paid by the time by which it is
required to be paid, the unpaid balance from time to time carries interest at therate for the time being specified in section 17 of the Judgments Act 1838 (c. 110).
(2) If an appeal is made under section 39 in rela tion to a penalty, the penalty is not
required to be paid until the appeal has been determined or withdrawn.
(3) If the Board grants an application under subsection (6) of section 38 in relation
to a penalty but any portion of the pen alty is not paid by the time specified in
relation to it by the Board under that subsection, the Board may where itLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators22
considers it appropriate require so much of the penalty as has not already been
paid to be paid immediately.
(4) Where a penalty, or any portion of  it, has not been paid by the time when it is
required to be paid and—
(a) no appeal relating to the penalty has been made under section 39
during the period within which such an appeal can be made, or
(b) an appeal has been made under that section and determined or
withdrawn,
the Board may recover from the approved regulator, as a debt due to the Board,
any of the penalty and any interest which has not been paid.
Intervention
41 Intervention directions
(1) The Board may give an approved regulator an intervention direction in
relation to any of the approved regulator’s regulatory functions if the Board issatisfied—
(a) that an act or omission of an approved regulator (or a series of such acts
or omissions) has had, or is likely to have, an adverse impact on one ormore of the regulatory objectives, and
(b) that it is appropriate to give the intervention direction in all the
circumstances of the case (including in particular the impact of givingthe direction on the other regulatory objectives).
(2) An intervention direction, in relation to a regulatory function of an approved
regulator, is a direction—
(a) that the regulatory function is to be exercised by the Board or a person
nominated by it, and
(b) that the approved regulator must comply with any instructions of the
Board or its nominee in relation to the exercise of the function.
(3) The Board may not determine that it is appropriate to give an intervention
direction unless it is satisfied that the matter cannot be adequately addressedby the Board exercising the powers available to it under sections 31 to 40.
(4) Part 1 of Schedule 8 makes provision about the procedure which must be
complied with before an intervention direction is given and the manner inwhich such a direction is to be given.
(5) The Board must make rules as to the persons it may nominate for the purposes
of subsection (2)(a).
42 Intervention directions: further provision
(1) This section applies where an intervention direction has effect in respect of a
function of an approved regulator (“the relevant function”).
(2) The approved regulator must give the specified person all such assistance, in
connection with the proposed exercise of the relevant function by the specifiedperson in pursuance of the direction, as the approved regulator is reasonablyable to give.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators23
(3) On an application by the specified person (or a person appointed by the
specified person to act on its behalf) a judge of the High Court, Circuit judge orjustice of the peace may issue a warrant authorising that person to—
(a) enter and search the premises of the approved regulator, and
(b) take possession of any written or electronic records found on the
premises.
(4) The person so authorised may, for the purpose of the exercise by the specified
person of the relevant function, take copies of written or electronic recordsfound on a search carried out by virtue of the warrant.
(5) The judge or justice of the peace may not issue the warrant unless satisfied that
its issue is necessary or desirable for the exercise by the specified person of therelevant function.
(6) The Lord Chancellor must make regulations—
(a) specifying further matters which a judge or justice of the peace must be
satisfied of, or matters which a judge or justice of the peace must haveregard to, before issuing a warrant, and
(b) regulating the exercise of a power conferred by a warrant issued under
subsection (3) or by subsection (4) (whether by restricting thecircumstances in which a power may be exercised, by specifyingconditions to be complied with in the exercise of a power, or otherwise).
(7) Regulations under subsection (6)(b) must in particular make provision as to the
circumstances in which written or electronic records of which a person hastaken possession by virtue of a warrant issued under subsection (3) may becopied or must be returned.
(8) But the Lord Chancellor may not make regulations under subsection (6)
unless—
(a) they are made in accordance with a recommendation made by the
Board, or
(b) the Lord Chancellor has consulted the Board about the making of the
regulations.
(9) In this section “the specified person” means the Board or, where a person is
nominated by it as mentioned in section 41(2), that person.
(10) The Board must make rules as to the persons a specified person may appoint
for the purposes of subsection (3).
43 Intervention directions: enforcement
(1) If at any time it appears to the Board that an approved regulator has failed to
comply with an obligation imposed on it by, or by virtue of, an interventiondirection or section 42(2), the Board may make an application to the HighCourt under this section.
(2) If, on an application under subsection (1), the High Court decides that the
approved regulator has failed to comply with the obligation in question, it mayorder the approved regulator to take such steps as the High Court directs forsecuring that the obliga tion is complied with.
(3) This section is without prejudice to any other powers conferred on the Board
by this Part.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators24
44 Revocation of intervention directions
(1) An intervention direction has effec t until such time as it is revoked by the
Board (whether on the application of the approved regulator or otherwise).
(2) Part 2 of Schedule 8 makes provision about the procedure which must be
complied with before an intervention direction is revoked and the manner inwhich notice of the revocation is to be given.
Cancellation of approval
45 Cancellation of designation as approved regulator
(1) The Lord Chancellor may by order cancel a body’s designation as an approved
regulator—
(a) in relation to all the reserved legal activities in relation to which it is an
approved regulator, or
(b) in relation to one or more, but not all, of those reserved legal activities,
with effect from a date specified in the order.
(2) But the Lord Chancellor may only make an order under subsection (1) in
accordance with a recommendation made by the Board under subsection (3) or(5).
(3) The Board must recommend that an order is made cancelling a body’s
designation as an approved regulator in relation to one or more reserved legalactivities, if—
(a) the body applies to the Board for such a recommendation to be made,
(b) the application is made in such form and manner as may be prescribed
by rules made by the Board, and is accompanied by the prescribed fee,and
(c) the body publishes a notice giving details of the application in
accordance with such requir ements as may be specified in rules made
by the Board.
(4) In this section “the prescribed fee”, in relation to an application, means the fee
specified in, or determined in accordance with, rules made by the Board, withthe consent of the Lord Chancellor.
(5) The Board may recommend that an order is made cancelling a body’s
designation as an approved regulator in relation to one or more reserved legalactivities if it is satisfied—
(a) that an act or omission of an approved regulator (or a series of such acts
or omissions) has had, or is likely to have, an adverse impact on one ormore of the regulatory objectives, and
(b) that it is appropriate to cancel the body’s designation in relation to the
activity or activities in question in all the circumstances of the case(including in particular the impact of cancelling the designation on theother regulatory objectives).
(6) The Board may not determine that it is appropriate to cancel a body’s
designation in relation to an activity or activities unless it is satisfied that thematter cannot be adequately addressed by the Board exercising the powersavailable to it under sections 31 to 43.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators25
(7) Schedule 9 makes further provision about the making of recommendations
under subsection (5).
(8) If the Lord Chancellor decides not to make an order in response to a
recommendation made under subsection (3) or (5), the Lord Chancellor mustgive the Board notice of the decision and the reasons for it.
(9) The Lord Chancellor must publish a notice given under subsection (8).
(10) The Board may not make a recommendation under subsection (5) in respect of
a body’s designation as an approved regulator in relation to a reserved legalactivity at any time when, by virtue of Part 2 of Schedule 5 (protection of rightsduring a transitional period), any person is being treated as authorised by thebody to carry on that activity.
46 Cancellation of designation: further provision
(1) This section applies where a body (“the former regulator”) has its designation
in relation to one or more reserved legal activities cancelled by an order undersection 45.
(2) The Lord Chancellor may by order make—
(a) such modifications of provisions made by or under any enactment
(including this Act or any enactment passed after this Act), prerogativeinstrument or other instrument or document, and
(b) such transitional or consequential provision,
as the Lord Chancellor considers necessary or expedient in consequence of the
cancellation.
(3) The Lord Chancellor may, by order, make transfer arrangements.
(4) “Transfer arrangements” are arrangements in accordance with which each
person authorised by the former regulator who consents to the arrangementsis, from the time the cancellation takes effect, treated as being authorised tocarry on each protected activity by either—
(a) a relevant approved regulator, in relation to the protected activity, who
consents to the transfer arrangements, or
(b) the Board acting in its capacity as a relevant approved regulator in
relation to the protected activity by virtue of an order made undersection 62.
(5) The transfer arrangements—
(a) must make such provision as is necessary to ensure that, where a
person is treated under those arrangements as being authorised tocarry on a protected activity by the new regulator, that person is subjectto the regulatory arrangements of the new regulator;
(b) may make provision requiring amounts held by the former regulator
which represent amounts paid to it by way of practising fees by thepersons to whom the transfer arrangements apply (or a part of theamounts so held) to be paid to the new regulator and treated as if theywere amounts paid by those persons by way of practising fees to thenew regulator.
(6) Subsection (5)(a) is subject to any transitional provision which may be made by
the transfer arrangements, including provision modifying the regulatoryLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators26
arrangements of the new regulator as they apply to persons to whom the
transfer arrangements apply.
(7) The Lord Chancellor may make an order under this section only if—
(a) the Board has made a recommendation in accordance with section 47,
and
(b) the order is in the same form as , or in a form which is not materially
different from, the draft order annexed to that recommendation.
(8) For the purposes of this section—
(a) a person is “authorised by the former regulator” if immediately before
the time the cancellation takes effect the person is authorised by theformer regulator (other than by virtue of a licence under Part 5) to carryon an activity which is a reserved legal activity to which thecancellation relates, and
(b) in relation to that person—
(i) the activity which that person is authorised to carry on as
mentioned in paragraph (a) is a “protected activity”, and
(ii) “the new regulator” means the approved regulator within
paragraph (a) or (b) of subsection (4).
(9) In this section “practising fee”, in  relation to an approved regulator, means a
fee payable by a person under the approved regulator’s regulatoryarrangements in circumstances where the payment of the fee is a conditionwhich must be satisfied for that person to be authorised by the approvedregulator to carry on one or more activities which are reserved legal activities.
(10) But for the purposes of this section “practising fee” does not include a fee
payable by a licensed body to its licensing authority under licensing rules.
47 The Board’s power to recommend orders made under section 46
(1) The Board may recommend to the Lord Ch ancellor that the Lord Chancellor
make an order under section 46 in the form of a draft order prepared by theBoard and annexed to the recommendation.
(2) Before making a recommendation under this section, the Board must publish a
draft of—
(a) the proposed recommendation, and
(b) the proposed draft order.
(3) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the Board within a specified period.
(4) Before making the recommendation, the Board must have regard to any
representations duly made.
(5) If the draft order to be annexed to the recommendation differs from the draft
published under subsection (2)(b) in a way which  in the opinion of the Board
is material, the Board must, before making the recommendation, publish thedraft order along with a statement detailing the changes made and the reasonsfor those changes.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators27
48 Cancellation of designation: powers of entry etc
(1) This section applies where a body (“the former regulator”) has its designation
in relation to one or more reserved legal activities cancelled by an order undersection 45.
(2) The Board may request the former regulator to provide assistance to the new
regulator and the Board, for the purpose of continuing regulation.
(3) On an application by a person appointed by the Board to act on its behalf, a
judge of the High Court, Circuit judge or justice of the peace may issue awarrant authorising that person to—
(a) enter and search the premises of the former regulator, and
(b) take possession of any written or electronic records found on the
premises.
(4) A person so authorised may, for the purpose of continuing regulation, take
copies of written or electronic records found on a search carried out by virtueof the warrant.
(5) The judge or justice of the peace may not issue the warrant unless satisfied that
its issue is necessary or desirable for the purpose of continuing regulation.
(6) The Lord Chancellor must make regulations—
(a) specifying further matters which a judge or justice of the peace must be
satisfied of, or matters which a judge or justice of the peace must haveregard to, before issuing a warrant, and
(b) regulating the exercise of a power conferred by a warrant issued under
subsection (3) or by subsection (4) (whether by restricting thecircumstances in which a power may be exercised, by specifyingconditions to be complied with in the exercise of a power, or otherwise).
(7) Regulations under subsection (6)(b) must in particular make provision as to
circumstances in which written or electronic records of which a person hastaken possession by virtue of a warrant issued under subsection (3) may becopied or must be returned.
(8) But the Lord Chancellor may not make regulations under subsection (6)
unless—
(a) they are made in accordance with a recommendation made by the
Board, or
(b) the Lord Chancellor has consulted the Board about the making of the
regulations.
(9) The Board must make rules as to the persons it may appoint for the purposes
of subsection (3).
(10) For the purposes of this section—
“authorised by the former regulator”, “protected activity” and “new
regulator” have the same meaning as for the purposes of section 46;
“the purpose of continuing regulation” means the purpose of enabling
persons authorised by the former regulator to continue to be authorisedand regulated in relation to the protected activity.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators28
Policy statements
49 The Board’s policy statements
(1) The Board must prepare and issue a statement of policy with respect to the
exercise of its functions under—
(a) section 31 (performance targets and monitoring);
(b) section 32 (directions);
(c) section 35 (public censure);
(d) section 37 (financial penalties);
(e) section 41 (intervention directions);
(f) section 45 (cancellation of designation as approved regulator);
(g) section 76 (cancellation of designation as licensing authority by order).
(2) The Board may prepare and issue a statement of policy with respect to any
other matter.
(3) In preparing a statement of policy, the Board must have regard to the principle
that its principal role is the oversight of approved regulators.
(4) The statement of policy prepared under subsection (1) must—
(a) take account of the desirability of resolving informally matters which
arise between the Board and an approved regulator, and
(b) specify how, in exercising the functions mentioned in that subsection,
the Board will comply with the requirements of section 3(3) (regulatoryactivities to be proportionate, consistent and targeted only at cases inwhich action is needed, etc),
and, in preparing that statement, the Board must have regard to the principle
that the Board should not exercise any of those functions by reason of an act oromission of an approved regulator unless the act or omission wasunreasonable.
(5) The Board’s policy in determining what the amount of a penalty under section
37 should be must include having regard to—
(a) the seriousness of the failure in question, and
(b) the extent to which it was deliberate or reckless.
(6) The Board may at any time alter or replace any statement issued under this
section.
(7) If a statement is altered or replaced, the Board must issue the altered or
replacement statement.
(8) In exercising or deciding whether to exercise any of its functions, the Board
must have regard to any relevant policy statement published under thissection.
(9) The Board must publish a statement issued under this section.
(10) The Board may make a reasonable charge for providing a person with a copy
of a statement.
50 Policy statements: procedure
(1) Before issuing a statement under section 49, the Board must publish a draft of
the proposed statement.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators29
(2) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the Board within a specified period.
(3) Before issuing the statement, the Board must have regard to any
representations duly made.
(4) If the statement differs from the draft published under subsection (1) in a way
which is, in the opinion of the Board, material, the Board must publish detailsof the differences.
(5) The Board may make a reasonable charge for providing a person with a copy
of a draft published under subsection (1).
Practising fees
51 Control of practising fees charged by approved regulators
(1) In this section “practising fee”, in  relation to an approved regulator, means a
fee payable by a person under the approved regulator’s regulatoryarrangements in circumstances where the payment of the fee is a conditionwhich must be satisfied for that person to be authorised by the approvedregulator to carry on one or more activities which are reserved legal activities.
(2) An approved regulator may only apply amounts raised by practising fees for
one or more of the permitted purposes.
(3) The Board must make rules specifying the permitted purposes.
(4) Those rules must, in particular, provide that the following are permitted
purposes—
(a) the regulation, accreditation, education and training of relevant
authorised persons and those wishing to become such persons,including—
(i) the maintaining and raising of their professional standards, and
(ii) the giving of practical support, and advice about practice
management, in relation to practices carried on by suchpersons;
(b) the payment of a levy imposed on the approved regulator under
section 173;
(c) the participation by the approved regulator in law reform and the
legislative process;
(d) the provision by relevant authorised persons, and those wishing to
become relevant authorised persons, of reserved legal services,
immigration advice or immigration services to the public free of charge;
(e) the promotion of the protection by law of human rights and
fundamental freedoms;
(f) the promotion of relations between the approved regulator and
relevant national or internationa l bodies, governments or the legal
professions of other jurisdictions.
(5) A practising fee is payable under the regulatory arrangements of an approved
regulator only if the Board has approved the level of the fee.
(6) The Board must make rules containing provision—Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators30
(a) about the form and manner in which applications for approval for the
purposes of subsection (5) must be made and the material which mustaccompany such applications;
(b) requiring applicants to have consulted such persons as may be
prescribed by the rules in such manner as may be so prescribed beforesuch an application is made;
(c) about the procedures and criteria that will be applied by the Board
when determining whether to approve the level of a fee for thepurposes of subsection (5).
(7) Rules under subsection (6)(c) must, in particular, contain—
(a) provision requiring the Board, before it determines an application for
approval of the level of a fee, to consult such persons as it considersappropriate about the impact of the proposed fee on persons providingnon-commercial legal services;
(b) provision about the time limit for the determining of an application.
(8) In this section “relevant authoris ed persons”, in relation to an approved
regulator, means persons who are authorised by the approved regulator tocarry on activities which are reserved legal activities.
Regulatory conflict
52 Regulatory conflict with approved regulators
(1) The regulatory arrangements of an approved regulator must make such
provision as is reasonably practicable to prevent regulatory conflicts.
(2) For the purposes of this section and se ction 53, a regulatory conflict is a conflict
between—
(a) a requirement of the approved regulator’s regulatory arrangements,
and
(b) a requirement of the regulatory arrangements of another approved
regulator.
(3) Subsection (4) applies where a body is authorised by an approved regulator
(“the entity regulator”) to carry on an activity which is a reserved legal activity.
(4) If a conflict arises between—
(a) a requirement of the regulatory arrangements of the entity regulator, in
relation to the body authorised by the entity regulator or an employeeor manager of the body (“an entity requirement”), and
(b) a requirement of the regulatory arrangements of another approved
regulator in relation to an employee or manager of the body who isauthorised by it to carry on a reserved legal activity (“an individualrequirement”),
the entity requirement prevails over the individual requirement.
53 Modification of provision made about regulatory conflict
(1) An approved regulator (“the applicant regulator”) may make an application
under this section if it considers that the regulatory arrangements of anotherapproved regulator (“the conflicting regulator”) do not make appropriateprovision to prevent a regulatory conflict with the applicant regulator.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators31
(2) An application under this section is an application made to the Board for the
Board to exercise its powers under section 32 to direct the conflictingregulator—
(a) to take steps to modify, in such manner as may be specified in the
direction, the provision made by its regulatory arrangements toprevent a regulatory conflict with the applicant regulator, or
(b) if its regulatory arrangements do not make any such provision, to make
such provision as may be specified in the direction to prevent such aconflict.
(3) An approved regulator must consider any request made by an affected
person—
(a) for the approved regulator to reconsider the provision made by its
regulatory arrangements to prevent a regulatory conflict with anotherapproved regulator, or
(b) for the approved regulator to make an application under this section.
(4) An “affected person”, in relation to an approved regulator, means—
(a) a person authorised by the approved regulator to carry on a reserved
legal activity;
(b) an employee or manager of such a person.
(5) Where an application is made under this section, the Board—
(a) must give the applicant regulator and the conflicting regulator an
opportunity to make representations, and
(b) may consult any persons it considers appropriate.
(6) The Board must decide whether or not to give a warning notice in response to
the application.
(7) The Board must make that decision before the end of the period of 6 months
beginning with the day on which th e application is received by it.
(8) The Board must give notice of its decision, and the reasons for it, to the
applicant regulator and the conflicting regulator.
(9) For the purposes of this section “warning notice” means a notice given under
paragraph 2(1) of Schedule 7 (warning of proposed direction under section 32).
54 Regulatory conflict with other regulatory regimes
(1) The regulatory arrangements of an approved regulator must make such
provision as is reasonably practicable and, in all the circumstances,appropriate—
(a) to prevent external regulatory conflicts,
(b) to provide for the resolution of an y external regulatory conflicts which
arise, and
(c) to prevent unnecessary duplication of regulatory provisions made by
an external regulatory body.
( 2 ) F o r  t h e  p u r p o s e s  o f  t h i s  s e c t i o n,  a n e xt e r na l  r e g u l a t o ry  c o n f l i c t  i s  a  c o nf l i c t
between—
(a) a requirement of the regulatory arrangements of the approved
regulator, andLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators32
(b) a requirement of any regulatory provision made by an external
regulatory body.
(3) For this purpose “external regulatory body” means a person (other than an
approved regulator) who exercises regulatory functions in relation to aparticular description of persons with a view to ensuring compliance withrules (whether statutory or non-statutory) by those persons.
(4) Regulatory arrangements made for the purposes of subsection (1)(b) may, with
the consent of the Board, provide for the Board to exercise functions inconnection with the resolution of conflicts.
Information
55 Provision of information to the Board
(1) The Board may, by notice, require an approved regulator—
(a) to provide any information, or in formation of a description, specified in
the notice, or
(b) to produce documents, or documents of a description, specified in the
notice.
(2) A notice under subsection (1)—
(a) may specify the manner and form in which any information is to be
provided;
(b) must specify the period within wh ich any information is to be provided
or document is to be produced;
(c) may require any information to be provided, or document to be
produced, to the Board or to a person specified in the notice.
(3) The Board may, by notice, require a person representing the approved
regulator to attend at a time and place specified in the notice to provide anexplanation of any informat ion provided or document produced under this
section.
(4) The Board may pay to any person such reasonable costs as may be incurred by
that person in connection with—
(a) the provision of any information, or the production of any document,
by that person pursuant to a notice under subsection (1), or
(b) that person’s compliance with a requirement imposed under
subsection (3).
(5) The Board, or a person specified under subsection (2)(c), may take copies of or
extracts from a document produced pursuant to a notice under subsection (1).
(6) For the purposes of this section and section 56, references to an approved
regulator include a body which was, but is no longer, an approved regulator.
56 Enforcement of notices under section 55
(1) Where an approved regulator is unable to comply with a notice given to it
under section 55(1), it must give the Board a notice to that effect stating thereasons why it cannot comply.
(2) If an approved regulator refuses, or otherwise fails, to comply with a notice
under section 55(1), the Board may apply to the High Court for an orderLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators33
requiring the approved regulator to comply with the notice or with such
directions for the like purpose as may be contained in the order.
(3) This section applies in relation to a person to whom a notice is given under
section 55(3) as it applies in relation to an approved regulator to whom a noticeis given under section 55(1).
Competition
57 Reports by the OFT
(1) If the OFT is of the opinion that the regulatory arrangements of an approved
regulator (or any part of them) prevent, restrict or distort competition withinthe market for reserved legal services to any significant extent, or are likely todo so, the OFT may prepare a report to that effect.
(2) A report under subsection (1)—
(a) must state what, in the OFT’s opinion, is the effect, or likely effect, on
competition of the regulatory arrangements or part of them to whichthe report relates, and
(b) may contain recommendations as to the action which the Board should
take for the purpose of ensuring that the regulatory arrangements ofthe approved regulator do not prevent, restrict or distort competition.
(3) Where the OFT makes a report under subsection (1), it must—
(a) give a copy of the report to the Board, the Consumer Panel and the
approved regulator, and
(b) publish the report.
(4) Before publishing a report under subsection (3)(b), the OFT must, so far as
practicable, exclude any matter which relates to the private affairs of aparticular individual the publication of which, in the opinion of the OFT,would or might seriously and prejudicially affect the interests of thatindividual.
(5) The OFT may exercise any of the powers conferred on it by section 174(3) to (5)
of the Enterprise Act 2002 (c. 40) (investigation powers) for the purpose ofassisting it in exercising its functions under this section.
(6) For the purposes of the law of defamation, absolute privilege attaches to any
report of the OFT under this section.
58 The Board’s response to OFT report
(1) This section applies where a report is made by the OFT under section 57 in
respect of an approved regulator.
(2) The Board must allow the approved regulator a period of 28 days beginning
with the day on which the copy of the report is given to the approved regulatorunder section 57, or such longer period as the Board may specify in a particularcase, to make representations to the Board about the OFT’s report.
(3) The Consumer Panel may give the Board such advice as the Consumer Panel
thinks fit regarding the OFT’s report.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators34
(4) Having considered any representations made under subsection (2) and any
advice given under subsection (3), the Board must notify the OFT of the action(if any) it proposes to take in response to the report.
59 Referral of report by the Lord Chancellor to the Competition Commission
(1) This section applies where the OFT is satisfied that the Board has failed to give
full and proper consideration to a report made by the OFT, in respect of anapproved regulator, under section 57.
(2) The OFT may give a copy of its report to the Lord Chancellor.
(3) The OFT must notify the Board and the approved regulator if it gives a copy of
its report to the Lord Chancellor.
(4) On receiving a report under subsection (2), the Lord Chancellor must—
(a) give the Competition Commission a copy of the report, and
( b ) s e e k  i t s  a d v i c e  o n  w h a t  a c t i o n  ( i f  a n y )  s h o u l d  b e  t a k e n  b y  t h e  L o r d
Chancellor under section 61.
60 Duties of the Competition Commission
(1) Where the Lord Chancellor seeks the advice of the Competition Commission
under section 59, the Commission must investigate the matter.
(2) The Commission must then make its own report on the matter unless it
considers that, as a result of any change of circumstances, no useful purposewould be served by a report.
(3) If the Commission decides in accordance with subsection (2) not to make a
report, it must make a statement setting out the change of circumstances whichresulted in that decision.
(4) The Commission must comply with subsection (2) or (3) within the period of 3
months beginning with the day on which it receives a copy of the OFT’s reportunder section 59(4)(a).
(5) A report made under this section must state the Commission’s conclusion as to
whether any of the matters which is the subject of the report has or is likely tohave the effect of preventing, restricting or distorting competition within themarket for reserved legal services to a significant extent.
(6) A report under this section stating the Commission’s conclusion that there is,
or is likely to be, such an effect must also—
(a) state whether or not the Commission considers that that effect is
justified, and
(b) if it states that the Commission considers that it is not justified, state its
conclusion as to what action, if any, ought to be taken by the Board.
(7) When determining under subsection (6)(b) any action to be taken by the Board,
the Commission must ensure—
(a) that the action stated is action which the Board has power to take, and
(b) so far as reasonably possible, that the action stated is compatible with
the functions conferred, and obligations imposed, on the Board by orunder this Act.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators35
(8) A report under this section must contain such an account of the Commission’s
reasons for its conclusions as is expedient, in the opinion of the Commission,for facilitating proper understanding of them.
(9) Sections 109 to 115 of the Enterprise Act 2002 (c. 40) (investigation powers)
apply in relation to an investigation under  this section as they apply in relation
to an investigation made on a reference made to the Commission under Part 3of that Act (mergers), but as if—
(a) in section 110(4) of that Act, the reference to the publication of the
report of the Commission on the reference concerned were a referenceto the Commission making a report under subsection (2) or a statementunder subsection (3), and
(b) in section 111(5)(b)(ii) of that Act the day referred to were the day on
which the Commission makes that report or statement.
(10) If the Commission makes a report or a statement under this section it must—
(a) give a copy to the Lord Chancellor, the Board, the Consumer Panel and
the approved regulator to which the OFT’s report relates, and
(b) publish the report or statement.
61 Lord Chancellor’s power to give directions
(1) The Lord Chancellor may direct the Board to take such action as the Lord
Chancellor considers appropria te in connection with any matter raised in a
report made by the OFT under section 57.
(2) Before giving a direction under subsection (1), the Lord Chancellor must
consider any report from the Competition Commission under section 60 onthat matter.
(3) When exercising the power to give a direction under subsection (1), the Lord
Chancellor must ensure—
(a) that the action stated is action which the Board has power to take, and
(b) so far as reasonably possible, that the action stated in any direction is
compatible with the functions conferred, and obligations imposed, onthe Board by or under this Act.
(4) The Lord Chancellor must publish a direction given under this section.
The Board as approved regulator
62 The Board as an approved regulator
(1) The Lord Chancellor may by order—
(a) designate the Board as an approved regulator in relation to one or more
reserved legal activities;
(b) modify the functions of the Board, and make such other provision
relating to those functions as the Lord Chancellor considers necessaryor expedient, with a view to enabling the Board to discharge itsfunctions as an approved regulator effectively and efficiently;
(c) cancel the Board’s designation as an approved regulator in relation to
one or more reserved legal activities.
(2) But the Lord Chancellor may make an order under subsection (1) only if—Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators36
(a) the Board has made a recommendation in accordance with section 66,
and
(b) the order is in the same form as , or in a form which is not materially
different from, the draft order annexed to that recommendation.
(3) If the Lord Chancellor decides not to make an order pursuant to a
recommendation made under section 66, the Lord Chancellor must—
(a) give the Board a notice stating the reasons for that decision, and
(b) publish the notice.
(4) In discharging its functions as an approved regulator the Board must take such
steps as are necessary to ensure an appropriate financial and organisationalseparation between the activities of the Board that relate to the carrying out ofthose functions and the other activities of the Board.
(5) An order under this section may make such modifications of provision made
by or under any enactment (including this Act or any Act passed after this Act)as the Lord Chancellor considers necessary or expedient.
63 The Board’s designation under section 62(1)(a)
(1) This section applies in relation to an order under section 62(1)(a) (an order
designating the Board as an approved regulator).
(2) Subject to subsection (3), the order may designate the Board as an approved
regulator in relation to a reserved legal activity only where—
(a) a body’s designation as an approved regulator in relation to the activity
is cancelled under section 45, or
(b) the activity becomes a reserved legal activity by virtue of an order
under section 24.
(3) Subsection (2) does not prevent the order having effect in advance of an event
within paragraph (a ) or (b) of that subsection for the purpose of enabling the
Board to authorise persons to carry on activities which constitute the reservedlegal activity in question with effect from the occurrence of the event.
(4) The order must ensure that the Board, acting as an approved regulator, may
make regulatory arrangements or modify its regulatory arrangements onlywith the approval of the Board (acting oth erwise than in its capacity as an
approved regulator or as a licensing authority under Part 5).
64 Modification of the Board’s functions under section 62(1)(b)
(1) This section applies in relation to an order under section 62(1)(b) (an order
modifying the functions of the Board).
(2) The order may include (among other things) provision conferring on the Board
powers to do any of the following—
(a) to authorise (otherwise than by the grant of a licence under Part 5)
persons or any category of persons (whether corporate orunincorporate) to carry on one or more activities which are reservedlegal activities in relation to which the Board is designated as anapproved regulator;
(b) to make qualification regulations;Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators37
(c) to make provision as to the educational, training and other
requirements to be met by regulated persons who are not relevantauthorised persons;
(d) to make practice rules and conduct rules;
(e) to make disciplinary arrangements in relation to regulated persons
(including discipline rules);
(f) to make rules requiring the paymen t of fees specified in or determined
in accordance with the rules;
(g) to make indemnification arrangements;
(h) to make compensation arrangements;
(i) to make rules as to the treatment of money (including money held in
trust) which is received, held or dealt wi th for clients, or other persons,
by regulated persons, and as to the keeping by such persons of accountsin respect of such money;
(j) to take steps for the purpose of ascertaining whether or not the
provisions of rules or regulations made, or any code or guidanceissued, by the Board in its capacity as an approved regulator are beingcomplied with, and to make rules requiring relevant authorised
persons to produce documents and provide information for thatpurpose;
(k) to delegate any of the functions exercisable by the Board in its capacity
as an approved regulator to such persons as it considers appropriate;
(l) to make regulations or rules providing for appeals to the High Court or
another body against decisions made by the Board in its capacity as anapproved regulator (including regulations or rules providing for adecision on such an appeal to be final and for orders as to payment ofcosts).
(3) The order may—
(a) provide for any provision of Schedule 14 (licensing authority’s powers
of intervention)—
(i) to apply in relation to the Board (in its capacity as an approved
regulator) and regulated persons as it applies in relation to alicensing authority and licensed bodies (or managers oremployees of such bodies), or
(ii) to so apply with such modifications as are prescribed by the
order, or
(b) make provision, in relation to th e Board (in that capacity) and regulated
persons, corresponding to any of the provisions made, in relation tolicensing authorities and licensed bodies (or managers or employees ofsuch bodies), by that Schedule.
(4) For the purposes of giving effect to indemnification arrangements and
compensation arrangements, the order may authorise the Board to makerules—
(a) authorising or requiring the Board to establish and maintain a fund or
funds;
(b) authorising or requiring the Board to take out and maintain insurance
with authorised insurers;
(c) requiring relevant authorised persons or relevant authorised persons of
any specific description to take out and maintain insurance withauthorised insurers.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators38
(5) In this section—
“authorised insurer” means a pers on within any of the following
paragraphs—
(a) a person who has permission under Part 4 of the Financial
Services and Markets Act 2000 (c. 8) to effect or carry outcontracts of insurance of a relevant class;
(b) an EEA firm (within the meaning of that Act) of the kind
mentioned in paragraph 5(d) of Schedule 3 to that Act, whichhas permission under paragraph 15 of that Schedule (as a resultof qualifying for authorisation under paragraph 12 of thatSchedule) to effect or carry out contracts of a relevant class;
(c) a person who does not fall within paragraph (a) or (b) and who
may lawfully effect or carry out contracts of insurance of arelevant class in a member State other than the UnitedKingdom;
“regulated person” has the meaning given by section 21;
“relevant authorised person” means a person authorised by the Board
(other than by the grant of a licence under Part 5) to carry on one ormore activities which are reserved legal activities.
(6) For the purposes of this section—
(a) a contract of insurance is of a relevant class if it insures against a risk
arising from accident, credit, legal expenses, general li ability to third
parties, sickness, suretyship or miscellaneous financial loss, and
(b) the definition of “authorised insurer” in subsection (5) must be read
with section 22 of the Financial Services and Markets Act 2000, and any
relevant order under that section, and with Schedule 2 to that Act.
65 Cancellation of the Board’s designation under section 62(1)(c)
(1) This section applies in relation to an order under section 62(1)(c) (cancellation
of Board’s designation as an approved regulator).
(2) Where such an order is made, section 46 (oth er than subsection (4)(b)) and
section 47 (transfer arrangements et c on cancellation of approved regulator’s
designation) apply in relation to the Board and relevant authorised persons asthey apply to an approved regulator whose designation is cancelled undersection 45 and persons authorised by that approved regulator to carry onactivities which are reserved legal activities.
(3) In this section “relevant authorised persons” has the same meaning as in
section 64.
66 The Board’s power to recommend orders made under section 62
(1) The Board may recommend to the Lord Ch ancellor that the Lord Chancellor
make an order under section 62 in the form of a draft order prepared by theBoard and annexed to the recommendation.
(2) Before making a recommendation under this section, the Board must give each
of the persons listed in subsection (3) a notice containing—
(a) a copy of the proposed recommendation,
(b) a copy of the proposed draft order, andLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators39
(c) a statement specifying a period within which representations may be
made about the proposals.
(3) Those persons are—
(a) the Lord Chancellor,
(b) the OFT,
(c) the Consumer Panel,
(d) the Lord Chief Justice, and
(e) such other persons as the Board considers it reasonable to consult
regarding the proposals.
(4) The Board must publish a notice given under subsection (2).(5) Before making the recommendation, the Board must have regard to any
representations duly made (whether by persons within subsection (3) orotherwise).
(6) If the draft order to be annexed to the recommendation differs from the draft
contained in the notice under subsection  (2) in a way which is, in the opinion
of the Board, material, the Board must, before making the recommendation,publish the draft order along with a statement detailing the changes made andthe reasons for those changes.
67 Effect of the Board’s designation as an approved regulator
(1) The powers of the Board under sections 31 to 51 and 55 (regulatory powers in
respect of approved regulators) are not exercisable by it in relation to the Boardin its capacity as an approved regulator.
(2) In section 53 references to an approved regulator do not include the Board in
its capacity as an approved regulator.
(3) Sections 57 to 61 (reports by OFT etc) do not apply in relation to the Board in
its capacity as an approved regulator.
68 Regulatory conflict and the Board as approved regulator
(1) An approved regulator may make a request under subsection (4) if it considers
that the regulatory arrangements of the Board (in its capacity as an approvedregulator) do not make appropriate provision to prevent a conflict between—
(a) a requirement of those regulatory arrangements, and
(b) a requirement of the regulatory arrangements of the approved
regulator.
(2) An affected person in relation to an approved regulator may request the
approved regulator to exercise its powers under subsection (1).
(3) An affected person in relation to the Board may make a request under
subsection (4) if the person considers that the regulatory arrangements of theBoard (in its capacity as an approved regulator) do not make appropriateprovision to prevent a conflict between—
(a) a requirement of those regulatory arrangements, and
(b) a requirement of the regulatory arrangements of an approved
regulator.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators40
(4) The request is a request made to the Board (in its capacity as an approved
regulator) that it reconsider the provision made by its regulatory arrangementsto prevent a regulatory conflict with the conflicting regulator.
(5) An affected person in relation to the Board may make an application under
subsection (6) if the person considers that the regulatory arrangements of anapproved regulator do not make appropriate provision to prevent a conflictbetween—
(a) a requirement of those regulatory arrangements, and
(b) a requirement of the regulatory arrangements of the Board (in its
capacity as an approved regulator).
(6) The application is an application to the Board for it to exercise its powers under
section 32 to direct the approved regulator—
(a) to take steps to modify, in such manner as may be specified in the
direction, the provision made by its regulatory arrangements toprevent a regulatory conflict with the Board (in its capacity as anapproved regulator), or
(b) if its regulatory arrangements do not make any such provision, to make
such provision as may be specified in the direction to prevent such aconflict.
(7) An affected person in relation to an approved regulator (other than the Board)
may make a request under subsection (8) if the person considers that theregulatory arrangements of the approved regulator do not make appropriateprovision to prevent a conflict between—
(a) a requirement of those regulatory arrangements, and
(b) a requirement of the regulatory arrangements of the Board (in its
capacity as an approved regulator).
(8) The request is a request to the approved regulator that it reconsider the
provision made by its regulatory arrangements to prevent a regulatory conflictwith the Board.
(9) The Board (in its capacity as an approved regulator) and any other approved
regulator must consider any request made to it under this section. 
(10) Subsections (5) to (8) of section 53 apply in relation to an application under
subsection (6) as they apply in relation to an application under that section,except that—
(a) references to the applicant regulator are to be read as references to the
person who made the application, and
(b) references to the conflicting regulator are to be construed in accordance
with this section.
(11) In this section—
“affected person” in relation to the Board or any other approved
regulator, means—
(a) any person authorised by the body to carry on a reserved legal
activity, or
(b) an employee or manager of such a person;
“conflicting regulator” means—
(a) in a case within subsection (1), the approved regulator making
the request, andLegal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators41
(b) in a case within subsection (3) or (5), the approved regulator
whose regulatory arrangements are considered to conflict withthose of the Board.
Functions of approved regulators etc
69 Modification of the functions of approved regulators etc
(1) The Lord Chancellor may by order modify, or make other provision relating to,
the functions of an approved regulator or any other body (other than theBoard).
(2) The Lord Chancellor may make an order under subsection (1) only if—
(a) the Board has made a recommendation under this section,
(b) a draft order was annexed to the recommendation, and
(c) the order is in the same form as, or a form not materially different from,
that draft order.
(3) The Board may make a recommendation under this section only with a view to
an order being made which enables the body to which it relates to do one ormore of the following—
(a) to become designated by an order under Part 2 of Schedule 4 as an
approved regulator, or designated by an order under Part 1 of Schedule10 as a licensing authority, in relati on to one or more reserved legal
activities;
(b) to authorise persons or any category of persons (whether corporate or
unincorporate) to carry on one or more activities which are reservedlegal activities in relation to which the body is (at the time theauthorisation has effect) designated as an approved regulator, or tomake regulatory arrangements;
(c) to carry out its role as an approved regulator (including its role, if any,
as a licensing authority) more effectively or efficiently;
(d) to become a qualifying regulator under Part 1 of Schedule 18;
(e) if it is a designated qualifying regulator under section 86A of the
Immigration and Asylum Act 1999 (c. 33), to authorise persons toprovide any additional advice or services the provision of whichamounts to the provision of immigration advice or immigration
services.
(4) Subsections (2) (other than paragraph (a)), (3) and (4) of section 64 apply in
relation to an order under this section as they apply in relation to an orderunder section 62(1)(b) in relation to the Board.
(5) An order under this section also may make provision in relation to—
(a) the provision of immigration ad vice or immigration services, and
(b) persons authorised to provide such advice and services by the body to
which the order relates,
corresponding to the provision which ma y be made by virtue of section 64(2)
to (4) in relation to reserved legal activities and persons authorised to carry onthose activities.
(6) An order under this section may modify provisions made by or under any
enactment (including this Act or any Act passed after this Act), prerogativeinstrument or other instrument or document.Legal Services Act 2007 (c. 29)
Part 4 — Regulation of approved regulators42
(7) Any provision made by an order under this section may be expressed to be
conditional upon—
(a) the body to which the order relates being designated by an order under
Part 2 of Schedule 4 as an approved regulator, or by an order under Part1 of Schedule 10 as a licensing authority, in relation to one or morereserved legal activities specified in the proposed draft order, or
(b) the body to which the order relates becoming a designated qualifying
regulator under section 86A of the Immigration and Asylum Act 1999(c. 33).
(8) The powers to make an order conferred by this section are without prejudice
to any powers (statutory or non-statutory) which an approved regulator orother body may have apart from this section.
70 Procedural requirements relating to recommendations under section 69
(1) A recommendation may be made under section 69 only with the consent of the
approved regulator or other body to which the recommendation relates.
(2) Before making a recommendation under that section, the Board must publish
a draft of—
(a) the proposed recommendation, and
(b) the proposed draft order.
(3) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the Board within a specified period.
(4) Before making the recommendation, the Board must have regard to any
representations duly made.
(5) If the draft order to be annexed to the recommendation differs from the draft
published under subsection (2)(b) in a way which is, in the opinion of theBoard, material, the Board must, before making the recommendation, publishthe draft order along with a statement detailing the changes made and thereasons for those changes.
P
ART 5
ALTERNATIVE  BUSINESS  STRUCTURES
Introductory
71 Carrying on of activities by licensed bodies
(1) The provisions of this Part have effect for the purpose of regulating the
carrying on of reserved legal activities and other activities by licensed bodies.
(2) In this Act “licensed body” means a body which holds a licence in force under
this Part.
72 “Licensable body”
(1) A body (“B”) is a licensable body if a non-authorised person—
(a) is a manager of B, or
(b) has an interest in B.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures43
(2) A body (“B”) is also a licensable body if—
(a) another body (“A”) is a manager of B, or has an interest in B, and
(b) non-authorised persons are entitled to exercise, or control the exercise
of, at least 10% of the voting rights in A.
(3) For the purposes of this Act, a person has an interest in a body if—
(a) the person holds shares in the body, or
(b) the person is entitled to exercise, or control the exercise of, voting rights
in the body.
(4) A body may be licensable by virtue of both subsection (1) and subsection (2).
(5) For the purposes of this Act, a non-authorised person has an indirect interest
in a licensable body if the body is licensable by virtue of subsection (2) and thenon-authorised person is entitled to exercise, or control the exercise of, votingrights in A.
(6) In this Act “shares” means—
(a) in relation to a body with a share capital, allotted shares (within the
meaning of the Companies Acts);
(b) in relation to a body with capital but no share capital, rights to share in
the capital of the body;
(c) in relation to a body without capital, interests—
(i) conferring any right to share in the profits, or liability to
contribute to the losses, of the body, or
(ii) giving rise to an obligation to contribute to the debts or
expenses of the body in the event of a winding up;
and references to the holding of shares, or to a shareholding, are to be
construed accordingly.
Licensing authorities
73 Licensing authorities and relevant licensing authorities
(1) In this Act “licensing authority” means—
(a) the Board, or
(b) an approved regulator which is designated as a licensing authority
under Part 1 of Schedule 10 and whose licensing rules are approved forthe purposes of this Act.
(2) For the purposes of this Act—
(a) the Board is a licensing authority in relation to all reserved legal
activities, and
(b) an approved regulator within subsection (1)(b) is a licensing authority
in relation to any reserved legal activity in relation to which thedesignation is made.
(3) The Board—
(a) may delegate any of its functions as a licensing authority to such
persons as it considers appropriate;
(b) must take such steps as are necessary to ensure an appropriate financial
and organisational separation between the activities of the Board thatrelate to the carrying out of its functions as a licensing authority and theother activities of the Board.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures44
(4) In this Part “relevant licensing authority”—
(a) in relation to a licensed body, means the licensing authority by which
the licensed body is authorised to carry on an activity which is areserved legal activity;
(b) in relation to an applicant for a licence, means the licensing authority to
which the application is made.
74 Designation of approved regulator as licensing authority
Part 1 of Schedule 10 makes provision for approved regulators to be
designated, by order, as licensing auth orities in relation  to one or more
reserved legal activities.
75 Automatic cancellation of designation as licensing authority
(1) This section applies where a body is designated—
(a) as an approved regulator in relation to a reserved legal activity (“the
activity”), and
(b) as a licensing authority in relation to the activity.
(2) If the Lord Chancellor makes an order under section 45 cancelling the body’s
designation as an approved regulator in relation to the activity, the body’sdesignation as a licensing authority in relation to the activity is also cancelled.
(3) The cancellation takes effect at the same time as cancellation of the body’s
designation as an approved regulator.
76 Cancellation of designation as licensing authority by order
(1) The Lord Chancellor may by order cancel an approved regulator’s designation
as a licensing authority—
(a) in relation to all the reserved legal activities in relation to which it is
designated, or
(b) in relation to one or more, but not all, of those reserved legal activities,
with effect from a date specified in the order.
(2) But the Lord Chancellor may only make an order under subsection (1) in
accordance with a recommendation made by the Board under subsection (3) or(5).
(3) The Board must recommend that an order is made cancelling an approved
regulator’s designation as a licensing au thority in relation to one or more
reserved legal activities, if—
(a) the approved regulator applies to the Board for such a
recommendation to be made,
(b) the application is made in such form and manner as may be prescribed
by rules made by the Board, and is accompanied by the prescribed fee,and
(c) the approved regulator publishes a notice giving details of the
application in accordance with such requirements as may be specified
in rules made by the Board.
(4) In this section “the prescribed fee”, in relation to an application, means the fee
specified in or determined in accordance with rules made by the Board, with
the consent of the Lord Chancellor.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures45
(5) The Board may recommend that an order is made cancelling an approved
regulator’s designation as a licensing au thority in relation to one or more
reserved legal activities if it is satisfied—
(a) that an act or omission of the licensing authority (or a series of such acts
or omissions) has had, or is likely to have, an adverse impact on one ormore of the regulatory objectives, and
(b) that it is appropriate to cancel the approved regulator’s designation in
relation to the activity or activities in question in all the circumstancesof the case (including in particular the impact of cancelling thedesignation on the other regulatory objectives).
(6) The Board may not determine that it is appropriate to cancel an approved
regulator’s designation as a licensing authority in relation to an activity oractivities unless it is satisfied that the matter cannot be adequately addressedby the Board exercising the powers available to it under sections 31 to 43.
(7) Part 2 of Schedule 10 makes further provision about the making of
recommendations under subsection (5).
(8) If the Lord Chancellor decides not to make an order in response to a
recommendation made under subsection (3) or (5), the Lord Chancellor mustgive the Board notice of the decision and the reasons for it.
(9) The Lord Chancellor must publish a notice given under subsection (8).
77 Cancellation of designation: further provision
(1) This section applies where an approved regulator (“the former authority”) has
its designation as a licensing authority in relation to one or more reserved legalactivities cancelled—
(a) by virtue of section 75, or
(b) by an order under section 76.
(2) The Lord Chancellor may by order make—
(a) such modifications of provisions made by or under any enactment
(including this Act or any enactment passed after this Act), prerogativeinstrument or other instrument or document, and
(b) such transitional or consequential provision,
as the Lord Chancellor considers necessary or expedient in consequence of the
cancellation.
(3) The Lord Chancellor may, by order, make transfer arrangements.
(4) “Transfer arrangements” are arrangements in accordance with which each
consenting licensed body is, from the time the cancellation takes effect, treatedas being authorised to carry on each protected activity by virtue of a licenceissued under this Part by a licensing authority, in relation to the protectedactivity, which consents to the transfer arrangements.
(5) “Consenting licensed body” means a licensed body authorised by the former
authority which consents to the transfer arrangements.
(6) The transfer arrangements—
(a) must make such provision as is necessary to ensure that, where a
licensed body is treated under those arrangements as being authorised
to carry on a protected activity by the new authority, that licensed body
is subject to the licensing rules of the new authority;Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures46
(b) may make provision requiring amounts held by the former authority
which represent amounts paid to it by way of licensing fees by theconsenting licensed bodies (or a part of the amounts so held) to be paidto the new authority and treated as if they were amounts paid by thoselicensed bodies by way of licensing fees to the new authority.
(7) Subsection (6)(a) is subject to any transitional provision which may be made by
the transfer arrangements, including provision modifying the licensing rules ofthe new authority as they apply to the bodies to whom the transferarrangements apply.
(8) The Lord Chancellor may make an order under this section only if—
(a) the Board has made a recommendation in accordance with section 78,
and
(b) the order is in the same form as , or in a form which is not materially
different from, the draft order annexed to that recommendation.
(9) For the purposes of this section—
(a) a licensed body is “authorised by the former authority” if immediately
before the time the cancellation takes effect the body is, by virtue of alicence under this Part, authorised by the former authority to carry onan activity which is a reserved legal activity to which the cancellationrelates, and
(b) in relation to that body—
(i) the activity which the body is authorised to carry on as
mentioned in paragraph (a) is a “protected activity”, and
(ii) “the new authority” means the licensing authority by which (in
accordance with transfer arrangements under subsection (4))the body is treated as authorised to carry on a protected activity.
(10) In this section “licensing fee”, in relation to a licensing authority, means a fee
payable by a licensed body under the authority’s licensing rules made inaccordance with paragraph 21 of Schedule 11.
78 The Board’s power to recommend orders made under section 77
(1) The Board may recommend to the Lord Ch ancellor that the Lord Chancellor
make an order under section 77 in the form of a draft order prepared by theBoard and annexed to the recommendation.
(2) Before making a recommendation under this section, the Board must publish a
draft of—
(a) the proposed recommendation, and
(b) the proposed draft order.
(3) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the Board within a specified period.
(4) Before making the recommendation, the Board must have regard to any
representations duly made.
(5) If the draft order to be annexed to the recommendation differs from the draft
published under subsection (2)(b) in a way which is, in the opinion of theBoard, material, the Board must, before making the recommendation, publishthe draft order along with a statement detailing the changes made and thereasons for those changes.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures47
79 Cancellation of designation: powers of entry etc
(1) This section applies where an approved regulator (“the former authority”) has
its designation in relation to one or more reserved legal activities cancelled byby virtue of section 75 or an order under section 76.
(2) The Board may request the former authority to provide assistance to the new
authority and the Board, for the purpose of continuing regulation.
(3) On an application by a person appointed by the Board to act on its behalf, a
judge of the High Court, Circuit judge or justice of the peace may issue awarrant authorising that person to—
(a) enter and search the premises of the former authority, and
(b) take possession of any written or electronic records found on the
premises.
(4) A person so authorised may, for the purpose of continuing regulation, take
copies of written or electronic records found on a search carried out by virtueof the warrant.
(5) The judge or justice of the peace may not issue the warrant unless satisfied that
its issue is necessary or desirable for the purpose of continuing regulation.
(6) The Lord Chancellor must make regulations—
(a) specifying further matters which a judge or justice of the peace must be
satisfied of, or matters which a judge or justice of the peace must haveregard to, before issuing a warrant, and
(b) regulating the exercise of a power conferred by a warrant issued under
subsection (3) or by subsection (4) (whether by restricting thecircumstances in which a power may be exercised, by specifyingconditions to be complied with in the exercise of a power, or otherwise).
(7) Regulations under subsection (6)(b) must in particular make provision as to
circumstances in which written or electronic records of which a person hastaken possession by virtue of a warrant issued under subsection (3) may becopied or must be returned.
(8) But the Lord Chancellor may not make regulations under subsection (6)
unless—
(a) they are made in accordance with a recommendation made by the
Board, or
(b) the Lord Chancellor has consulted the Board about the making of the
regulations.
(9) The Board must make rules as to the persons it may appoint for the purposes
of subsection (3).
(10) For the purposes of this section—
“authorised by the former authority”, “protected activity” and “new
authority” have the same meaning as for the purposes of section 77;
“the purpose of continuing regulation” means the purpose of enabling
bodies authorised by the former authority to continue to be authorisedand regulated in relation to the protected activity.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures48
Appeals
80 Functions of appellate bodies
(1) The Lord Chancellor may by order—
(a) establish a body to hear and determine appeals from decisions, made
by a person specified in the order in the person’s capacity as a licensingauthority, which are appealable under th is Part or licensing rules made
by the person;
(b) modify, or make any other provision relating to, the functions of a body
within subsection (2) or any other body, for the purpose of enabling thebody to hear and determine appeals from such decisions.
(2) The bodies mentioned in subsection (1)(b) are—
(a) the Solicitors Disciplinary Tribunal;
(b) the Discipline and Appeals Committee established by the Council of
Licensed Conveyancers under section 25 of the Administration ofJustice Act 1985 (c. 61).
(3) The Lord Chancellor may make an order under subsection (1) only if—
(a) the Board has made a recommendation in accordance with section 81,
(b) a draft order was annexed to the recommendation, and
(c) the order is in the same form as, or not materially different from, that
draft order.
(4) An order under this section may—
(a) make provision as to the payment of fees, and award of costs, in
relation to such appeals;
(b) modify provisions made by or under any enactment (including this Act
or any Act passed after this Act), prerogative instrument or otherinstrument or document.
(5) Any provision made by an order under this section may be expressed to be
conditional upon the person specified in the order being designated by anorder under Part 1 of Schedule 10 as a licensing authority in relation to one ormore reserved legal activities.
(6) The powers to make an order conferred by this section are without prejudice
to any powers (statutory or non-statutory) which a body may have apart fromthis section.
81 Procedural requirements relating to recommendations under section 80
(1) A recommendation may be made under section 80 only with the consent of—
(a) the person from whose decisions the appeals are to be made, and
(b) where the recommendation is for an order under section 80(1)(b), the
body to which appeals are to be made.
(2) Before making a recommendation under that section, the Board must publish
a draft of—
(a) the proposed recommendation, and
(b) the proposed draft order.
(3) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the Board within a specified period.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures49
(4) Before making any recommendation, the Board must have regard to any
representations duly made.
(5) If the draft order to be annexed to the recommendation differs from the draft
published under subsection (2)(b) in a way which is, in the opinion of theBoard, material, the Board must, before making the recommendation, publishthe draft order along with a statement detailing the changes made and thereasons for those changes.
Policy statement
82 Licensing authority policy statement
(1) Each licensing authority must prepare and issue a statement of policy as to
how, in exercising its functions under this Part, it will comply with therequirements of section 28 (or, in the case of the Board, section 3) (duties to
promote regulatory objectives etc).
(2) A licensing authority may issue a statement under subsection (1) only with the
approval of the Board (acting otherwise th an in its capacity as a licensing
authority or as an approved regulator).
(3) A licensing authority may, with the approval of the Board (acting otherwise
than in its capacity as a licensing author ity or as an approved regulator), alter
or replace a statement issued under this section.
(4) If it does so, it must issue the altered or replacement statement.
(5) In exercising its functions under th is Part, a licensing authority must have
regard to the statement issued by it under this section.
(6) A licensing authority must publish a statement issued by it under this section.
Licensing rules
83 Licensing rules
(1) The Board (acting in its capacity as a licensing authority)—
(a) must make suitable licensing rules before the end of the period of 12
months beginning with the day on which a licensable body firstbecomes entitled to make an application to it for a licence by virtue of adecision of the Board (acting otherwise than in its capacity as alicensing authority or as an approved regulator) under Schedule 12;
(b) may make or modify its licensing ru les only with the approval of the
Board (acting otherwise than in its capacity as a licensing authority or
as an approved regulator).
(2) In subsection (1)(a), “suitable licensing rules” means licensing rules which
constitute suitable regulatory arrangements (within the meaning of Schedule12) in respect of licensable bodies entitled by virtue of a decision under thatSchedule to make an application to the Board for a licence.
(3) Licensing rules made by an approved regulator have effect only at a time when
the approved regulator is a licensing authority (subject to any provision made
by an order under section 25).Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures50
(4) Licensing rules of a licen sing authority are rules as to—
(a) the licensing by the authority of licensable bodies, and
(b) the regulation by the licensing authority of licensable bodies licensed
by it, and their managers and employees.
(5) Licensing rules of a licen sing authority must contain—
(a) appropriate qualification regulations in respect of licensable bodies to
which the licensing authority proposes to issue licences under this Part,
(b) provision as to how the licensing authority, when considering the
regulatory objectives (in compliance with its duties under section 3(2)or 28(2)) in connection with an application for a licence, should take
account of the objective of improving access to justice,
(c) appropriate arrangements (including conduct rules, discipline rules
and practice rules) under which th e licensing authority will be able to
regulate the conduct of bodies licensed by it, and their managers andemployees,
(d) appropriate indemnification arrangements,
(e) appropriate compensation arrangements,
(f) the provision required by sections 52 and 54 (resolution of regulatory
conflict) (including those provisions as applied by section 103),
(g) the provision required by sections 112 and 145 (requirements imposed
in relation to the handling of complaints), and
(h) any other provision required to be contained in licensing rules by this
Act.
(6) Without prejudice to the generality of subsection (4), licensing rules of a
licensing authority may contain any provision authorised by this Act.
(7) Schedule 11 makes further provision as to the contents of licensing rules.(8) Subsections (5) to (7) are subject to—
(a) section 105 (which exempts trade unions from certain provisions), and
(b) section 106 (which provides for the modification of licensing rules in
their application to bodies to which that section applies).
(9) Licensing rules may not apply to bodies to which section 106 applies in a way
which is different from the way they apply to other bodies, except by virtue ofan order under that section.
Licensing
84 Application for licence
(1) A licensing authority other than the Board must determine any application for
a licence which is made to it.
(2) The Board (acting in its capacity as a licensing authority) may determine an
application for a licence which is made to it only if the applicant is entitled tomake the application by virtue of a decision of the Board (acting otherwise thanin its capacity as a licensing authority) under Schedule 12.
(3) A licensing authority may not grant an  application for a licence unless it is
satisfied that if the licence is granted the applicant will comply with itslicensing rules.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures51
(4) If the licensing authority grants an application for a licence, it must issue the
licence as soon as reasonably practicable.
(5) The licence has effect from the date on which it is issued.(6) References in this section to an application  for a licence are to an application for
a licence which is—
(a) made to a licensing authority by a licensable body, in accordance with
the authority’s licensing rules, and
(b) accompanied by the required application fee (if any).
85 Terms of licence
(1) A licence issued under section 84 must specify—
(a) the activities which are reserved legal activities and which the licensed
body is authorised to carry on by virtue of the licence, and
(b) any conditions subject to which the licence is granted.
(2) If an order under section 106 has been made in relation to the licensed body,
the licence must also specify the terms of the order.
(3) In the case of a licensing authority other than the Board, the licence may
authorise the licensed body to carry on activities which are reserved legalactivities only if the licensing authority is designated in relation to the reservedlegal activities in question.
(4) A licence must be granted subject to the condition that—
(a) any obligation which may from time to time be imposed on the licensed
body or a person within subsection (5) by or under the licensingauthority’s licensing rules is complied with, and
(b) any other obligations imposed on the licensed body or a person within
that subsection by or under this or any other enactment (whetherpassed before or after this Act) are complied with.
(5) The persons mentioned in subsection (4) are the managers and employees of a
licensed body, and non-authorised persons having an interest or an indirectinterest, or holding a material interest, in the licensed body (in their capacity assuch).
(6) A licence may be granted subject to such  other conditions as the licensing
authority considers appropriate.
(7) Those conditions may include conditions as to the non-reserved activities
which the licensed body may or may not carry on.
(8) In this Part references to the terms of the licence are to the matters listed in
subsections (1) and (2).
86 Modification of licence
(1) A licensing authority may modify the terms of a licence granted by it—
(a) if the licensed body applies to the licensing authority, in accordance
with its licensing rules, for it to do so;
(b) in such other circumstances as may be specified in its licensing rules.
(2) If a licensed body is a body to which section 106 applies, the licensing authority
may modify the terms of its licence in accordance with sections 106 and 107.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures52
(3) A licensing authority modifies the terms of a licensed body’s licence by giving
the licensed body notice in writing of the modifications; and the modificationshave effect from the time the licensing authority gives the licensed body thenotice or such later time as may be specified in the notice.
(4) The licensing authority’s power under this section is subject to—
(a) section 85(3) and (4), and
(b) licensing rules made under paragraph 6 of Schedule 11.
87 Registers of licensed bodies
(1) Each licensing authority must keep a register containing the names and places
of business of all bodies which hold or have held licences granted by thelicensing authority.
(2) Where any licence held by a body is for the time being suspended, the licensing
authority shall cause that fact to be noted in the register in the entry for thatbody.
(3) A licensing authority must provide facilities for making the information
contained in the entries in its register available for inspection by any personduring office hours and without payment.
(4) The Board may make rules about—
(a) the register to be kept by the Board under this section, and
(b) the register to be kept under this section by each licensing authority
designated under Part 1 of Schedule 10.
(5) Rules under subsection (4) may in particular prescribe any further information
which must be contained in an entry in  the register in relation to a licensed
body or former licensed body.
88 Evidence of status
(1) A certificate signed by an office r of a licensing authority appointed for the
purpose and stating one of the matters within subsection (2) is, unless thecontrary is proved, evidence of the facts stated in the certificate.
(2) The matters are that any person does or does not, or did or did not at any time,
hold a licence granted by the licens ing authority under this Part.
(3) A certificate purporting to be so signed is to be taken to have been so signed
unless the contrary is proved.
Ownership of licensed bodies
89 Ownership of licensed bodies
Schedule 13 makes provision about the holdin g of certain interests in licensed
bodies by non-authorised persons.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures53
Regulation of licensed bodies
90 Duties of non-authorised persons
A non-authorised person who is an employee or manager of a licensed body,
or has an interest or an indirect interest, or holds a material interest, in alicensed body, must not do anything which causes or substantially contributesto a breach by—
(a) the licensed body, or
(b) an employee or manager of the licensed body who is an authorised
person in relation to an activity which is a reserved legal activity,
of the duties imposed on them by section 176.
91 Duties of Head of Legal Practice
(1) The Head of Legal Practice of a licensed body must—
(a) take all reasonable steps to ensure compliance with the terms of the
licensed body’s licence, and
(b) as soon as reasonably practicable, repor t to the licensing authority any
failure to comply with the terms of the licence.
(2) Subsection (1) does not apply to the terms of the licence so far as they require
compliance with licensing rules made under paragraph 20 of Schedule 11(accounts) (as to which see section 92).
(3) The Head of Legal Practice of a licensed body must—
(a) take all reasonable steps to ensure that the licensed body, and any of its
employees or managers who are authorised persons in relation to anactivity which is a reserved legal activity, comply with the dutiesimposed by section 176, and
(b) as soon as reasonably practicable, report to the licensing authority such
failures by those persons to comply with those duties as may bespecified in licensing rules.
(4) The Head of Legal Practice of a licensed body must—
(a) take all reasonable steps to ensure that non-authorised persons subject
to the duty imposed by section 90 in relation to the licensed bodycomply with that duty, and
(b) as soon as reasonably practicable, repor t to the licensing authority any
failure by a non-authorised person to comply with that duty.
92 Duties of Head of Finance and Administration
(1) The Head of Finance and Administration of a licensed body must take all
reasonable steps to ensure compliance with licensing rules made underparagraph 20 of Schedule 11 (accounts).
(2) The Head of Finance and Administration must report any breach of those rules
to the licensing authority as soon as reasonably practicable.
93 Information
(1) The relevant licensing authority in relation to a licensed body may by notice
require a person within subsection (2)—Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures54
(a) to provide information, or information of a description, specified in the
notice, or
(b) produce documents, or documents of a description, specified in the
notice,
for the purpose of enabling the licensing authority to ascertain whether the
terms of the licensed body’s licence are being, or have been, complied with.
(2) The persons are—
(a) the licensed body;
(b) any manager or employee (or former manager or employee) of the
licensed body;
(c) any non-authorised person who has an interest or an indirect interest,
or holds a material interest, in the licensed body.
(3) A notice under subsection (1)—
(a) may specify the manner and form in which any information is to be
provided;
(b) must specify the period within which the information is to be provided
or the document produced;
(c) may require the information to be provided, or the document to be
produced, to the licensing authority or to a person specified in thenotice.
(4) The licensing authority may, by notice, require a person within subsection (2)
(or a representative of such a person) to attend at a time and place specified inthe notice to provide an explanation of any information  provided or document
produced under this section.
(5) The licensing authority may pay to any person such reasonable costs as may be
incurred by that person in connection with—
(a) the provision of any information, or production of any document, by
that person pursuant to a notice under subsection (1), or
(b) that person’s compliance with a requirement imposed under
subsection (4).
(6) The licensing authority, or a person specified under subsection (3)(c) in a
notice, may take copies of or extracts from a document produced pursuant toa notice under subsection (1).
(7) For the purposes of this section and section 94, references to a licensed body
include a body which was, but is no longer, a licensed body.
94 Enforcement of notices under section 93
(1) Where a person is unable to comply with a notice given to the person under
section 93, the person must give the licensing authority a notice to that effectstating the reasons why the person cannot comply.
(2) If a person refuses or otherwise fails to comply with a notice under section 93,
the licensing authority may apply to the High Court for an order requiring theperson to comply with the notice or with such directions for the like purposeas may be contained in the order.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures55
95 Financial penalties
(1) A licensing authority may, in accorda nce with its licensing rules, impose on a
licensed body, or a manager or employee of a licensed body, a penalty of suchamount as it considers appropriate.
(2) The amount must not exceed the maximum amount prescribed under
subsection (3).
(3) The Board must make rules prescribing the maximum amount of a penalty
which may be imposed under this section.
(4) Rules may be made under subsection (3) only with the consent of the Lord
Chancellor.
(5) A penalty under this section  is payable to the licensing authority.
(6) For the purposes of this section— 
(a) references to a licensed body are to a body which was a licensed body
at the time the act or omission in respect of which the penalty isimposed occurred, and
(b) references to a manager or employee of a licensed body are to a person
who was a manager or employee of a licensed body at that time,
(whether or not the body subsequently ceased to be a licensed body or the
person subsequently ceased to be a manager or employee).
(7) In sections 96 and 97 references to a “penalty” are to a penalty under this
section.
96 Appeals against financial penalties
(1) A person on whom a penalty is imposed under section 95 may, before the end
of such period as may be prescribed by rules made by the Board, appeal to therelevant appellate body on one or more of the appeal grounds.
(2) The appeal grounds are—
(a) that the imposition of the penalty is unreasonable in all the
circumstances of the case;
(b) that the amount of the penalty is unreasonable;
(c) that it is unreasonable of the lic ensing authority to require the penalty
imposed or any portion of it to be paid by the time or times by which itwas required to be paid.
(3) On any such appeal, where the relevant appellate body considers it
appropriate to do so in all the circumstances of the case and is satisfied of oneor more of the appeal grounds, that body may—
(a) quash the penalty,
(b) substitute a penalty of such lesser amount as it considers appropriate,
or
(c) in the case of the appeal ground in subsection (2)(c), substitute for any
time imposed by the licensing authority a different time or times.
(4) Where the relevant appellate body substitutes a penalty of a lesser amount it
may require the payment of interest on the substituted penalty at such rate,and from such time, as it considers just and equitable.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures56
(5) Where the relevant appellate body specifies as a time by which the penalty, or
a portion of the penalty, is to be paid a time before the determination of theappeal under this section it may re quire the payment of interest on the penalty,
or portion, from that time at such rate as it considers just and equitable.
(6) A party to the appeal may appeal to the High Court on a point of law arising
from the decision of the relevant appellate body, but only with the permissionof the High Court.
(7) The High Court may make such order as it thinks fit.
(8) Except as provided by this section, the validity of a penalty is not to be
questioned by any legal proceedings whatever.
97 Recovery of financial penalties
( 1 ) I f  t h e  w h o l e  o r  a n y  p a r t  o f  a  p e n a l t y  i s  n o t  p a i d  b y  t h e  t i m e  b y  w h i c h ,  i n
accordance with licensing rules, it is required to be paid, the unpaid balance
from time to time carries interest at the rate for the time being specified insection 17 of the Judgments Act 1838 (c. 110).
(2) Where a penalty, or any portion of it, has not been paid by the time by which,
in accordance with licensing rules, it is required to be paid and—
(a) no appeal relating to the penalty has been made under section 96
during the period within which such an appeal can be made, or
(b) an appeal has been made under that section and determined or
withdrawn,
the licensing authority may recover from the person on whom the penalty was
imposed, as a debt due to the licensing auth ority, any of the penalty and any
interest which has not been paid.
(3) A licensing authority must pay into the Consolidated Fund any sum received
by it as a penalty (or as interest on a penalty).
98 Referral of employees etc to appropriate regulator
(1) The relevant licensing authority may refer to an appropriate regulator any
matter relating to the conduct of—
(a) an employee or manager of a licensed body;
(b) a person designated as a licensed body’s Head of Legal Practice or
Head of Finance and Administration.
(2) The licensing authority may also refer any matter relating to the conduct of
such a person to the Board.
(3) Appropriate regulators are—
(a) if the person is an authorised person in relation to a reserved legal
activity, any relevant approved regulator in relation to that person, and
(b) if the person carries on non-reserved activities, any person who
exercises regulatory functions in relation to the carrying on of suchactivities by the person.
99 Disqualification
(1) A licensing authority may in accordanc e with its licensing rules disqualify a
person from one or more of the activities mentioned in subsection (2) if—Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures57
(a) the disqualification condition is satisfied in relation to the person, and
(b) the licensing authority is satisfied th at it is undesirable for the person to
engage in that activity or those activities.
(2) The activities are—
(a) acting as Head of Legal Practice of any licensed body,
(b) acting as Head of Finance and Administration of any licensed body,
(c) being a manager of any licensed body, or
(d) being employed by any licensed body.
(3) The disqualification condition is satisf ied in relation to a person if, in relation
to a licensed body licensed by the licensing authority, the person (intentionallyor through neglect)—
(a) breaches a relevant duty to which the person is subject, or
(b) causes, or substantially contributes to, a significant breach of the terms
of the licensed body’s licence.
(4) The relevant duties are—
(a) the duties imposed on a Head of Legal Practice by section 91,
(b) the duties imposed on a Head of Finance and Administration by section
92,
(c) the duties imposed by section 176 on regulated persons (within the
meaning of that section), and
(d) the duty imposed on non-authorised persons by section 90.
100 Lists of disqualified persons
(1) The Board must keep lists of persons who are disqualified from—
(a) acting as Head of Legal Practice of any licensed body,
(b) acting as Head of Finance and Administration of any licensed body,
(c) being a manager of any licensed body, or
(d) being employed by any licensed body.
(2) A person is disqualified from acting in  a way mentioned in subsection (1) if—
(a) the person has been disqualified from so acting by a licensing authority
under section 99, and
(b) the disqualification continues in force.
(3) The disqualification ceases to be in force if the appropriate licensing authority
so determines, on a review or otherwise, in accordance with licensing rulesmade under paragraph 23 of Schedule 11.
(4) The appropriate licensing authority is—
(a) the licensing authority which disqualified the person, or
(b) if the person was disqualified by an approved regulator which is no
longer designated as a licensing authority, the successor licensingauthority.
(5) The successor licensing authority is—
(a) the licensing authority which licenses the body in relation to which the
disqualification condition (within  the meaning of section 99) was
satisfied in respect of the person, or
(b) if there is no such licensing authority, the licensing authority
designated by the Board on an application by the disqualified person.Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures58
(6) The Board must publish the lists kept by it under subsection (1).
101 Suspension and revocation of licence
(1) A licensing authority may, in accordance with its licensing rules, suspend or
revoke any licence granted by it under this Part.
(2) A licence is to be treated as not being in force at any time while it is suspended
under this section.
102 Intervention
Schedule 14 confers powers of intervention on licensing authorities.
103 Regulatory conflict and the Board as licensing authority
(1) Sections 52 and 54 (regulatory conflict between approved regulators and
between approved regulators and other regulators) apply in relation to theBoard in its capacity as a licensing authority and its licensing rules as they
apply in relation to an approved regulator (including the Board in its capacityas approved regulator) and its regulatory arrangements.
(2) Section 68 (regulatory conflict and the Board as approved regulator) applies in
relation to the Board in its capacity as a licensing authority and its licensing
rules as it applies in relation to the Board in its capacity as an approvedregulator and its regulatory arrangements.
104 Prevention of regulatory conflict: accounts rules
(1) Where a licensed body carries on an activity through a solicitor, the rules made
under paragraph 20 of Schedule 11 apply instead of those made under sections32 to 34 of the Solicitors Act 1974 (c. 47).
(2) Where a licensed body carries on an activity through a licensed conveyancer,
the rules made under paragraph 20 of Schedule 11 apply instead of those madeunder sections 22 and 23 of the Adminis tration of Justice Act 1985 (c. 61).
Special kinds of body
105 Trade union exemptions
(1) Paragraphs 11 to 14 of Schedule 11 (Head of Legal Practice and Head of
Finance and Administration) do not apply in relation to a licensed body whichis an independent trade union.
(2) Schedule 13 (ownership) does not apply in relation to an applicant for a licence,
or a licensed body, which is an independent trade union.
106 Power to modify application of licensing rules etc to special bodies
(1) This section applies to a licensed body (or  an applicant for a licence) which is—
(a) an independent trade union,
(b) a not for profit body,
(c) a community interest company,Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures59
(d) a low-risk body (see section 108), or
(e) a body of such other description as may be prescribed by order made
by the Lord Chancellor on the recommendation of the Board.
(2) A body to which this section applies may apply to the relevant licensing
authority, in accordance with its licensing rules, for the authority to make anorder under this section.
(3) The licensing authority may make one or both of the following orders—
(a) that the authority’s licensing rules apply in relation to the body with
such modifications as may be specified in the order;
(b) that Schedule 13 does not apply in relation to the body, or applies in
relation to the body with such modifications as may be specified in theorder.
(4) On an application under subsection (2) , the licensing authority may make any
order which the authority—
(a) has power to make under subsection (3), and
(b) considers appropriate in all the circumstances of the case,
whether or not it is the order for which the applicant applied.
(5) In deciding what order (if any) is appropriate in all the circumstances of the
case, the licensing authority must in particular have regard to—
(a) the reserved legal activities and non-reserved activities which the body
carries on (or proposes to carry on),
(b) the nature of the persons to whom the body provides (or proposes to
provide) services,
(c) any non-authorised persons who have an interest or an indirect interest
in the licensed body or hold a material interest in the licensed body, orare managers of the body, and
(d) any other matter specified in the authority’s licensing rules.
(6) If the licensing authority makes an order under subsection (3), the authority’s
licensing rules or Schedule 13 or both (as the case may be) have effect inrelation to that body in accordance with that order.
(7) The licensing authority may not make an order under subsection (3)(a) in
relation to provisions of its licensing rules made in accordance with thefollowing paragraphs of Schedule 11—
(a) paragraphs 2 and 3 (determination and review of applications for a
licence);
(b) paragraphs 7 and 8 (applications under this section);
(c) paragraphs 9(3), 18 and 23 (disqualifications);
(d) paragraph 10(2) (management);
(e) paragraph 16 (carrying on of licensed activities);
(f) paragraph 24(1), (2), (3) and (8) (grounds for suspending and revoking
licences);
(g) paragraph 24(10) and (11) (procedure for suspending or revoking
licence);
(h) paragraph 26(2) (review of decision to suspend or revoke licence).
(8) The licensing authority may not make an order under subsection (3)(a) which
results in its licensing rules, as they apply in relation to the body to which theorder relates, not making the provision required by—Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures60
(a) section 83(5)(a) to (g);
(b) paragraph 1 of Schedule 11 (applications for licences);
(c) paragraph 4(3) of that Schedule (renewal of licences);
(d) paragraph 6 of that Schedule (modification of licence);
(e) paragraph 20 of that Schedule (accounts).
(9) If the licensing authority’s licensin g rules, as they apply in relation to a body
to which an order under subsection (3)(a) relates, make provision requiring the
body to have—
(a) a Head of Legal Practice approved by the licensing authority, or
(b) a Head of Finance and Administration approved by the licensing
authority,
they must also provide for a review by the licensing authority of any decision
by it to refuse or withdraw that approval.
107 Modifications under section 106: supplementary
(1) This section applies where a licensing authority has made an order under
section 106 in relation to a body to which that section applies.
(2) The licensing authority must revoke the order under section 106 if it becomes
aware that the body in respect of which the order was made is no longer a bodyto which that section applies.
(3) The licensing authority may revoke or otherwise modify an order under
section 106—
(a) on the application of the body in relation to which the order was made,
or
(b) of its own motion.
(4) It may do so only if it considers it appropriate to do so in all the circumstances
of the case, having regard to the matters mentioned in section 106(5).
108 “Low risk body”
(1) A body (“B”) is a low risk body if the management condition and the
ownership condition are satisfied in relation to it.
(2) The management condition is that the number of managers of the body who
are within subsection (4) is less than 10% of the total number of managers.
(3) The ownership condition is that—
(a) the proportion of shares in B held by persons within subsection (4) is
less than 10%, and
(b) the proportion of the voting rights in B which such persons are entitled
to exercise, or control the exercise of, is less than 10%, and
(c) if B has a parent undertaking (“P”)—
(i) the proportion of shares in P held by such persons is less than
10%, and
(ii) the proportion of the voting rights in P which such persons are
entitled to exercise, or control the exercise of, is less than 10%.
(4) The persons within this subsection are—
(a) non-authorised persons;Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures61
(b) licensed bodies.
(5) For the purposes of this section “parent undertaking” has the same meaning as
in the Financial Services and Markets Act 2000 (c. 8) (see section 420 of thatAct).
109 Foreign bodies
The Lord Chancellor may by order make provision for the modification of any
provision of this Part in its application  to a body of persons formed under, or
in so far as the body is recognised by, law having effect outside England andWales.
Supplementary provision
110 Reporting requirements relating to Part 5
(1) The Board’s annual report must deal with how, in the Board’s opinion, the
activities of licensing authorities and licensed bodies have affected theregulatory objectives.
(2) This section does not apply to an annu al report for a financial year before the
first financial year in which a licence is issued under this Part.
(3) In this section “annual report” and “f inancial year” have the same meaning as
in section 6.
111 Interpretation of Part 5
(1) In this Part—
“licensed activity”, in relation to a licensed body, means an activity—
(a) which is a reserved legal activity, and
(b) which the licensed body is authorised to carry on by virtue of its
licence;
“non-authorised person” means a person who is not within subsection (2);“non-reserved activity” means an activity which is not a reserved legal
activity;
“relevant appellate body”, in relation to decisions made by a licensing
authority under this Part, means the body having power to hearappeals from those decisions (whether by virtue of an order undersection 80 or otherwise).
(2) The following persons are within this subsection—
(a) an authorised person in relation to an activity which constitutes a
reserved legal activity,
(b) a registered foreign lawyer (within the meaning of section 89 of the
Courts and Legal Services Act 1990 (c. 41)),
(c) a person entitled to pursue professional activities under a professional
title to which the Directive applies in a state to which the Directiveapplies (other than the title of barrister or solicitor in England andWales),
(d) a body which provides professional services such as are provided by
persons within paragraph (a) or lawyers of other jurisdictions, and allthe managers of which and all the persons with an interest in which—Legal Services Act 2007 (c. 29)
Part 5 — Alternative business structures62
(i) are within paragraphs (a) to (c), or
(ii) are bodies in which persons within paragraphs (a) to (c) are
entitled to exercise, or control the exercise of, more than 90% ofthe voting rights.
(3) In subsection (2)(c) “the Directive” means Directive 98/5/EC of the European
Parliament and the Council, to facilitate practice of the profession of lawyer ona permanent basis in a Member State other  than that in which the qualification
was obtained.
P
ART 6
LEGAL  COMPLAINTS
Complaints procedures of authorised persons
112 Complaints procedures of authorised persons
(1) The regulatory arrangements of an approved regulator must make provision
requiring each relevant authorised person—
(a) to establish and maintain procedures for the resolution of relevant
complaints, or
(b) to participate in, or make arrangements to be subject to, such
procedures established and maintained by another person,
and provision for the enforcement of that requirement.
(2) The provision made for the purposes of subsection (1) must satisfy such
requirements as the Board may, from time to time, specify for the purposes ofthat subsection.
(3) In this section—
“relevant authorised person”, in relation to an approved regulator, means
a person in relation to whom the approved regulator is a relevantapproved regulator;
“relevant complaint”, in relation to a relevant authorised person, means a
complaint which—
(a) relates to an act or omission of that person, and
(b) may be made under the scheme provided for by this Part.
(4) The Board must publish any requirements specified by it for the purposes of
subsection (2).
(5) This section applies in relation to th e licensing rules of the Board as it applies
in relation to the regulatory arrangements of an approved regulator except thatsubsection (3) has effect as if for the definition of “relevant authorised person”there were substituted—
““relevant authorised person”, in relation to the Board, means a
person licensed by the Board under Part 5;”.
Overview of the scheme
113 Overview of the scheme
(1) This Part provides for a scheme under which complaints which—Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints63
(a) relate to an act or omission of a person (“the respondent”) in carrying
on an activity, and
(b) are within the jurisdiction of the scheme (see section 125),
may be resolved quickly and with minimum formality by an independent
person.
(2) Under the scheme—
(a) redress may be provided to the complainant, but
(b) no disciplinary action may be taken against the respondent.
(3) Section 157 prevents provision relating  to redress being included in the
regulatory arrangements of an approved regulator, or licensing rules made bythe Board in its capacity as a licensing authority.
(4) But neither the scheme nor any provision  made by this Part affects any power
of an approved regulator, or the Board in its capacity as a licensing authority,to take disciplinary action.
(5) “Disciplinary action” means the imposition of sanctions, in respect of a breach
of conduct rules or discipline rules, on a person who is an authorised person inrelation to an activity which is a reserved legal activity.
The Office for Legal Complaints
114 The Office for Legal Complaints
(1) There is to be a body corporate called the Office for Legal Complaints (in this
Act referred to as “the OLC”).
(2) Schedule 15 is about the OLC.
115 The ombudsman scheme
(1) The scheme provided for by this Part is to be administered by the OLC in
accordance with this Part and with scheme rules made under this Part.
(2) In this Part “scheme rules” means rules made by the OLC.
(3) The scheme is to be operated under a name (which must include the word
“ombudsman”) chosen by the OLC, and is referred to in this Act as “theombudsman scheme”.
116 General obligations
(1) In discharging its functions the OLC must comply with the requirements of
this section.
(2) The OLC must, so far as is reasonably practicable, act in a way—
(a) which is compatible with the regulatory objectives, and
(b) which it considers most appropriate for the purpose of meeting those
objectives.
(3) The OLC must have regard to any principles appearing to it to represent the
best practice of those who administer ombudsman schemes.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints64
117 Corporate governance
In managing its affairs, the OLC must have regard to such generally accepted
p r i n c i p l e s  o f  g o o d  c o r p o r a t e  g o v e r n a n c e  a s  i t  i s  r e a s o n a b l e  t o  r e g a r d  a sapplicable to it.
118 Annual report
(1) The OLC must prepare a report (“the annual report”) for each financial year.
(2) The annual report must deal with—
(a) the discharge of the functions of the OLC,
(b) the extent to which, in the OLC’s opinion, the OLC has met the
regulatory objectives, and
(c) such other matters as the Board may from time to time direct.
(3) The OLC must include in the annual report a copy of the report prepared by
the Chief Ombudsman under section 123 for the financial year in question.
(4) As soon as reasonably practicable after th e end of each financial year, the OLC
must give the Board a copy of the annual report prepared for that year.
(5) The Board must give a copy of the annual report to the Lord Chancellor.
(6) The Lord Chancellor must lay a copy of the annual report before Parliament.(7) In this section “financial year” means—
(a) the period beginning with the day on which the OLC is established and
ending with the next following 31 March, and
(b) each successive period of 12 months.
119 Supplementary powers
The OLC may do anything calculated to facilitate, or incidental or conducive
to, the carrying out of any of its functions.
120 Reporting to the Board
(1) The Board may require the OLC to prepare and give the Board, within a
specified period, a report in respect of any specified matter relating to thefunctions of the OLC.
(2) In subsection (1) “specified” means specified in the requirement.(3) The Board must publish any report given to it under this section.
121 Performance targets and monitoring
(1) The Board may—
(a) set one or more performance targets relating to the performance by the
OLC of any of its functions, or
(b) direct the OLC to set one or more performance targets relating to the
performance by the OLC of any of its functions.
(2) A direction under subsection (1)(b) may impose conditions with which the
performance targets must conform.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints65
(3) The Board must publish any target set or direction given by it under this
section.
(4) The OLC must publish any target set by it pursuant to a direction under
subsection (1)(b).
(5) The Board may take such steps as it regards as appropriate to monitor the
extent to which any performance target set under this section is being, or hasbeen, met.
The ombudsmen
122 Appointment of the Chief Ombudsman and assistant ombudsmen
(1) The OLC—
(a) must appoint a person to act as Chief Ombudsman for the purposes of
the ombudsman scheme, and
(b) may, with the consent of the Chief Ombudsman, appoint one or more
other persons to act as assistant ombudsmen for those purposes.
(2) The person appointed under subsection (1)(a) must be a lay person.
(3) It is a condition of an appointment under subsection (1)(b) that the person
appointed must not during the appointment carry on any activity which is areserved legal activity for or in ex pectation of any fee, gain or reward.
(4) Each person appointed under subsection (1)(a) or (b) must be a person
appearing to the OLC to have appropriate qualifications and experience to actas an ombudsman for the purposes of the ombudsman scheme.
(5) In this Act a reference to an “ombudsman” (except in the expressions
“ombudsman scheme”, “Chief Ombudsman” and “assistant ombudsman”) is areference to the Chief Ombudsman or an assistant ombudsman.
(6) A person’s appointment as Chief Ombudsman ceases if that person ceases to
be a lay person.
(7) The terms and conditions on which a person is appointed as an assistant
ombudsman must specify the consequences of a breach of the conditionimposed by subsection (3).
(8) Subject to that, a person’s appointment as an ombudsman is to be on such
terms and conditions (including terms as to the duration and termination of aperson’s appointment and as to remuneration) as the OLC considers—
(a) consistent with ensuring the independence of the person appointed,
and
(b) otherwise appropriate.
(9) Appointment as an ombudsman does not confer the status of Crown servant.
(10) In this section “lay person” ha s the same meaning as in Schedule 15.
123 Annual report of Chief Ombudsman
(1) The Chief Ombudsman must prepare a report for each financial year on the
discharge of the functions of the ombudsmen.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints66
(2) A report under this section must comply with any requirements specified by
the OLC.
(3) The OLC must publish any requirements specified for the purposes of
subsection (2).
(4) As soon as reasonably practicable after the end of each financial year, the Chief
Ombudsman must give the OLC a copy of the report prepared under thissection for the year.
(5) In this section “financial year” has the meaning given by section 118(7).
124 Additional reports of Chief Ombudsman
(1) The OLC may require the Chief Ombudsman to prepare and give the OLC,
within a specified period, a report in respe ct of any specified matter relating to
the functions of the ombudsmen.
(2) In subsection (1) “specified” means specified in the requirement.
Jurisdiction and operation of the ombudsman scheme
125 Jurisdiction of the ombudsman scheme
(1) A complaint which relates to an act or omission of a person (“the respondent”)
in carrying on an activity is within the jurisdiction of the ombudsman schemeif—
(a) the complaint is not excluded from the jurisdiction of the scheme by
section 126, or by scheme rules made under section 127,
(b) the respondent is within section 128, and
(c) the complainant is within section  128 and wishes to have the complaint
dealt with under the scheme.
(2) In subsection (1) references to an act or omission include an act or omission
which occurs before the coming  into force of this section.
(3) The right of a person to make a complaint under the ombudsman scheme, and
the jurisdiction of an ombudsman to investigate, consider and determine acomplaint, may not be limited or excluded by any contract term or by notice.
126 Complaints excluded because respondent’s complaints procedures not used
(1) A complaint is excluded from the jurisdiction of the ombudsman scheme if the
complainant has not first used the respondent’s complaints procedures inrelation to the complaint.
(2) The respondent’s complaints procedures are the procedures established by the
respondent, or which the respondent participates in or is subject to, inaccordance with regulatory arrangements (or licensing rules of the Board)made in accordance with section 112.
(3) Scheme rules may provide that subsection (1) does not apply in specified
circumstances.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints67
127 Complaints excluded by scheme rules
(1) Scheme rules may make provision  excluding complaints of a description
specified in the rules from the jurisdiction of the ombudsman scheme.
(2) But they may not make provision excl uding a complaint from the jurisdiction
of the ombudsman scheme on the ground that it relates to a matter which hasbeen or could be dealt with under the disciplinary arrangements of therespondent’s relevant authorising body.
128 Parties
(1) The respondent is within this section if, at the relevant time, the respondent
was an authorised person in relation to an activity which was a reserved legalactivity (whether or not the act or omission relates to a reserved legal activity).
(2) The complainant (“C”) is within this section if C—
(a) meets the first and second conditions, and
(b) is not excluded by subsection (5).
(3) The first condition is that C is—
(a) an individual, or
(b) a person (other than an individual) of a description prescribed by order
made by the Lord Chancellor in accordance with a recommendationmade under section 130.
(4) The second condition is that—
(a) the services to which the complaint relates were provided by the
respondent to C;
(b) the services to which the complaint relates were provided by the
respondent to an authorised person who procured them on C’s behalf;
(c) the services to which the complaint relates were provided by the
respondent—
(i) in the respondent’s capacity as a personal representative or
trustee, or
(ii) to a person acting as a personal representative or trustee,
and C is a beneficiary of the estate or trust in question; or
(d) C satisfies such other conditions, in  relation to the services to which the
complaint relates, as may be prescribed by order made by the LordChancellor in accordance with a recommendation made under section130.
(5) C is excluded if, at the relevant time—
(a) C was an authorised person in rel ation to an activity which was a
reserved legal activity and the servi ces to which the complaint relates
were procured by C on behalf of another person,
(b) C was a public body or was acting on behalf of such a body in relation
to the services to which the complaint relates, or
(c) C was a person prescribed, or of a description prescribed, as excluded
b y  o r d e r  m a d e  b y  t h e  L o r d  C h a n c e l l o r  i n  a c c o r d a n c e  w i t h  arecommendation made under section 130.
(6) In subsection (4)(b) “authorised  person” means an authorised person in
relation to any activity which is a reserved legal activity.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints68
(7) In this section—
“public body” means any government department, local authority or
other body constituted for purposes of the public services, localgovernment or the administration of justice;
“relevant time”, in relation to a complaint, means the time when the act or
omission to which the complaint relates took place.
129 Pre-commencement acts and omissions
(1) For the purposes of section 128 a person is to be regarded as an authorised
person in relation to an activity which is a reserved legal activity, at a timebefore section 125 comes into force, if the person was at that time— 
(a) a person of the kind mentioned in paragraph 2(4) of Schedule 15,
(b) a body recognised under section 9 or 32 of the Administration of Justice
Act 1985 (c. 61) (recognised bodies), or
(c) a legal partnership, a conveyancing partnership, a patent attorney body
or a trade mark attorney body.
(2) In this section—
“conveyancing partnership” has the meaning  given by paragraph 11(5) of
Schedule 5;
“legal partnership” has the meaning given by paragraph 7(4) of that
Schedule;
“patent attorney body” has the meanin g given by paragraph 14(7) of that
Schedule;
“trade mark attorney body” has the meaning given by paragraph 16(7) of
that Schedule.
130 Orders under section 128
(1) An interested body may, at any time, recommend to the Lord Chancellor that
the Lord Chancellor make an order under section 128(3)(b), (4)(d) or (5)(c).
(2) An interested body must, if requested to do so by the Lord Chancellor,
consider whether or not it is appropriate to make a recommendation undersubsection (1).
(3) An interested body must, before making a recommendation under subsection
(1)—
(a) publish a draft of the proposed recommendation,
(b) invite representations regarding the proposed recommendation, and
(c) consider any such representations which are made.
(4) Where the Lord Chancellor receives a recommendation under subsection (1),
the Lord Chancellor must consider wh ether to follow the recommendation.
(5) If the Lord Chancellor decides not to follow the recommendation, the Lord
Chancellor must publish a notice to that effect which includes the LordChancellor’s reasons for the decision.
(6) In this section “interested body” means—
(a) the OLC,
(b) the Board, or
(c) the Consumer Panel.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints69
131 Acts and omissions by employees etc
(1) For the purposes of this Part and the ombudsman scheme, any act or omission
by a person in the course of the person’s employment is to be treated as also anact or omission by the person’s employer, whether or not it was done with theemployer’s knowledge or approval.
(2) For the purposes of this Part and the ombudsman scheme, any act or omission
by a partner in a partnership in the course of carrying on, in the usual way,business of the kind carried on by the partnership is to be treated as also an actor omission by the partnership.
(3) But subsection (2) does not apply if the partner had no authority to act for the
partnership and the person purporting to rely on that subsection knew, at thetime of the act or omission, that the partner had no such authority.
132 Continuity of complaints
(1) The ability of a person to make a complaint about an act or omission of a
partnership or other unincorporated body is not affected by any change in themembership of the partnership or body.
(2) Scheme rules must make provision deter mining the circumstances in which,
for the purposes of the ombudsman scheme, an act or omission of a person(“A”) is, where A ceases to exist and another person (“B”) succeeds to the wholeor substantially the whole of the business of A, to be treated as an act oromission of B.
(3) Rules under subsection (2) must, in relation to cases where an act or omission
of A is treated as an act or omission of B, make provision about the treatmentof complaints under the ombudsman scheme which are outstanding against Aat the time A ceases to exist.
(4) Scheme rules must make provision permitting such persons as may be
specified in the rules to continue a complaint made by a person who has diedor is otherwise unable to act; and for that purpose may modify references to thecomplainant in this Part and in scheme rules.
133 Operation of the ombudsman scheme
(1) Scheme rules must set out the procedure for—
(a) the making of complaints under the ombudsman scheme, and
(b) the investigation, consideration and determination of complaints by an
ombudsman.
(2) Scheme rules—
(a) must provide that a complaint is to be entertained under the
ombudsman scheme only if the complainant has made the complaint
under that scheme before the applicable time limit (determined inaccordance with the scheme rules) has expired, and
(b) may provide that an ombudsman may extend that time limit in
specified circumstances.
(3) Scheme rules made under subsection (1) may (among other things) make
provision—
(a) for the whole or part of a complaint to be dismissed, in specified
circumstances, without consideration of its merits;Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints70
(b) for the reference of a complaint, in specified circumstances and with the
consent of the complainant, to another body with a view to it beingdetermined by that body instead of by an ombudsman;
(c) for a person who, at the relevant time (within the meaning of section
128(7)) was an authorised person in relation to an activity to be treatedin specified circumstances, for the purposes of the scheme and this Part,as if that person were a co-respondent in relation to a complaint;
(d) about the evidence which may be required or admitted and the extent
to which it should be oral or written;
(e) for requiring parties to the complaint to attend to give evidence and
produce documents, and for authorising the administration of oaths byombudsmen;
(f) about the matters which are to be taken into account in determining
whether an act or omission was fair and reasonable;
( g ) f o r  a n  o m b u d s m a n ,  i n  s u c h  c i r c u m s t a n c e s  a s  m a y  b e  s p e c i f i e d ,  t o
award expenses to persons in connection with attendance at a hearingbefore an ombudsman;
(h) for an ombudsman to award costs against the respondent in favour of
the complainant;
(i) for an ombudsman to award costs against the complainant or the
respondent in favour of the OLC for the purpose of providing acontribution to resources deployed in dealing with the complaint, if inthe ombudsman’s opinion that person acted so unreasonably inrelation to the complaint that it is appropriate in all the circumstancesof the case to make such an award;
(j) for the purpose of facilitating the settlement of a complaint with the
agreement of the parties to it;
(k) for specified persons to be notified of complaints, determinations and
directions under the ombudsman scheme.
(4) The circumstances specified under subsection (3)(a) may include the
following—
(a) the ombudsman considers the complaint or part to be frivolous or
vexatious or totally without merit;
(b) the ombudsman considers that the complaint or part would be better
dealt with under another ombudsman scheme, by arbitration or byother legal proceedings;
(c) the ombudsman considers that there has been undue delay in the
making of the complaint or part, or the provision of evidence to supportit;
(d) the ombudsman is satisfied that the matter which is the subject of the
complaint or part has previously been dealt with under anotherombudsman scheme, by arbitration or by other legal proceedings;
(e) the ombudsman considers that there are other compelling reasons why
it is inappropriate for the complaint or part to be dealt with under theombudsman scheme.
(5) No person may be required by scheme rules—
(a) to provide any information or give any evidence which that person
could not be compelled to provide or give in evidence in civilproceedings before the High Court, or
(b) to produce any document which that person could not be compelled to
produce in such proceedings.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints71
(6) Scheme rules may authorise an ombudsman making an award of costs in
accordance with rules within subsection (3)(h) or (i) to order that the amountpayable under the award bears interest, from a time specified in or determinedin accordance with the order, at a rate specified in or determined in accordancewith the rules.
(7) An amount due under an award made in favour of a person by virtue of
provision made under subsection (3)(g), (h) or (i) is recoverable as a debt dueto that person.
(8) In this section—
“party”, in relation to a complaint, means—
(a) the complainant,
(b) the respondent, and
(c) any other person who in accordance with scheme rules is to be
regarded as a party to the complaint;
“specified” means specified in scheme rules.
134 Delegation of an ombudsman’s functions
(1) An ombudsman may delegate to a member of the OLC’s staff appointed under
paragraph 13 of Schedule 15—
(a) any function of the ombudsman in relation to the making, investigation
or consideration of a complaint;
(b) any other function conferred on the ombudsman by or by virtue of this
Part.
(2) Nothing in subsection (1) applies to the following functions—
(a) the function of determining a complaint;
(b) the function of deciding that a complaint should be dismissed by virtue
of rules under section 133(3)(a);
(c) the Chief Ombudsman’s power to consent to the appointment of an
assistant ombudsman under section 122;
(d) the duties imposed on the Chief Ombudsman by section 123 (Chief
Ombudsman’s report).
135 Notification requirements
(1) This section applies where a complaint—
(a) is excluded from the jurisdiction of the ombudsman scheme under
section 126, or by virtue of scheme rules made under section 127;
(b) is dismissed, or referred to another body, by virtue of scheme rules;
(c) is settled, withdrawn or abandoned (or treated as withdrawn or
abandoned by virtue of scheme rules).
(2) The ombudsman must notify—
(a) the complainant;
(b) the respondent;
(c) any relevant authorising body, in relation to the respondent, notified of
the complaint in accordance with rules within section 133(3)(k),
and, in a case within subsection (1)( a) or (b), must give reasons for the
exclusion, dismissal or referral.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints72
136 Charges payable by respondents
(1) Scheme rules must require respondents, in relation to complaints under the
ombudsman scheme, to pay to the OLC such charges as may be specified in therules.
(2) The rules must provide for charges paya ble in relation to a complaint to be
waived (or wholly refunded) where—
(a) the complaint is determined or otherwise resolved in favour of the
respondent, and
(b) the ombudsman is satisfied that the respondent took all reasonable
steps to try to resolve the complaint under the respondent’s complaintsprocedures.
(3) The rules may make provision as to—
(a) the circumstances in which a complaint is to be treated as determined
or otherwise resolved in favour of the respondent (which may includecircumstances where a complaint is settled, withdrawn or abandoned(or treated as withdrawn or abandoned by virtue of scheme rules));
(b) matters to be taken into account by the ombudsman for the purposes of
subsection (2)(b).
(4) The respondent’s complaints procedures are the procedures established by the
respondent, or which the respondent participates in or is subject to, inaccordance with regulatory arrangements (or licensing rules of the Board)made in accordance with section 112.
(5) The rules may, among other things—
(a) provide for the OLC to reduce or waive a charge in such other
circumstances as may be specified;
(b) set different charges for different stages of the proceedings on a
complaint;
(c) provide for charges to be wholly or  partly refunded in such other
circumstances as may be specified;
(d) provide that if the whole or any part of a charge is not paid by the time
by which it is required to be paid under the rules, the unpaid balancefrom time to time carries interest at the rate specified in, or determinedin accordance with, the rules.
( 6 ) A n y  c h a r g e  w h i c h  i s  o w e d  t o  t h e  O L C  b y  v i r t u e  o f  r u l e s  m a d e  u n d e r  t h i s
section may be recovered as a debt due to the OLC.
Determinations under the scheme
137 Determination of complaints
(1) A complaint is to be determined under the ombudsman scheme by reference
to what is, in the opinion of the ombudsman making the determination, fair
and reasonable in all the circumstances of the case.
(2) The determination may contain one or more of the following—
(a) a direction that the respondent make an apology to the complainant;
(b) a direction that—Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints73
(i) the fees to which the respondent is entitled in respect of the
services to which the complaint relates (“the fees”) are limitedto such amount as may be specified in the direction, and
(ii) the respondent comply, or secure compliance, with such one or
more of the permitted requirements as appear to theombudsman to be necessary in order for effect to be given to thedirection under sub-paragraph (i);
(c) a direction that the respondent pay compensation to the complainant of
such an amount as is specified in the direction in respect of any losswhich has been suffered by, or any inconvenience or distress which hasbeen caused to, the complainant as a result of any matter connectedwith the complaint;
(d) a direction that the respondent secure the rectification, at the expense
of the respondent, of any such error, omission or other deficiencyarising in connection with the matter in question as the direction mayspecify;
(e) a direction that the respondent take, at the expense of the respondent,
such other action in the interests of the complainant as the directionmay specify.
(3) For the purposes of subsection (2)(b) “the permitted requirements” are—
(a) that the whole or part of any amount already paid by or on behalf of the
complainant in respect of the fees be refunded;
(b) that the whole or part of the fees be remitted;
(c) that the right to recover the fees be waived, whether wholly or to any
specified extent.
(4) Where—
(a) a direction is made under subsection (2)(b) which requires that the
whole or part of any amount already paid by or on behalf of thecomplainant in respect of the fees be refunded, or
(b) a direction is made under subsection (2)(c),
the direction may also provide for the amount payable under the direction to
carry interest from a time specified in or determined in accordance with thedirection, at the rate specified in or determined in accordance with schemerules.
(5) The power of the ombudsman to make a direction under subsection (2) is not
confined to cases where the complainant may have a cause of action against therespondent for negligence.
138 Limitation on value of directions under the ombudsman scheme
(1) Where a determination is made under the ombudsman scheme in respect of a
complaint, the total value of directions under section 137(2)(c) to (e) containedin the determination must not exceed £30,000.
(2) For this purpose the total value of such directions is the aggregate of—
(a) the amount of any compensation specified in a direction under
subsection (2)(c) of section 137, and
(b) the amount of any expenses reasonably incurred by the respondent
when complying with a direction under subsection (2)(d) or (e) of thatsection.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints74
(3) For the purposes of determining that total value, any interest payable on an
amount within subsection (2)(a) of this section, by virtue of section 137(4), is tobe ignored.
139 Alteration of limit
(1) The Lord Chancellor may by order amend section 138(1) in accordance with a
recommendation made by an interested body under subsection (2). 
(2) An interested body may, at any time, recommend to the Lord Chancellor that
section 138(1) should be amended so as to substitute the amount specified inthe recommendation for the amount for the time being specified in thatprovision.
(3) An interested body must, if requested to do so by the Lord Chancellor,
consider whether or not it is appropriate to make a recommendation undersubsection (2).
(4) An interested body must, before making a recommendation under subsection
(2)—
(a) publish a draft of the proposed recommendation,
(b) invite representations regarding the proposed recommendation, and
(c) consider any such representations which are made.
(5) Where the Lord Chancellor receives a recommendation under subsection (2),
the Lord Chancellor must consider wh ether to follow the recommendation.
(6) If the Lord Chancellor decides not to follow the recommendation, the Lord
Chancellor must publish a notice to that effect which includes the LordChancellor’s reasons for the decision.
(7) In this section “interested body” means—
(a) the OLC,
(b) the Board, or
(c) the Consumer Panel.
140 Acceptance or rejection of determination
(1) When an ombudsman has determined a complaint the ombudsman must
prepare a written statement of the determination.
(2) The statement must—
(a) give the ombudsman’s reasons for the determination,
(b) be signed by the ombudsman, and
(c) require the complainant to notify the ombudsman, before a time
specified in the statement (“the specified time”), whether thecomplainant accepts or rejects the determination.
(3) The ombudsman must give a copy of the statement to—
(a) the complainant,
(b) the respondent, and
(c) any relevant authorising body in relation to the respondent.
(4) If the complainant notifies the ombudsman that the determination is accepted
by the complainant, it is binding on th e respondent and the complainant and
is final.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints75
(5) If, by the specified time, the complainant has not notified the ombudsman of
the complainant’s acceptance or rejection of the determination, thecomplainant is to be treated as having rejected it.
(6) But if—
(a) the complainant notifies the ombudsman after the specified time that
the determination is accepted by the complainant,
(b) the complainant has not previously notified the ombudsman of the
complainant’s rejection of the determination, and
(c) the ombudsman is satisfied that such conditions as may be prescribed
by the scheme rules for the purposes of this subsection are satisfied,
the determination is treated as if it had never been rejected by virtue of
subsection (5).
(7) The ombudsman must give notice of the outcome to—
(a) the complainant,
(b) the respondent, and
(c) any relevant authorising body in relation to the respondent.
(8) Where a determination is rejected by virtue of subsection (5), that notice must
contain a general description of the effect of subsection (6).
(9) A copy of the determination on which appears a certificate signed by an
ombudsman is evidence that the determination was made under the scheme.
(10) Such a certificate purporting to be signed by an ombudsman is to be taken to
have been duly signed unless the contrary is shown.
(11) Neither the complainant nor the respondent, in relation to a complaint, may
institute or continue legal proceedings in respect of a matter which was thesubject of a complaint, after the time when a determination by an ombudsmanof the complaint becomes binding and final in accordance with this section.
141 Enforcement by complainant of directions under section 137
(1) This section applies where—
(a) a determination is made in respect of a complaint under the
ombudsman scheme,
(b) one or more directions are made under section 137(2), and
(c) the determination is final by virtue of section 140(4).
(2) An amount payable in accordance with—
(a) a direction under subsection (2)(b) of section 137 which requires that
the whole or part of any amount already paid by or on behalf of thecomplainant in respect of the fees be refunded, or
(b) a direction under subsection (2)(c) of that section,
i nc l u d i n g  a n y  i nt e re s t  p a y a b l e  b y  v i r t u e  o f  s u b s e c t i o n ( 4 )  o f  t h a t  s e c t i o n,  i s
recoverable, if a court so orders on the application of the complainant or anombudsman, as if it were payable under an order of that court.
(3) If the respondent fails to comply with any other direction under section 137(2),
the complainant or an  ombudsman may make an application to the court
under this subsection.
(4) If, on an application under subsection (3), the court decides that the respondent
has failed to comply with the direction in question, it may order the respondentLegal Services Act 2007 (c. 29)
Part 6 — Legal Complaints76
to take such steps as the court directs for securing that the direction is complied
with.
(5) An ombudsman may make an application under subsection (2) or (3) only in
such circumstances as may be specified in scheme rules, and with thecomplainant’s consent.
(6) If the court makes an order under subsection (2) on the application of an
ombudsman, the ombudsman may in such circumstances as may be specifiedin scheme rules and with the complainant’s consent recover the amountmentioned in that subsection on behalf of the complainant.
(7) In this section “court” means the High Court or a county court.
142 Reporting court orders made against authorised persons
(1) Where a court makes an order under section 141, it must give the OLC notice
to that effect.
(2) Where the order is made against a person who is an authorised person in
relation to any activity which is a reserved legal activity, the OLC must makearrangements to ensure that an ombudsman gives to each relevant authorisingbody, in relation to that person, a report which states that the order has beenmade.
(3) A report under subsection (2) may require the relevant authorising body to
report to the ombudsman the action which has been or is to be taken by it inresponse to the report under subsection (2) and the reasons for that actionbeing taken.
(4) If an ombudsman, having rega rd to any report produced by the relevant
authorising body in compliance with a requirement imposed under subsection
(3), or any failure to comply with such a requirement, considers—
(a) that there has been a serious failure by the relevant authorising body to
discharge its regulatory functions, or
(b) if such a requirement has been imposed on the body on more than one
occasion, that the relevant author ising body has persistently failed
adequately to discharge its regulatory functions,
the ombudsman may make a report to that effect to the Board.
Reporting misconduct
143 Reporting possible misconduct to approved regulators
(1) This section applies where—
(a) an ombudsman is dealing, or has dealt, with a complaint under the
ombudsman scheme, and
(b) the ombudsman is of the opinion that the conduct of the respondent or
any other person in relation to any matter connected with thecomplaint is such that a relevant authorising body in relation to that
person should consider whether to take action against that person.
(2) The ombudsman must give the relevant authorising body a report which—
(a) states that the ombudsman is of that opinion, and
(b) gives details of that conduct.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints77
(3) The ombudsman must give the complainant a notice stating that a report under
subsection (2) has been given to the relevant authorising body.
(4) A report under subsection (2) may require the relevant authorising body to
report to the ombudsman the action which has been or is to be taken by it inresponse to the report and the reasons for that action being taken.
(5) The duty imposed by subsection (2) is not affected by the withdrawal or
abandonment of the complaint.
(6) If an ombudsman, having rega rd to any report produced by the relevant
authorising body in compliance with a requirement imposed under subsection
(4), or any failure to comply with such a requirement, considers—
(a) that there has been a serious failure by the relevant authorising body to
discharge its regulatory functions, or
(b) if such a requirement has been imposed on the body on more than one
occasion, that the relevant author ising body has persistently failed
adequately to discharge its regulatory functions,
the ombudsman may make a report to that effect to the Board.
Co-operation with investigations
144 Duties to share information
(1) Scheme rules must make provision requiring persons within subsection (3) to
disclose to an approved regulator information of such description as may bespecified in the rules, in such circumstances as may be so specified.
(2) The regulatory arrangements of an approved regulator must make provision
requiring the approved regulator to disclose to persons within subsection (3)information of such description as may be specified in the arrangements, insuch circumstances as may be so specified.
(3) The persons are—
(a) the OLC;
(b) an ombudsman;
(c) a member of the OLC’s staff appointed under paragraph 13 of Schedule
15.
(4) Provision made under subsection (1) or (2) must satisfy such requirements as
the Board may, from time to time, specify.
(5) In specifying requirements under subsection (4) the Board must have regard to
the need to ensure that, so far as reasonably practicable—
(a) duplication of investigations is avoided;
(b) the OLC assists approved regulators to carry out their regulatory
functions, and approved regulators assist with the investigation,consideration and determination of complaints under the ombudsmanscheme.
(6) The Board must publish any requirements specified by it under subsection (4).
(7) The OLC must—
(a) before publishing under section 205(2) a draft of rules it proposes to
make under subsection (1), consult each approved regulator to whichthe proposed rules apply, andLegal Services Act 2007 (c. 29)
Part 6 — Legal Complaints78
(b) when seeking the Board’s consent to such rules under section 155,
identify any objections made by an approved regulator to the rules andnot withdrawn.
(8) An approved regulator must—
(a) consult the OLC before making provisions in its regulatory
arrangements of the kind mentioned in subsection (2), and
(b) where an application is made for the Board’s approval of such
provisions, identify any objections made by the OLC to the provisionsand not withdrawn.
(9) This section applies to the Board in its capacity as a licensing authority and
licensing rules made by the Board as it applies to an approved regulator andits regulatory arrangements; and for this purpose the reference in subsection(5)(b) to “regulatory functions” is to be read as a reference to the Board’sfunctions under its licensing rules.
145 Duties of authorised persons to co-operate with investigations
(1) The regulatory arrangements of an approved regulator, and licensing rules
made by the Board in its capacity as a licensing authority, must make—
(a) provision requiring each relevant authorised person to give
ombudsmen all such assistance requested by them, in connection withthe investigation, consideration or determination of complaints underthe ombudsman scheme, as that person is reasonably able to give, and
(b) provision for the enforcement of that requirement.
(2) The provision made for the purposes of subsection (1) must satisfy such
requirements as the Board may, from time to time, specify for the purposes ofthat subsection.
(3) The Board must publish any requirements specified by it under subsection (2).
(4) In this section “relevant authorised person”—
(a) in relation to an approved regulator, has the same meaning as in section
112, and
(b) in relation to the Board in its capacity as a licensing authority, means a
person licensed by the Board under Part 5.
146 Reporting failures to co-operate with an investigation to approved regulators
(1) This section applies where an ombudsman is of the opinion that an authorised
person has failed to give an ombudsman all such assistance requested by theombudsman, in connection with th e investigation, consideration or
determination of a complaint under the ombudsman scheme, as that person isreasonably able to give.
(2) The ombudsman must give each relevant  authorising body, in relation to that
person, a report which—
(a) states that the ombudsman is of that opinion, and
(b) gives details of the failure.
(3) A report under subsection (2) may require the relevant authorising body to
report to the ombudsman the action which has been or is to be taken by it inresponse to the report under that subsection and the reasons for that actionbeing taken.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints79
(4) The duty imposed by subsection (2) is not affected by the withdrawal or
abandonment of the complaint.
(5) If an ombudsman, having rega rd to any report produced by the relevant
authorising body in compliance with a requirement imposed under subsection
(3), or any failure to comply with such a requirement, considers—
(a) that there has been a serious failure by the relevant authorising body to
discharge its regulatory functions, or
(b) if such a requirement has been imposed on the body on more than one
occasion, that the relevant author ising body has persistently failed
adequately to discharge its regulatory functions,
the ombudsman may make a report to that effect to the Board.
(6) In this section “authorised person” means an authorised person in relation to
any activity which is a reserved legal activity.
Information
147 Information and documents
(1) An ombudsman may, by notice, require a party to a complaint under the
ombudsman scheme—
(a) to produce documents, or documents of a description, specified in the
notice, or
(b) to provide information, or information of a description, specified in the
notice.
(2) A notice under subsection (1) may require the information or documents to be
provided or produced—
(a) before the end of such reasonable period as may be specified in the
notice, and
( b ) i n  t h e  c a s e  o f  i n f o r m a t i o n ,  i n  s u c h  m a n n e r  o r  f o r m  a s  m a y  b e  s o
specified.
(3) This section applies only to infor mation and documents the provision or
production of which the ombudsman considers necessary for thedetermination of the complaint.
(4) An ombudsman may—
(a) take copies of or extracts from a document produced under this section,
and
(b) require the person producing the document to provide an explanation
of it.
(5) If a person who is required under this section to produce a document fails to
do so, an ombudsman may require that person to state, to the best of thatperson’s knowledge and belief, where the document is.
(6) No person may be required under this section—
(a) to provide any information which that person could not be compelled
to provide or give in evidence in civil proceedings before the HighCourt, or
(b) to produce any document which that person could not be compelled to
produce in such proceedings.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints80
(7) In this section “party”, in  relation to a complaint, means—
(a) the complainant;
(b) the respondent;
(c) any other person who in accordance with the scheme rules is to be
regarded as a party to the complaint.
148 Reporting failures to provide information or produce documents
(1) This section applies where an ombudsman is of the opinion that an authorised
person has failed to comply with a requirement imposed under section 147(1).
(2) The ombudsman must give each relevant  authorising body, in relation to that
person, a report which—
(a) states that the ombudsman is of that opinion, and
(b) gives details of the failure.
(3) A report under subsection (2) may require the relevant authorising body to
report to the ombudsman the action which has been or is to be taken by it inresponse to the report under that subsection and the reasons for that actionbeing taken.
(4) The duty imposed by subsection (2) is not affected by the withdrawal or
abandonment of the complaint in relation to which the requirement wasimposed under section 147(1).
(5) If an ombudsman, having rega rd to any report produced by the relevant
authorising body in compliance with a requirement imposed under subsection
(3), or any failure to comply with such a requirement, considers—
(a) that there has been a serious failure by the relevant authorising body to
discharge its regulatory functions, or
(b) if such a requirement has been imposed on the body on more than one
occasion, that the relevant author ising body has persistently failed
adequately to discharge its regulatory functions,
the ombudsman may make a report to that effect to the Board.
(6) In this section “authorised person” means an authorised person in relation to
any activity which is a reserved legal activity.
149 Enforcement of requirements to provide information or produce documents
(1) This section applies where an ombudsman is of the opinion that a person (“the
defaulter”) has failed to comply with a requirement imposed under section147(1).
(2) The ombudsman may certify the defaulter’s failure to comply with the
requirement to the court. 
(3) Where an ombudsman certifies a failure to the court under subsection (2), the
court may enquire into the case.
(4) If the court is satisfied that the defaulter has failed without reasonable excuse
to comply with the requirement, it may deal with—
(a) the defaulter, and
(b) in the case of a body, any manager of the body,
as if that person were in contempt.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints81
(5) Subsection (6) applies in a case where the defaulter is an authorised person in
relation to any activity which is a reserved legal activity.
(6) The ombudsman (“the enforcing ombudsman”) may not certify the defaulter’s
failure to the court until a report by that or another ombudsman has been madeas required by section 148(2) and the enforcing ombudsman is satisfied—
(a) that each relevant authorising body to whom such a report was made
has been given a reasonable opportunity to take action in respect of thedefaulter’s failure, and
(b) that the defaulter has continued to fail to provide the information or
produce the documents to which the requirement under section 147related.
(7) In this section “court” means the High Court.
150 Reports of investigations
(1 ) The OLC ma y, if  it c onsi ders it  appropri ate to do so in any parti cular ca se,
publish a report of the investigation, con sideration and determination of a
complaint made under the ombudsman scheme.
(2) A report under subsection (1) must not (unless the complainant consents)—
(a) mention the name of the complainant, or
(b) include any particulars which, in the opinion of the OLC, are likely to
identify the complainant.
151 Restricted information
(1) Except as provided by section 152, restricted information must not be
disclosed—
(a) by a restricted person, or
(b) by any person who receives the information directly or indirectly from
a restricted person.
(2) In this section and section 152—
“restricted information” means in formation (other  than excluded
information) which is obtained by a restricted person in the course of,or for the purposes of, an investigation into a complaint made underthe ombudsman scheme (including information obtained for thepurposes of deciding whether to begin such an investigation or inconnection with the settlement of a complaint);
“restricted person” means—
(a) the OLC,
(b) an ombudsman, or
(c) a person who exercises functions delegated under paragraph 22
of Schedule 15.
(3) For the purposes of subsection (2) “excluded information” means—
(a) information which is in the form of a summary or collection of
information so framed as not to enable information relating to anyparticular person to be ascertained from it;
(b) information which at the time of the disclosure is or has already been
made available to the public from other sources;Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints82
(c) information which was obtained more than 70 years before the date of
the disclosure.
152 Disclosure of restricted information
(1) A restricted person may disclose restricted information to another restricted
person.
(2) Restricted information may be disclosed for the purposes of the investigation
in the course of which, or for the purposes of which, it was obtained.
(3) Section 151 also does not preclude the disclosure of restricted information—
(a) in a report made under—
(i) section 143(2) (report of possible misconduct to approved
regulators),
(ii) section 146(2) (report of failure to co-operate with
investigation),
(iii) section 148 (reporting fai lures to provide information or
produce documents), or
(iv) section 150 (reports of investigations),
(b) for the purposes of enabling or assisting the Board to exercise any of its
functions,
(c) to an approved regulator for the purposes of enabling or assisting the
approved regulator to exercise any of its regulatory functions,
(d) with the consent of the person to whom it relates and (if different) the
person from whom the restricted person obtained it,
(e) for the purposes of an inquiry with a view to the taking of any criminal
proceedings or for the purposes of any such proceedings,
(f) where the disclosure is required by or by virtue of any provision made
by or under this Act or any other enactment or other rule of law,
(g) to such persons (other than approved regulators) who exercise
regulatory functions as may be prescribed by order made by the LordChancellor, for such purposes as may be so prescribed.
(4) Subsections (2) and (3) are subject to subsection (5).
(5) The Lord Chancellor may by order prevent the disclosure of restricted
information by virtue of subsection (2) or (3) in such circumstances, or for suchpurposes, as may be prescribed in the order.
153 Data protection
In section 31 of the Data Protection Ac t 1998 (c. 29) (regulatory activity), after
subsection (4B) (inserted by section 170) insert—
“(4C) Personal data processed for the purposes of the function of considering
a complaint under the scheme established under Part 6 of the LegalServices Act 2007 (legal complaints) are exempt from the subjectinformation provisions in any case to the extent to which theapplication of those provisions to the data would be likely to prejudicethe proper discharge of the function.”Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints83
Defamation
154 Protection from defamation claims
For the purposes of the law of defamation—
(a) proceedings in relation to a complaint under the ombudsman scheme
are to be treated as if they were proceedings before a court, and
(b) the publication of any matter by th e OLC under this Part is absolutely
privileged.
Scheme rules
155 Consent requirements for rules
(1) Before making scheme rules under any provision of this Part, the OLC must
obtain—
(a) the consent of the Board, and
(b) in the case of rules under section 136 (charges payable by respondents),
the consent of the Lord Chancellor.
(2) In subsection (1) the reference to making rules includes a reference to
modifying rules.
156 The Board’s powers in respect of rules
(1) The Board may direct the OLC to take such steps as are necessary—
(a) to modify its scheme rules in accordance with such general
requirements as are specified in the direction, or
(b) to make a specified modification to its scheme rules.
(2) Before giving a direction under subsection (1)(b), the Board must—
(a) give the OLC a notice giving details of the proposed modification and
containing a statement that representations about the proposal may bemade to the Board within a period specified in the notice,
(b) publish a copy of that notice, and
(c) have regard to any representations duly made.
(3) The following provisions do not apply in relation to any modification made by
the OLC to its rules in compliance with a direction under subsection (1)(b)—
(a) section 155(1)(a) (requirement to obtain the Board’s consent to rules);
(b) section 205 (requirement to consult before making rules).
(4) Where the Board revokes a direction, it must—
(a) give the OLC notice of the revocation, and
(b) publish that notice.
Effect on existing arrangements for redress etc
157 Approved regulators not to make provision for redress
(1) The regulatory arrangements of an approved regulator must not include any
provision relating to redress.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints84
(2) If at the time this subsection comes into force the regulatory arrangements of
an approved regulator contravene subsecti on (1), any provision relating to
redress included in those regulatory arrangements ceases to have effect at thattime, subject to subsection (3).
(3) An order under section 211 which appoints a day for the coming into force of
subsection (2) may include transitional provision in respect of any proceedingswhich, immediately before that day are awaiting determination under anyprovision relating to redress made by an approved regulator.
This subsection is without prejudice to any other transitional provision which
may be made by or under this Act.
(4) For the purposes of this section “provision relating to redress” means any
provision made in regulatory arrangements (whether it is statutory or non-
statutory) for redress in respect of acts or omissions of authorised persons andany provision connect ed with such provision.
(5) Nothing in this section prevents an approved regulator making—
(a) provision in its regulatory arrangements of the kind required by section
112 (requirement for authorised persons to have complaintsprocedures etc),
(b) indemnification arrangements or compensation arrangements, or
(c) provision which by virtue of sect ion 158 is not prohibited by this
section.
(6) In subsection (4) “authorised person” means an authorised person in relation
to any activity which is a reserved legal activity.
(7) This section applies to licensing rules made by the Board in its capacity as a
licensing authority as it applies in relation to the regulatory arrangements of anapproved regulator.
158 Regulatory arrangements not prohibited by section 157
(1) Section 157 does not prohibit the regulatory arrangements of an approved
regulator from making provision requiring, or authorising the approvedregulator to require, a relevant authorised person—
(a) to investigate whether there are any persons who may have a claim
against the relevant authorised person in relation to a matter specifiedby the approved regulator;
(b) to provide the approved regulator with a report on the outcome of the
investigation;
(c) to identify persons (“affected persons”) who may have such a claim;
(d) to notify affected persons that they may have such a claim;
(e) to provide affected persons with information about the relevant
authorised person’s complaints procedures and the ombudsmanscheme;
(f) to ensure that the relevant authorised person’s complaints procedures
operate as if an affected person had made a complaint against therelevant authorised person in respect of the act or omission to which theclaim relates.
(2) For the purposes of subsection (1) “claim”, in relation to a relevant authorised
person, means a claim for redress resulting from an act or omission of thatperson.Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints85
(3) For the purposes of this section—
(a) “relevant authorised person”, in relation to an approved regulator,
means a person authorised by that approved regulator to carry on anactivity which is a reserved legal activity, and
(b) a relevant authorised person’ s complaints procedures are the
procedures established by that person, or which that personparticipates in or is subject to, in accordance with regulatoryarrangements made in accordance with section 112.
(4) This section applies in relation to the Board in its capacity as a licensing
authority as it applies in relation to an  approved regulator, an d in relation to
the Board references to regulatory arrangements are to be read as references tothe Board’s licensing rules.
159 Legal Services Complaints Commissioner and Legal Services Ombudsman
(1) The offices of Legal Services Complaints Commissioner and Legal Services
Ombudsman are abolished.
(2) Accordingly—
(a) sections 51 and 52 of, and Schedule 8 to, the Access to Justice Act 1999
(c. 22), and
(b) sections 21 to 26 of, and Schedule 3 to, the Courts and Legal Services
Act 1990 (c. 41),
are repealed.
Interpretation
160 Interpretation of Part 6
In this Part—
“complainant”, in relation to a complaint, means the person who makes
the complaint;
“relevant authorising body”, in relation to a person, means—
(a) an approved regulator by which the person is authorised to
carry on an activity which is a reserved legal activity, or
(b) where the person is authorised to carry on such an activity by
the Board in its capacity as a licensing authority, the Board;
“respondent”, in relation to a complaint, is to be construed in accordance
with section 125 (except that, where scheme rules of the kindmentioned in section 133(3)(c) have effect, references to the“respondent” include a person treated as a co-respondent under thoserules).
Claims management services
161 Extension of Part 6 to claims management services
(1) For the purposes of this Part (and sections 1, 21 and 27 as they apply in relation
to this Part)—
(a) the Claims Management Services Regulator is to be treated as an
approved regulator;Legal Services Act 2007 (c. 29)
Part 6 — Legal Complaints86
(b) regulated claims management services are to be treated as a reserved
legal activity;
(c) a person authorised by the Claims Management Services Regulator,
under Part 2 of the Compensation Act 2006 (c. 29), to provide regulatedclaims management services is to be treated as an authorised person inrelation to that activity;
(d) the Claims Management Services Regulator is to be treated as a relevant
authorising body in relation to such a person; and
(e) regulations under section 9 of, and the Schedule to, the Compensation
Act 2006 (regulations about the functions of the Claims ManagementServices Regulator etc) are to be treated as regulatory arrangements ofthe Claims Management Services Regulator.
(2) For the purposes of sections 112 and 145 (as extended by this section) a person
authorised by the Claims Management Services Regulator under Part 2 of theCompensation Act 2006 to provide regulated claims management services is tobe treated as a “relevant authorised person” in relation to the Regulator.
(3) Section 9 of, and the Schedule to, the Compensation Act 2006 (regulations
about the functions of the Claims Management Regulator etc) are subject to anyrequirements imposed by this Part in relation to the regulatory arrangementsof the Claims Management Regulator.
(4) In this section—
“Claims Management Services Regulator” means—
(a) the person designated under section 5(1) of the Compensation
Act 2006, or
(b) at a time when no person is so designated, the Board;
“regulated claims management services” has the same meaning as in Part
2 of the Compensation Act 2006.
P
ART 7
FURTHER  PROVISIONS  RELATING  TO THE BOARD  AND  THE OLC
Guidance
162 Guidance
(1) The Board may give guidance—
(a) about the operation of this Act and of any order made under it;
(b) about the operation of any rules made by the Board under this Act;
(c) about any matter relating to the Board’s functions;
(d) for the purpose of meeting the regulatory objectives;
(e) about the content of licensing rules;
(f) about any other matters about which it appears to the Board to be
desirable to give guidance.
(2) Guidance under this section may cons ist of such information  and advice as the
Board considers appropriate.
(3) The Board may give financial or other assistance to persons giving information
or advice of a kind which the Board could give under this section.Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC87
(4) The Board may—
(a) publish its guidance,
(b) offer copies of its published guidance for sale at a reasonable price, and
(c) if it gives guidance in response to a request made by any person, make
a reasonable charge for that guidance.
(5) When exercising its functions, the Board may have regard to the extent to
which an approved regulator has complied with any guidance issued underthis section which is applicable to the approved regulator.
(6) When exercising its functions—
(a) in its capacity as an approved regulator by virtue of an order under
section 62(1)(a), or
(b) in its capacity as a licensing authority under Part 5,
the Board must have regard to any guidance it has issued under this section.
Voluntary arrangements
163 Voluntary arrangements
(1) The Board may enter into arrangements with any person under which the
Board is to provide assistance for the purpose of improving standards ofservice and promoting best practice in conne ction with the carrying on of any
legal activity.
(2) These arrangements may (among other things) provide for the Board to give
advice on—
(a) the best regulatory practice, or
(b) the contents of codes of practice or other voluntary arrangements.
(3) Arrangements under this section may include provision as to the terms on
which assistance is to be provided by the Board (including provision as topayment).
(4) Where the Board enters into arrangements under this section, it must publish
a statement giving details of the arrangements and explaining what they areintended to achieve.
164 Power to establish voluntary scheme for resolving complaints
(1) This section and section 166 provide for a scheme under which legal services
complaints may be resolved quickly and with minimum formality by anindependent person.
(2) The OLC may make rules (“voluntary scheme rules”) establishing such a
scheme (“the voluntary scheme”), but on ly in relation to such kinds of legal
services complaints as may be specified by order made by the Lord Chancellorfor the purposes of this section.
(3) An order under subsection (2) may in particular specify a kind of legal services
complaint by reference to the description of the complainant, of therespondent, or of the legal service s to which the complaint relates.
(4) “Legal services complaint” means a complaint which relates to an act or
omission of an eligible person (“the respondent”) in the course of that person
providing legal services.Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC88
(5) For that purpose a person is eligible if at the time the act or omission took place
there was no activity in relation to which the person—
(a) was an authorised person, or
(b) is to be regarded as having been such a person by virtue of section 129.
(6) Under the voluntary scheme—
(a) redress may be provided to the complainant, but
(b) no disciplinary action may be taken against the respondent.
(7) Voluntary scheme rules may confer functions on ombudsmen for the purposes
of the voluntary scheme.
(8) Section 131 applies for the purposes of the voluntary scheme as it applies for
the purposes of the ombudsman scheme.
(9) Sections 155 and 156 apply in relation to voluntary scheme rules as they apply
in relation to scheme rules.
(10) In this section—
“legal services” means services provided by a person which consist of or
include legal activities carried on by, or on behalf of, that person;
“the voluntary scheme” and “voluntary scheme rules” have the meaning
given by subsection (2).
165 Procedure for making orders under section 164
( 1 ) T h e  L o r d  C h a n c e l l o r  m a y  m a k e  a n  o r d e r  u n d e r  s e c t i o n  1 6 4 ( 2 )  o n l y  o n  t h e
recommendation of an interested body.
(2) An interested body must, if requested to do so by the Lord Chancellor,
consider whether or not it is appropriate to make a recommendation for suchan order.
(3) An interested body must, before making a recommendation for such an
order—
(a) publish a draft of the proposed recommendation,
(b) invite representations regarding the proposed recommendation, and
(c) consider any such representations which are made.
(4) Where the Lord Chancellor receives a recommendation from an interested
body for an order under section 164(2), the Lord Chancellor must considerwhether to follow the recommendation.
(5) If the Lord Chancellor decides not to follow the recommendation, the Lord
Chancellor must publish a notice to that effect which includes the LordChancellor’s reasons for the decision.
(6) In this section “interested body” means—
(a) the OLC,
(b) the Board, or
(c) the Consumer Panel.
166 Operation of voluntary scheme
(1) A complaint may be determined under the voluntary scheme only if—Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC89
(a) the complainant falls within a class of persons specified in voluntary
scheme rules as qualified to make a complaint,
(b) the complainant wishes to have the complaint dealt with under the
scheme,
(c) at the time of the act or omission to which the complaint relates, the
respondent was participating in the scheme and voluntary schemerules were in force in relation to the legal services in question, and
(d) at the time the complaint is made under the scheme the respondent has
not withdrawn from the scheme in accordance with its provisions.
(2) A person qualifies for participation in  the voluntary scheme if the person falls
within a class of persons specified as qualified in voluntary scheme rules.
(3) In such circumstances as may be specified in voluntary scheme rules, a
complaint may be dealt with under the voluntary scheme even thoughsubsection (1)(c) would otherwise prevent that.
(4) Subsection (3) applies only if the respondent participates in the voluntary
scheme on the basis that complaints of that kind are to be dealt with under thescheme.
(5) Complaints are to be dealt with and determined under the voluntary scheme
on standard terms fixed by the OLC with the consent of the Board.
(6) The OLC may modify standard terms only with the consent of the Board.
(7) Section 204(3) applies to standard terms as it applies to rules made by the OLC.
(8) The standard terms may in particular make provision—
(a) requiring the making of payments to the OLC by persons participating
i n  t h e  s c h e m e  o f  s u c h  a m o u n t s ,  a t  s u c h  t i m e s  a n d  i n  s u c hcircumstances, as may be determined by the OLC;
(b) as to the award of costs on the determination of a complaint (including
provision for an award of costs in favour of the OLC for the purpose ofproviding a contribution to resources deployed in dealing with thecomplaint).
(9) In this section “legal services”, “the voluntary scheme” and “voluntary scheme
rules” have the same meaning as in section 164.
Disclosure and use of information
167 Restricted information
(1) Except as provided by section 168, restricted information must not be
disclosed—
(a) by a restricted person, or
(b) by any person who receives the information directly or indirectly from
a restricted person.
(2) In this section and section 168—
“restricted information” means in formation (other  than excluded
information) which is obtained by the Board in the exercise of itsfunctions;
“restricted person” means—Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC90
(a) the Board (including the Board in its capacity as an approved
regulator or a licensing authority),
(b) a person who exercises functions delegated under paragraph 23
of Schedule 1 or section 73 or by virtue of section 64(2)(k).
(3) For the purposes of subsection (2) “excluded information” means—
(a) information which is in the form of a summary or collection of
information so framed as not to enable information relating to anyparticular person to be ascertained from it;
(b) information which at the time of the disclosure is or has already been
made available to the public from other sources;
(c) information which was obtained more than 70 years before the date of
the disclosure.
168 Disclosure of restricted information
(1) A restricted person may disclose restricted information to another restricted
person.
(2) Restricted information may be disclosed for the purposes of enabling or
assisting the Board to exercise its functions (whether as an approved regulator,a licensing authority or otherwise).
(3) Section 167 also does not preclude the disclosure of restricted information—
(a) where the disclosure is a result of the Board exercising any power to
publish information under this Act;
(b) for the purposes of enabling or assisting the OLC, ombudsmen or
persons who exercise functions delegated under paragraph 22 ofSchedule 15, to exercise any of its or their functions,
(c) to an approved regulator for the purposes of enabling or assisting the
approved regulator to exercise any of its functions,
(d) with the consent of the person to whom it relates and (if different) the
person from whom the restricted person obtained it,
(e) for the purposes of an inquiry with a view to the taking of any criminal
proceedings or for the purposes of any such proceedings,
(f) where the disclosure is required by or by virtue of any provision made
by or under this Act or any other enactment or other rule of law, or
(g) to such persons (other than approved regulators) who exercise
regulatory functions as may be prescribed by order made by the LordChancellor, for such purposes as may be so prescribed.
(4) Subsections (2) and (3) are subject to subsection (5).(5) The Lord Chancellor may by order prevent the disclosure of restricted
information by virtue of subsection (2) or (3) in such circumstances, or for suchpurposes, as may be prescribed in the order.
169 Disclosure of information to the Board
(1) Information which is held by or on behalf of a permitted person (whether
obtained before or after this section comes into force) may be disclosed to theBoard for the purposes of enabling or assisting the Board to exercise itsfunctions (whether as an approved regulator, a licensing authority or
otherwise).Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC91
(2) A disclosure under this section is not to be taken to breach any restriction on
the disclosure of information (however imposed).
(3) But nothing in this section authorises the making of a disclosure—
(a) which contravenes the Data Protection Act 1998 (c. 29), or
(b) which is prohibited by Part 1 of the Regulation of Investigatory Powers
Act 2000 (c. 23).
(4) This section does not affect a power to disclose which exists apart from this
section.
(5) The following are permitted persons—
(a) a chief officer of police of a police force in England and Wales;
(b) a chief constable of a police force in Scotland;
(c) the Chief Constable of the Police Service of Northern Ireland;
(d) the Director General of the Serious Organised Crime Agency;
(e) the Commissioners for Her Majesty’s Revenue and Customs;
(f) the Financial Services Authority.
(6) The Lord Chancellor may by order designate as permitted persons other
persons who exercise functions which the Lord Chancellor considers are of apublic nature (including a person dischargi ng regulatory functions in relation
to any description of activities).
(7) Information must not be disclosed under this section on behalf of the
Commissioners for Her Majesty’s Revenue and Customs unless theCommissioners authorise the disclosure.
(8) The power to authorise a disclosure under subsection (7) may be delegated
(either generally or for a specific purpose) to an officer of Revenue andCustoms.
170 Data protection
In section 31 of the Data Protection Ac t 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 informationprovisions in any case to the extent to which the application of thoseprovisions to the data would be likely to prejudice the proper dischargeof the function.”
171 Use of information
Information obtained by the Board (whether in its capacity as an approved
regulator or licensing authority or otherwise) may be used by the Board for thepurposes of, or for any purpose connected with or incidental to, the exercise ofits functions.
Payments by Lord Chancellor
172 Funding
(1) The Lord Chancellor may—Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC92
(a) pay to the Board such sums as the Lord Chancellor may determine as
appropriate for the purpose of meeting the expenditure of the Boardincurred under or for the purposes of this Act or any other enactment(including any expenditure incurred by it in its capacity as an approvedregulator or its capacity as a licensing authority), and
(b) pay to the OLC such sums as the Lord Chancellor may determine as
appropriate for the purposes of meeting the expenditure of the OLCincurred under or for the purposes of this Act.
(2) The Lord Chancellor may—
(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
173 The levy
(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 aggregateof—
(a) the leviable Board expenditure,
(b) the leviable OLC expenditure, and
(c) the leviable Lord Chancellor 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 inaccordance with fair principles.
(4) The Board may not make rules under this section except with the consent of the
Lord Chancellor.
(5) “Leviable body” means—
(a) an approved regulator,
(b) the person designated under section 5(1) of the Compensation Act 2006
(c. 29) (the Regulator in relation to claims management services), or
(c) any other person prescribed by the Lord Chancellor 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 any other enactment (including any expenditure incurred inconnection with its establishment and any expenditure incurred by it inits 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 175(1)(a), (c) to (e) and (k) to (m) orby virtue of regulations under paragraph 7(g) of the Schedule to theCompensation 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 itsestablishment), andLegal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC93
(b) the aggregate of the amounts which the OLC pays into the
Consolidated Fund under section 175(1)(g), (h) or (n).
(8) But subsection (7)(a) does not include such proportion of the expenditure of the
OLC incurred under or for the purposes of this Act as may reasonably beattributed to the exercise of its functions under sections 164 to 166.
(9) The “leviable Lord Chancellor expenditure” means any expenditure incurred
by the Lord Chancellor in connection with the establishment of the Board orthe OLC (including expenditure incurred under or for the purposes ofparagraph 10 of Schedule 22 (Interim Chief Executive of the OLC)).
(10) But the leviable Lord Chancellor expenditure does not include any
expenditure under section 172 (funding of Board and OLC).
(11) In subsection (5) the reference to “an approved regulator” does not include the
Board where it is designated as an approved regulator under section 62.
174 The levy: supplementary provisions
(1) In this section—
“leviable body” has the meaning given by section 173;
“the levy” means the levy payable by virtue of that section;“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—
(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 Lord Chancellor’s agreement to
the amount payable in respect of a particular period.
(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—
(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;
(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 bepaid under the rules, the unpaid balance from time to time carriesinterest at the rate determined by or in accordance with the levy rules.Legal Services Act 2007 (c. 29)
Part 7 — Further provisions relating to the Board and the OLC94
Payments into the Consolidated Fund
175 Amounts payable into the Consolidated Fund
(1) The following must be paid into the Consolidated Fund—
(a) any application fee received by the Board;
(b) any sum received by the Board under sections 37 to 40 (financial
penalties and interest);
(c) amounts paid to the Board under section 49(10) or 50(5) (charges for
providing draft and final policy statements);
(d) any sums received by the Board in its capacity as an approved regulator
by virtue of rules within section 64(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 ofSchedule 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
under sections 95 to 97 (financial penalties and interest);
(g) any charges received by the OLC by virtue of rules under section 136
(charges payable by respondents), together with any interest payable inaccordance with those rules;
(h) any amount payable to the OLC in accordance with scheme rules
within subsection (3)(i) of section 133 (costs of OLC payable by thecomplainant or the respondent in relation to a complaint), togetherwith any interest payable on such an amount under subsection (6) ofthat section;
(i) any amount payable to the OLC by virtue of standard terms within
section 166(8);
(j) any sum received by the Board in accordance with rules under section
173 (the levy);
(k) amounts paid to the Board under section 162(4)(c) (charges for
providing copies of guidance);
(l) any amount payable to the Board under arrangements entered into
under section 163 (voluntary arrangements);
(m) amounts paid to the Board under subsection (8) of section 205 (charges
for providing copies of rules and draft rules);
(n) 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 45(3)(b) (application fees in respect of cancellation of
designation as approved regulator);
(c) paragraph 1(4)(d) of Schedule 10 (application fees in respect of
designation as licensing authority);
(d) section 76(3)(b) (application fees in respect of cancellation of
designation as licensing authority);
(e) paragraph 3(4)(c) of Schedule 18 (application fees in respect of
designation as qualifying regulator for the purposes of Part 5 of theImmigration and Asylum Act 1999 (c. 33)).Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc95
PART 8
MISCELLANEOUS  PROVISIONS  ABOUT  LAWYERS  ETC
Duties of regulated persons
176 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 asthey apply to that person.
(2) A person is a regulated person in re lation 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 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
177 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
(c) section 89 of, and Schedule 14 to, the Courts and Legal Services Act
1990 (c. 41) (foreign lawyers: partnerships and recognised bodies).
178 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 (“the tribunal rules”), thealteration 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),
(b) it is an exempt alteration, or
(c) it is an alteration made in compliance with a direction under section 32
(given by virtue of section 179).
(3) For the purposes of subsection (2)(a), paragraphs 20 to 27 of Schedule 4
(procedure for approval of alterations of regulatory arrangements) apply in
relation to an application by the Tribunal for approval of an alteration oralterations of the tribunal rules as they apply in relation to an application by anapproved regulator for approval of an alteration or alterations of its regulatory
arrangements, but as if—Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc96
(a) paragraph 23 of that Schedule applied in relation to the Law Society as
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 32 were a reference to that
section as applied (with modifications) by section 179.
(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 thissection.
(5) A direction under subsection (4) may be specific or general, and must be
published by the Board.
(6) In this section references to an “al teration” of the tribun al rules include the
making of such rules and the modification of such rules.
179 Board’s power to give directions to the Tribunal
Sections 32 to 34 and Schedule 7 (Board’s powers to give directions) apply in
relation to the Tribunal as they apply in relation to an approved regulator, butas if—
(a) in section 32(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”,
(b) in subsection (4)(b) of that section for “regulatory arrangements” there
were substituted “rules under section 46(9)(b) of the Solicitors Act1974”,
(c) section 34(3) were omitted, and
(d) paragraphs 2 and 10 of Schedule 7 applied in relation to the Law
Society, as well as the Tribunal, where it is proposed to give theTribunal a direction under section 32.
180 Functions of the Tribunal
Sections 69 and 70 (modification of functions of approved regulators) apply in
relation to the Tribunal as they apply in relation to an approved regulator, butas if—
(a) for section 69(3) (purpose for which modifying order may be made)
there were substituted—
“(3) The Board may make a recommendation under this section only
with a view to an order being made which enables the Tribunalto carry out its role more effectively or efficiently.”, and
(b) subsections (4), (5) and (7) of that section were omitted.
Other lawyers
181 Unqualified person not to pretend to be a barrister
(1) It is an offence for a person who is not a barrister—
(a) wilfully to pretend to be a barrister, orLegal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc97
(b) with the intention of implying falsely that that person is a barrister to
take or use any name, title or description.
(2) A person who is guilty of an offence under subsection (1) is liable—
(a) on summary conviction, to impris onment for a term not exceeding 12
months or a fine not exceeding the statutory maximum (or both), and
(b) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine (or both).
(3) In relation to an offence under subsection (1) committed before the
commencement of section 154(1) of th e Criminal Justice Act 2003 (c. 44), the
reference in subsection (2)(a) to 12 months is to be read as a reference to 6months.
182 Licensed conveyancers
Schedule 17 contains amendments relating to the Council for Licensed
Conveyancers, licensed conveyancers and bodies recognised under section 32of the Administration of Justice Act 1985 (c. 61).
183 Commissioners for oaths
(1) For the purposes of any enactment or instrument (including an enactment
passed or instrument made after the passing of this Act) “commissioner foroaths” includes an authorised person in relation to the administration of oaths(“a relevant authorised person”).
(2) A relevant authorised person has the right to use the title “Commissioner for
Oaths”.
(3) A relevant authorised person may not carry on the administration of oaths in
any proceedings in which that person represents any of the parties or isinterested.
(4) A relevant authorised person before whom an oath or affidavit is taken or
made must state in the jurat or attestation at which place and on what date theoath or affidavit is taken or made.
(5) A document containing such a statement and purporting to be sealed or signed
by a relevant authorised person must be admitted in evidence without proof ofthe seal or signature, and without proof that that person is a relevantauthorised person.
(6) The Lord Chancellor may by order prescribe the fees to be charged by relevant
authorised persons in respect of the administration of an oath or the taking ofan affidavit.
(7) The Lord Chancellor may make an order under subsection (6) only—
(a) after consultation with the Board, and
(b) with the consent of the Lord Chief Justice and the Master of the Rolls.
(8) In this section “affidavit” has the same meaning as in  the Commissioners for
Oaths Act 1889 (c. 10).
184 Trade mark attorneys
(1) The Trade Marks Act 1994 (c. 26) is amended as follows.Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc98
(2) In section 82 (recognition of agents) after “rules” insert “and subject to the Legal
Services Act 2007”.
(3) For section 83 (the register of trade mark agents) substitute—
“83 The register of trade mark attorneys
(1 ) There is  to continue to b e a regi ster of  persons  who ac t as a gent for
others for the purpose of applying for or obtaining the registration oftrade marks.
(2) In this Act a registered trade mark attorn ey means an individual whose
name is entered on the register kept under this section.
(3) The register is to be kept by the Institute of Trade Mark Attorneys.
(4) The Secretary of State may, by order, amend subsection (3) so as to
require the register to be kept by the person specified in the order.
(5) Before making an order under subsection (4), the Secretary of State
must consult the Legal Services Board.
(6) An order under this section must be made by statutory instrument.
(7) An order under this section may not be made unless a draft of it has
been laid before, and approved by a resolution of, each House ofParliament.
83A Regulation of trade mark attorneys
(1) The person who keeps the register under section 83 may make
regulations which regulate—
(a) the keeping of the register and the registration of persons;
(b) the carrying on of trade mark agency work by registered
persons.
(2) Those regulations may, amongst other things, make—
(a) provision as to the educational an d training qualifications, and
other requirements, which must be satisfied before anindividual may be registered or for an individual to remainregistered;
(b) provision as to the requirements which must be met by a body
(corporate or unincorporate) before it may be registered or for itto remain registered, including provision as to the managementand control of the body;
(c) provision as to the educational, training or other requirements
to be met by regulated persons;
(d) provision regulating the practice, conduct and discipline of
registered persons or regulated persons;
(e) provision authorising in such cases as may be specified in the
regulations the erasure from the register of the name of anyperson registered in it, or the suspension of a person’sregistration;
( f ) p r o v i s i o n  r e q u i r i n g  t h e  p a y m e n t  o f  s u c h  f e e s  a s  m a y  b e
specified in or determined in accordance with the regulations;
(g) provision about the provision to be made by registered persons
in respect of complaints made against them;Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc99
(h) provision about the keeping of records and accounts by
registered persons or regulated persons;
(i) provision for reviews of or appeals against decisions made
under the regulations; 
(j) provision as to the indemnification of registered persons or
regulated persons against losses arising from claims in respectof civil liability incurred by them.
(3) Regulations under this section  may make different provision for
different purposes.
(4) Regulations under this section which are not regulatory arrangements
within the meaning of the Legal Services Act 2007 are to be treated assuch arrangements for the purposes of that Act.
(5) Before the appointed day, regulations under this section may be made
only with the approval of the Secretary of State.
(6) The powers conferred to make regulations under this section are not to
be taken to prejudice—
(a) any other power which the person who keeps the register may
have to make rules or regulations (however they may bedescribed and whether they are made under an enactment orotherwise);
(b) any rules or regulations made by that person under any such
power.
(7) In this section—
“appointed day” means the day appointed for the coming into
force of paragraph 1 of Schedule 4 to the Legal Services Act2007;
“manager”, in relation to a body, has the same meaning as in the
Legal Services Act 2007 (see section 207);
“registered person” means—
(a) a registered trade mark attorney, or
(b) a body (corporate or unincorporate) registered in the
register kept under section 83;
“regulated person” means a person who is not a registered person
but is a manager or employee of a body which is a registeredperson;
“trade mark agency work” means work done in the course of
carrying on the business of acting as agent for others for thepurpose of—
(a) applying for or obtaining the registration of trade marks
in the United Kingdom, or
(b) conducting proceedings before the Comptroller relating
to applications for or otherwise  in connection with the
registration of trade marks.”
(4) In section 84 (unregistered persons not to be described as registered trade mark
agents)—
(a) in subsection (2)—
(i) after “partnership” (in the first place) insert “or other
unincorporated body”, andLegal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc100
(ii) for “all the partners” to the end substitute “the partnership or
other body is registered in the register kept under section 83.”,and
(b) in subsection (3) for “all the directors” to the end substitute “the body
corporate is registered in the register kept under section 83.”
(5) Omit section 85 (power to prescribe conditions etc for mixed partnerships and
bodies corporate).
(6) In section 87 (privilege for communications with registered trade mark
attorneys), in subsection (3)(c) at the beginning insert “any otherunincorporated body or”.
185 Patent attorneys
(1) The Copyright, Designs and Patents Act 1988 (c. 48) is amended as follows.(2) In section 274 (persons permitted to carry on business of a patent agent) in
subsection (1) after “this Part” insert “and to the Legal Services Act 2007”.
(3) For section 275 (the register of patent agents) substitute—
“275 The register of patent attorneys
(1 ) There is  to continue to b e a regi ster of  persons  who ac t as a gent for
others for the purpose of applying for or obtaining patents.
(2) In this Part a registered patent attorney means an individual whose
name is entered on the register kept under this section.
(3) The register is to be kept by the Chartered Institute of Patent Attorneys.(4) The Secretary of State may, by order, amend subsection (3) so as to
require the register to be kept by the person specified in the order.
(5) Before making an order under subsection (4), the Secretary of State
must consult the Legal Services Board.
(6) An order under this section must be made by statutory instrument.(7) An order under this section may not be made unless a draft of it has
been laid before, and approved by a resolution of, each House ofParliament.
275A Regulation of patent attorneys
(1) The person who keeps the register under section 275 may make
regulations which regulate—
(a) the keeping of the register and the registration of persons;
(b) the carrying on of patent attorney work by registered persons.
(2) Those regulations may, amongst other things, make—
(a) provision as to the educational an d training qualifications, and
other requirements, which must be satisfied before anindividual may be registered or for an individual to remainregistered;
(b) provision as to the requirements which must be met by a body
(corporate or unincorporate) before it may be registered, or forLegal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc101
it to remain registered, in cluding provision as to the
management and control of the body;
(c) provision as to the educational, training and other requirements
to be met by regulated persons;
(d) provision regulating the practice, conduct and discipline of
registered persons or regulated persons;
(e) provision authorising in such cases as may be specified in the
regulations the erasure from the register of the name of anyperson registered in it, or the suspension of a person’sregistration;
( f ) p r o v i s i o n  r e q u i r i n g  t h e  p a y m e n t  o f  s u c h  f e e s  a s  m a y  b e
specified in or determined in accordance with the regulations;
(g) provision about the provision to be made by registered persons
in respect of complaints made against them;
(h) provision about the keeping by registered persons or regulated
persons of records and accounts;
(i) provision for reviews of or appeals against decisions made
under the regulations;
(j) provision as to the indemnification of registered persons or
regulated persons against losses arising from claims in respectof civil liability incurred by them.
(3) Regulations under this section  may make different provision for
different purposes.
(4) Regulations under this section which are not regulatory arrangements
within the meaning of the Legal Services Act 2007 are to be treated assuch arrangements for the purposes of that Act.
(5) Before the appointed day, regulations under this section may be made
only with the approval of the Secretary of State.
(6) The powers conferred to make regulations under this section are not to
be taken to prejudice—
(a) any other power which the person who keeps the register may
have to make rules or regulations (however they may bedescribed and whether they are made under an enactment orotherwise);
(b) any rules or regulations made by that person under any such
power.
(7) In this section—
“appointed day” means the day appointed for the coming into
force of paragraph 1 of Schedule 4 to the Legal Services Act2007;
“manager”, in relation to a body, has the same meaning as in the
Legal Services Act 2007 (see section 207);
“patent attorney work” means work done in the course of carrying
on the business of acting as agent for others for the purpose of—
(a) applying for or obtaining patents, in the United
Kingdom or elsewhere, or
(b) conducting proceedings before the comptroller relating
to applications for, or otherwise in connection with,patents;Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc102
“registered person” means—
(a) a registered patent attorney, or
(b) a body (corporate or unincorporate) registered in the
register kept under section 275;
“regulated person” means a person who is not a registered person
but is a manager or employee of a body which is a registeredperson.”
(4) In section 276 (persons entitled to describe themselves as patent attorneys)—
(a) in subsection (2)—
(i) after “partnership” (in the first place) insert “or other
unincorporated body”, and
(ii) for “all the partners” to the end substitute “the partnership or
other body is registered in the register kept under section 275”,and
(b) in subsection (3) for “all the directors” to the end substitute “the body
corporate is registered in the register kept under section 275.”
(5) Omit section 279 (power to prescribe conditions etc for mixed partnerships and
bodies corporate).
(6) In section 280 (privilege for communications with patent agents), in subsection
(3), at the end of paragraph (b) insert—
“(ba) an unincorporated body (other than a partnership) entitled to
describe itself as a patent attorney, or”.
186 Immigration advisers and immigration service providers
(1) Schedule 18 makes provision relating to Part 5 of the Immigration and Asylum
Act 1999 (c. 33) (immigration advisers and immigration service providers).
(2) In that Schedule—
(a) Part 1 makes provision for approved regulators to become qualifying
regulators for the purposes of Part 5 of the Immigration and AsylumAct 1999,
(b) Part 2 contains amendments of that Act (which amongst other things
enable persons authorised by qualifying regulators to provideimmigration advice and immigration services in England and Wales),and
(c) Part 3 makes provision for certain persons to be treated, during a
transitional period, as authorised by qualifying regulators to providesuch advice and services.
187 Claims management services
Schedule 19 contains amendments of Pa rt 2 of the Compensation Act 2006 (c.
29) (claims management services).
Advocates and litigators
188 Duties of advocates and litigators
(1) This section applies to a person who—Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc103
(a) exercises before any court a right of audience, or
(b) conducts litigation in relation to proceedings in any court,
by virtue of being an authorised person in relation to the activity in question.
(2) A person to whom this section applies has a duty to the court in question to act
with independence in the interests of justice.
(3) That duty, and the duty to comply with relevant conduct rules imposed on the
person by section 176(1), override any obligations which the person may have(otherwise than under the criminal law) if they are inconsistent with them.
(4) “Relevant conduct rules” are the co nduct rules of the relevant authorising body
which relate to the exercise of a right of audience or the conduct of litigation.
(5) The relevant authorising body is—
(a) the approved regulator by which the person is authorised to exercise
the right of audience or conduct the litigation, or
(b) where the person is authorised to exercise the right of audience or
conduct the litigation by the Board in its capacity as a licensingauthority, the Board.
189 Employed advocates
(1) This section applies where an authorised person in relation to the exercise of a
right of audience is employed as a Crown Prosecutor or in any otherdescription of employment.
(2) Qualification regulations or conduct rules of the approved regulator by whom
the person is authorised to carry on that activity which relate to the right ofaudience do not have effect in relation to the person if—
(a) they—
(i) limit the courts before which,  or proceedings in which, that
activity may be carried on by persons who are employed, or
(ii) limit the circumstances in which that activity may be carried on
by persons who are employed by requiring such persons to beaccompanied by some other person when carrying on thatactivity, and
(b) they do not impose the same limitation on persons who are authorised
persons in relation to the activity in question but are not employed.
Legal professional privilege
190 Legal professional privilege
(1) Subsection (2) applies where an indivi dual (“P”) who is not a barrister or
solicitor—
(a) provides advocacy services as an authorised person in relation to the
exercise of rights of audience,
(b) provides litigation services as an authorised person in relation to the
conduct of litigation,
(c) provides conveyancing services as an  authorised person in relation to
reserved instrument activities, or
(d) provides probate services as an authorised person in relation to probate
activities.Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc104
(2) Any communication, document, material or information relating to the
provision of the services in question  is privileged from disclosure in like
manner as if P had at all material times been acting as P’s client’s solicitor.
(3) Subsection (4) applies where—
(a) a licensed body provides services to a client, and
(b) the individual (“E”) through whom the body provides those services—
(i) is a relevant lawyer, or
(ii) acts at the direction and under the supervision of a relevant
lawyer (“the supervisor”).
(4) Any communication, document, material or information relating to the
provision of the services in question is privileged from disclosure only if, and
to the extent that, it would have been privileged from disclosure if—
(a) the services had been provided by E or, if E is not a relevant lawyer, by
the supervisor, and
(b) at all material times the client had been the client of E or, if E is not a
relevant lawyer, of the supervisor.
(5) “Relevant lawyer” means an individual who is—
(a) a solicitor;
(b) a barrister;
(c) a solicitor in Scotland;
(d) an advocate in Scotland;
(e) a solicitor of the Court of Judicature of Northern Ireland;
(f) a member of the Bar of Northern Ireland;
(g) a registered foreign lawyer (within the meaning of section 89 of the
Courts and Legal Services Act 1990 (c. 41));
(h) an individual not within paragraphs (a) to (g) who is an authorised
person in relation to an activity which is a reserved legal activity; or
(i) a European lawyer (with in the meaning of the European Communities
(Services of Lawyers) Order 1978 (S.I. 1978/1910)).
(6) In this section—
“advocacy services” means any services which it would be reasonable to
expect a person who is exercising, or contemplating exercising, a rightof audience in relation to any proceedings, or contemplatedproceedings, to provide;
“litigation services” means any services which it would be reasonable to
expect a person who is exercising, or contemplating exercising, a rightto conduct litigation in relation to any proceedings, or contemplatedproceedings, to provide;
“conveyancing services” means the preparation of transfers, conveyances,
contracts and other documents in co nnection with, and other services
ancillary to, the disposition or acquisiti on of estates or interests in land;
“probate services” means the preparation of any papers on which to
found or oppose a grant of probate or a grant of letters ofadministration and the administration of the estate of a deceasedperson.
(7) This section is without prejudice to any other enactment or rule of law by
virtue of which a communication, a document, material or information is
privileged from disclosure.Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc105
Employees of housing management bodies
191 Rights of audience etc of employees of housing management bodies
After section 60 of the County Courts Act 1984 (c. 28) insert—“60A Rights of audience etc of employees of housing management bodies
(1) An employee of a housing management body who is authorised by that
body for the purposes of this section has—
(a) a right of audience in relation to any proceedings to which this
section applies, and
(b) a right to conduct litigation in relation to any such proceedings.
(2) This section applies to relevant housing proceedings in a county court
before a district judge which are brought—
(a) in the name of a local housing authority, and
(b) by the housing management body in the exercise of functions of
that local housing authority delegated to that body under ahousing management agreement.
(3) “Relevant housing proceedings” are—
(a) proceedings under section 82A of the Housing Act 1985
(demotion because of anti-social behaviour);
(b) proceedings for possession of a dwelling-house subject to a
secure tenancy, where possession is sought on ground 2 in Part1 of Schedule 2 to that Act (anti-social behaviour);
(c) proceedings for possession of a dwelling-house subject to a
demoted tenancy;
(d) proceedings for a suspension or der under section 121A of the
Housing Act 1985 (suspension of right to buy);
(e) proceedings under section 153A, 153B or 153D of the Housing
Act 1996 (injunctions against anti-social behaviour);
(f) proceedings for the attachment of a power of arrest to an
injunction by virtue of section 91(2) of the Anti-social BehaviourAct 2003 or section 27(2) of the Police and Justice Act 2006(proceedings under section 222 of the Local Government Act1972: power of arrest attached to injunction);
(g) at a hearing at which a decision is made in relation to
proceedings within paragraphs (a) to (f), proceedings forpermission to appeal against that decision;
(h) such other proceedings as the Lord Chancellor may prescribe
by order.
(4) An authorisation for the purposes of this section must be in writing.
(5) The power to make an order under subsection (3)(h) is exercisable by
statutory instrument subject to annulment by resolution of eitherHouse of Parliament.
(6) In subsection (3)(e) the reference to section 153A of the Housing Act
1996 is a reference to that section—
(a) as inserted by section 13 of the Anti-social Behaviour Act 2003,
or
(b) as substituted by section 26 of the Police and Justice Act 2006.Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc106
(7) In this section—
“dwelling-house” has the same meaning as in Part 4 of the
Housing Act 1985;
“housing management agreement” means an agreement under
section 27 of the Housing Act 1985 (including an agreement towhich section 27B(2) or (3) of that Act applies);
“housing management body” means a person who exercises
management functions of a local housing authority by virtue ofa housing management agreement;
“local housing authority” has the sa me meaning as in section 27 of
the Housing Act 1985;
“right of audience” means the right to appear before and address
a court, including the right to call and examine witnesses;
“right to conduct litigation” means the right—
(a) to issue proceedings before any court in England and
Wales,
(b) to commence, prosecute and defend such proceedings,
and
(c) to perform any ancillary functions in relation to such
proceedings (such as entering appearances to actions);
“secure tenancy” has the same meaning as in Part 4 of the Housing
Act 1985.”
Savings
192 Powers of court in respect of rights of audience and conduct of litigation
(1) Nothing in this Act affects the power of any court in any proceedings to refuse
to hear a person (for reasons which apply to that person as an individual) who
would otherwise have a right of audience before the court in relation to thoseproceedings.
(2) Where a court refuses to hear a person as mentioned in subsection (1), it must
give its reasons for refusing.
(3) Where—
(a) immediately before the commencement of section 13 (entitlement to
carry on reserved legal activities), or
(b) by virtue of any provision made by or under an enactment passed
subsequently,
a court does not permit the appearance of advocates, or permits the appearance
of advocates only with leave, no person may exercise a right of audience beforethe court, in relation to any proceedings, solely by virtue of being entitled to doso under this Act.
(4) But a court may not limit the right to appear before the court in any
proceedings to only some of those who are entitled to exercise that right byvirtue of this Act.
(5) A court may not limit the right to conduct litigation in relation to proceedings
before the court to only some of those who are entitled to exercise that right byvirtue of this Act.Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc107
(6) In this section “advocate”, in relation to any proceedings, means a person
exercising a right of audience as a representative of, or on behalf of, any partyto the proceedings.
193 Solicitors to public departments and the City of London
(1) Nothing in this Act is to prejudice or affect any rights or privileges of—
(a) the Treasury Solicitor,
(b) the solicitor to any other public department,
(c) the solicitor to the Church Commissioners, or
(d) the solicitor to the Duchy of Cornwall.
(2) Nothing in this Act requires a person to whom subsection (1) applies, or any
clerk or officer appointed to act for such a person, to be entitled to carry on anactivity which is a reserved legal activity in any case where, by virtue of section88(1) of the Solicitors Act 1974 (c. 47), it would not have been necessary for thatperson to be admitted and enrolled and to hold a practising certificate underthat Act if this Act had not been passed.
(3) Nothing in this Act is to prejudice or affect any rights or privileges which
immediately before the commencement of this Act attached to the office ofSolicitor of the City of London.
(4) Nothing in section 17 (offence to pretend to be entitled) applies to a person to
whom subsection (1) applies, or any clerk or officer appointed to act for such aperson, or to the Solicitor of the City of London.
(5) A person who—
(a) exercises before any court a right of audience, or
(b) conducts litigation in relation to proceedings in any court,
by virtue of this section has a duty to the court in question to act with
independence in the interests of justice.
(6) That duty overrides any obligations which the person may have (otherwise
than under the criminal law) if it is inconsistent with them.
Pro bono representation
194 Payments in respect of pro bono representation
(1) This section applies to proceedings in a civil court in which—
(a) a party to the proceedings (“P”) is or was represented by a legal
representative (“R”), and
(b) R’s representation of P is or was provided free of charge, in whole or in
part.
(2) This section applies to such proceedings even if P is or was also represented by
a legal representative not acting free of charge.
(3) The court may order any person to make a payment to the prescribed charity
in respect of R’s representation of P (or, if only part of R’s representation of Pwas provided free of charge, in respect of that part).
(4) In considering whether to make such an order and the terms of such an order,
the court must have regard to—Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc108
(a) whether, had R’s representation of P not been provided free of charge,
it would have ordered the person to make a payment to P in respect ofthe costs payable to R by P in respect of that representation, and
(b) if it would, what the terms of the order would have been.
(5) The court may not make an order under subsection (3) against a person
represented in the proceedings if the person’s representation was at all timeswithin subsection (6).
(6) Representation is within this subsection if it is—
(a) provided by a legal representative acting free of charge, or
(b) funded by the Legal Services Commission as part of the Community
Legal Service.
(7) Rules of court may make further provision as to the making of orders under
subsection (3), and may in particular—
(a) provide that such orders may not be made in civil proceedings of a
description specified in the rules;
(b) make provision about the procedure to be followed in relation to such
orders;
(c) specify matters (in addition to those mentioned in subsection (4)) to
which the court must have regard in deciding whether to make such anorder, and the terms of any order.
(8) “The prescribed charity” means the charity prescribed by order made by the
Lord Chancellor.
(9) An order under subsection (8) may only prescribe a charity which—
(a) is registered in accordance with section 3A of the Charities Act 1993
(c. 10), and
(b) provides financial support to persons who provide, or organise or
facilitate the provision of, legal advice or assistance (by way ofrepresentation or otherwise) which is free of charge.
(10) In this section—
“legal representative”, in relation to a party to proceedings, means a
person exercising a right of audience or conducting litigation on theparty’s behalf;
“civil court” means the civil division of the Court of Appeal, the High
Court, or any county court;
“free of charge” means otherwise than for or in expectation of fee, gain or
reward.
(11) The court may not make an order under subsection (3) in respect of
representation if (or to the extent that) it is provided before this section comesinto force.
Scotland
195 Application of the Legal Profession and Legal Aid (Scotland) Act 2007
(1) The Legal Profession and Legal Aid (Scotland) Act 2007 (asp 5) (“the 2007 Act”)
applies to—
(a) any element of a complaint relating to,
(b) the provision by a practitioner of,Legal Services Act 2007 (c. 29)
Part 8 — Miscellaneous provisions about lawyers etc109
the advice, services and activities mentioned in subsection (2) as it applies to
any other advice, services and activities provided by a practitioner.
(2) The advice, services and activities are—
(a) activities carried out by virtue of a group licence issued under section
22(1)(b) of the Consumer Credit Act 1974 (c. 39);
(b) activities of an insolvency practitioner within the meaning of Part 13 of
the Insolvency Act 1986 (c. 45);
(c) activities mentioned in  paragraph (a) of parag raph 5(1) of Schedule 3 to
the Financial Services Act 1986 (c. 60);
(d) immigration advice or immigration services;
(e) regulated activity within the meaning of section 22 of the Financial
Services and Markets Act 2000 (c. 8), other than activity falling withinparagraph (f) below, in respect of which the Financial Services
Authority has by virtue of Part 20 of that Act arranged for its regulatoryrole to be carried out by the Law Society of Scotland;
(f) exempt regulated activities within the meaning of section 325(2) of the
Financial Services and Markets Act 2000.
(3) In subsection (1), “complaint” and “prac titioner” have the same meaning as in
Part 1 of the 2007 Act.
(4) Omit section 77 of the 2007 Act (advice services and activities to which Act does
not apply).
(5) Schedule 20 contains minor and consequential amendments in connection with
the application of the 2007 Act by virtue of this section.
196 Scottish legal services ombudsman: functions
(1) The functions of the Scottish legal services ombudsman cease to be exercisable
in relation to the advice, services and activities mentioned in section 195(2).
(2) In the Immigration and Asylum Act 1999 (c. 33)—
(a) in section 86(4)(c) (designated professional bodies), for “Scottish Legal
Services Ombudsman” substitute “Scottish Legal ComplaintsCommission”, and
(b) in paragraph 4(2)(c) of Schedule 5 (the Immigration Services
Commissioner), for “Scottish Legal Services Ombudsman” substitute“Scottish Legal Complaints Commission”.
P
ART 9
GENERAL
Offences
197 Offences committed by bodies corporate and unincorporated bodies
(1) Where an offence committed by a body corporate is proved to have been
committed with the consent or connivance of or to be attributable to anyneglect on the part of an officer of the body corporate, that officer (as well asthe body corporate) is guilty of the offence and is liable to be proceeded against
and punished accordingly.Legal Services Act 2007 (c. 29)
Part 9 — General110
(2) Where the affairs of a body corporate are managed by its members, subsection
(1) applies in relation to the acts and defaults of a member in connection withthe member’s functions of management as it applies to an officer of the body
corporate.
(3) Proceedings for an offence alleged to have been committed by an
unincorporated body are to be brought in the name of that body (and not inthat of any of its members) and, for the purposes of any such proceedings, anyrules of court relating to the service of documents have effect as if that bodywere a corporation.
(4) A fine imposed on an unincorporated body on its conviction of an offence is to
be paid out of the funds of that body.
(5) If an unincorporated body is charged with an offence, section 33 of the
Criminal Justice Act 1925 (c. 86) and Schedule 3 to the Magistrates’ Courts Act1980 (c. 43) (procedure on charge of an offence against a corporation) haveeffect in like manner as in the case of a corporation so charged.
(6) Where an offence committed by an unincorporated body (other than a
partnership) is proved to have been committed with the consent or connivanceof, or to be attributable to any neglect on the part of, any officer of the body orany member of its governing body, that officer or member as well as the
unincorporated body is guilty of the offence and liable to be proceeded againstand punished accordingly.
(7) Where an offence committed by a partnership is proved to have been
committed with the consent or connivance of, or to be attributable to anyneglect on the part of, a partner, that partner as well as the partnership is guiltyof the offence and liable to be proceeded against and punished accordingly.
(8) In this section—
“offence” means an offence under this Act;“officer”, in relation to a body corporate, means—
(a) any director, secretary or other similar officer of the body
corporate, or
(b) any person who was purporting to act in any such capacity.
198 Local weights and measures authorities
(1) A local weights and measures auth ority may institute proceedings for an
offence under section 14 if the activity which it is alleged that the accused wasnot entitled to carry on constitutes reserved instrument activities.
(2) A local weights and measures auth ority may institute proceedings for an
offence under section 16 if the activity which it is alleged that E was not entitledto carry on constitutes reserved instrument activities.
“E” has the same meaning as in that section.
(3) In this section—
“relevant offence” means an offence in relation to which proceedings may
be instituted by virtue of subsection (1) or (2);
“weights and measures officer” means an officer of a local weights and
measures authority who is authorised by the authority to exercise thepowers conferred by subsection (4).Legal Services Act 2007 (c. 29)
Part 9 — General111
(4) A weights and measures officer who has reasonable cause to suspect that a
relevant offence may have been committed may, at any reasonable time—
(a) enter any premises which are not used solely as a dwelling;
(b) require any officer, agent or other competent person on the premises
who is, or may be, in possession of information relevant to aninvestigation of the suspected offence to provide such information;
(c) require the production of any document which may be relevant to such
an investigation;
(d) take copies, or extracts, of any such documents;
(e) seize and retain any document which the weights and measures officer
has reason to believe may be required as evidence in proceedings for arelevant offence.
(5) Any person exercising a power given by subsection (4) must, if asked to do so,
produce evidence that that person is a weights and measures officer.
(6) A justice of the peace may issue a warrant under this section if satisfied, on
information on oath given by a weights and measures officer, that there isreasonable cause to believe that a relevant offence may have been committedand that—
(a) entry to the premises concerned, or production of any documents
which may be relevant to an investiga tion of the relevant offence, has
been or is likely to be refused to a weights and measures officer, or
(b) there is reasonable cause to believe that, if production of any such
document were to be required by the weights and measures officerwithout a warrant having been issued under this section, the documentwould not be produced but would be removed from the premises orhidden, tampered with or destroyed.
(7) A warrant issued under this section must authorise the weights and measures
officer accompanied, where that officer considers it appropriate, by a constableor other person—
(a) to enter the premises specified in the information, using such force as is
reasonably necessary, and
(b) to exercise any of the powers given to the weights and measures officer
by subsection (4).
(8) It is an offence for a person (“P”)—
(a) intentionally to obstruct a weights and measures officer in the exercise
of any power under this section;
(b) intentionally to fail to comply with any requirement properly imposed
on P by a weights and measures officer in the exercise of any suchpower;
(c) to fail, without reasonable excuse, to give a weights and measures
officer any assistance or information which the weights and measuresofficer may reasonably require of P for the purpose of exercising anysuch power; or
(d) in giving to a weights and measures officer any information which P
has been required to give a weights and measures officer exercising anysuch power, to make any statement which P knows to be false ormisleading in a material particular.
(9) A person who is guilty of an offence under subsection (8) is liable on summary
conviction to a fine not exceeding level 3 on the standard scale.Legal Services Act 2007 (c. 29)
Part 9 — General112
(10) Nothing in this section is to be ta ken to require any person to answer any
question put to that person by a weights and measures officer, or to give anyinformation to such an officer, if to do so might incriminate that person.
Protected functions of the Lord Chancellor
199 Protected functions of the Lord Chancellor
(1) Schedule 7 to the Constitutional Reform Act 2005 (c. 4) (protected functions of
the Lord Chancellor) is amended as follows.
(2) After paragraph 3 insert—
“3A Any function of the Lord Chancellor under the Legal Services Act
2007.”
(3) Part A of paragraph 4 is amended in accordance with subsections (4) to (7).(4) After the entry for the Juries Act 1974 (c. 23), insert—
   “Solicitors Act 1974 (c. 47)
Section 56”.
(5) After the entry for the Reserve Forces (Safeguard of Employment) Act 1985
(c. 17), insert—
   “Administration of Justice Act 1985 (c. 61)
Section 9(7)Section 69(2)
Schedule 3”.
(6) In the entry for the Courts and Legal Services Act 1990 (c. 41)—
(a) after “Section 1” insert—
“Section 53
Section 60”, and
(b) after “Section 72” insert—
“Section 89
Section 125(4)Schedule 19, paragraph 17”.
(7) After the entry for the Finance Act 1999 (c. 16), insert—
   “Access to Justice Act 1999 (c. 22)
Section 45”.
Notices etc
200 Notices and directions
(1) A requirement or power under this Act to give a notice (or to notify) is a
requirement or power to give notice in writing.
(2) A requirement or power under this Act to give a direction (or to direct) is a
requirement or power to give a direction in writing.Legal Services Act 2007 (c. 29)
Part 9 — General113
(3) Any power conferred by this Act to give a direction includes power to revoke
the direction.
(4) Subsection (3) does not apply to the power conferred on an ombudsman to give
a direction under section 137 (directions on a determination of a complaint).
201 Documents
(1) In this Act “document” includes anythin g in which informat ion is recorded in
any form.
(2) In relation to a document in which information is recorded otherwise than in a
legible form, any reference to the production of the document is a reference tothe production of the information in a legible form or in a form from which itcan readily be produced in a legible form.
202 The giving of notices, directions and other documents
(1) This section applies where provision made (in whatever terms) by or under
this Act authorises or requires a notice, direction or any other document(including a copy of a document) to be given to a person.
(2) The notice, direction or document may be given to the person—
(a) by delivering it to the person,
(b) by leaving it at the person’s proper address, or
(c) by sending it by post to the person at that address.
(3) The notice, direction or document may be given to a body corporate by being
given to the secretary or clerk of that body.
(4) The notice, direction or docume nt may be given to a partnership by being
given to—
(a) a partner in the partnership, or
(b) a person having the control or management of the partnership
business.
(5) The notice, direction or document may be given to any other unincorporated
body by being given to a member of the governing body of the unincorporatedbody.
(6) For the purposes of this section, and section 7 of the Interpretation Act 1978 (c.
30) (service of documents by post) in its application to this section, the properaddress of a person is—
(a) in the case of a body corporate, the address of the registered or
principal office of the body;
(b) in the case of a partnership, or any other unincorporated body, the
address of the principal office of the partnership or body;
(c) in the case of a person to whom the notice or other document is given
in reliance on any of subsections (3) to (5), the proper address of thebody corporate, partnership or other unincorporated body in question;
(d) in any other case, the last known address of the person in question.
(7) In the case of—
(a) a company registered outside the United Kingdom,
(b) a partnership carrying on business outside the United Kingdom, orLegal Services Act 2007 (c. 29)
Part 9 — General114
(c) any other unincorporated body with offices outside the United
Kingdom,
the references in subsection (6) to its principal office include references to its
principal office within the United Kingdom (if any).
(8) This section has effect subject to sec tion 203 (notices, directions and documents
in electronic form).
203 The giving of notices, directions and other documents in electronic form
(1) This section applies where—
(a) section 202 authorises the giving of a notice, direction or other
document by its delivery to a particular person (“the recipient”), and
(b) the notice, direction or other document is transmitted to the recipient—
(i) by means of an electronic communications network, or
(ii) by other means but in a form that nevertheless requires the use
of apparatus by the recipient to render it intelligible.
(2) The transmission has effect for the purposes of this Act as a delivery of the
notice, direction or other document to the recipient, but only if therequirements imposed by or under this section are complied with.
(3) Where the recipient is the Board, the OLC or an ombudsman—
(a) the recipient must have indicated its willingness to receive the notice,
direction or other document in a manner mentioned in subsection(1)(b),
(b) the transmission must be made in such manner, and satisfy such other
conditions as the recipient may require, and
(c) the notice, direction or other document must take such form as the
recipient may require.
(4) Where the person making the transmission is the Board, the OLC or an
ombudsman, that person may (subject to subsection (5)) determine—
(a) the manner in which the transmission is made, and
(b) the form in which the notice, direction or other document is
transmitted.
(5) Where the recipient is a person other than the Board, the OLC or an
ombudsman—
(a) the recipient, or
(b) the person on whose behalf the recipient receives the notice, direction
or other document,
must have indicated to the person making the transmission the recipient’s
willingness to receive notices, directions or other documents transmitted in theform and manner used.
(6) An indication to any person for the purposes of subsection (5)—
( a ) m u s t  b e  g i v e n  t o  t h a t  p e r s o n  i n  s u c h  m a n n e r  a s  t h a t  p e r s o n  m a y
require;
(b) may be a general indication or one that is limited to notices or
documents of particular descriptions;
(c) must state the address to be used and must be accompanied by such
other information as that person requires for the making of thetransmission;Legal Services Act 2007 (c. 29)
Part 9 — General115
(d) may be modified or withdrawn at any time by a notice given to that
person in such manner as that person may require.
(7) An indication, requirement or determination given, imposed or made by the
Board, the OLC or an ombudsman for the purposes of this section is to begiven, imposed or made by being published by that person.
(8) In this section “electronic communications network” has the same meaning as
in the Communications Act 2003 (c. 21).
Orders, rules etc
204 Orders, regulations and rules
(1) Any order or regulations made by the Lord Chancellor under this Act must be
made by statutory instrument.
(2) Any rules made by the Board under section 37(4), 95(3) or 173 must be made
by statutory instrument, and the Statutory Instruments Act 1946 (c. 36) appliesto the Board’s powers to make rules under those sections as if the Board werea Minister of the Crown.
(3) An instrument to which this subsection applies may—
(a) provide for a person to exercise a discretion in dealing with any matter;
(b) include incidental, supplementary and consequential provision;
(c) make transitory or transitional provision and savings;
(d) make provision generally or subject to exceptions or only in relation to
specified cases;
(e) make different provision for different cases or circumstances or for
different purposes.
(4) Subsection (3) applies to—
(a) any order or regulations made by the Lord Chancellor,
(b) any rules or regulations made by the Board, and
(c) any rules made by the OLC,
under or by virtue of this Act.
205 Consultation requirements for rules
(1) This section applies in relation to—
(a) rules made by the Board under this Act, and
(b) rules made by the OLC under Part 6,
other than excluded rules.
(2) If the Board or the OLC (“the rule-making body”) proposes to make any rules,
it must publish a draft of the proposed rules.
(3) The draft must be accompanied by a notice which states that representations
about the proposals may be made to the rule-making body within the periodspecified in the notice.
(4) Before making the rules, the rule-making body must have regard to any
representations duly made.Legal Services Act 2007 (c. 29)
Part 9 — General116
(5) If the rules differ from the draft published under subsection (2) in a way which
is, in the opinion of the rule-making body, material, it must publish details ofthe differences.
(6) The rule-making body must publish any rules it makes, and rules may not take
effect before the time they are published.
(7) Subsection (6) does not apply to rules made by the Board under section 37(4),
95(3) or 173.
(8) The rule-making body may make a reasonable charge for providing a person
with a copy of—
(a) a draft published under subsection (2), or
(b) rules published under subsection (6).
(9) In this section “excluded rules” means—
(a) rules of procedure made by the Board for the purposes of paragraph 21
of Schedule 1,
(b) rules made by the Board in its capacity as an approved regulator or a
licensing authority, and
(c) rules of procedure made by the OLC for the purposes of paragraph 20
of Schedule 15;
and references to making rules include references to modifying the rules and,
in relation to any modifications of rules, references to the proposed rules are tobe read as references to the proposed modifications.
(10) This section is subject to section 156(3) (which disapplies this section to OLC
rules made in response to a Board direction under section 156(1)(b)).
206 Parliamentary control of orders and regulations
(1) A statutory instrument containing an order or regulations made by the Lord
Chancellor under this Act is subject to annulment in pursuance of a resolutionof either House of Parliament.
(2) Subsection (1) is subject to subsections (3) and (4).(3) Subsection (1) does not apply to an order if it contains only provision made
under one or more of the following—
(a) section 23(3)(b) (day appointed as end of transitional period relating to
non-commercial bodies);
(b) section 30(4) (appointed day before which first set of rules must be
made under section 30);
(c) section 211 (commencement);
(d) paragraph 3(1)(b) of Schedule 5 (day appointed as end of transitional
period during which rights conferred by virtue of Part 2 of thatSchedule);
(e) paragraph 18(1)(b) of Schedule 18 (day appointed as end of transitional
period during which rights conferred by virtue of Part 3 of thatSchedule).
(4) Subsection (1) does not apply to an order or regulations which contains
(whether alone or together with other pr ovision) provision made under any of
the following—
(a) section 24(1) (orders adding to reserved legal activities);Legal Services Act 2007 (c. 29)
Part 9 — General117
(b) section 25(1) or (3) (provisional designation of approved regulators);
(c) section 42(6) (regulations relating to warrants under section 42);
(d) section 45(1) (cancellation of designation as approved regulator);
(e) section 46 (transitional arrangements following cancellation under
section 45);
(f) section 48(6) (regulations relating to warrants under section 48);
(g) section 62(1) (power to designate Board as an approved regulator,
modify its functions or cancel its designation);
(h) section 69(1) (modification of functions of approved regulators etc);
(i) section 76(1) (cancellation of designation as licensing authority);
(j) section 77 (transitional arrangements following cancellation under
section 76);
(k) section 79(6) (regulations relating to warrants under section 79);
(l) section 80(1) (order establishing appellate body etc);
(m) section 106(1)(e) (power to prescribe bodies as bodies to which section
106 applies);
(n) section 109 (power to modify application of Part 5 to foreign bodies);
(o) section 173(5)(c) (power to prescribe persons as leviable bodies);
(p) section 207(5) (power to modify definition of “manager” in its
application to foreign bodies);
(q) section 208(3) (power to make consequential provision etc by amending
enactments);
(r) paragraph 9(1) of Schedule 3 (modification of exempt persons);
(s) paragraph 17 of Schedule 4 (designation of approved regulators);
(t) paragraph 9 of Schedule 13 (power to modify definitions of “material
interest” and “associates”);
(u) paragraph 2 of Schedule 22 (transitory power to modify functions of
designated regulators etc).
(5) An order or regulations within subsection (4) may not be made unless a draft
of the order or regulations has been laid before, and approved by a resolutionof, each House of Parliament.
(6) A statutory instrument containing rules made by the Board under section
37(4), 95(3) or 173 is subject to annulment in pursuance of a resolution of either
House of Parliament.
Interpretation
207 Interpretation
(1) In this Act, except where the context otherwise requires—
“barrister” means an individual who—
(a) has been called to the Bar by an Inn of Court, and
(b) is not disbarred by order of an Inn of Court;
“consumers” means (subject to subsection (3)) persons—
(a) who use, have used or are or may be contemplating using,
services within subsection (2),
(b) who have rights or interests which are derived from, or are
otherwise attributable to, the use of such services by otherpersons, orLegal Services Act 2007 (c. 29)
Part 9 — General118
(c) who have rights or interests which may be adversely affected by
the use of such services by persons acting on their behalf or in afiduciary capacity in relation to them;
“conveyancing services” has the same  meaning as in Part 2 of the
Administration of Justice Act 1985 (c. 61) (licensed conveyancing) (seesection 11(3) of that Act);
“court” includes—
(a) a tribunal that is (to any extent) a listed tribunal for, or for any
of, the purposes of Schedule 7 to the Tribunals, Courts andEnforcement Act 2007 (functions etc of Administrative Justiceand Tribunals Council);
(b) a court-martial;
(c) a statutory inquiry within the meaning of section 16(1) of the
Tribunals and Inquiries Act 1992 (c. 53);
(d) an ecclesiastical court (including the Court of Faculties);
“functions” includes powers and duties;“immigration advice” and “immigration services” have the meaning
given by section 82 of the Immi gration and Asylum Act 1999 (c. 33)
(interpretation of Part 5) (see also subsection (4) below);
“independent trade union” has the same meaning as in the Trade Union
and Labour Relations (Consolidation) Act 1992 (c. 52) (see section 5 ofthat Act);
“manager”, in relation to a body, means (sub ject to subsection (5)) a
person who—
(a) if the body is a body corporate whose affairs are managed by its
members, is a member of the body,
(b) if the body is a body corporate and paragraph (a) does not
apply, is a director of the body,
(c) if the body is a partnership, is a partner, and
(d) if the body is an unincorporated body (other than a
partnership), is a member of its governing body;
“modify” includes amend, add to or revoke, and references to
“modifications” are to be construed accordingly;
“non-commercial legal services” means—
(a) legal services carried on otherwise than with a view to profit;
(b) legal services carried on by a not for profit body, a community
interest company or an independent trade union;
“not for profit body” means a body which, by or by virtue of its
constitution or any enactment—
(a) is required (after payment of outgoings) to apply the whole of
its income, and any capital which it expends, for charitable orpublic purposes, and
(b) is prohibited from directly or indirectly distributing amongst its
members any part of its assets (otherwise than for charitable orpublic purposes);
“the OFT” means the Office of Fair Trading;“person” includes a body of persons (corporate or unincorporate);
“reserved legal services” means services provided by a person which
consist of or include reserved legal activities carried on by, or on behalfof, that person;
“solicitor” means solicitor of the Senior Courts.Legal Services Act 2007 (c. 29)
Part 9 — General119
(2) The services within this subsection are—
(a) any services provided by a person who is an authorised person in
relation to an activity which is a reserved legal activity, and
(b) any other services provided by a person which consist of or include a
legal activity carried on by, or on behalf of, that person.
(3) For the purposes of the definition of “consumers” in subsection (1)—
(a) if a person (“A”) is carrying on an activity in A’s capacity as a trustee,
the persons who are, have been or may be beneficiaries of the trust areto be treated as persons who use, have used or are or may becontemplating using services provided by A in A’s carrying on of thatactivity, and
(b) a person who deals with another person (“B”) in the course of B’s
carrying on of an activity is to be treated as using services provided byB in carrying on that activity.
(4) The references in this Act (other than section 195) to the provision of
immigration advice or immigr ation services are to the provision of such advice
or services by a person—
(a) in England and Wales (regardless of whether the persons to whom they
are provided are in England and Wales or elsewhere), and
(b) in the course of a business carried on (whether or not for profit) by the
person or another person.
(5) The Lord Chancellor may by order make provision modifying the definition of
“manager” in its application to a body of  persons formed under, or in so far as
the body is recognised by, law having effect outside England and Wales.
(6) In this section “enactment” means a provision of—
(a) an Act of Parliament;
(b) an Act of the Scottish Parliament;
(c) a Measure or Act of the National Assembly for Wales;
(d) Northern Ireland legislation.
Miscellaneous and supplementary
208 Minor and consequential provision etc
(1) Schedule 21 contains minor and consequential amendments.
(2) The Lord Chancellor may by order make any supplementary, incidental or
consequential provision and any transi tory, transitional or saving provision
which the Lord Chancellor considers necessary or expedient—
(a) for the general purposes, or any particular purpose, of this Act, or
(b) in consequence of any provision made by or under it or for giving full
effect to it.
(3) An order under this section may make provision amending, repealing or
revoking (with or without savings) any provision of—
(a) an Act passed before or in the same session as this Act, or
(b) an instrument made under an Act before the passing of this Act.Legal Services Act 2007 (c. 29)
Part 9 — General120
(4) An order under this section may make such adaptations of provisions of this
Act brought into force as appear to be necessary or expedient in consequenceof other provisions of this Act not yet having come into force.
(5) Provision made under this section is additional, and without prejudice, to that
made by or under any other provision of this Act.
209 Transitional and transitory provision
Schedule 22 contains transi tional and transitory provision.
210 Repeals
Schedule 23 contains repeals (including repeals of spent provisions).
211 Commencement
(1) This section and sections 208(2) to (5), 212 and 214 come into force on the day
this Act is passed.
(2) Subject to that, the provisions of this Act come into force on such day as may
be appointed by order of the Lord Chancellor.
212 Extent
(1) Subject to subsections (2) and (3), this Act extends to England and Wales only.
(2) Sections 195 and 196(1) and Schedule 20 extend to Scotland only (and, for the
purposes of those provisions, this Part also extends there).
(3) An amendment or repeal contained in this Act (and, for the purposes of such
an amendment or repeal, this Part) has the same extent as the enactment orrelevant part of the enactment to which the amendment or repeal relates.
213 Index of defined expressions
Schedule 24 lists the places where expressions used in this Act are defined or
otherwise explained.
214 Short title
This Act may be cited as the Legal Services Act 2007.Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board121
SCHEDULES
SCHEDULE 1 Section 2
THE LEGAL  SERVICES  BOARD
Membership
1 (1) The Board is to consist of the following members—
(a) a chairman appointed by the Lord Chancellor,
(b) the Chief Executive of the Board (see paragraph 13), and
(c) at least 7, but not more than 10, other persons appointed by the Lord
Chancellor.
(2) In this Schedule a reference to an “ordinary member” is a reference to a
member of the Board other than the Chief Executive.
(3) Before appointing an ordinary member, the Lord Chancellor must consult
the Lord Chief Justice about the process for appointment of the member andabout the person selected for appointment.
(4) The Lord Chancellor may by order amend sub-paragraph (1) by substituting
for the limit on the maximum number of persons for the time being specifiedin paragraph (c) of that sub-paragraph a different limit.
2 (1) In appointing persons as ordinary members the Lord Chancellor must
ensure that a majority of the members of the Board are lay persons.
(2) The chairman must be a lay person.
(3) It is a condition of the appointment of the chairman that the person
appointed must not during the appointment—
(a) carry on any activity which is a reserved legal activity,
(b) provide regulated claims management services (withi n the meaning
of Part 2 of the Compensation Act 2006 (c. 29)), or
(c) provide immigration advice or immigration services,
for or in expectation of any fee, gain or reward.
(4) 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;
(b) a person authorised, by a person designated under section 5(1) of the
Compensation Act 2006, to provide services which are regulatedclaims management services (within the meaning of that Act);
(c) an advocate in Scotland;
(d) a solicitor in Scotland;
(e) a member of the Bar of Northern Ireland;Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board122
(f) a solicitor of the Court of Judicature of Northern Ireland.
(5) For the purposes of sub-paragraph (4), a person is deemed to have been an
authorised person in relation to an activity which is a reserved legal activityif that person has before the appointed day been—
(a) a barrister;
(b) a solicitor;
(c) a public notary;
(d) a licensed conveyancer;
(e) granted a certificate issued by the Institute of Legal Executives
authorising the person to practise as a legal executive;
(f) a registered patent attorney, within the meaning given by section
275(1) of the Copyright, Designs and Patents Act 1988 (c. 48);
(g) a registered trade mark attorney, within the meaning of the Trade
Marks Act 1994 (c. 26); or
(h) granted a right of audience or a right to conduct litigation in relation
to any proceedings by virtue of section 27(2)(a) or section 28(2)(a) ofthe Courts and Legal Services Act 1990 (c. 41) (rights of audience andrights to conduct litigation).
(6) For the purpose of sub-paragraph (5)—
 “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 In appointing persons to be ordinary members, the Lord Chancellor must
have regard to the desirability of securing that the Board includes memberswho (between them) have experience in or knowledge of—
(a) the provision of legal services;
(b) legal education and legal training;
(c) consumer affairs;
(d) civil or criminal proceedings and the working of the courts;
(e) competition matters;
(f) the maintenance of the professional standards of persons who
provide legal services;
(g) the maintenance of standards in professions other than the legal
profession;
(h) the handling of complaints;
(i) commercial affairs;
(j) non-commercial legal services;
(k) the differing needs of consumers;
(l) the provision of claims management services (within the meaning of
Part 2 of the Compensation Act 2006 (c. 29)).
Terms of appointment and tenure of members
4 A n  o r d i na ry  m e m b e r  i s  t o  h o l d  a n d  v a c a t e  o f f i c e  i n  a c c o r d a n c e  w i t h t h e
terms and conditions of that member’s appointment (subject to thisSchedule).
5 (1) An ordinary member must be appointed for a fixed period.Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board123
(2) The period for which an ordinary member is appointed must not exceed 5
years.
(3) A person who has held office as an ordinary member may be re-appointed,
once only, for a further period (whether consecutive or not) not exceeding 5years.
6 If an ordinary member who is a lay person becomes a person within
paragraphs (a) to (f) of paragraph 2(4) that person ceases to be a member ofthe Board.
7 (1) An ordinary member may at any time—
(a) resign from office by giving notice to the Lord Chancellor;
(b) be removed from office by the Lord Chancellor.
(2) The Lord Chancellor may not under sub-paragraph (1)(b) remove an
ordinary member from office unless sub-paragraph (3) or (4) applies.
(3) This sub-paragraph applies if the Lord Chancellor 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,
(c) is an undischarged bankrupt, or
(d) is otherwise unfit to hold the office or unable to discharge its
functions.
(4) This sub-paragraph applies if the member is the chairman and has breached
the condition imposed on his appointment by paragraph 2(3).
(5) Before removing any ordinary member under sub-paragraph (1)(b), the
Lord Chancellor must consult—
(a) the Lord Chief Justice, and
(b) if the ordinary member is no t the chairman, the chairman.
(6) The Lord Chancellor may not remove an ordinary member  on the ground
mentioned in paragraph (a) of sub- paragraph (3) more than 3 months after
the end of the period mentioned in that paragraph.
8 The chairman ceases to be chairman  upon ceasing to be a member of the
Board.
9 Where a person ceases to be employed as Chief Executive, that person ceases
to be a member of the Board.
Remuneration etc of members
10 The chairman and other ordinary members are to be paid by the Board in
accordance with provision made by or under their terms of appointment.
11 The terms of appointment of the chairman or any other ordinary member
may provide for the Board to pay, or make payments towards the provisionof, a pension, allowance or gratuity to or in respect of that person.
12 If the Lord Chancellor thinks there are circumstances that make it right for a
person ceasing to hold office as chairman or another ordinary member toreceive compensation, the Board may pay that person such compensation asthe Lord Chancellor may determine.Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board124
Staff
13 The Board must appoint a person as its Chief Executive.
14 The Board may appoint such other staff as it considers appropriate to assist
in the performance of its functions.
15 The Chief Executive and other staff are to be—
(a) appointed on terms and conditions determined by the Board, and
(b) paid by the Board in accordance with provision made by or under
the terms of appointment.
16 The terms and conditions on which the Chief Executive or any other member
of staff is appointed may provide for the Board to pay, or make paymentstowards the provision of, a pension, allowance or gratuity to or in respect ofthat person.
17 The Board may pay compensation for loss of employment to or in respect of
a member (or former member) of staff.
18 A member of staff appointed under paragraph 14 may be a member (but not
chairman) of the Board.
Arrangements for assistance
19 (1) The Board may make arrangements with such persons as it considers
appropriate for assistance to be provided to it.
(2) Arrangements may include the paying of fees to such persons.
Committees
20 (1) The Board may establish committees.
(2) Any committee so established may establish sub-committees.
(3) Only members of the Board may be members of a committee or sub-
committee.
(4) A majority of the members of a committee or sub-committee must be lay
persons.
Proceedings
21 (1) The Board may regulate its own procedure, and the procedure of its
committees and sub-committees, including quorum.
(2) But the quorum of a committee or sub-committee must not be less than 3.
(3) The Board must publish any rules of procedure made under this paragraph.
(4) This paragraph is without prejudice to any other power the Board has under
this Act to make rules.
22 The validity of any act of the Board is not affected—
(a) by a vacancy in the office of chairman or amongst the other members,
or
(b) by a defect in the appointment or any disqualification of a person as
chairman or another member of the Board.Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board125
Delegation of functions
23 (1) The Board may authorise—
(a) the chairman, the Chief Executive or any other member of the Board,
(b) a committee or sub-committee of the Board, or
(c) a member of staff appointed under paragraph 14,
to exercise, on behalf of the Board, such of its functions, in such
circumstances, as it may determine.
(2) A committee may delegate functions (including functions delegated to the
committee) to—
(a) a sub-committee,
(b) the chairman, the Chief Executive or any other member of the Board,
or
(c) a member of staff appointed under paragraph 14.
(3) Sub-paragraphs (1) and (2) are subject to—
(a) any provision made by an order under section 62 by virtue of section
64(2)(k) (powers to authorise the Board to delegate to any personfunctions conferred on it in its capacity as an approved regulator),and
(b) section 73(3)(a) (power to delegate to any person functions conferred
on the Board in its capacity as a licensing authority).
(4) Sub-paragraph (1) does not apply to any power or duty the Board has to
make rules (other than excluded rules) under this Act.
(5) In sub-paragraph (4) “excluded rules” means—
(a) rules of procedure made under paragraph 21 in relation to any
committee or sub-committee of the Board, and
(b) rules made by the Board in its capacity as an approved regulator or
a licensing authority.
Borrowing
24 The Board is not to borrow money, except—
(a) with the consent of the Lord Chancellor, or
(b) in accordance with a general authorisation given by the Lord
Chancellor.
Accounts
25 (1) The Board must—
(a) keep proper accounts and proper records in relation to the accounts,
and
(b) prepare in respect of each financial year a statement of accounts.
(2) Each statement of accounts must compl y with any directions given by the
Lord Chancellor, with the approval of the Treasury, as to—
(a) the information to be contained in it and the manner in which it is to
be presented;
(b) the methods and principles according to which the statement is to be
prepared;Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board126
(c) the additional information (if any) which is to be provided for the
information of Parliament.
(3) The Board must give a copy of each statement of accounts—
(a) to the Lord Chancellor, and
(b) to the Comptroller and Auditor General,
before the end of the month of August next following the financial year to
which the statement relates.
(4) The Comptroller and Auditor General must—
(a) examine, certify and report on each statement of accounts which is
received under sub-paragraph (3), and
(b) give a copy of the Comptroller and Auditor General’s report to the
Lord Chancellor.
(5) In respect of each financial year, the Lord Chancellor must lay before
Parliament a document consisting of—
(a) a copy of the statement of accounts for that year, and
(b) a copy of the Comptroller and Auditor General’s report on that
statement.
(6) “Financial year” means—
(a) the period beginning with the day on which the Board is established
and ending with the next following 31 March, and
(b) each successive period of 12 months.
Status
26 (1) The Board is not to be regarded—
(a) as the servant or agent of the Crown, or
(b) as enjoying any status, immunity or privilege of the Crown.
(2) Accordingly—
(a) the Board’s property is not to be regarded as property of or held on
behalf of the Crown, and
(b) the Board’s staff are not to be regarded as servants or agents of the
Crown or as enjoying any status, immunity or privilege of theCrown.
Application of seal and proof of instruments
27 The application of the seal of the Board is to be authenticated by the
signature of any member of the Board, or of its staff, who has beenauthorised (whether generally or specifically) by the Board for the purpose.
28 Any contract or instrument which, if entered into or executed by an
individual, would not need to be under seal may be entered into or executedon behalf of the Board by any person who has been authorised (whethergenerally or specifically) by the Board for the purpose.
29 A document purporting to be duly executed under the seal of the Board or
signed on its behalf—
(a) is to be received in evidence, and
(b) is to be taken to be executed or signed in that way, unless the
contrary is proved.Legal Services Act 2007 (c. 29)
Schedule 1 — The Legal Services Board127
Disqualification
30 (1) In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (bodies of which all members are disqualified) at the appropriateplace insert—
“The Legal Services Board.”
(2) In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (c. 25) (bodies of which all members are disqualified) at theappropriate place insert—
“The Legal Services Board.”
Freedom of information
31 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (other
public bodies and offices which are public authorities) at the appropriateplace insert—
“The Legal Services Board.”
Public records
32 In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public
records) at the appropriate place in Part 2 of the Table at the end ofparagraph 3 insert—
“The Legal Services Board.”
Exemption from liability in damages
33 (1) This paragraph applies to—
(a) the Board,
(b) a member of the Board,
(c) a member of the Board’s staff appointed under paragraph 14,
(d) a person to whom the Board (in its capacity as an approved
regulator) delegates any of its functions by virtue of provision madeunder section 64(2)(k), and
(e) a person to whom the Board (in its capacity as a licensing authority)
delegates any of its functions by virtue of section 73(3)(a).
(2) A person to whom this paragraph applies is not liable in damages for
anything done or omitted in the exercise or purported exercise of thefunctions of the Board conferred by or by virtue of this or any otherenactment.
(3) But sub-paragraph (1) does not apply—
(a) if it is shown that the act or omission was in bad faith, or
(b) so as to prevent an award of damages made in respect of an act or
omission on the ground that the act or omission was unlawful as aresult of section 6(1) of the Human Rights Act 1998 (c. 42).Legal Services Act 2007 (c. 29)
Schedule 2 — The reserved legal activities128
SCHEDULE 2 Section 12
THE RESERVED  LEGAL  ACTIVITIES
Introduction
1 This Schedule makes provision about the reserved legal activities.
2 In this Schedule “the appointed day” means the day appointed for the
coming into force of section 13 (entitlement to carry on reserved legal
activities).
Rights of audience
3 (1) A “right of audience” means the right to appear before and address a court,
including the right to call and examine witnesses.
(2) But a “right of audience” does not include a right to appear before or address
a court, or to call or examine witnesses, in relation to any particular court orin relation to particular proceedings, if immediately before the appointedday no restriction was placed on the persons entitled to exercise that right.
Conduct of litigation
4 (1) The “conduct of litigation” means—
(a) the issuing of proceedings before any court in England and Wales,
(b) the commencement, prosecution and defence of such proceedings,
and
(c) the performance of any ancillary functions in relation to such
proceedings (such as entering appearances to actions).
(2) But the “conduct of litigation” does not include any activity within
paragraphs (a) to (c) of su b-paragraph (1), in rela tion to any particular court
or in relation to any particular  proceedings, if immediately before the
appointed day no restriction was placed on the persons entitled to carry onthat activity.
Reserved instrument activities
5 (1) “Reserved instrument activities” means—
(a) preparing any instrument of transfer or charge for the purposes of
the Land Registration Act 2002 (c. 9);
(b) making an application or lodging a document for registration under
that Act;
(c) preparing any other instrument relating to real or personal estate for
the purposes of the law of England and Wales or instrument relatingto court proceedings in England and Wales.
(2) But “reserved instrument activities” does not include the preparation of an
instrument relating to any particular court proceedings if, immediatelybefore the appointed day, no restriction was placed on the persons entitledto carry on that activity.
(3) In this paragraph “instrument” includes a contract for the sale or other
disposition of land (except a contract to grant a short lease), but does notinclude—Legal Services Act 2007 (c. 29)
Schedule 2 — The reserved legal activities129
(a) a will or other testamentary instrument,
(b) an agreement not intended to be executed as a deed, other than a
contract that is included by virtue of the preceding provisions of thissub-paragraph,
(c) a letter or power of attorney, or
(d) a transfer of stock containing no trust or limitation of the transfer.
(4) In this paragraph a “short lease” means a lease such as is referred to in
section 54(2) of the Law of Property Act 1925 (c. 20) (short leases).
Probate activities
6 (1) “Probate activities” means preparing any probate papers for the purposes of
the law of England and Wales or in relation  to any proceedin gs in England
and Wales.
(2) In this paragraph “probate papers” means papers on which to found or
oppose—
(a) a grant of probate, or
(b) a grant of letters of administration.
Notarial activities
7 (1) “Notarial activities” means activities which, immediately before the
appointed day, were customarily carried on by virtue of enrolment as anotary in accordance with section 1 of the Public Notaries Act 1801 (c. 79).
(2) Sub-paragraph (1) does not include activities carried on—
(a) by virtue of section 22 or 23 of the Solicitors Act 1974 (c. 47) (reserved
instrument activities and probate activities), or
(b) by virtue of section 113 of the Courts and Legal Services Act 1990
(c. 41)(administration of oaths).
Administration of oaths
8 The “administration of oaths” means the exercise of the powers conferred on
a commissioner for oaths by—
(a) the Commissioners for Oaths Act 1889 (c. 10);
(b) the Commissioners for Oaths Act 1891 (c. 50);
(c) section 24 of the Stamp Duties Management Act 1891 (c. 38).
SCHEDULE 3
Section 19
EXEMPT  PERSONS
Rights of audience
1 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of exercising a right of audience before a court in relation toany proceedings (subject to paragraph 7).
(2) The person is exempt if the person—
(a) is not an authorised person in relation to that activity, butLegal Services Act 2007 (c. 29)
Schedule 3 — Exempt persons130
(b) has a right of audience granted by that court in relation to those
proceedings.
(3) The person is exempt if the person—
(a) is not an authorised person in relation to that activity, but
(b) has a right of audience before that court in relation to those
proceedings granted by or under any enactment.
(4) The person is exempt if the person is the Attorney General or the Solicitor
General and—
(a) the name of the person is on the roll kept by the Law Society under
section 6 of the Solicitors Act 1974 (c. 47), or
(b) the person has been called to the Bar by an Inn of Court.
(5) The person is exempt if the person is the Advocate General for Scotland and
is admitted—
(a) as a solicitor in Scotland under section 6 of the Solicitors (Scotland)
Act 1980 (c. 46), or
(b) to practise as an advocate before the courts of Scotland.
(6) The person is exempt if the person—
(a) is a party to those proceedings, and
(b) would have a right of audience, in the person’s capacity as such a
party, if this Act had not been passed.
(7) The person is exempt if—
(a) the person is an individual whose work includes assisting in the
conduct of litigation,
(b) the person is assisting in the conduct of litigation—
(i) under instructions given (either generally or in relation to the
proceedings) by an individual to whom sub-paragraph (8)applies, and
(ii) under the supervision of that individual, and
(c) the proceedings are being heard in chambers in the High Court or a
county court and are not reserved family proceedings.
(8) This sub-paragraph applies to—
(a) any authorised person in relation to an activity which constitutes the
conduct of litigation;
(b) any person who by virtue of section 193 is not required to be entitled
to carry on such an activity.
(9) The person is an exempt person in relation to the exercise of a right of
audience in proceedings on an appeal from the Comptroller-General ofPatents, Designs and Trade Marks to the Patents Court under the Patents Act1977 (c. 37), if the person is a solicitor of the Court of Judicature of NorthernIreland.
(10) For the purposes of this paragraph—
“family proceedings” has the same meaning as in the Matrimonial and
Family Proceedings Act 1984 (c. 42) and also includes any otherproceedings which are family proceedings for the purposes of theChildren Act 1989 (c. 41);
“reserved family proceedings” means such category of family
proceedings as the Lord Chancellor may, after consulting theLegal Services Act 2007 (c. 29)
Schedule 3 — Exempt persons131
President of the Law Society and with the concurrence of the
President of the Family Division, by order prescribe;
and any order made under section 27(9) of the Courts and Legal Services Act
1990 (c. 41) before the day appointed for the coming into force of this
paragraph is to have effect on and after that day as if it were an order madeunder this sub-paragraph.
Conduct of litigation
2 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of carrying on any activity which constitutes the conduct oflitigation in relation to any proceedings (subject to paragraph 7).
(2) The person is exempt if the person—
(a) is not an authorised person in relation to that activity, but
(b) has a right to conduct litigation granted by a court in relation to those
proceedings.
(3) The person is exempt if the person—
(a) is not an authorised person in relation to that activity, but
(b) has a right to conduct litigation in relation to those proceedings
granted by or under any enactment. 
(4) The person is exempt if the person—
(a) is a party to those proceedings, and
(b) would have a right to conduct the litigation, in the person’s capacity
as such a party, if this Act had not been passed.
(5) The person is an exempt person in r elation to any activity which is carried
on in or in connection with proceedings on an appeal from the Comptroller-General of Patents, Designs and Trade Marks to the Patents Court under thePatents Act 1977 (c. 37), if the person is a solicitor of the Court of Judicatureof Northern Ireland.
Reserved instrument activities
3 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of carrying on any activity which constitutes reservedinstrument activities (subject to paragraph 7).
(2) The person is exempt if the person prepares the instruments or applications
in the course of the person’s duty as a public officer.
(3) The person (“E”) is exempt if—
(a) E is an individual,
(b) E carries on the activity at the direction and under the supervision of
another individual (“P”),
(c) when E does so, P and E are connected, and
(d) P is entitled to carry on the activity, otherwise than by virtue of sub-
paragraph (10).
(4) For the purposes of sub-paragraph (3), P and E are connected if—
(a) P is E’s employer,
(b) P is a fellow employee of E,Legal Services Act 2007 (c. 29)
Schedule 3 — Exempt persons132
(c) P is a manager or employee of a body which is an authorised person
in relation to the activity, and E is also a manager or employee of thatbody.
(5) If the person is an accredited person, the person is exempt to the extent that
the activity consists of the preparation of any instrument—
(a) which creates, or which the person believes on reasonable grounds
will create, a farm business tenancy (within the meaning of theAgricultural Tenancies Act 1995 (c. 8)), or
(b) which relates to an existing tenancy which is, or which the person
believes on reasonable grounds to be, such a tenancy.
(6) In sub-paragraph (5) “accredited person” means a person who is—
(a) a Fellow of the Central Association of Agricultural Valuers, or
(b) a Member or Fellow of the Royal In stitution of Chartered Surveyors.
(7) The person is exempt to the extent that the activity carried on by the person
is also a reserved legal activity within sub-paragraph (8) and the person is—
(a) authorised to carry on that activity (other than under Part 5) by a
relevant approved regulator in relation to the activity,
(b) authorised to carry on that activity by a licence under Part 5, or
(c) an exempt person in relation to that activity by virtue of paragraph 1
or 2 of this Schedule.
(8) The activities are—
(a) the exercise of a right of audience;
(b) the conduct of litigation.
(9) The person is exempt if the person is employed merely to engross the
instrument or application.
(10) The person is exempt if the person is an individual who carries on the
activity otherwise than for, or in expectation of, any fee, gain or reward.
(11) The person is exempt if—
(a) the person is a person qualified to practise as a solicitor in Scotland
in accordance with section 4 of the Solicitors (Scotland) Act 1980(c. 46), and
(b) the reserved instrument activities fall within paragraph 5(1)(c) of
Schedule 2 (preparation of certain instruments relating to real orpersonal property or legal proceedings).
Probate activities
4 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of carrying on any activity which constitutes probateactivities (subject to paragraph 7).
(2) The person (“E”) is an exempt person if—
(a) E is an individual,
(b) E provides the probate activities at the direction and under the
supervision of another individual (“P”),
(c) when E does so, P and E are connected, and
(d) P is entitled to carry on the activity, otherwise than by virtue of sub-
paragraph (4).Legal Services Act 2007 (c. 29)
Schedule 3 — Exempt persons133
(3) For the purposes of sub-paragraph (2), P and E are connected if—
(a) P is E’s employer,
(b) P is a fellow employee of E,
(c) P is a manager or employee of a body which is an authorised person
in relation to the activity, and E is also a manager or employee of thatbody.
(4) The person is exempt if the person is an individual who carries on the
activity otherwise than for, or in expectation of, any fee, gain or reward.
Notarial activities
5 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of carrying on any activity which constitutes notarialactivities (subject to paragraph 7).
(2) The person is exempt if the person is not an authorised person in relation to
that activity under this Act, but is authorised to carry on that activity by orby virtue of any other enactment.
(3) The person is exempt if section 14 of the Public Notaries Act 1801 (c. 79)
applies to the person, and—
(a) where that section applies by virtue of the person holding or
exercising an office or appointment, the person carries on the activityfor ecclesiastical purposes;
(b) where that section applies by virtue of the person performing a
public duty or service under government, the person carries on theactivity in the course of performing that duty or service.
(4) The person is exempt if the person is an individual who carries on the
notarial activities otherwise than for or in expectation of a fee, gain or
reward.
Administration of oaths
6 (1) This paragraph applies to determine whether a person is an exempt person
for the purpose of carrying on any activity which constitutes theadministration of oaths (subject to paragraph 7).
(2) The person is exempt if the person is not an authorised person in relation to
that activity under this Act, but is authorised to carry on that activity by orby virtue of any other enactment.
(3) The person is exempt if the person has a commission under section 1(1) of
the Commissioners for Oaths Act 1889 (c. 10).
European lawyers
7 A European lawyer (within the meaning of the European Communities
(Services of Lawyers) Order 1978 (S.I. 1978/1910)) is an exempt person forthe purposes of carrying on an activity which is a reserved legal activity andwhich the European lawyer is entitled to carry on by virtue of that order.
Employers etc acting through exempt person
8 (1) This paragraph applies where—Legal Services Act 2007 (c. 29)
Schedule 3 — Exempt persons134
(a) a person (“P”) carries on an activity (“the relevant activity”) which is
a reserved legal activity,
(b) P carries on the relevant activity by virtue of an employee of P (“E”)
carrying it on in E’s capacity as such an employee, and
(c) E is an exempt person in relation to the relevant activity.
(2) P is an exempt person in relation to the relevant activity to the extent that P
carries on that activity by virtue of E so carrying it on.
(3) This paragraph does not apply where E—
(a) carries on the relevant activity at the direction and under the
supervision of an authorised person in relation to that activity, and
(b) is exempt in relation to that activity by virtue of paragraph 1(7), 3(3)
or 4(2).
( 4 ) I f  P  i s  a  b o d y ,  i n  t h i s  p a r a g r a p h  r e f e r e n c e s  t o  a n  e m p l o y e e  o f  P  i n c l u d e
references to a manager of P.
Further exempt persons
9 (1) The Lord Chancellor may, by order, amend this Schedule so as to provide—
(a) for persons to be exempt persons in relation to any activity which is
a reserved legal activity (including any activity which is a reservedlegal activity by virtue of an order under section 24 (extension ofreserved legal activities)),
(b) for persons to cease to be such persons, or
(c) for the amendment of any provision made in respect of an exempt
person.
(2) The Lord Chancellor may make an order under sub-paragraph (1) only on
the recommendation of the Board.
SCHEDULE 4
Section 20
APPROVED  REGULATORS
PART 1
EXISTING  REGULATORS
1 (1) Each body listed in the first column of the Table in this paragraph is an
approved regulator.
(2) Each body so listed is an approved regulator in relation to the reserved legal
activities listed in relation to it in the second column of the Table.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 1 — Existing regulators135
2 (1) The regulatory arrangements of a listed body, as they have effect
immediately before paragraph 1 comes into force, are to be treated as havingbeen approved by the Board for the purposes of this Act at the time thatparagraph comes into force.
(2) “Listed body” means a body listed in the first column of the Table in
paragraph 1 as that Table has effect at the time that paragraph comes intoforce.
(3) Sub-paragraph (1) is without prejudice to the Board’s power to give
directions under section 32 (powers to direct an approved regulator to takesteps in certain circumstances, including steps to amend its regulatoryarrangements).Table
Approved regulator Reserved legal activities
The Law Society The exercise of a right of audience.
The conduct of litigation.
Reserved instrument activities.
Probate activities.The administration of oaths.
The General Council of the Bar The exercise of a right of audience.
The conduct of litigation.
Reserved instrument activities.Probate activities.
The administration of oaths.
The Master of the Faculties Reserved instrument activities.
Probate activities.Notarial activities.
The administration of oaths.
The Institute of Legal Executives The exercise of a right of audience.
The administration of oaths.
The Council for Licensed
ConveyancersReserved instrument activities.
The administration of oaths.
The Chartered Institute of
Patent AttorneysThe exercise of a right of audience.
The conduct of litigation.
Reserved instrument activities.The administration of oaths.
The Institute of Trade Mark
AttorneysThe exercise of a right of audience.
The conduct of litigation.
Reserved instrument activities.
The administration of oaths.
The Association of Law Costs
DraftsmenThe exercise of a right of audience.
The conduct of litigation.
The administration of oaths.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order136
PART 2
DESIGNATION  OF BODIES  BY ORDER
Application to the Board
3 (1) This paragraph applies where a body wishes to authorise persons to carry
on one or more activities which constitute one or more reserved legalactivities.
(2) The body may apply to the Board for the Board—
(a) to recommend that an order be made by the Lord Chancellor
designating the body as an approved regulator in relation to thereserved legal activity or activities in question, and
(b) to approve what the body proposes as its regulatory arrangements if
such an order is made (“the proposed regulatory arrangements”).
( 3 ) A n  a p p l i c a t i o n  u n d e r  t h i s  p a r a g r a p h  m u s t  b e  m a d e  i n  s u c h  f o r m  a n d
manner as the Board may specify in rules and must be accompanied by—
(a) a statement of the reserved legal activity or activities to which it
relates,
(b) details of the applicant’s proposed regulatory arrangements,
(c) such explanatory material (including material about the applicant’s
constitution and activities) as the applicant considers is likely to beneeded for the purposes of this Part of this Schedule, and
(d) the prescribed fee.
(4) The prescribed fee is the fee specified in, or determined in accordance with,
rules made by the Board with the consent of the Lord Chancellor.
(5) The proposed regulatory arrangements must, in particular, include—
(a) details of the authority which the applicant proposes to give persons
to carry on activities which are reserved legal activities and of thenature of the persons to whom the authority is to be given,
(b) regulations (however they may be described) as to the education and
training which persons must receive, and any other requirementswhich must be met by or in respect of them, in order for them to beauthorised, and
(c) rules (however they may be described) as to the conduct required of
persons in carrying on any activity by virtue of the authority.
(6) An applicant may, at any time, withdraw the application by giving notice to
that effect to the Board.
Dismissal of application
4 (1) The Board may refuse to consider, or to continue its consideration of, an
application.
(2) The Board must make rules about the procedures and criteria that it will
apply when determining whether to refuse to consider, or to continue itsconsideration of, an application under sub-paragraph (1).
(3) Where the Board decides to refuse to consider, or to continue its
consideration of, an application it must give the applicant notice of thatdecision and of its reasons for it.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order137
(4) The Board must publish a notice given under sub-paragraph (3).
Board’s duty to seek advice
5 (1) The Board must give each of the persons listed in sub-paragraph (2)—
(a) a copy of the application and accompanying material, and
(b) a notice specifying a period within which any advice given under
paragraphs 6 to 8 must be given.
(2) Those persons are—
(a) the OFT,
(b) the Consumer Panel,
(c) the Lord Chief Justice, and
(d) such other persons as the Board considers it reasonable to consult
regarding the application.
(3) In this Part of this Schedule, in relation to an application, “selected
consultee” means a person within sub-paragraph (2)(d).
Advice of Office of Fair Trading
6 (1) The OFT must give the Board such advice as the OFT thinks fit regarding
whether the application should be granted.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether making an order under paragraph 17 in accordance with therecommendation applied for would (or would be likely to) prevent, restrictor distort competition within the market for reserved legal services to anysignificant extent.
Advice of the Consumer Panel
7 (1) The Consumer Panel must give the Board such advice as the Consumer
Panel thinks fit regarding whether the application should be granted.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact on consumers of the making of an orderunder paragraph 17 in accordance with  the recommendation applied for.
Advice of selected consultees
8 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the application.
Advice of the Lord Chief Justice
9 (1) The Board must give the Lord Chief Justice—
(a) a copy of any advice duly given under paragraphs 6 to 8, and
(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 to the Board as the Lord
Chief Justice thinks fit regarding whether the application should be granted.
(3) 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 theLegal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order138
making of an order under paragraph 17 in accordance with the
recommendation applied for.
Information obtained by consultees
10 A person (“the consultee”) to whom a copy of the application is given under
paragraph 5(1) may, for the purposes of giving advice under paragraphs 6to 9, request the applicant or any other person to provide the consultee withsuch additional information as may be specified by the consultee.
Representations by applicant
11 (1) The Board must give the applicant a copy of any advice duly given under
paragraphs 6 to 9.
(2) The applicant may make to the Board—
(a) written representations, and
(b) if the Board authorises it to do so, oral representations,
about the advice.
(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 applicant, or
(b) such longer period as the Board may specify in a particular case.
(5) Where oral representations are made, the Board must prepare a report of
those representations.
(6) Before preparing that report, the Board must—
(a) give the applicant a reasonable opportunity to comment on a draft of
the report, and
(b) have regard to any comments duly made.
Publication of advice and representations etc
12 (1) The Board must, as soon as practicable after the end of the period within
which representations under paragraph 11 may be made, publish—
(a) any advice duly given under paragraphs 6 to 9, and
(b) any written representations duly made under paragraph 11 and the
report (if any) prepared under that paragraph.
(2) Nothing in sub-paragraph (1) operates—
(a) to prevent a person who gives advice under paragraphs 6 to 9 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 11
from publishing those representations.
(3) A person (“the publisher”) publishing any such material (whether under
sub-paragraph (1) or otherwise) must, so far as practicable, exclude anymatter which relates to the private affairs of a particular individual the
publication of which, in the opinion  of the publisher, would or might
seriously and prejudicially affect the interests of that individual.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order139
Rules governing decisions by the Board
13 (1) The Board must make rules specifying how it will determine applications.
(2) Rules under sub-paragraph (1 ) must, in particular, provide that the Board
may grant an application in relation to a particular reserved legal activityonly if it is satisfied—
(a) that, if an order were to be made under paragraph 17 designating the
body in relation to that activity, the applicant would haveappropriate internal governance arrangements in place at the timethe order takes effect,
(b) that, if such an order were to be made, the applicant would be
competent, and have sufficient resources, to perform the role ofapproved regulator in relation to the reserved legal activity at thattime,
(c) that the applicant’s proposed regulatory arrangements make
appropriate provision,
(d) that the applicant’s proposed regulatory arrangements comply with
the requirement imposed by sections 52 and 54 (resolution ofregulatory conflict), and
(e) that those arrangements comply with the requirements imposed by
sections 112 and 145 (requirements imposed in relation to thehandling of complaints).
(3) The rules made for the purposes of sub-paragraph (2)(a) must in particular
require the Board to be satisfied—
(a) that the exercise of the applicant’s regulatory functions would not be
prejudiced by any of its representative functions, and
(b) that decisions relating to the exercise of its regulatory functions
would so far as reasonably practicable be taken independently fromdecisions relating to the exercise of its representative functions.
Determination of applications
14 (1) After considering—
(a) the application and accompanying material,
(b) any other information provided by the applicant,
(c) any advice duly given under paragraphs 6 to 9,
(d) any representations duly made under paragraph 11, and
(e) any other information which the Board considers relevant to the
application,
the Board must decide whether to grant the application.
(2) Where the application relates to more than one reserved legal activity, the
Board may grant the application in relation to all or any of them.
(3) The Board must give notice of its decision to the applicant (“the decision
notice”).
(4) Where the Board decides to refuse the application (in whole or in part), the
decision notice must specify the reasons for that decision.
(5) The Board must publish the decision notice.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order140
15 (1) Where an application is made under this Part, the Board must give the
decision notice under paragraph 14 within the decision period.
(2) The “decision period” is the period of 12 months beginning with the day on
which the application is made to the Board.
(3) The Board may, before the end of the decision period, issue a notice
extending that period by a period specified in the notice.
(4) More than one notice may be issued under sub-paragraph (3), but the
decision period must not exceed 16 months.
(5) The Board may issue a notice under sub-paragraph (3) only after it has
consulted—
(a) the OFT,
(b) the Consumer Panel, and
(c) the Lord Chief Justice.
(6) A notice under sub-paragraph (3) must state the Board’s reasons for
extending the decision period.
(7) The Board must publish any notice issued under sub-paragraph (3).
Effect of grant of application
16 (1) This paragraph applies where an application is granted in relation to a
reserved legal activity or activities.
(2) The Board must recommend to the Lord Chancellor that an order be made
designating the applicant as an approved regulator in relation to thereserved legal activity or activities in question.
(3) The Board must publish any recommendation made under sub-paragraph
(2).
(4) The Board must make available to the Lord Chancellor—
(a) any advice duly given under paragraphs 6 to 9,
(b) any written representations duly made under paragraph 11 and the
report (if any) prepared under that paragraph, and
(c) any other material considered by the Board for the purpose of
determining the application.
Lord Chancellor’s decision to make an order
17 (1) Where a recommendation is made to the Lord Chancellor under paragraph
16, the Lord Chancellor may—
(a) make an order in accordance with the recommendation, or
(b) refuse to make such an order.
(2) Where the recommendation relates to more than one reserved legal activity,
the Lord Chancellor may make an order under sub-paragraph (1)(a) inrelation to all or any of them.
(3) The Lord Chancellor must—
(a) decide whether to make an order under this paragraph, and
(b) give notice of that decision (“the decision notice”) to the applicant,Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 2 — Designation of bodies by order141
within the period of 90 days beginning with the day on which the
recommendation was made.
(4) If the Lord Chancellor decides not to make an order in accordance with the
whole or part of the recommendation, the decision notice must state thereasons for the decision.
(5) The Lord Chancellor must publish the decision notice.
Approval of regulatory arrangements
18 (1) Where an order is made by the Lord Chancellor under paragraph 17, the
applicant’s proposed regulatory arrangements are at the same time treatedas having been approved by the Board.
(2) But where the order relates to one or more (but not all) of the reserved legal
activities to which the application related, sub-paragraph (1) has effect as ifthe reference to the applicant’s proposed regulatory arrangements were areference to those arrangements excluding any provision made in respect ofany activities excluded from the order.
(3) Sub-paragraph (1) is without prejudice to the Board’s power to give
directions under section 32 (powers to direct an approved regulator to takesteps in certain circumstances, including steps to amend its regulatoryarrangements).
P
ART 3
ALTERATION  OF APPROVED  REGULATOR ’S REGULATORY  ARRANGEMENTS
Requirement for approval
19 (1) If an alteration is made of the regulatory arrangements of an approved
regulator, the alteration does not have effect unless it is approved for thepurposes of this Act.
(2) An alteration is approved for the purposes of this Act if—
(a) it is approved by virtue of paragraph 18 (approval of proposed
regulatory arrangements on designation by order as approvedregulator),
(b) it is approved by the Board under this Part of this Schedule,
(c) it is an exempt alteration,
(d) it is an alteration made in co mpliance with a direction under section
32,
(e) it is approved by virtue of paragraph 16 of Schedule 10 (approval of
licensing rules on designation by order as licensing authority), or
(f) it is approved by virtue of paragraph 7 of Schedule 18 (approval of
proposed regulatory arrangements when granting “qualifyingregulator” status for the purposes of Part 5 of the Immigration andAsylum Act 1999 (c. 33)).
(3) An exempt alteration is an alteration which the Board has directed is to be
treated as exempt for the purposes of this paragraph.
(4) A direction under sub-paragraph (3) may be specific or general and must be
published by the Board.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 3 — Alteration of approved regulator’s regulatory arrangements142
(5) In this Part of this Schedule, references to an “alteration” of regulatory
arrangements include an addition to, or the revocation of any part of, thearrangements.
(6) If a question arises whether approval is required by virtue of this Part of this
Schedule, it is for the Board to decide.
(7) Nothing in this Part of this Schedule applies in relation to any alteration of
the regulatory arrangements of the Board in its capacity as an approvedregulator (or of its licensing rules).
Application to Board
20 (1) An application by an approved regulator for the Board to approve an
alteration or alterations of its regulatory arrangements must be made in suchform and manner as the Board may specify in rules.
(2) The application must be accompanied by—
(a) details of such of the approved regulator’s regulatory arrangements
as are relevant to the application,
(b) details of the alteration or alterations, and
(c) such explanatory material as the approved regulator considers is
likely to be needed for the purposes of this Part of this Schedule.
Initial determination
21 (1) Where the Board has received an application under paragraph 20 it may—
(a) grant the application and give the approved regulator a notice to that
effect, or
(b) give the approved regulator a notice stating that the Board is
considering whether to refuse the application (a “warning notice”).
(2) The Board must publish any notice given by it under sub-paragraph (1)(a) or
(b).
(3) If the Board does not give the approved regulator a notice under sub-
paragraph (1)(a) or (b) within the in itial decision period, the application is
deemed to have been granted by the Board.
(4) The “initial decision period” means the period of 28 days beginning with the
day on which the application was received by the Board.
(5) The Board may extend the initial decision period—
(a) with the consent of the approved regulator, or
(b) by giving an extension notice to the approved regulator,
before the end of that period (or if it has previously been extended under this
sub-paragraph, that period as so extended).
(6) An extension notice—
(a) must specify the period of the extension, and
(b) must state the Board’s reasons for extending the initial decision
period.
(7) The period specified in the notice under sub-paragraph (6)(a) must end no
later than the end of the period of 90 days beginning with the date on whichthe application was made under paragraph 20.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 3 — Alteration of approved regulator’s regulatory arrangements143
Advice
22 (1) Where the Board has given the approved regulator a warning notice, the
Board may invite such persons as it considers appropriate to give the Boardadvice regarding whether the application should be granted.
(2) A person (“the consultee”) to whom an invitation is given under sub-
paragraph (1) may, for the purposes of giving advice to the Board under thisparagraph, request the approved regulator or any other person to providethe consultee with such additional information as may be specified by theconsultee.
Representations by applicant
23 (1) The Board must give the approved regulator a copy of any advice obtained
under paragraph 22.
(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.
(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
(b) such longer period as the Board may specify in a particular case.
(5) Where oral representations are made, the Board must prepare a report of
those representations.
(6) Before preparing that report, the Board must—
(a) give the approved regulator a reasonable opportunity to comment
on a draft of the report, and
(b) have regard to any comments duly made.
Publication of advice and representations etc
24 (1) The Board must, as soon as practicable after the end of the period within
which representations under paragraph 23 may be made, publish—
(a) any advice given under paragraph 22, and
(b) any written representations duly made under paragraph 23 and the
report (if any) prepared under that paragraph.
(2) Nothing in sub-paragraph (1) operates—
(a) to prevent a person who gives advice under paragraph 22 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 23
from publishing those representations.
(3) A person (“the publisher”) publishing any such material (whether under
sub-paragraph (1) or otherwise) must, so far as practicable, exclude anymatter which relates to the private affairs of a particular individual theLegal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 3 — Alteration of approved regulator’s regulatory arrangements144
publication of which, in the opinion  of the publisher, would or might
seriously and prejudicially affect the interests of that individual.
Decision by the Board
25 (1) After considering—
(a) the application and any accompanying material,
(b) any other information provided by the approved regulator,
(c) any advice obtained under paragraph 22,
(d) any representations duly made under paragraph 23, and
(e) any other information which the Board considers relevant to the
application,
the Board must decide whether to grant the application.
(2) The Board may grant the application in whole or in part.(3) The Board may refuse the application only if it is satisfied that—
(a) granting the application would be prejudicial to the regulatory
objectives,
(b) granting the application would be contrary to any provision made by
or by virtue of this Act or any other enactment or would result in anyof the designation requirements ceasing to be satisfied in relation tothe approved regulator,
(c) granting the application would be contrary to the public interest,
(d) the alteration would enable the approved regulator to authorise
persons to carry on activities which are reserved legal activities inrelation to which it is not a relevant approved regulator,
(e) the alteration would enable the approved regulator to license
persons under Part 5 to carry on activities which are reserved legalactivities in relation to which it is not a licensing authority, or
(f) the alteration has been or is likely to be made otherwise than in
accordance with the procedures (whether statutory or otherwise)which apply in relation to the making of the alteration.
(4) For the purposes of sub-paragraph (3)(b) the designation requirements are—
(a) a requirement that the approved regulator has appropriate internal
governance arrangements in place,
(b) a requirement that the applicant is competent, and has sufficient
resources to perform the role of approved regulator in relation to thereserved legal activities in respect of which it is designated, and
(c) the requirements of paragraph 13(2)(c) to (e).
(5) Sub-paragraph (3) applies in relation to any part of an application as if
references to the application were to the part.
(6) The Board must give notice of its decision (“the decision notice”) to the
approved regulator.
(7) Where the Board decides to refuse the application (in whole or in part), the
decision notice must specify the reasons for that decision.
(8) The Board must publish the decision notice.Legal Services Act 2007 (c. 29)
Schedule 4 — Approved regulators
Part 3 — Alteration of approved regulator’s regulatory arrangements145
Failure to decide application during decision period
26 (1) This paragraph applies where the Board gives an approved regulator a
warning notice under paragraph 21 in respect of the approved regulator’sapplication.
(2) If the Board does not give the approved regulator notice of its decision under
paragraph 25 within the decision period, the application is deemed to havebeen granted by the Board at the end of that period.
(3) Subject to sub-paragraphs (4) and (5), “the decision period” means the
period of 12 months beginning with the day on which the approvedregulator received the warning notice.
(4) The Board may, on one or more occasions, give the approved regulator a
notice (an “extension notice”) extendi ng the decision period.
(5) But—
(a) an extension notice may only be given before the time when the
decision period would end, but for the extension notice, and
(b) the total decision period must not exceed 18 months.
(6) The Board must publish any extension notice given by it.
Effect of grant of application
27 (1) Where an application is granted under paragraph 21(1)(a) or (3), 25(1) or
26(2), the alteration or alterations of the regulatory arrangements to whichthe application relates are approved.
(2) Where a part of an application is granted under paragraph 25(1), the
alteration or alterations of the regulatory arrangements to which the partrelates are approved.
(3) Sub-paragraphs (1) and (2) are without prejudice to the Board’s power to
give directions under section 32 (power to direct an approved regulator totake steps in certain circumstances, including steps to amend its regulatoryarrangements).
SCHEDULE 5
Section 22
AUTHORISED  PERSONS
PART 1
CONTINUITY  OF RIGHTS
Rights of audience and conduct of litigation
1 (1) For the purposes of section 18 (authorised persons), in the case of a person
who is authorised by a listed body—
(a) to exercise a right of audience before a court in relation to any
proceedings, or
(b) to conduct litigation in relation to any proceedings,Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 1 — Continuity of rights146
it is irrelevant whether the person’s authorisation was granted before or on
or after the appointed day.
(2) The “listed bodies” are—
(a) The Law Society,
(b) The General Council of the Bar,
(c) The Chartered Institute of Patent Attorneys,
(d) The Institute of Trade Mark Attorneys,
(e) The Association of Law Costs Draftsmen, and
(f) for the purposes of sub-paragraph (1)(a) only, The Institute of Legal
Executives.
(3) For the purposes of sub-paragraph (1), any authority conferred by section 31
of the Courts and Legal Services Act 1990 (c. 41) (barristers and solicitorsdeemed to have rights of audience and rights to conduct litigation) is to bedisregarded (see paragraphs 4 and 7 below).
Conveyancing services
2 (1) For the purposes of section 18, in the case of a licensed conveyancer who is
authorised to carry on an activity which is a reserved instrument activity bya conveyancing licence, it is i rrelevant whether the licence was granted
before or on or after the appointed day.
(2) For the purposes of this paragraph “conveyancing licence” means a licence
to practise as a licensed conveyancer granted under Part 2 of theAdministration of Justice Act 1985 (c. 61).
P
ART 2
RIGHTS  DURING  TRANSITIONAL  PERIOD
The transitional period
3 (1) In this Part of this Schedule references to “the transitional period” are to the
period which—
(a) begins with the appointed day (within the meaning given by
paragraph 19), and
(b) ends with the day appointed by the Lord Chancellor by order for the
purposes of this paragraph.
(2) Different days may be appointed under sub-paragraph (1)(b) for different
purposes.
(3) An order may be made under sub-paragraph (1)(b) only on the
recommendation of the Board.
Barristers etc
4 (1) During the transitional period, every barrister is deemed to be authorised by
the General Council of the Bar to carry on the activities in sub-paragraph (2).
(2) Those activities are—
(a) the exercise of a right of audience before every court in relation to all
proceedings;Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period147
(b) reserved instrument activities;
(c) probate activities;
(d) the administration of oaths.
(3) The authority conferred on a barrister by this paragraph is exercisable in
accordance with, and subject to, the regulatory arrangements of the GeneralCouncil of the Bar.
(4) A person is not authorised under sub-paragraph (1) unless the person has in
force a certificate issued by the General Coun cil of the Bar authorising the
person to practise as a barrister.
5 (1) During the transitional period, every registered European lawyer registered
with the Inns of Court and the General Council of the Bar is deemed to beauthorised by the General Council of the Bar to carry on activities which—
(a) are within paragraph 4(2), and
(b) the registered European lawyer is entitled to carry on under his
home professional title by virtue of the European regulations.
(2) The authority conferred on a registered European lawyer by virtue of this
paragraph is exercisable in accordance with, and subject to, the regulatoryarrangements of the General Council of the Bar (as they apply to theregistered European lawyer by virtue of the European regulations).
(3) In this paragraph—
“European regulations” means the European Communities (Lawyer’s
Practice) Regulations 2000 (S.I. 2000/1119);
“home professional title” and “registered European lawyer” have the
same meaning as in th e European regulations.
6 During the transitional period members of the Bar not in actual practice are
to continue to have the rights conferred by section 102A(2) of the Patents Act1977 (c. 37) (right of audience, etc in proceedings on appeal from thecomptroller).
Solicitors etc
7 (1) During the transitional period—
(a) every qualified solicitor,
(b) every legal partnership, and
(c) every body recognised under section 9 of the Administration of
Justice Act 1985 (c. 61) (incorporated practices) (“a recognisedbody”),
is deemed to be authorised by the Law Society to carry on the activities in
sub-paragraph (2).
(2) Those activities are—
(a) the exercise of a right of audience before every court in relation to all
proceedings;
(b) the conduct of litigation in relation to every court and all
proceedings;
(c) reserved instrument activities;
(d) probate activities;
(e) the administration of oaths.Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period148
(3) The authority conferred on a qualified solicitor, legal partnership or
recognised body by this paragraph is  exercisable in accordance with, and
subject to, the regulatory arrangements of the Law Society.
(4) In this paragraph—
“legal partnership” means a partnership in which  a qualified solicitor,
a registered European Lawyer or a body recognised under section 9of the Administration of Justice Act 1985 (c. 61) is permitted topractise by virtue of rules made under that section or section 31 of theSolicitors Act 1974 (c. 47);
“qualified solicitor” means a person who is qualified under section 1 of
the Solicitors Act 1974 to act as a solicitor;
“registered European lawyer” means a registered European lawyer
within the meaning of the European Communities (Lawyer’sPractice) Regulations 2000 (S.I. 2000/1119) who is registered with theLaw Society.
8 (1) During the transitional period, every registered European lawyer registered
with the Law Society is deemed to be authorised by the Law Society to carryon activities which—
(a) are within paragraph 7(2), and
(b) the registered European lawyer is entitled to carry on under his
home professional title by virtue of the European regulations.
(2) The authority conferred on a registered European lawyer by virtue of this
paragraph is exercisable in accordance with, and subject to, the regulatoryarrangements of the Law Society (as they apply to the registered Europeanlawyer by virtue of the European regulations).
(3) In this paragraph—
“European regulations” means the European Communities (Lawyer’s
Practice) Regulations 2000 (S.I. 2000/1119);
“home professional title” and “registered European lawyer” have the
same meaning as in th e European regulations.
9 (1) During the transitional period, solicitors are to continue to have the rights
conferred on them by subsection (1) of section 102A of the Patents Act 1977(c. 37) (rights of audience, etc in proceedings on appeal from thecomptroller).
(2) During that period, registered European lawyers are to continue to have the
rights conferred on them by that subsection by virtue of the Europeanregulations.
(3) In this paragraph “European regulations” and “registered European lawyer”
have the same meaning as in paragraph 8.
Legal Executives
10 (1) During the transitional period, a person authorised by the Institute of Legal
Executives to practise as a member of the profession of legal executives isdeemed to be authorised by that Institute to administer oaths.
(2) The authority conferred by sub-paragraph (1) is exercisable in accordance
with and subject to the regulatory arrangements of the Institute of Legal
Executives.Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period149
(3) A person is not authorised under sub-paragraph (1) unless the person has in
force a certificate issued by the Institute of Legal Executives authorising theperson to practise as a legal executive.
Licensed conveyancers
11 (1) During the transitional period every individual who holds a conveyancing
licence is deemed to be authorised by the Council for LicensedConveyancers to administer oaths.
(2) The authority conferred by sub-paragraph (1) is exercisable in accordance
with and subject to the regulatory arrangements of the Council.
(3) During that period, every conveyancing partnership and every body
recognised under section 32 of the Administration of Justice Act 1985 (c. 61)(bodies corporate entitled to provide conveyancing services) is deemed to beauthorised by the Council—
(a) to carry on conveyancing services, and
(b) to administer oaths.
(4) The authority conferred by sub-paragraph (3) is exercisable in accordance
with and subject to—
(a) in the case of a body recognised under section 32 of the
Administration of Justice Act 1985, any condition subject to which itsrecognition has effect, and
(b) the regulatory arrangements of the Council.
(5) In this section “conveyancing partnership” means a partnership at least
some of the members of which are licensed conveyancers.
(6) For the purposes of this paragraph a conveyancing licence is to be treated as
not in force during any period when it is suspended.
Notaries public
12 (1) During the transitional period, every duly certificated notary is deemed to
be authorised by the Master of the Faculties to carry on the activities in sub-paragraph (2).
(2) Those activities are—
(a) reserved instrument activities;
(b) probate activities;
(c) notarial activities;
(d) the administration of oaths.
(3) The authority conferred by sub-paragraph (1) is exercisable in accordance
with and subject to the regulatory arrangements of the Master of theFaculties.
(4) In this paragraph “duly certificated notary” means a notary who either—
(a) has in force a practising certificate as a solicitor issued under the
Solicitors Act 1974 (c. 47), and is duly entered in the Court ofFaculties of the Archbishop of Canterbury in accordance with rulesmade by the Master of the Faculties, or
(b) has in force a practising certificate as a public notary issued by the
said Court of Faculties in accordance with rules so made.Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period150
13 (1) During the transitional period, a person (“ P”) is an exempt person in relation
to the carrying on of an activity (“the relevant activity”) which is a notarialactivity if—
(a) P carries on the relevant activity by virtue of an employee of P (“E”)
carrying it on in E’s capacity as such an employee, and
(b) E is an authorised person in relation to the relevant activity.
( 2 ) I f  P  i s  a  b o d y ,  i n  t h i s  p a r a g r a p h  r e f e r e n c e s  t o  a n  e m p l o y e e  o f  P  i n c l u d e
references to a manager of P.
Patent attorneys
14 (1) During the transitional period, every registered patent attorney is deemed
to be authorised by the Chartered Institute of Patent Attorneys to carry onreserved instrument activities.
(2) During that period, every authorised patent attorney is deemed to be
authorised by the Chartered Institute of Patent Attorneys to administeroaths.
(3) During that period, every patent attorney body is deemed to be authorised
by the Chartered Institute of Patent Attorneys to carry on the activities insub-paragraph (4).
(4) Those activities are any activities which are reserved legal activities within
sub-paragraph (5) and which—
(a) if the body is a partnership, any partner who is a registered patent
attorney is authorised to carry on;
(b) if the body is a body corporate, any director who is a registered
patent attorney is authorised to carry on.
(5) Those activities are—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
(c) reserved instrument activities;
(d) the administration of oaths.
(6) The authority conferred by any of sub-paragraphs (1) to (3) is exercisable in
accordance with and subject to the regulatory arrangements of theChartered Institute of Patent Attorneys.
(7) In this paragraph—
“authorised patent attorney” means a registered patent attorney who is
authorised by the Chartered Institute of Patent Attorneys to carry onone or both of the following activities—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
“patent attorney body” means—
(a) a partnership all the partners of which are registered patent
attorneys,
(b) a body corporate all the directors of which are registered
patent attorneys,
(c) a partnership or body corporate which satisfies the
conditions prescribed under section 279 of the Copyright,Designs and Patents Act 1988 (c. 48), orLegal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period151
(d) a body corporate to which section 276(4) of that Act applies;
“registered patent attorney” has the meaning given by section 275(2) of
that Act;
and, in the case of a patent attorney body to which section 276(4) of that Act
applies, the reference in sub-paragraph (4)(b) to a director includes areference to the manager (within the meaning of section 276(4) of that Act)of the company.
15 (1) During the transitional period registered patent attorneys are to continue to
have the rights conferred by section 102A(2) of the Patents Act 1977 (c. 37)and section 292 of the Copyright, Designs and Patents Act 1988 (c. 48).
(2) In this paragraph “registered patent attorney” has the same meaning as in
paragraph 14.
Trade mark attorneys
16 (1) During the transitional period, every registered trade mark attorney is
deemed to be authorised by the Institute of Trade Mark Attorneys to carryon reserved instrument activities.
(2) During that period, every authorised trade mark attorney is deemed to be
authorised by the Institute of Trade Mark Attorneys to administer oaths.
(3) During that period, every trade mark attorney body is deemed to be
authorised by the Institute of Trade Mark Attorneys to carry on the activitiesin sub-paragraph (4).
(4) Those activities are any activities which are reserved legal activities within
sub-paragraph (5) and which—
(a) if the body is a partnership, any partner who is a registered trade
mark attorney is authorised to carry on, or
(b) if the body is a body corporate, any director who is a registered trade
mark attorney is authorised to carry on.
(5) Those activities are—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
(c) reserved instrument activities;
(d) the administration of oaths.
(6) The authority conferred by any of sub-paragraphs (1) to (3) is exercisable in
accordance with and subject to the regulatory arrangements of the Instituteof Trade Mark Attorneys.
(7) In this paragraph—
“authorised trade mark attorney” means a registered trade mark
attorney who is authorised by the Institute of Trade Mark Attorneysto carry on one or both of the following activities—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
“trade mark attorney body” means—
(a) a partnership all the partners of which are registered trade
mark attorneys,Legal Services Act 2007 (c. 29)
Schedule 5 — Authorised persons
Part 2 — Rights during transitional period152
(b) a body corporate all the directors of which are registered
trade mark attorneys, or
(c) a partnership or body corporate which satisfies the
conditions prescribed under section 85 of the Trade MarksAct 1994 (c. 26);
“registered trade mark attorney” has the same meaning as in the Trade
Marks Act 1994.
Law costs draftsmen
17 (1) During the transitional period, every authorised member of the Association
of Law Costs Draftsmen is deemed to be authorised by that Association toadminister oaths.
(2) In this paragraph, “authorised member of the Association of Law Costs
Draftsmen” means a member of that Association who has been authorisedby that Association to carry on one or both of the following activities—
(a) the exercise of a right of audience;
(b) the conduct of litigation.
(3) The authority conferred by sub-paragraph (1) is exercisable in accordance
with and subject to the regulatory arrangements of the Association of LawCosts Draftsmen.
18 (1) During the transitional period, a person (“ P”) is an exempt person in relation
to the carrying on of an activity (“the relevant activity”) which is a reservedlegal activity within sub-paragraph (2), if—
(a) P carries on the relevant activity by virtue of an employee of P (“E”)
carrying it on in E’s capacity as such an employee, and
(b) E is an authorised member of the Association of Law Costs
Draftsmen (within the meaning of paragraph 17(2) of this Schedule).
(2) The reserved legal activities mentioned in sub-paragraph (1) are—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
(c) the administration of oaths.
( 3 ) I f  P  i s  a  b o d y ,  i n  t h i s  p a r a g r a p h  r e f e r e n c e s  t o  a n  e m p l o y e e  o f  P  i n c l u d e
references to a manager of P.
P
ART 3
INTERPRETATION
19 In this Schedule—
“the appointed day” means the day appointed for the coming into force
of section 13 (entitlement to carry on a reserved legal activity);
“conveyancing licence” has the meaning given by paragraph 2.Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities153
SCHEDULE 6 Sections 24 and 26
ALTERATION  OF RESERVED  LEGAL  ACTIVITIES
Introductory
1 In this Schedule, in relation to an activity—
“section 24 investigation” means an investigation held with a view to
determining whether or not the Board should make arecommendation in respect of the activity for the purposes of section24 (recommendations and orders to extend the reserved legalactivities);
“section 26 investigation” means an investigation held with a view to
determining whether or not the Board should make arecommendation in respect of the activity for the purposes of section26 (recommendations that an activity should cease to be a reservedlegal activity).
Requests for Board to hold a full investigation
2( 1 ) A  p e r s o n  m a y —
(a) request the Board to hold a section 24 investigation in respect of an
activity, or
(b) request the Board to hold a section 26 investigation in respect of an
activity.
(2) A request under sub-paragraph (1) must be in writing and specify the
activity to which it relates.
(3) In the case of a request for a section 24 investigation, the activity in respect
of which the request is made must be a legal activity.
Board’s duty to hold preliminary inquiries in certain cases
3 (1) This paragraph applies where the Board receives a request under paragraph
2, in respect of an activity, from—
(a) the Lord Chancellor,
(b) the OFT,
(c) the Consumer Panel, or
(d) the Lord Chief Justice.
(2) The Board must—
(a) carry out such inquiries as it considers appropriate to enable it to
determine whether it is appropriate to hold a section 24 investigationor, as the case may be, a section 26 investigation in respect of the
activity, and
(b) make that determination within the preliminary inquiry period.
(3) “The preliminary inquiry period” means the period of 3 months beginning
with the day on which the request under paragraph 2 was received by theBoard.
(4) The Board may, before the end of the preliminary inquiry period in relation
to a request, issue a notice extending that period by a period specified in the
notice.Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities154
(5) More than one notice may be issued under sub-paragraph (4), but the total
preliminary inquiry period must not exceed 4 months.
(6) A notice under sub-paragraph (4) must state the Board’s reasons for
extending the preliminary inquiry period.
(7) The Board must publish a notice issued under sub-paragraph (4).
Board’s power to hold preliminary inquiries in other cases
4 (1) The Board may—
(a) where it receives a request under paragraph 2 to which paragraph 3
does not apply, or
(b) in any other case where it considers it appropriate to do so,
carry out such inquiries as it considers appropriate to enable it to determine
whether it is appropriate to hold a section 24 investigation or a section 26investigation in respect of an activity.
(2) In the case of a section 24 investigat ion, that activity must be a legal activity.
Advice
5 (1) Before determining whether it is appropriate to hold a section 24
investigation or a section 26 investigation  in respect of an activity, the Board
may seek the advice of one or both of the following bodies—
(a) the OFT;
(b) the Consumer Panel.
(2) The OFT or the Consumer Panel must, if its advice is sought, give the Board
such advice as it thinks fit, within such reasonable period as the Board mayspecify.
(3) In deciding what advice to give—
(a) the OFT must, in particular, consider whether making an order
under section 24 or (as the case may be) provision in accordance witha recommendation under section 26, in respect of the activity would(or would be likely to) prevent, restrict or distort competition withinthe market for reserved legal services to any significant extent, and
(b) the Consumer Panel must have regard to the likely impact which
making that order or (as the case may be) provision would have onconsumers.
(4) The OFT or the Consumer Panel may, for the purposes of giving advice
under this paragraph, request any person to provide it with suchinformation as may be specified by it.
6 (1) Before determining whether it is appropriate to hold a section 24
investigation or a section 26 investi gation in respect of an activity the Board
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
under that paragraph.
(3) If advice is sought under sub-paragraph (1), the Lord Chief Justice—Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities155
(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
provide the Lord Chief Justice with such information as may bespecified 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 themaking of an order under section 24 or (as the case may be) provision inaccordance with a recommendation un der section 26, 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
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.
(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 Lord Chancellor.
(3) The consultation requirements are—
(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
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—
(a) the Board has given the Lord Chancellor a copy of any advice given
under paragraph 5 or 6, and
(b) the Lord Chancellor has consented to the Board’s refusal of the
request.
Decision to hold investigation
9 (1) This paragraph applies where the Board has decided, following inquiries
under paragraph 3 or 4, to hold a section 24 investigation or a section 26investigation in respect of an activity.
(2) The Board must, as soon as reasonably practicable, give notice of its decision
to—
(a) the Lord Chancellor,Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities156
(b) the OFT,
(c) the Consumer Panel, and
(d) the Lord Chief Justice,
 and publish the notice.
(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 ru les under this Schedule, including any
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 24 investigation, or
(b) a decision to hold a section 26 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 ofthe 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 24(recommendation that activity should become a reserved legalactivity);
(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 26(recommendation that activity should cease to be a reserved legalactivity).
(4) A provisional report must also state the Board’s reasons for it being, or not
being, minded to make the recommendation in question.
“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.
(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,
(b) the Consumer Panel, and
(c) the Lord Chief Justice.Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities157
(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).
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.
(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.
(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
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—
(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
provision—
(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.
(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 towhat extent further evidence should be heard or received.
(2) The Board may make rules governing the giving of such evidence.
(3) Rules under sub-paragraph (2) may (among other things) include—Legal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities158
(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
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
paragraph 13(1), and any written or oral evidence given inaccordance with rules under paragraph 14(2), which the Boardconsiders relevant.
Duty to prepare final report within the final reporting period
16 (1) After complying with paragraph 15, the Board must decide—
(a) in the case of a section 24 investigation, whether or not to make a
recommendation for the purposes of that section, and
(b) in the case of a section 26 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—
(a) its decision and the reasons for it,
(b) where it decides to make a recommendation for the purposes of
section 24 or 26, that recommendation, and
(c) where it decides to make a recommendation for the purposes of
section 24, a statement of the provision which, in the Board’sopinion, will need to be made by virtue of section 204(3) or in anorder under section 208 (power to make consequential provision,transitional provision etc) if an order is made under section 24 inaccordance with that recommendation.
(3) The Board must—
(a) give a copy of the final report to the Lord Chancellor, and
(b) publish that report.
(4) The Board must comply with the obligations imposed by this paragraph
within the final reporting period.
“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 paragraph10(2).
(2) The Board may, before the end of the final reporting period, issue a notice
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—
(a) the OFT,
(b) the Consumer Panel, andLegal Services Act 2007 (c. 29)
Schedule 6 — Alteration of reserved legal activities159
(c) the Lord Chief Justice.
(5) A notice under sub-paragraph (2) must state the Board’s reasons for
extending the final reporting period.
(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 oforal representations, by or on behalf of that person, in accordance with rulesmade under this Schedule.
SCHEDULE 7
Section 33
DIRECTIONS : PROCEDURE
Introductory
1 This Schedule applies where the Board proposes giving a direction to an
approved regulator under section 32.
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—
(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 32(1) and
(2), and
(c) specify a period within which the approved regulator may make
representations with respect to the proposal.
(3) The period specified under sub-paragraph (2)(c)—
(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
(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
regulator.
(7) Where oral representations are duly made, the Board must prepare a report
of those representations.Legal Services Act 2007 (c. 29)
Schedule 7 — Directions: procedure160
(8) Before preparing that report, the Board must—
(a) give the approved regulator a reasonable opportunity to comment
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)—
(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.
(2) Those persons are—
(a) the Lord Chancellor,
(b) the OFT,
(c) the Consumer Panel,
(d) the Lord Chief Justice, and
(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 Lord Chancellor
4 The Lord Chancellor must give the Board such advice as the Lord
Chancellor 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.
(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 legalservices to any significant extent.
Advice of the Consumer Panel
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 Co nsumer Panel must, in particular,
have regard to the likely impact of the proposed direction on consumers.
Advice of selected consultees
7 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed direction.Legal Services Act 2007 (c. 29)
Schedule 7 — Directions: procedure161
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
(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 th e proposed direction should be given.
(3) In deciding what advice to give, the Lord Chief Justice must, in particular,
have regard to the likely impact of the proposed direction on the courts inEngland 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 underparagraphs 4 to 8, request the approved regulator or any other person toprovide the consultee with such additional information as may be specifiedby the consultee.
Representations by approved regulator
10 (1) The Board must give the approved regulator a copy of any advice duly given
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.
(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
(b) such longer period as the Board may specify in a particular case.
(5) Where oral representations are made, the Board must prepare a report of
those representations.
(6) Before preparing that report, the Board must—
(a) give the approved regulator a reasonable opportunity to comment
on a draft of the report, and
(b) have regard to any comments duly made.
Publication of advice etc
11 (1) The Board must, as soon as practicable after the end of the period within
which representations under paragraph 10 may be made, publish—
(a) any advice duly given under paragraphs 4 to 8, and
(b) any written representations duly made under paragraph 10 and the
report (if any) prepared under that paragraph.Legal Services Act 2007 (c. 29)
Schedule 7 — Directions: procedure162
(2) Nothing in sub-paragraph (1) operates—
(a) to prevent a person who gives advice under paragraphs 4 to 8 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 10
from publishing those representations.
(3) A person (“the publisher”) publishing any such material (whether under
sub-paragraph (1) or otherwise) must, so far as practicable, exclude anymatter which relates to the private affairs of a particular individual thepublication of which, in the opinion  of the publisher, would or might
seriously and prejudicially affect the interests of that individual.
Decision by the Board
12 (1) After considering—
(a) any advice duly given under paragraphs 4 to 8,
(b) any representations duly made under paragraph 10, and
(c) any other information which the Board considers relevant,
the Board must decide whether to give the approved regulator the proposed
direction.
(2) The Board must give notice of its decision (“the decision notice”) to the
approved regulator.
(3) Where the Board decides to give the proposed direction, the decision notice
must—
(a) contain the direction,
(b) state the time at which the direction is to take effect, and
(c) specify the Board’s reasons for the decision to give the direction.
(4) The Board must publish the decision notice.
SCHEDULE 8
Sections 41 and 44
INTERVENTION  DIRECTIONS : PROCEDURE
PART 1
GIVING  INTERVENTION  DIRECTIONS
Introductory
1 (1) This Part of this Schedule applies where the Board proposes giving an
intervention direction to an approved regulator in respect of a regulatoryfunction.
(2) In this Schedule “interven tion direction” has the same meaning as in section
41.
Notification of the approved regulator
2 (1) The Board must give the approved regulator a notice (“a warning notice”)
accompanied by a draft of the proposed intervention direction.Legal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions163
(2) The warning notice must—
(a) state that the Board proposes to give the approved regulator an
intervention direction in the fo rm of the accompanying draft and the
time when it is proposed that direction should take effect, and
(b) state the reasons why the Board is satisfied of the matters mentioned
in section 41(1)(a) and (b).
(3) The Board must publish a copy of the warning notice.
(4) 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 proposed intervention direction.
(5) The Board must make rules governing the making of written and oral
representations.
(6) Any representations under sub-paragraph (4) must be made before the end
of—
(a) the period of 28 days beginning with the day on which the warning
notice is given to the approved regulator, or
(b) such longer period as the Board may specify in a particular case.
(7) Where oral representations are duly made under this paragraph, 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
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)—
(a) a copy of the warning notice and the accompanying draft,
(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.
(2) Those persons are—
(a) the Lord Chancellor,
(b) the OFT,
(c) the Consumer Panel,
(d) the Lord Chief Justice, and
(e) such other persons as the Board considers it reasonable to consult in
respect of the proposed intervention direction.
(3) In this Part of this Schedule, in relation to a proposed intervention direction,
“selected consultee” means a person within sub-paragraph (2)(e).Legal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions164
Advice of the Lord Chancellor
4 The Lord Chancellor must give the Board such advice as the Lord
Chancellor thinks fit in respect of the proposed intervention 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 intervention direction should be given.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether giving the proposed intervention direction would (or would belikely to) prevent, restrict or distort competition within the market forreserved legal services to any significant extent.
Advice of the Consumer Panel
6 (1) The Consumer Panel must give the Board such advice as it thinks fit
regarding whether the proposed intervention direction should be given.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact of the proposed direction on consumers.
Advice of selected consultees
7 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed intervention 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
(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 intervention direction should begiven.
(3) In deciding what advice to give, the Lord Chief Justice must, in particular,
have regard to the likely impact of the proposed intervention direction onthe 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 underparagraphs 4 to 8, request the approved regulator or any other person toprovide the consultee with such additional information as may be specifiedby the consultee.
Representations by the approved regulator etc
10 (1) The Board must—
(a) give the approved regulator a copy of any advice duly given under
paragraphs 4 to 8, andLegal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions165
(b) publish that advice together with any written representations duly
made by the approved regulator under paragraph 2 and the report(if any) prepared under that paragraph.
(2) The approved regulator and any body within sub-paragraph (3) may make
to the Board—
(a) written representations, and
(b) if the Board authorises it to do so, oral representations,
about the advice.
(3) A body is within this sub-paragraph if it represents persons authorised by
the approved regulator to carry on activities which are reserved legalactivities.
(4) The Board may allow any other person to make written or oral
representations about the advice.
(5) The Board must make rules governing the making of oral and written
representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the
representations and advice are published under sub-paragraph(1)(b), or
(b) such longer period as the Board may specify in a particular case.
(7) Where oral representations are made, the Board must prepare a report of
those representations.
(8) Before preparing that report, the Board must—
(a) give each person who made oral representations a reasonable
opportunity to comment on a draft of the report of thoserepresentations, and
(b) have regard to any comments duly made.
(9) The Board must, as soon as reasonably practicable after the end of the period
within which representations may be made under this paragraph, publishany written representations duly made and the report (if any) preparedunder sub-paragraph (7).
Further provision about publishing of advice and representations
11 (1) Nothing in paragraph 10 operates—
(a) to prevent a person who gives advice under paragraphs 4 to 8 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 2
or 10 from publishing those representations.
(2) A person (“the publisher”) publishing any such material (whether under
paragraph 10 or otherwise) must, so far as practicable, exclude any matterwhich relates to the private affairs of a particular individual the publicationof which, in the opinion of the publ isher, would or might seriously and
prejudicially affect the interests of that individual.
Decision by the Board
12 (1) After considering—Legal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 1 — Giving intervention directions166
(a) any advice duly given under paragraphs 4 to 8,
(b) any representations duly made under paragraph 2 or 10, and
(c) any other information which the Board considers relevant,
the Board must decide whether to give an intervention direction.
(2) Where it decides to give an intervention direction, it may decide—
(a) to give an intervention direction in the form of the proposed
intervention direction, or
(b) to amend the form of the proposed intervention direction and give
an intervention direction in that amended form.
(3) The Board must give notice of its decision (“the decision notice”) to the
approved regulator.
(4) Where the Board decides to give an intervention direction, the decision
notice must—
(a) contain the intervention direction,
(b) state the time at which the intervention direction is to take effect,
(c) specify the reasons why the Board is satisfied of the matters
mentioned in section 41(1)(a) and (b), and
(d) if the decision is under sub-paragraph (2)(b), set out the nature of any
amendments made and the reasons for them.
(5) The time specified under sub-paragraph (4)(b) must not be before—
(a) the time specified in the warning notice in accordance with
paragraph 2(2)(a), or
(b) the time the decision notice is given to the approved regulator.
(6) The Board must publish the decision notice.
PART 2
REVOKING  INTERVENTION  DIRECTIONS
Introductory
13 (1) Where an intervention direction has effect in respect of a regulatory function
of an approved regulator—
(a) the approved regulator may apply to the Board for the Board to
revoke the direction, or
(b) the Board may give the approved regulator a notice stating the
Board’s intention to revoke the direction.
(2) An application under sub-paragraph (1)(a) must—
(a) be made in the form and manner specified by the Board, and
(b) be accompanied by such material  as the applicant considers is likely
to be needed for the purposes of this Part of this Schedule.
Board’s duty to seek advice
14 (1) Where the Board has received an application under paragraph 13(1)(a), it
must give each of the persons listed in sub-paragraph (3)—
(a) a copy of the application,
(b) a copy of any material which accompanied it, andLegal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 2 — Revoking intervention directions167
(c) a notice specifying a period within which any advice under
paragraphs 15 to 18 must be given.
(2) Where the Board has given a notice under  paragraph 13(1)(b), it must give
each of the persons listed in sub-paragraph (3)—
(a) a copy of the notice, and
(b) a notice specifying a period within which any advice under
paragraphs 15 to 18 must be given.
(3) The persons are—
(a) the Lord Chancellor,
(b) the OFT,
(c) the Consumer Panel,
(d) the Lord Chief Justice, and
(e) such other persons as the Board considers it reasonable to consult in
respect of the proposed revocation.
(4) In this Part of this Schedule, in relation to an application or notice, “selected
consultee” means a person within sub-paragraph (3)(e).
Advice of the Lord Chancellor
15 The Lord Chancellor must give the Board such advice as the Lord
Chancellor thinks fit in respect of the proposed revocation.
Advice of Office of Fair Trading
16 (1) The OFT must give the Board such advice as it thinks fit regarding the
proposed revocation.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether revoking the intervention direction would (or would be likely to)prevent, restrict or distort competition within the market for reserved legalservices to any significant extent.
Advice of the Consumer Panel
17 (1) The Consumer Panel must give the Board such advice as it thinks fit
regarding the proposed revocation.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact which revoking the intervention directionwould have on consumers.
Advice of the selected consultees
18 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed revocation.
Advice of the Lord Chief Justice
19 (1) The Board must give the Lord Chief Justice—
(a) a copy of any advice duly given under paragraphs 15 to 18, and
(b) a notice specifying a period within which any advice under this
paragraph must be given.Legal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 2 — Revoking intervention directions168
(2) The Lord Chief Justice must then give the Board such advice as the Lord
Chief Justice thinks fit in respect of the proposed revocation.
(3) In deciding what advice to give, the Lord Chief Justice must, in particular,
have regard to the likely impact which revoking the intervention directionwould have on the courts in England and Wales.
Information obtained by consultees
20 A person to whom a copy of the application or notice is given under
paragraph 14(1) or (2) may, for the purposes of giving advice underparagraphs 15 to 19, request the approved regulator or any other person toprovide that person with such additional information as may be specified bythat person.
Representations by approved regulator etc
21 (1) The Board must—
(a) give the approved regulator a copy of any advice duly given under
paragraphs 15 to 19, and
(b) publish that advice.
(2) The approved regulator and any body within sub-paragraph (3) may make
to the Board—
(a) written representations, and
(b) if the Board authorises it to do so, oral representations,
about the advice.
(3) A body is within this sub-paragraph if it represents persons authorised by
the approved regulator to carry on activities which are reserved legalactivities.
(4) The Board may allow any other person to make written or oral
representations about the advice.
(5) The Board must make rules governing the making of oral and written
representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the advice is
published under sub-paragraph (1), or
(b) such longer period as the Board may specify in a particular case.
(7) Where oral representations are made, the Board must prepare a report of
those representations.
(8) Before preparing that report, the Board must—
(a) give each person who made oral representations a reasonable
opportunity to comment on a draft of the report of thoserepresentations, and
(b) have regard to any comments duly made.
(9) The Board must, as soon as practicable after the end of the period within
which representations may be made under this paragraph, publish any
written representations duly made and the report (if any) prepared under
sub-paragraph (7).Legal Services Act 2007 (c. 29)
Schedule 8 — Intervention directions: procedure
Part 2 — Revoking intervention directions169
Further provision about publishing advice and representations
22 (1) Nothing in paragraph 21 operates—
(a) to prevent a person who gives advice under paragraphs 15 to 19 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 21
from publishing those representations.
(2) A person (“the publisher”) publishing any such material (whether under
paragraph 21 or otherwise) must, so far as practicable, exclude any matterwhich relates to the private affairs of a particular individual the publicationof which, in the opinion of the publ isher, would or might seriously and
prejudicially affect the interests of that individual.
Decision by the Board
23 (1) After considering—
(a) in a case within paragraph 13(1)( a), the application and any
accompanying material,
(b) any advice duly given under paragraphs 15 to 19,
(c) any representations duly made under paragraph 21, and
(d) any other information which the Board considers relevant to the
application or notice,
the Board must decide whether to revoke the intervention direction in
accordance with the application or notice.
(2) The Board must give notice of its decision (“the decision notice”) to the
approved regulator.
(3) Where the Board decides to revoke the intervention direction, the decision
notice must state the time the revocation is to take effect.
(4) Where the Board decides not to revoke the intervention direction, the
decision notice must specify the reasons for that decision.
(5) The Board must publish the decision notice.
SCHEDULE 9
Section 45
CANCELLATION  OF DESIGNATION  AS APPROVED  REGULATOR
Introductory
1 This Schedule applies where the Board considers that it may be appropriate
for it to make a recommendation under section 45(5).
Notification of the approved regulator
2 (1) The Board must give the approved regulator a notice (“a warning notice”)
accompanied by a draft of the proposed recommendation.
(2) The warning notice must—Legal Services Act 2007 (c. 29)
Schedule 9 — Cancellation of designation as approved regulator170
(a) state that the Board proposes to make a recommendation under
subsection (5) of section 45 in the form of the accompanying draft,and
(b) state the reasons why the Board is satisfied of the matters mentioned
in paragraphs (a) and (b) of that subsection.
(3) The Board must publish a copy of the warning notice.(4) 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 proposed recommendation.
(5) The Board must make rules governing the making of oral and written
representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the warning
notice is given to the approved regulator, or
(b) such longer period as the Board may specify in a particular case.
(7) The Board must consider any representations duly made by the approved
regulator.
(8) Where oral representations are duly made, the Board must prepare a report
of those representations.
(9) Before preparing that report, the Board must—
(a) give the approved regulator a reasonable opportunity to comment
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)—
(a) a copy of the warning notice and the accompanying draft,
(b) a copy of any written representations duly made by the approved
regulator 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 6 must be given.
(2) Those persons are—
(a) the OFT,
(b) the Consumer Panel,
(c) the Lord Chief Justice, and
(d) such other persons as the Board considers it reasonable to consult in
respect of the proposed recommendation.
(3) In this Schedule, in relation to a proposed recommendation, “selected
consultee” means a person within sub-paragraph (2)(d).Legal Services Act 2007 (c. 29)
Schedule 9 — Cancellation of designation as approved regulator171
Advice of Office of Fair Trading
4 (1) The OFT must give the Board such advice as it thinks fit regarding whether
the proposed recommendation should be made.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether making an order under section 45 in accordance with the proposedrecommendation would (or would be likely to) prevent, restrict or distortcompetition within the market for reser ved legal services to any significant
extent.
Advice of the Consumer Panel
5 (1) The Consumer Panel must give the Board such advice as it thinks fit
regarding whether the proposed recommendation should be made.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact on consumers of making an order undersection 45 in accordance wi th the proposed recommendation.
Advice of selected consultees
6 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed recommendation.
Advice of the Lord Chief Justice
7 (1) The Board must give the Lord Chief Justice—
(a) a copy of any advice duly given under paragraphs 4 to 6, and
(b) a notice specifying a period within which advice under this
paragraph must be given.
(2) The Lord Chief Justice must then give  such advice as the Lord Chief Justice
thinks fit in respect of the proposed recommendation.
(3) 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 ofmaking an order under section  45 in accordance with the proposed
recommendation.
Information obtained by consultees
8 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 underparagraphs 4 to 7, request the approved regulator or any other person toprovide the consultee with such additional information as may be specifiedby the consultee.
Representations by the approved regulator etc
9 (1) The Board must—
(a) give the approved regulator a copy of any advice duly given under
paragraphs 4 to 7, and
(b) publish that advice together with any written representations duly
made by the approved regulator under paragraph 2 and the report(if any) prepared under that paragraph.Legal Services Act 2007 (c. 29)
Schedule 9 — Cancellation of designation as approved regulator172
(2) The approved regulator and any body within sub-paragraph (3) may make
to the Board—
(a) written representations, and
(b) if authorised to do so by the Board, oral representations,
about the advice.
(3) A body is within this sub-paragraph if it represents persons authorised by
the approved regulator to carry on activities which are reserved legalactivities.
(4) The Board may allow any other person to make written or oral
representations about the advice.
(5) The Board may make rules governing the making to the Board of written or
oral representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the
representations and advice are published under sub-paragraph(1)(b), or
(b) such longer period as the Board may specify in a particular case.
(7) Where oral representations are made, the Board must prepare a report of
those representations.
(8) Before preparing that report, the Board must—
(a) give each person who made oral representations a reasonable
opportunity to comment on a draft of the report of thoserepresentations, and
(b) have regard to any comments duly made.
(9) The Board must, as soon as reasonably practicable after the end of the period
within which representations under this paragraph may be made, publishany written representations duly made and the report (if any) preparedunder sub-paragraph (7).
Publication of advice etc
10 (1) Nothing in paragraph 9 operates—
(a) to prevent a person who gives advice under paragraphs 4 to 7 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 2
or 9 from publishing those representations.
(2) A person (“the publisher”) publishing any such material (whether under
paragraph 9 or otherwise) must, so far as practicable, exclude any matterwhich relates to the private affairs of a particular individual the publicationof which, in the opinion of the publ isher, would or might seriously and
prejudicially affect the interests of that individual.
Decision by the Board
11 (1) After considering—
(a) any advice duly given under paragraphs 4 to 7,
(b) any representations duly made under paragraph 2 or 9, and
(c) any other information which the Board considers relevant,Legal Services Act 2007 (c. 29)
Schedule 9 — Cancellation of designation as approved regulator173
the Board must decide whether to make the proposed recommendation.
(2) The Board must give notice of its decision (“the decision notice”) to the
approved regulator and to the Lord Chancellor.
(3) If the Board decides to make the proposed recommendation, the decision
notice must—
(a) contain the recommendation, and
(b) state why the Board is satisfied of the matters mentioned in section
45(5)(a) and (b).
(4) The Board must publish the decision notice.
SCHEDULE 10 Sections 74 and 76
DESIGNATION  OF APPROVED  REGULATORS  AS LICENSING  AUTHORITIES
PART 1
DESIGNATION  OF APPROVED  REGULATORS  BY ORDER
Application to the Board
1 (1) This paragraph applies where a body wishes to become a licensing authority
in relation to one or more activities which constitute one or more reservedlegal activities.
(2) The body may apply to the Board for the Board—
(a) to recommend that an order be made by the Lord Chancellor
designating the applicant as a licensing authority in relation to thereserved legal activity or activities in question, and
(b) to approve what the applicant proposes as its licensing rules if such
an order is made (“the proposed licensing rules”).
(3) But the body may make an application under  this paragraph in relation to a
reserved legal activity only if—
(a) it is a relevant approved regulator in relation to the activity, or
(b) it has made an application under Part 2 of Schedule 4 (designation of
approved regulators) for the Board to recommend that an order bemade by the Lord Chancellor designating the body as an approvedregulator in relation to the activity.
( 4 ) A n  a p p l i c a t i o n  u n d e r  t h i s  p a r a g r a p h  m u s t  b e  m a d e  i n  s u c h  f o r m  a n d
manner as the Board may specify in rules and must be accompanied by—
(a) a statement of the reserved legal activity or activities to which it
relates,
(b) details of the applicant’s proposed licensing rules,
(c) such explanatory material as the applicant considers is likely to be
needed for the purposes of this Part of this Schedule, and
(d) the prescribed fee.
(5) The prescribed fee is the fee specified in, or determined in accordance with,
rules made by the Board with the consent of the Lord Chancellor.Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 1 — Designation of approved regulators by order174
(6) An applicant may, at any time, withdraw the application by giving notice to
that effect to the Board.
Dismissal of application
2 (1) The Board may refuse to consider, or to continue its consideration of, an
application.
(2) The Board must make rules about the procedures and criteria that it will
apply when determining whether to refuse to consider, or to continue itsconsideration of, an application under sub-paragraph (1).
(3) Where the Board decides to refuse to consider, or to continue its
consideration of, an application it must give the applicant notice of thatdecision and of its reasons for it.
(4) The Board must publish a notice given under sub-paragraph (3).
Board’s duty to seek advice
3 (1) The Board must give each of the persons listed in sub-paragraph (2)—
(a) a copy of the application and accompanying material, and
(b) a notice specifying a period within which any advice given under
paragraphs 4 to 6 must be given.
(2) Those persons are—
(a) the OFT,
(b) the Consumer Panel,
(c) the Lord Chief Justice, and
(d) such other persons as the Board considers it reasonable to consult
regarding the application.
(3) In this Part of this Schedule, in relation to an application, “selected
consultee” means a person within sub-paragraph (2)(d).
Advice of Office of Fair Trading
4 (1) The OFT must give the Board such advice as the OFT thinks fit regarding
whether the application should be granted.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether making an order under paragraph 15 in accordance with therecommendation applied for would (or would be likely to) prevent, restrictor distort competition within the market for reserved legal services to anysignificant extent.
Advice of the Consumer Panel
5 (1) The Consumer Panel must give the Board such advice as the Consumer
Panel thinks fit regarding whether the application should be granted.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact on consumers of the making of an orderunder paragraph 15 in accordance with  the recommendation applied for.Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 1 — Designation of approved regulators by order175
Advice of selected consultees
6 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the application.
Advice of the Lord Chief Justice
7 (1) The Board must give the Lord Chief Justice—
(a) a copy of any advice duly given under paragraphs 4 to 6, and
(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 to the Board as the Lord
Chief Justice thinks fit regarding whether the application should be granted.
(3) 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 themaking of an order under paragraph 15 in accordance with therecommendation applied for.
Information obtained by consultees
8 A person (“the consultee”) to whom a copy of the application is given under
paragraph 3(1) may, for the purposes of giving advice under paragraphs 4to 7, request the applicant or any other person to provide the consultee withsuch additional information as may be specified by the consultee.
Representations by applicant
9 (1) The Board must give the applicant a copy of any advice duly given under
paragraphs 4 to 7.
(2) The applicant may make to the Board—
(a) written representations, and
(b) if the Board authorises it to do so, oral representations,
about the advice.
(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 applicant, or
(b) such longer period as the Board may specify in a particular case.
(5) Where oral representations are made, the Board must prepare a report of
those representations.
(6) Before preparing that report, the Board must—
(a) give the applicant a reasonable opportunity to comment on a draft of
the report, and
(b) have regard to any comments duly made.Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 1 — Designation of approved regulators by order176
Publication of advice and representations etc
10 (1) The Board must, as soon as practicable after the end of the period within
which representations under paragraph 9 may be made, publish—
(a) any advice duly given under paragraphs 4 to 7,
(b) any written representations duly made under paragraph 9 and the
report (if any) prepared under that paragraph.
(2) Nothing in sub-paragraph (1) operates—
(a) to prevent a person who gives advice under paragraphs 4 to 7 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 9
from publishing those representations.
(3) A person (“the publisher”) publishing any such material (whether under
sub-paragraph (1) or otherwise) must, so far as practicable, exclude anymatter which relates to the private affairs of a particular individual thepublication of which, in the opinion  of the publisher, would or might
seriously and prejudicially affect the interests of that individual.
Rules governing decisions by the Board
11 (1) The Board must make rules specifying how it will determine applications.
(2) Rules under sub-paragraph (1 ) must, in particular, provide that the Board
may grant an application in relation to a particular reserved legal activityonly if it is satisfied—
(a) that the applicant’s proposed licensing rules in relation to the
activity comply with the requirements of section 83;
(b) that, if an order were to be made under paragraph 15 designating the
body in relation to the activity, there would be a body with power tohear and determine appeals which, under this Part or the applicant’sproposed licensing rules, may be made against decisions of theapplicant;
(c) that, if an order were to be made under paragraph 15 designating the
body in relation to the activity, the applicant would have appropriateinternal governance arrangements in place at the time the order takeseffect;
(d) that, if an order were made under paragraph 15 designating the body
in relation to the activity, the applicant would be competent, andhave sufficient resources, to perform the role of licensing authority in
relation to the activity at the time the order takes effect.
(3) The rules made for the purposes of sub-paragraph (2)(c) must in particular
require the Board to be satisfied—
(a) that the exercise of the applicant’s regulatory functions would not be
prejudiced by any of its representative functions, and
(b) that decisions relating to the exercise of its regulatory functions
would so far as reasonably practicable be taken independently fromdecisions relating to the exercise of its representative functions.
Determination of applications
12 (1) After considering—
(a) the application and accompanying material,Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 1 — Designation of approved regulators by order177
(b) any other information provided by the applicant,
(c) any advice duly given under paragraphs 4 to 7,
(d) any representations duly made under paragraph 9, and
(e) any other information which the Board considers relevant to the
application,
the Board must decide whether to grant the application.
(2) Where the application relates to more than one reserved legal activity, the
Board may grant the application in relation to all or any of them.
(3) The Board must give notice of its decision to the applicant (“the decision
notice”).
(4) Where the Board decides to refuse the application (in whole or in part), the
decision notice must specify the reasons for that decision.
(5) The Board must publish the decision notice.
13 (1) Where an application is made under this Part, the Board must give the
decision notice under paragraph 12 within the decision period.
(2) The “decision period” is the period of 12 months beginning with the day on
which the application is made to the Board.
(3) The Board may, before the end of the decision period, issue a notice
extending that period by a period specified in the notice.
(4) More than one notice may be issued under sub-paragraph (3), but the
decision period must not exceed 16 months.
(5) The Board may issue a notice under sub-paragraph (3) only after it has—
(a) consulted the OFT, the Consumer Panel and the Lord Chief Justice,
and
(b) obtained the Lord Chancellor’s consent to the extension.
(6) A notice under sub-paragraph (3) must state the Board’s reasons for
extending the decision period.
(7) The Board must publish any notice issued under sub-paragraph (3).
Effect of grant of application
14 (1) This paragraph applies where an application is granted in relation to a
reserved legal activity or activities.
(2) The Board must recommend to the Lord Chancellor that an order be made
designating the applicant as a licensing authority in relation to the reservedlegal activity or activities in question.
(3) The Board must publish any recommendation made under sub-paragraph
(2).
(4) The Board must make available to the Lord Chancellor—
(a) any advice duly given under paragraphs 4 to 7,
(b) any written representations duly made under paragraph 9 and the
report (if any) prepared under that paragraph, and
(c) any other material considered by the Board for the purpose of
determining the application.Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 1 — Designation of approved regulators by order178
Lord Chancellor’s decision to make an order
15 (1) Where a recommendation is made to the Lord Chancellor under paragraph
14, the Lord Chancellor may—
(a) make an order in accordance with the recommendation, or
(b) refuse to make such an order.
(2) Where the recommendation relates to more than one reserved legal activity,
the Lord Chancellor may make an order under sub-paragraph (1)(a) inrelation to all or any of them.
(3) But if the application, in relation to a particular reserved legal activity, was
made in reliance on paragraph 1(3)(b), the Lord Chancellor must not makean order in relation to that activity unless the Lord Chancellor has made anorder under Part 2 of Schedule 4 designating the body as an approvedregulator in relation to that activity.
(4) The Lord Chancellor must—
(a) decide whether to make an order under this paragraph, and
(b) give notice of that decision (“the decision notice”) to the applicant,
within the period of 90 days beginning with the day on which the
recommendation was made.
(5) If the Lord Chancellor decides not to make an order in accordance with the
whole or part of the recommendation, the decision notice must state thereasons for the decision.
(6) The Lord Chancellor must publish the decision notice.
Approval of licensing rules
16 (1) Where an order is made by the Lord Chancellor under paragraph 15, the
applicant’s proposed licensing rules are at the same time treated as havingbeen approved by the Board.
(2) But where the order relates to one or more (but not all) of the reserved legal
activities to which the application related, sub-paragraph (1) has effect as ifthe reference to the applicant’s proposed licensing rules were a reference tothose rules excluding any provision made in respect of any activitiesexcluded from the order.
(3) Sub-paragraph (1) is without prejudice to the Board’s power to give
directions under section 32 (powers to direct an approved regulator to takesteps in certain circumstances, including steps to amend its regulatoryarrangements).
P
ART 2
CANCELLATION  OF DESIGNATION  BY ORDER  
Introductory
17 This Part of this Schedule applies where the Board considers that it may be
appropriate for it to make a recommendation under section 76(5).Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 2 — Cancellation of designation by order 179
Notification of the licensing authority
18 (1) The Board must give the licensing authority a notice (“a warning notice”)
accompanied by a draft of the proposed recommendation.
(2) The warning notice must—
(a) state that the Board proposes to make a recommendation under
subsection (5) of section 76 in the form of the accompanying draft,and
(b) state the reasons why the Board is satisfied of the matters mentioned
in paragraphs (a) and (b) of that subsection.
(3) The Board must publish a copy of the warning notice.(4) The licensing authority may make to the Board—
(a) written representations, and
(b) if the Board authorises it to do so, oral representations,
about the proposed recommendation.
(5) The Board must make rules governing the making of oral and written
representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the warning
notice is given to the licensing authority, or
(b) such longer period as the Board may specify in a particular case.
(7) The Board must consider any representations duly made by the licensing
authority.
(8) Where oral representations are duly made, the Board must prepare a report
of those representations.
(9) Before preparing that report, the Board must—
(a) give the licensing authority a reasonable opportunity to comment on
a draft of the report, and
(b) have regard to any comments duly made.
Board’s duty to seek advice
19 (1) After complying with paragraph 18, the Board must give each of the persons
listed in sub-paragraph (2)—
(a) a copy of the warning notice and the accompanying draft,
(b) a copy of any written representations duly made by the licensing
authority under paragraph 18 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 20 to 22 must be given.
(2) Those persons are—
(a) the OFT,
(b) the Consumer Panel,
(c) the Lord Chief Justice, and
(d) such other persons as the Board considers it reasonable to consult in
respect of the proposed recommendation.Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 2 — Cancellation of designation by order180
(3) In this Part of this Schedule, in relation to a proposed recommendation,
“selected consultee” means a person within sub-paragraph (2)(d).
Advice of Office of Fair Trading
20 (1) The OFT must give the Board such advice as it thinks fit regarding whether
the proposed recommendation should be made.
(2) In deciding what advice to give, the OFT must, in particular, have regard to
whether making an order under section 76 in accordance with the proposedrecommendation would (or would be likely to) prevent, restrict or distortcompetition within the market for reser ved legal services to any significant
extent.
Advice of the Consumer Panel
21 (1) The Consumer Panel must give the Board such advice as it thinks fit
regarding whether the proposed recommendation should be made.
(2) In deciding what advice to give, the Co nsumer Panel must, in particular,
have regard to the likely impact on consumers of making an order undersection 76 in accordance wi th the proposed recommendation.
Advice of selected consultees
22 A selected consultee may give the Board such advice as the selected
consultee thinks fit in respect of the proposed recommendation.
Advice of the Lord Chief Justice
23 (1) The Board must give the Lord Chief Justice—
(a) a copy of any advice duly given under paragraphs 20 to 22, and
(b) a notice specifying a period within which advice under this
paragraph must be given.
(2) The Lord Chief Justice must then give  such advice as the Lord Chief Justice
thinks fit in respect of the proposed recommendation.
(3) 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 ofmaking an order under section  76 in accordance with the proposed
recommendation.
Information obtained by consultees
24 A person (“the consultee”) to whom a copy of the warning notice is given
under paragraph 19(1) may, for the purposes of giving advice underparagraphs 20 to 23, request the licensing authority or any other person toprovide the consultee with such additional information as may be specifiedby the consultee.
Representations by the approved regulator etc
25 (1) The Board must—
(a) give the licensing authority a copy of any advice duly given under
paragraphs 20 to 23, andLegal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 2 — Cancellation of designation by order 181
(b) publish that advice together with any written representations duly
made by the licensing authority under paragraph 18 and the report(if any) prepared under that paragraph.
(2) The licensing authority and any body within sub-paragraph (3) may make
to the Board—
(a) written representations, and
(b) if authorised to do so by the Board, oral representations,
about the advice.
(3) A body is within this sub-paragraph if it represents licensed bodies
authorised by the licensing authority to carry on activities which arereserved legal activities.
(4) The Board may allow any other person to make written or oral
representations about the advice.
(5) The Board may make rules governing the making to the Board of written or
oral representations.
(6) Representations under this paragraph must be made within—
(a) the period of 28 days beginning with the day on which the
representations and advice are published under sub-paragraph(1)(b), or
(b) such longer period as the Board may specify in a particular case.
(7) Where oral representations are made, the Board must prepare a report of
those representations.
(8) Before preparing that report, the Board must—
(a) give each person who made oral representations a reasonable
opportunity to comment on a draft of the report of thoserepresentations, and
(b) have regard to any comments duly made.
(9) The Board must, as soon as reasonably practicable after the end of the period
within which representations under this paragraph may be made, publishany written representations duly made and the report (if any) preparedunder sub-paragraph (7).
Publication of advice etc
26 (1) Nothing in paragraph 25 operates—
(a) to prevent a person who gives advice under paragraphs 20 to 23 from
publishing that advice, or
(b) to prevent a person who makes representations under paragraph 18
or 25 from publishing those representations.
(2) A person (“the publisher”) publishing any such material (whether under
paragraph 25 or otherwise) must, so far as practicable, exclude any matterwhich relates to the private affairs of a particular individual the publicationof which, in the opinion of the publ isher, would or might seriously and
prejudicially affect the interests of that individual.
Decision by the Board
27 (1) After considering—Legal Services Act 2007 (c. 29)
Schedule 10 — Designation of approved regulators as licensing authorities
Part 2 — Cancellation of designation by order182
(a) any advice duly given under paragraphs 20 to 23,
(b) any representations duly made under paragraph 18 or 25, and
(c) any other information which the Board considers relevant,
the Board must decide whether to make the proposed recommendation.
(2) The Board must give notice of its decision (“the decision notice”) to the
licensing authority and to the Lord Chancellor.
(3) If the Board decides to make the proposed recommendation, the decision
notice must—
(a) contain the recommendation, and
(b) state why the Board is satisfied of the matters mentioned in section
76(5)(a) and (b).
(4) The Board must publish the decision notice.
SCHEDULE 11 Section 83
LICENSING  RULES
PART 1
LICENSING  PROCEDURE
Applications for licences
1 (1) Licensing rules must make provision about the form and manner in which
applications for licences are to be made, and the fee (if any) which is toaccompany an application.
(2) They may make provision about—
(a) the information which applications must contain, and
(b) the documents which must accompany applications.
Determination of applications
2 (1) Licensing rules must make the following provision about the determination
of applications for licences.
(2) Before the end of the decision period the licensing authority must—
(a) decide the application,
(b) notify the applicant of its decision, and
(c) if it decides to refuse the application, set out in the notice the reasons
for the refusal.
(3) The decision period is the period of 6 months beginning with the day on
which the application is made to the licensing authority in accordance with
its licensing rules.
(4) The licensing authority may, on one or more occasions, give the applicant a
notice (an “extension notice”) extending the decision period by a period
specified in the notice.
(5) But—Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 1 — Licensing procedure183
(a) an extension notice may only be given before the time when the
decision period would end, but for the extension notice, and
(b) the total decision period must not exceed 9 months.
(6) An extension notice must set out the reasons for the extension.
Review of determination
3 Licensing rules must make provision for review by the licensing authority
of—
(a) a decision to refuse an application for a licence;
(b) if a licence is granted, the terms of the licence.
Period of licence and renewal
4 (1) The licensing rules may make provision—
(a) limiting the period for which an y licence is (subject to the provision
of this Part of this Schedule and of  the licensing rules) to remain in
force;
(b) about the renewal of licences, including provision about the form
and manner in which an applicati on for the renewal is to be made,
and the fee (if any) which is to accompany an application.
(2) The licensing rules may make provision about—
(a) the information which applications for renewal must contain, and
(b) the documents which must accompany applications.
(3) Licensing rules must provide that a licence issued to a licensed body by the
licensing authority ceases to have effect if the licensed body is issued with alicence by another licensing authority.
Continuity of licences
5 (1) Licensing rules may make provision ab out the effect, on a licence issued to
a partnership or other unincorporated body (“the existing body”), of anychange in the membership of the existing body.
(2) The provision which may be made includ es provision for the existing body’s
licence to be transferred where the existing body ceases to exist and anotherbody succeeds to the whole or substantially the whole of its business.
Modification of licences
6 (1) Licensing rules must make provision about the form and manner in which
applications are to be made for modification of the terms of a licence undersection 86, and the fee (if any) which is to accompany the application.
(2) They may make provision as to the cir cumstances in which the licensing
authority may modify the terms of a licence under section 86 without anapplication being made.
(3) They must make provision for re view by the licensing authority of—
(a) a decision to refuse an application for modification of the terms of a
licence;
(b) if the licensing authority makes licensing rules under sub-paragraph
(2), a decision under those rules to modify the terms of a licence.Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 1 — Licensing procedure184
Modifications under section 106 or 107
7 (1) Licensing rules must make provision about the form and manner in which
applications are to be made under section 106 or 107, and the fee (if any)which is to accompany the application.
(2) They may make provision as to the matters to which the licensing authority
must have regard in determining whether to make an order under section106, or to revoke or modify such an order.
(3) They must make provision for re view by the licensing authority of—
(a) a decision to refuse an application under those sections;
(b) the terms of any order made under section 106 or any decision under
section 107.
8 (1) Licensing rules must make the fol lowing provision in relation to licensed
bodies to which section 106 applies (“special bodies”), and in relation towhich an order under section 106 has been made.
(2) If a special body becomes a special body of a different kind, it must notify
the licensing authority of that fact before the end of the relevant period.
(3) If a special body ceases to be a special body, it must notify the licensing
authority of that fact before the end of the relevant period.
(4) The relevant period is the period of 30 days (or such longer period as may be
specified in licensing rules) beginning  with the day on which the body first
became a special body of a different kind, or ceased to be a special body.
(5) Licensing rules may make provision requiring a special body to provide the
licensing authority with such information relevant to the matters mentionedin section 106(5) as may be specified in the licensing rules.
P
ART 2
STRUCTURAL  REQUIREMENTS
Management
9 (1) Licensing rules must require a licensed body to comply with the following
requirement at all times.
(2) At least one of the licensed body’s managers must be a person (other than a
licensed body) who is an authorised person in rela tion to a licensed activity.
(3) No manager of the licensed body may be a person who under this Part of this
Act is disqualified from acting as a manager of a licensed body.
10 (1) Licensing rules may make further provision as to—
(a) the managers of licensed bodies, and
(b) the arrangements for the management by them of the licensed body
and its activities.
(2) They must not require all the managers of a licensed body to be authorised
persons in relation to a reserved legal activity.Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 2 — Structural requirements185
Head of Legal Practice
11 (1) Licensing rules must include the following requirements.
(2) A licensed body must at all times have an individual—
(a) who is designated as Head of Legal Practice, and
(b) whose designation is approved by the licensing authority.
(3) A designation of an individual as Head of Legal Practice has effect only
while the individual—
(a) consents to the designation,
(b) is an authorised person in relation to one or more of the licensed
activities, and
(c) is not under this Part of this Act disqualified from acting as Head of
Legal Practice of a licensed body.
(4) The licensing authority may approve a person’s designation only if it is
satisfied that the person is a fit and proper person to carry out the dutiesimposed by section 91 in relation to that body.
(5) The licensing authority may approve a person’s designation in the course of
determining an application for a licence under section 84.
(6) If the licensing authority is satisfied that the person designated as a licensed
body’s Head of Legal Practice has breached a duty imposed by section 91, itmay withdraw its approval of that person’s designation.
12 (1) Licensing rules must make provision—
(a) about the procedures and criteria that will be applied by the
licensing authority when determining under paragraph 11(4)whether an individual is a fit and proper person;
(b) for a review by the licensing authority of a determination under that
paragraph that an individual is not a fit and proper person;
(c) about the procedures and criteria that will be applied by the
licensing authority in determining under paragraph 11(6) whether towithdraw its approval;
(d) for a review by the licensing authority of a determination under that
paragraph to withdraw its approval;
(e) about the procedure which is to apply where a licensed body ceases
to comply with the requirement imposed by virtue of paragraph11(2).
(2) Rules made in accordance with sub-paragraph (1)(e) may in particular
provide that the requirement imposed by virtue of paragraph 11(2) issuspended until such time as may be specified by the licensing authority ifthe licensed body complies with such other requirements as may bespecified in the rules.
Head of Finance and Administration
13 (1) Licensing rules must include the following requirements.
(2) A licensed body must at all times have an individual—
(a) who is designated as Head of Finance and Administration, and
(b) whose designation is approved by the licensing authority.Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 2 — Structural requirements186
(3) A designation of an individual as  Head of Finance and Administration has
effect only while the individual—
(a) consents to the designation, and
(b) is not under this Part of this Act disqualified from acting as Head of
Finance and Administration of a licensed body.
(4) The licensing authority may approve a person’s designation only if it is
satisfied that the person is a fit and proper person to carry out the dutiesimposed by section 92 in relation to that body.
(5) The licensing authority may approve a person’s designation in the course of
determining an application for a licence under section 84.
(6) If the licensing authority is satisfied that the person designated as a licensed
body’s Head of Finance and Administration has breached a duty imposedby section 92, it may withdraw its approval of that person’s designation.
14 (1) Licensing rules must make provision—
(a) about 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;
(b) for a review by the licensing authority of a determination under that
paragraph that an individual is not a fit and proper person;
(c) about the procedures and criteria that will be applied by the
licensing authority in determining under paragraph 13(6) whether towithdraw its approval;
(d) for a review by the licensing authority of a determination under that
paragraph to withdraw its approval;
(e) about the procedure which is to apply where a licensed body ceases
to comply with the requirement imposed by virtue of paragraph13(2).
(2) The rules made in accordance with sub-paragraph (1)(e) may in particular
provide that the requirement imposed by virtue of sub-paragraph 13(2) issuspended until such time as may be specified by the licensing authority ifthe licensed body complies with such other requirements as may bespecified in the rules.
P
ART 3
PRACTICE  REQUIREMENTS
Practising address
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 Englandand Wales.
(2) For this purpose “practising address”, in relation to a licensed body, means
an address from which the body provides services which consist of orinclude the carrying on of reserved legal activities.
(3) This sub-paragraph applies to a licensed body—
(a) which is a company or limited liability partnership, and
(b) the registered office of which is situated in England and Wales (or in
Wales).Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 3 — Practice requirements187
Licensed activities
16 Licensing rules must provide that a licensed body may carry on a licensed
activity only through a person who is entitled to carry on the activity.
Compliance with regulatory arrangements etc
17 (1) Licensing rules must in clude the following provision.
(2) A licensed body must at all times have suitable arrangements in place to
ensure that—
(a) it, and its managers and employees, comply with the duties imposed
by section 176, and
(b) it, and any person to whom sub-paragr aph (3) applies, maintain the
professional principles set out in section 1(3).
(3) This sub-paragraph applies to any manager or employee of the licensed
body who is an authorised person in relation to an activity which is areserved legal activity.
(4) A licensed body must at all times have suitable arrangements in place to
ensure that non-authorised persons subject to the duty imposed by section90 in relation to the licensed body comply with that duty.
(5) Licensing rules may make provision as to the arrangements which are
suitable for the purposes of rules made under sub-paragraphs (2) and (4).
Disqualified employees
18 (1) Licensing rules must include the following requirement.
(2) A licensed body may not employ a person who under this Part of this Act is
disqualified from being an employee of a licensed body.
Indemnification arrangements and compensation arrangements
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
a fund or funds;
(b) authorise or require the licensing authority to take out and maintain
insurance with authorised insurers;
(c) require licensed bodies or licensed bodies of any specific description
to take out and maintain insurance with authorised insurers.
(2) In this paragraph “authorised in surer” has the same meaning as in section
64.
Accounts
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.
(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
managers and employees for clients or other persons.Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 4 — Regulation188
PART 4
REGULATION
Fees
21 (1) The licensing rules must require licensed bodies to pay periodical fees to the
licensing authority.
(2) The rules may provide for the payment of different fees by different
descriptions of licensed body.
Financial penalties
22 The licensing rules must make provision as to—
(a) the acts and omissions in respect  of which the licensing authority
may impose a penalty under section 95, and
(b) the criteria and procedure to be applied by the licensing authority in
determining whether to impose a penalty under that section, and theamount of any penalty.
Disqualifications
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 shouldbe disqualified under section 99.
(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 shouldcease to be in force;
(c) requiring the licensing authority to notify the Board of any
determination by the licensing authority that a person should bedisqualified, of the results of any review of that determination, andof any decision by the licensing authority that a person’sdisqualification should cease to be in force.
Suspension or revocation of licence under section 101
24 (1) Licensing rules must make the following provision.
(2) The licensing authority may suspend or revoke a licensed body’s licence
under section 101 in the following cases.
(3) The first case is that the licensed body becomes a body which is not a
licensable body.
(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—
(a) a non-authorised person holds a restricted interest in the licensed
body—Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 4 — Regulation189
(i) as a result of the person taking a step in circumstances where
that constitutes an offence under paragraph 24(1) of Schedule13 (whether or not the person is charged with or convicted of
an offence under that paragraph),
(ii) in breach of conditions imposed under paragraph 17, 28, or
33 of that Schedule, or
(iii) the person’s holding of which is subject to an objection by the
licensing authority under paragraph 31 or 36 of thatSchedule,
(b) if the relevant licensing rules make the provision mentioned in
paragraph 38(1)(a) of that Schedule, a non-authorised person hasunder those rules a shareholding in the licensed body, or a parentundertaking of the licensed body, which exceeds the share limit,
(c) if the relevant licensing rules make the provision mentioned in
paragraph 38(1)(b) of that Schedule, a non-authorised person hasunder those rules an entitlement to exercise, or control the exerciseof, voting rights in the licensed body or a parent undertaking of thelicensed body which exceeds the voting limit,
(d) if the relevant licensing rules make the provision mentioned in
paragraph 38(1)(c) of that Schedule, the total proportion of shares inthe licensed body or a parent undertaking of the licensed body heldby non-authorised persons exceeds the limit specified in the rules, or
(e) if the relevant licensing rules make the provision mentioned in
paragraph 38(1)(d) of that Schedule, the total proportion of votingrights in the licensed body or a parent undertaking of the licensedbody which non-authorised persons are entitled to exercise, orcontrol the exercise of, exceeds the limit specified in the rules.
(6) The fourth case is that a non-authorised person subject to the duty in section
90 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 176.
(8) The sixth case is that—
(a) the licensed body fails to comply with licensing rules made under
paragraph 9(3) or 18 (prohibition on disqualified managers andemployees), and
(b) the manager or employee concerned was disqualified as a result of
breach of a duty within section 99(4)(c) or (d).
(9) The seventh case is that the licensed body is unable to comply with licensing
rules made under—
(a) paragraph 11 (requirement for Head of Legal Practice), or
(b) paragraph 13 (requirement for Head of Finance and
Administration).
(10) Before suspending or revoking a licence in accordance with sub-paragraph
(2), the licensing authority must give the licensed body notice of itsintention.
(11) The licensing authority may not suspend or revoke the licence before the end
of the period of 28 days beginning with the day on which the notice is givento the licensed body (or any longer period specified in the notice).Legal Services Act 2007 (c. 29)
Schedule 11 — Licensing rules
Part 4 — Regulation190
25 Licensing rules may make provision about other circumstances in which the
licensing authority may exercise its power under section 101 to suspend orrevoke a licence.
26 (1) Licensing rules must make provision about the criteria and procedure the
licensing authority will apply in deciding whether to suspend or revoke alicence, or to end the suspension of a licence, under section 101.
(2) They must make provision for a review by the licensing authority of a
decision by the licensing authority to suspend or revoke a licence.
SCHEDULE 12
Section 84
ENTITLEMENT  TO MAKE  AN APPLICATION  FOR A LICENCE  TO THE BOARD
Application to Board
1 (1) A licensable body may apply to the Board for a decision that the body is
entitled to make an application for a licence to the Board acting in itscapacity as a licensing authority.
(2) An application under sub-paragraph (1) may be made only on one of the
grounds specified in this paragraph.
(3) The first ground is that—
(a) there is no competent licensing authority, and
(b) there is no potentially competent licensing authority.
(4) The second ground is that—
(a) each competent licensing authority has determined that it does not
have suitable regulatory arrangements,
(b) if one or more competent licensing authorities have made an
application to the Board under Part 3 of Schedule 4 for the approvalof alterations of their regulatory arrangements, each of thoseauthorities has determined that it will not have suitable regulatoryarrangements if the application is granted, and
(c) each potentially competent licensing authority has determined that
it will not have suitable regulatory arrangements if it becomes acompetent licensing authority.
(5) The third ground applies only in re lation to a licensable body within sub-
paragraph (6), and is that—
(a) the body has made an application for a licence to each competent
licensing authority which has suitable regulatory arrangements, and
(b) no such licensing authority is prepared to grant the body a licence on
terms which are appropriate to that body, having regard to thematters in section 106(5)(a) to (c) and any other matter specified inrules made by the Board for the purposes of this sub-paragraph.
(6) The licensable bodies with in this sub-paragraph are—
(a) a not for profit body;
(b) a community interest company;
(c) an independent trade union;Legal Services Act 2007 (c. 29)
Schedule 12 — Entitlement to make an application for a licence to the Board191
(d) if an order under section 106(1)(e) so provides in relation to a
description of body prescribed under that section, a body of thatdescription.
Board’s decision on an application under paragraph 1
2 (1) On an application under paragraph 1 the Board must, before the end of the
decision period, decide whether the licensable body is entitled to make anapplication for a licence to the Boar d acting in its capacity as a licensing
authority.
(2) The decision period is—
(a) in relation to an application on the first ground, the period of 14 days
beginning with the day on which the application is made,
(b) in relation to an application on the second ground, the period of 28
days beginning with the day on which the application is made, and
(c) in relation to an application on the third ground, the period of 60
days beginning with the day on which the application is made. 
(3) The Board must give a notice to the licensable body—
(a) stating its decision, and
(b) giving reasons for its decision.
(4) The Board must make rules providing for a review of any decision made by
it under this paragraph.
(5) The rules may in particular provide that if the Board decides to grant the
application, the Board may review that decision if the ground on which theapplication was granted ceases to be made out before the Board (in itscapacity as a licensing authority) determ ines any application for a licence
made by the licensable body.
Licensing authority’s duty to make relevant determinations
3 (1) A licensable body may apply to each competent licensing authority for—
(a) a determination as to whether the authority has suitable regulatory
arrangements;
(b) a statement as to whether the authority has made an application as
mentioned in paragraph 1(4)(b) and if it has, a determination as towhether, if the application  is granted, the authority will have suitable
regulatory arrangements.
(2) A licensable body may apply to each potentially competent licensing
authority for a determination as to wh ether it will have suitable regulatory
arrangements in place if it becomes a competent licensing authority.
(3) A competent (or potentially competent) licensing authority to which a
licensable body makes an application under sub-paragraph (1) or (2) mayrequire the licensable body to provide it with such information in relation tothe licensable body as it may specify.
(4) The authority may specify only information which it reasonably requires for
the purpose of making the determination applied for.
(5) A competent (or potentially competent) licensing authority to which an
application is made under sub-parag raph (1) or (2) must make the
determination before the end of—Legal Services Act 2007 (c. 29)
Schedule 12 — Entitlement to make an application for a licence to the Board192
(a) the decision period, or
(b) if it requires the licensable bod y to provide it with information under
sub-paragraph (3), the period of 28 days beginning with the day onwhich the information is provided.
(6) The decision period, in relation to an application under sub-paragraph (1) or
(2), is the period of 28 days beginning  with the day on which the application
is made.
“The Board”
4 In this Schedule references to the Board, unless otherwise stated, are to the
Board acting otherwise than in its capacity as a licensing authority or an
approved regulator.
“Competent licensing authority”
5 “Competent licensing authority”, in relation to a licensable body, means an
approved regulator designated as a licensing authority in relation to eachreserved legal activity which the licensable body proposes to carry on.
“Potentially competent licensing authority”
6 (1) “Potentially competent licensing authority”, in relation to a licensable body,
means an approved regulator—
(a) which has made an application to the Board under Part 1 of Schedule
10 for a recommendation that the Lord Chancellor make a relevantdesignation order, and whose application has not been determined,or
(b) in respect of which the Board has made such a recommendation, but
in respect of which no relevant designation order (or decision not tomake such an order) has been made by the Lord Chancellor.
(2) A relevant designation order is an order—
(a) designating the approved regulator as a licensing authority in
respect of one or more reserved legal activities, and
(b) the effect of which will be that the approved regulator becomes a
competent licensing authority in relation to the licensable body.
“Suitable regulatory arrangements”
7 (1) “Suitable regulatory arrangements”, in relation to a licensable body and a
competent licensing authority, mean s regulatory arrangements which are
suitable in relation to the licensable body, having regard to—
(a) the composition of the licensab le body, including in particular the
matters in sub-paragraph (2);
(b) the services the licensable body proposes to provide;
(c) if the licensable body proposes to carry on non-reserved activities,
any regulation to which the carrying on of such activities is subject;
(d) the persons to whom the licensable body proposes to provide
services.
(2) The matters are—Legal Services Act 2007 (c. 29)
Schedule 12 — Entitlement to make an application for a licence to the Board193
(a) the kinds of authorised persons who are managers of, or have an
interest in, the licensable body,
(b) the proportion of persons who are managers of, or have an interest
in, the licensable body who are authorised persons or authorisedpersons of a particular kind,
(c) the kinds of non-authorised persons who are managers of, or have an
interest in, the licensable body,
(d) the proportion of persons who are managers of, or have an interest
in, the licensable body who are non-authorised persons or non-authorised persons of a particular kind, and
(e) the kinds of non-authorised persons who have an indirect interest in
the licensable body.
(3) In sub-paragraph (2)—
(a) “authorised person” means a person who is an authorised person in
relation to any activity which is a reserved legal activity, and
(b) authorised persons are of different kinds if they are authorised to
carry on such activities by different approved regulators.
SCHEDULE 13
Section 89
OWNERSHIP  OF LICENSED  BODIES
PART 1
INTRODUCTORY
Restricted interests subject to approval
1 (1) The holding by a non-authorised person of a restricted interest in a licensed
body is subject to the approval of the relevant licensing authority inaccordance with the provisions of this Schedule.
(2) In relation to a licensed body which is a partnership, for the purposes of
section 34 of the Partnership Act 1890 (c. 39) (dissolution by illegality) the
holding by a non-authorised person of a restricted interest in the bodywithout the approval of the relevant licensing authority does not make itunlawful for the business of the partnership to be carried on, or for thepartners to carry it on in partnership.
Restricted interest
2 (1) “Restricted interest” means each of the following—
(a) a material interest;
(b) if licensing rules are made by the relevant licensing authority under
sub-paragraph (2), a controlled interest.
(2) Licensing rules may specify that a controlled interest is a restricted interest
for the purposes of this Schedule.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 1 — Introductory194
Material interest
3 (1) For the purposes of this Part of this Act, a person holds a material interest in
a body (“B”) if the person—
(a) holds at least 10% of the shares in B,
(b) is able to exercise significant influence over the management of B by
virtue of the person’s shareholding in B,
(c) holds at least 10% of the shares in a parent undertaking (“P”) of B,
(d) is able to exercise significant influence over the management of P by
virtue of the person’s shareholding in P,
(e) is entitled to exercise, or control the exercise of, voting power in B
which, if it consists of voting rights, constitutes at least 10% of thevoting rights in B,
(f) is able to exercise significant influence over the management of B by
virtue of the person’s entitlement to exercise, or control the exerciseof, voting rights in B,
(g) is entitled to exercise, or control the exercise of, voting power in P
which, if it consists of voting rights, constitutes at least 10% of thevoting rights in P,
(h) is able to exercise significant influence over the management of P by
virtue of the person’s entitlement to exercise, or control the exerciseof, voting rights in P.
(2) Licensing rules made by the relevant licensing authority may provide—
(a) that the references in sub-paragraph (1) to 10% are to have effect as
references to such lesser percentage as may be specified in the rules;
(b) that in relation to a partnership, for the purposes of this Part a person
has a material interest in the partnership if he is a partner (whetheror not the person has a material interest by virtue of sub-paragraph(1)).
(3) For the purposes of sub-paragraph (1) “the person” means—
(a) the person,
(b) any of the person’s associates, or
(c) the person and any of the person’s associates taken together.
(4) For the purposes of this Schedule, material interests held by virtue of
different paragraphs of sub-paragraph (1) are restricted interests of differentkinds.
Controlled interest
4 (1) For the purposes of this Schedule, a person holds a controlled interest in a
body (“B”) if the person—
(a) holds at least x% of the shares in B,
(b) holds at least x% of the shares in a parent undertaking (“P”) of B,
(c) is entitled to exercise, or control the exercise of, at least x% of the
voting rights in B, or
(d) is entitled to exercise, or control the exercise of, at least x% of the
voting rights in P.
(2) For the purposes of sub-paragraph (1) “the person” means—
(a) the person,Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 1 — Introductory195
(b) any of the person’s associates, or
(c) the person and any of the person’s associates taken together.
(3) In sub-paragraph (1), “x” means such percentage as may be specified in
licensing rules made by the relevant licensing authority under paragraph2(2).
(4) Licensing rules made under paragraph 2(2) may specify more than one
percentage.
(5) Any percentage specified by licensing rules made under paragraph 2(2)
must be greater than—
(a) 10%, or
(b) if the relevant licensing authority makes licensing rules under
paragraph 3(2)(a), the percentage specified in those rules.
(6) For the purposes of this Schedule—
(a) controlled interests held by virtue of different paragraphs of sub-
paragraph (1) are restricted interests of different kinds;
(b) if licensing rules made under paragraph 2(2) specify more than one
percentage, controlled interests held by virtue of each of thosepercentages are restricted interests of different kinds.
Associates, parent undertakings and voting power
5 (1) For the purposes of this Schedule “associate”, in relation to a person (“A”)
and—
(a) a shareholding in a body (“S”), or
(b) an entitlement to exercise or control the exercise of voting power in
a body (“V”),
means a person listed in sub-paragraph (2).
(2) The persons are—
(a) the spouse or civil partner of A,
(b) a child or stepchild of A (if under 18),
(c) the trustee of any settlement under which A has a life interest in
possession (in Scotland a life interest),
(d) an undertaking of which A is a director,
(e) an employee of A,
(f) a partner of A (except, where S or V is a partnership in which A is a
partner, another partner in S or V),
(g) if A is an undertaking—
(i) a director of A,
(ii) a subsidiary undertaking of A, or
(iii) a director or employee of such a subsidiary undertaking,
(h) if A has with any other person an agreement or arrangement with
respect to the acquisition, holding or disposal of shares or otherinterests in S or V (whether or not they are interests within themeaning of section 72(3)), that other person, or
(i) if A has with any other person an agreement or arrangement under
which they undertake to act together in exercising their voting powerin relation to S or V, that person.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 1 — Introductory196
(3) In sub-paragraph (2)(c), “settlement” means any disposition or arrangement
under which property is held on trust (or subject to a comparableobligation).
(4) For the purposes of this Schedule—
“parent undertaking” and “subsidiary undertaking” have the same
meaning as in the Financial Services and Markets Act 2000 (c. 8) (seesection 420 of that Act);
“voting power”, in relation to a body  which does not have general
meetings at which matters are decided by the exercise of votingrights, means the right under the constitution of the body to directthe overall policy of the body or alter the terms of its constitution.
The approval requirements
6 (1) For the purposes of this Schedule, the approval requirements are met in
relation to a person’s holding of a restricted interest if—
(a) the person’s holding of that interest does not compromise the
regulatory objectives,
(b) the person’s holding of that interest does not compromise
compliance with the duties imposed by section 176 by the licensedbody or persons to whom sub-paragraph (2) applies, and
(c) the person is otherwise a fit and proper person to hold that interest.
(2) This sub-paragraph applies to any employee or manager of the licensed
body who is an authorised person in relation to an activity which is areserved legal activity.
(3) In determining whether it is satisfied of the matters mentioned in sub-
paragraph (1)(a) to (c), the licensing authority must in particular have regardto—
(a) the person’s probity and financial position,
(b) whether the person is disqualified as mentioned in section 100(1), or
included in the list kept by the Board under paragraph 51,
(c) the person’s associates, and
(d) any other matter which may be specified in licensing rules.
(4) Licensing rules must make provision about the procedures that will be
applied by the licensing authority when determining whether it is satisfiedof the matters mentioned in sub-paragraph (1)(a) to (c).
Approval of multiple restricted interests
7 (1) This paragraph applies if a person (“P”) holds a kind of restricted interest in
a body (“B”) by virtue of—
(a) holding a particular percentage of the shares in B or a parent
undertaking of B, or
(b) an entitlement to exercise, or control the exercise of, a particular
percentage of the voting rights in B or a parent undertaking of B.
(2) If the relevant licensin g authority approves P’s holding of that interest, it is
to be treated as also approving P’s holding of any lesser restricted interest inB held by P.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 1 — Introductory197
(3) A lesser restricted interest is a kind of restricted interest held by P by virtue
of—
(a) holding a smaller percentage of the shares mentioned in sub-
paragraph (1)(a), or
(b) an entitlement to exercise, or control the exercise of, a smaller
percentage of the voting rights mentioned in sub-paragraph (1)(b).
Board’s power to prescribe rules
8 In this Schedule “prescribed” means prescribed by rules made by the Board
for the purposes of this Schedule.
Lord Chancellor’s power to modify
9 The Lord Chancellor may, on the recommendation of the Board, by order
modify—
(a) paragraph 3 (material interest);
(b) paragraphs 4(2), 5, 6(3)(c), 38(3), 41(3) and 42(3) (associates).
PART 2
APPROVAL  OF RESTRICTED  INTERESTS  ON APPLICATION  FOR LICENCE
Requirement to identify non-authorised persons
10 (1) Where a body applies to a licensing authority for a licence, it must identify
in its application—
(a) any non-authorised person who holds a restricted interest in the
body, or whom the body expects to hold such an interest when thelicence is issued, and
(b) the kind of restricted interest held, or expected to be held, by that
person.
(2) If, before the licence is issued, there is any change in—
(a) the identity of the non-authorised persons within sub-paragraph
(1)(a), or
(b) the kind of restricted interest held, or expected to be held, by a
person identified to the licensing authority under that sub-paragraph,
the applicant must inform the relevant  licensing auth ority within such
period as may be specified by order made by the Lord Chancellor on therecommendation of the Board.
11 (1) It is an offence for a person to fail to comply with a requirement imposed on
the person by paragraph 10.
(2) A person who is guilty of an offence under sub-paragraph (1) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
(3) It is a defence for a person charged with an offence under sub-paragraph (1)
to show that at the time of the alleged offence the person had no knowledgeof the facts by virtue of which the duty to notify arose.
12 (1) This paragraph applies if a person under a duty to notify imposed by
paragraph 10—Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 2 — Approval of restricted interests on application for licence198
(a) had no knowledge of the facts by virtue of which that duty arose, but
(b) subsequently becomes aware of those facts.
(2) The person must give the licensing authority the required notification
within such period, after the person becomes so aware, as may be specifiedby order made by the Lord Chancellor on the recommendation of the Board.
(3) A person who fails to comply with the duty to notify imposed by sub-
paragraph (2) is guilty of an offence.
(4) A person who is guilty of an offence under sub-paragraph (3) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
Requirement to notify non-authorised persons
13 (1) Where an applicant for a licence identifies a non-authorised person to a
licensing authority in accordance with  paragraph 10 or 12, it must give that
person a notice—
(a) stating that it has applied for a licence and identified the person to
the licensing authority in a ccordance with paragraph 10 or 12, and
(b) explaining the ef fect of paragraph 14.
(2) It is an offence for a person to fail to comply with a requirement imposed on
it by sub-paragraph (1).
(3) A person who is guilty of an offence under sub-paragraph (2) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
Licensing authority’s power to require information
14 (1) A licensing authority may require a non-authorised person identified to it in
accordance with paragraph 10 or 12 to provide it with such documents and
information as it may require.
(2) It is an offence for a person wh o is required to provide information or
documents under sub-paragraph (1) knowingly to provide false ormisleading information or documents. 
(3) A person who is guilty of an offence under sub-paragraph (2) is liable—
(a) on summary conviction, to a fine not exceeding the statutory
maximum, and
(b) on conviction on indictment,  to a term of imprisonment not
exceeding 2 years or a fine (or both).
Licence may not be granted unless non-authorised persons approved
15 (1) This paragraph applies where an applicant for a licence (“the applicant”)
gives the licensing authority notification under paragraph 10 or 12 inrelation to one or more non-authorised persons.
(2) The licensing authority may not grant the application for a licence unless, in
relation to each non-authorised person in respect of which notification isgiven (“the investor”), it approves the investor’s hol ding of the restricted
interest to which the notification relates (“the notified interest”).
(3) Sub-paragraph (2) does not apply in relation to a non-authorised person
who does not hold the notified interest when the licence is issued.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 2 — Approval of restricted interests on application for licence199
(4) In this Part of this Schedule, “the applic ant”, “the investor” and “the notified
interest” are to be construed in ac cordance with this paragraph.
Unconditional approval of notified interest
16 (1) If the licensing authority is satisfied that the approval requirements are met
in relation to the investor’s holding of the notified interest, it must approvethe investor’s holding of that interest without conditions.
(2) If the licensing authority approves th e investor’s holding of the notified
interest without conditions, it must notify the investor and the applicant ofits approval as soon as reasonably practicable.
Conditional approval of notified interest
17 (1) If the licensing authority is not satisfied that the approval requirements are
met in relation to the investor’s holding of the notified interest, it mayapprove the investor’s holding of the notified interest subject to conditions.
(2) It may do so only if it considers that, if the conditions are complied with, it
will be appropriate for the investor to hold the notified interest without theapproval requirements being met.
(3) If the licensing authority proposes to approve the investor’s holding of the
notified interest subject to conditions it must give the investor and theapplicant a warning notice.
(4) The warning notice must—
(a) specify the nature of the conditions proposed and the reasons for
their imposition, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(5) The licensing authority must consider any representations made within the
prescribed period.
(6) If the licensing authority approves th e investor’s holding of the notified
interest subject to conditions, it must notify the investor and the applicant ofits approval as soon as reasonably practicable.
(7) The notice must—
(a) specify the reasons for the imposition of the conditions, and
(b) explain the effect of Part 5 of this Schedule.
18 (1) The investor and the applicant may before the end of the prescribed period
appeal to the relevant appellate body against the imposition of any or all ofthe conditions.
(2) The relevant appellate body may dismiss the appeal, or allow the appeal
and—
(a) order the licensing authority to approve the investor’s holding of the
notified interest without conditions, or subject to such conditions asmay be specified in the order, or
(b) remit the matter to the licensing authority.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 2 — Approval of restricted interests on application for licence200
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellant body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.(5) If the investor’s holding of the notified interest is subject to conditions as a
result of an order made on an appeal under this paragraph, for the purposesof this Schedule the conditions are to be treated as having been imposedunder paragraph 17.
Objection to notified interest
19 (1) If the licensing authority is not satisfied that the approval requirements are
met in relation to the investor’s holding of the notified interest, it may object
to the investor’s holding of that interest.
(2) If the licensing authority proposes to object to the investor’s holding of the
notified interest, it must give the investor and the applicant a warningnotice.
(3) The warning notice must—
(a) specify the reasons for the proposed objection, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(4) The licensing authority must consider any representations made within the
prescribed period.
(5) If the licensing authority objects to the investor’s holding of the notified
interest, it must notify the investor and the applicant of its objection as soonas reasonably practicable.
(6) The notice must—
(a) specify the reasons for the objection, and
(b) explain the effect of Part 5 of this Schedule.
20 (1) The investor and the applicant may before the end of the prescribed period
appeal to the relevant appellate body against the objection.
(2) The relevant appellate body may dismiss the appeal, or allow the appeal
and—
(a) order the licensing authority to approve the investor’s holding of the
notified interest without conditions, or subject to such conditions asmay be specified in the order, or
(b) remit the matter to the licensing authority.
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellate body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.
(5) If the investor’s holding of the notified interest is subject to conditions as a
result of an order made on an appeal under this paragraph, for the purposesof this Schedule the conditions are to be treated as having been imposed
under paragraph 17.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued201
PART 3
APPROVAL  OF RESTRICTED  INTERESTS  AFTER  LICENCE  IS ISSUED
Powers of licensing authority in relation to change of interests
Continuing notification requirements
21 (1) This paragraph applies where a non-authorised person (“the investor”)—
(a) proposes to take a step which would result in the investor acquiring
a restricted interest in a licensed body (or, if the investor already hasone or more kinds of restricted interest, acquiring an additional kindof restricted interest), or
(b) acquires such an interest in a licensed body without taking such a
step.
(2) In a case within sub-paragraph (1)(a) the investor must notify the licensed
body and the relevant licensing authority of the proposal.
(3) In a case within sub-paragraph (1)(b) the investor must notify the licensed
body and the relevant licensing authority of the acquisition within suchperiod, after the investor becomes aware of it, as may be specified by ordermade by the Lord Chancellor on the recommendation of the Board.
(4) In this Part of this Schedule—
(a) references to “the investor” are to be construed in accordance with
this paragraph, and
(b) references to a notifiable interest are to the restricted interest which
the investor will have as a result of the step the investor proposes totake (or has as a result of the acquisition which has taken place).
Offences in connection with paragraph 21
22 (1) It is an offence for a person to fail to comply with a requirement imposed
by—
(a) paragraph 21(2), or
(b) paragraph 21(3).
(2) A person who is guilty of an offence under sub-paragraph (1) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
(3) It is a defence for a person charged with an offence under sub-paragraph
(1)(a) to show that at the time of the alleged offence the person had noknowledge of the facts by virtue of which the duty to notify arose.
23 (1) This paragraph applies if a person under the duty to notify imposed by
paragraph 21(2)—
(a) had no knowledge of the facts by virtue of which that duty arose, but
(b) subsequently becomes aware of those facts.
(2) The person must give the licensed body and the licensing authority the
required notification within such period, after the person becomes so aware,as may be specified by order made by the Lord Chancellor on therecommendation of the Board.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued202
(3) A person who fails to comply with the duty to notify imposed by sub-
paragraph (2) is guilty of an offence.
(4) A person who is guilty of an offence under sub-paragraph (3) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
24 (1) It is an offence for a non- authorised person, who under paragraph 21(2) is
required to notify the licensed body and the relevant licensing authority ofa proposal to take a step, to take the step, unless the relevant licensingauthority has approved the investor’s ho lding of the notifiable interest
under paragraph 27 or 28.
(2) If paragraph 22(3) applies, the refe rence in sub-paragraph (1) to paragraph
21(2) is to be read as a reference to paragraph 23(2).
(3) A person who is guilty of an offence under sub-paragraph (1) is liable—
(a) on summary conviction, to a fine not exceeding the statutory
maximum, and
(b) on conviction on indictment,  to a term of imprisonment not
exceeding 2 years or a fine (or both).
Duty of licensing authority following notification etc.
25 (1) The relevant licensing authority must—
(a) following receipt of a notification under paragraph 21(2) or (3) or
23(2), or
(b) if the licensing authority becomes aware that an investor has failed
to comply with a notification requirement imposed by paragraph21(2) or (3) or 23(2),
determine which of the steps in sub-paragraph (3) to take.
(2) The licensing authority must make the determination within such period as
may be prescribed.
(3) The steps are—
(a) to approve the investor’s holding of the notifiable interest
unconditionally under paragraph 27,
(b) to warn the investor under paragraph 28(3) that it proposes to
approve the investor’s holding of the notifiable interest subject toconditions,
(c) to approve under paragraph 28(4) the investor’s holding of the
notifiable interest subject to conditions,
(d) to warn the investor under paragraph 31(2) that it proposes to object
to the investor’s holding of the notifiable interest, or
(e) to object under paragraph 31(3) to the investor’s holding of the
notifiable interest.
Licensing authority’s power to require information
26 (1) A licensing authority may requ ire the investor to provide it with such
documents and information as it may require.
(2) It is an offence for a person wh o is required to provide information or
documents under sub-paragraph (1) knowingly to provide false ormisleading information or documents. Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued203
(3) A person who is guilty of an offence under sub-paragraph (2) is liable—
(a) on summary conviction, to a fine not exceeding the statutory
maximum, and
(b) on conviction on indictment,  to a term of imprisonment not
exceeding 2 years or a fine (or both).
Unconditional approval of notifiable interest
27 (1) If the licensing authority is satisfied that the approval requirements are met
in relation to the investor’s holding of  the notifiable interest, it must approve
the investor’s holding of that interest without conditions.
(2) If the licensing authority approves the investor’s holding of the notifiable
interest without conditions, it must notify the investor and the licensed bodyof its approval as soon as reasonably practicable.
Conditional approval of notifiable interest
28 (1) If the licensing authority is not satisfied that the approval requirements are
met in relation to the investor’s holdi ng of the notifiable interest, it may
approve the investor’s holding of that interest subject to conditions.
(2) It may do so only if it considers that, if the conditions are complied with, it
will be appropriate for the investor to hold the notifiable interest without theapproval requirements being met.
(3) If the licensing authority proposes to approve the investor’s holding of the
notifiable interest subject to conditions it must give the investor and thelicensed body a warning notice.
(4) But the licensing authority may approv e the investor’s holding of the
notifiable interest subject to conditions without giving a warning notice if itconsiders it necessary or desirable to do so for the purpose of protecting anyof the regulatory objectives.
(5) The warning notice must—
(a) specify the nature of the conditions proposed and the reasons for
their imposition, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(6) The licensing authority must consider any representations made within the
prescribed period.
(7) If the licensing authority approves the investor’s holding of the notifiable
interest subject to conditions, it must notify the investor and the licensedbody of its approval as soon as reasonably practicable.
(8) The notice must—
(a) specify the reasons for the imposition of the conditions and (if the
investor already holds the notifiable interest) the time from whichthey have effect, and
(b) explain the effect of Part 5 of this Schedule.
29 (1) The investor and the licensed body may before the end of the prescribed
period appeal to the relevant appellate body against the imposition of any
or all the conditions.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued204
(2) The relevant appellate body may dismiss the appeal, or allow the appeal
and—
(a) order the licensing authority to approve the investor’s holding of the
notifiable interest without conditions, or subject to such conditionsas may be specified in the order, or
(b) remit the matter to the licensing authority.
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellate body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.(5) If the investor’s holding of the notifiable interest is subject to conditions as a
result of an order made on an appeal under this paragraph, for the purposesof this Schedule the conditions are to be treated as having been imposedunder paragraph 28.
Duration of unconditional or conditional approval
30 In a case within paragraph 21(1)(a), the licensing authority’s approval under
paragraph 27 or 28 remains effective  only if the in vestor acquires the
notifiable interest—
(a) before the end of such period as may be specified in the notice under
paragraph 27(2) or 28(7), or
(b) if no such period is specified, before the end of the period of one year
beginning with the date of that notice.
Objection to acquisition of notifiable interest
31 (1) If the licensing authority is not satisfied that the approval requirements are
met in relation to the investor’s holdi ng of the notifiable interest, it may
object to the investor’s holding of that interest.
(2) If the licensing authority proposes to object to the investor’s holding of the
notifiable interest, it must give the invest or and the licensed body a warning
notice.
(3) But the licensing authority may object to the investor’s holding of the
notifiable interest without giving a warning notice if it considers it necessaryor desirable to do so for the purpose of protecting any of the regulatoryobjectives.
(4) The warning notice must—
(a) specify the reasons for the proposed objection, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(5) The licensing authority must consider any representations made within the
prescribed period.
(6) If the licensing authority objects to the investor’s holding of the notifiable
interest, it must notify the investor and the licensed body of its objection assoon as reasonably practicable.
(7) The notice must—
(a) specify the reasons for the objection, andLegal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued205
(b) explain the effect of Part 5 of this Schedule.
32 (1) The investor and the licensed body may before the end of the prescribed
period appeal to the relevant appellate body against the objection.
(2) The relevant appellate body may dismiss the appeal, or allow the appeal
and—
(a) order the licensing authority to approve the investor’s holding of the
notifiable interest without conditions, or subject to such conditionsas may be specified in the order, or
(b) remit the matter to the licensing authority.
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellant body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.
(5) If the investor’s holding of the notifiable interest is subject to conditions as a
result of an order made on an appeal under this paragraph, for the purposesof this Schedule the conditions are to be treated as having been imposedunder paragraph 28.
Powers of licensing authority where no change of interests
Imposition of conditions (or further conditions) on existing restricted interest
33 (1) The relevant licensing author ity may impose conditions (or further
conditions) on a person’s holding of a restricted interest in a licensed body(or a restricted interest of a particular kind) if—
(a) it is not satisfied that the approval requirements are met in relation
to the person’s holding of that interest, or
(b) it is satisfied that a condition imposed under paragraph 17 or 28 or
this paragraph on the person’s holding of that interest has not been,or is not being, complied with.
(2) The licensing authority may act under sub-paragraph (1) only—
(a) if it considers that, if the conditions are complied with, it will be
appropriate for the investor to hold the restricted interest without theapproval requirements being met, and
(b) before the end of such period (beginning with the time when the
licensing authority becomes aware of the matters in question) as maybe prescribed.
(3) If the licensing authority pr oposes to impose conditions (or further
conditions) on the person’s holding of the restricted interest, it must give the
person and the licensed body a warning notice.
(4) But the licensing authority may impose con ditions (or further conditions) on
the person’s holding of the restricted interest without giving a warningnotice if it considers it necessary or desirable to do so for the purpose ofprotecting any of the regulatory objectives.
(5) The warning notice must—
(a) specify the nature of the conditions proposed and the reasons for
their imposition, andLegal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued206
(b) state that representations may be made to the licensing authority
within the prescribed period.
(6) The licensing authority must consider any representations made within the
prescribed period.
(7) If the licensing authority imposes condit ions (or further conditions) on the
person’s holding of the restricted interest, it must notify the person and thelicensed body as soon as reasonably practicable.
(8) The notice must—
(a) specify the reasons for the imposition of the conditions, and the time
from which they are to take effect, and
(b) explain the effect of Part 5 of this Schedule.
34 (1) The person and the licensed body may before the end of the prescribed
period appeal to the relevant appellate body against any or all of theconditions (or further conditions).
(2) The relevant appellate body may dismiss the appeal, or allow the appeal
and—
(a) modify or quash the conditions imposed by the licensing authority
under paragraph 33, or
(b) remit the matter to the licensing authority.
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellate body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.
(5) If the person’s holding of the restricted interest is  subject to any conditions
a s  a  r e s u l t  o f  a n  o r d e r  m a d e  o n  a n  a p p e a l  u n d e r  t h i s  p a r a g r a p h ,  f o r  t h epurposes of this Schedule those conditions are to be treated as having beenimposed under paragraph 33.
Variation and cancellation of conditions
35 (1) A person whose holding of a restricted interest in a licensed body is subject
to a condition imposed under paragraph 17, 28 or 33 may apply to therelevant licensing authority—
(a) for the condition to be varied, or
(b) for the condition to be cancelled.
(2) The licensing authority may, on its own initiative, cancel a condition
imposed under one of those paragraphs.
(3) If the licensing authority varies or cancels a condition under this paragraph,
it must notify the person and the licensed body as soon as reasonablypracticable.
Objection to existing restricted interest
36 (1) The relevant licensing authority may object to a person’s holding of a
restricted interest in a licensed body (or a restricted interest of a particularkind) if—Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 3 — Approval of restricted interests after licence is issued207
(a) it is not satisfied that the approval requirements are met in relation
to the person’s holding of that interest, or
(b) it is satisfied that a condition imposed under paragraph 17, 28 or 33
on the person’s holding of the interest has not been, or is not being,complied with.
(2) The licensing authority may act under sub-paragraph (1) only before the end
of such period (beginning with the time when the licensing authoritybecomes aware of the matters in question) as may be prescribed.
(3) If the licensing authority proposes to object to a person’s holding of the
restricted interest, it must give the person and the licensed body a warningnotice.
(4) But the licensing authority may object to the person’s holding of the
restricted interest without giving a warning notice if it considers it necessaryor desirable to do so for the purpose of protecting any of the regulatoryobjectives.
(5) The warning notice must—
(a) specify the reasons for the proposed objection, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(6) The licensing authority must consider any representations made within the
prescribed period.
(7) If the licensing authority objects to the person’s holding of the restricted
interest, it must notify the person and the licensed body of its objection assoon as reasonably practicable.
(8) The notice must—
(a) specify the reasons for the objection, and
(b) explain the effect of Part 5 of this Schedule.
37 (1) The person and the licensed body may before the end of the prescribed
period appeal to the relevant appellate body against the objection.
(2) The relevant appellate body may dismiss or allow the appeal.
(3) If the relevant appellate body allows the appeal it may also—
(a) order the licensing authority to impose under paragraph 33 such
conditions on the person’s holding of the restricted interest as maybe specified in the order, or
(b) remit the matter to the licensing authority.
(4) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellant body, but only with the permission of the High Court.
(5) The High Court may make such order as it thinks fit.(6) If the person’s holding of the restricted interest is subject to conditions as a
result of an order made on an appeal under this paragraph, for the purposesof this Schedule the conditions are to be treated as having been imposedunder paragraph 33.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 4 — Additional restrictions208
PART 4
ADDITIONAL  RESTRICTIONS
Power to impose share limit, voting limit etc
38 (1) Licensing rules may provide that—
(a) a non-authorised person may not have a shareholding in a licensed
body, or in a parent undertaking of a licensed body, which exceeds alimit specified in the rules (“the share limit”);
(b) a non-authorised person may not have an entitlement to exercise, or
control the exercise of, voting rights in a licensable body, or a parentundertaking of a licensable body, which exceeds a limit specified inthe rules (“the voting limit”);
(c) the total proportion of shares in a licensed body, or a parent
undertaking of a licensed body, held by non-authorised persons maynot exceed a limit specified in the rules;
(d) the total proportion of voting rights in a licensed body, or a parent
undertaking of a licensed body, which non-authorised persons areentitled to exercise or control the exercise of, may not exceed a limitspecified in the rules.
(2) Rules made under any paragraph of sub-paragraph (1) in relation to a
licensed body and a parent undertaking may specify different limits inrelation to the licensed body and the parent undertaking.
(3) Licensing rules made under sub-paragraph (1)(a) or (b) may provide that
references in those rules to a person, in relation to a person’s shareholdingor entitlement to exercise or control the exercise of voting rights, are to—
(a) the person,
(b) any of the person’s associates, or
(c) the person and any of the person’s associates taken together.
(4) In relation to a licensed body which is a partnership, for the purposes of
section 34 of the Partnership Act 1890 (c. 39) (dissolution by illegality) abreach of licensing rules made under sub-paragraph (1) does not make itunlawful for the business of the partnership to be carried on, or for thepartners to carry it on in partnership.
Obligation to notify where share limit or voting limit exceeded
39 (1) This paragraph applies in relation to a licensed body, or a parent
undertaking of a licensed body, if licensing rules made by the relevantlicensing authority make the provision mentioned in paragraph 38(1)(a) or(b) in relation to the body.
(2) Any non-authorised person who acquires—
(a) a shareholding in the body which exceeds the share limit, or
(b) an entitlement to exercise, or control the exercise of, voting rights in
the body which exceeds the voting limit,
must notify the body (and, if the body is a parent undertaking of a licensed
body, the licensed body) and the licensing authority of the acquisitionwithin such period, after the person becomes aware of it, as may be specified
by order made by the Lord Chancellor on the recommendation of the Board.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 4 — Additional restrictions209
(3) It is an offence for a person to fail to comply with a requirement imposed by
sub-paragraph (2).
(4) A person who is guilty of an offence under sub-paragraph (3) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
(5) It is a defence for a person charged with an offence under sub-paragraph (3)
to show that at the time of the alleged offence the person had no knowledgeof the facts by virtue of which the duty to notify arose.
40 (1) This paragraph applies if a person under the duty to notify imposed by
paragraph 39(2)—
(a) had no knowledge of the facts by virtue of which that duty arose, but
(b) subsequently becomes aware of those facts.
(2) The person must give the body (and, if the body is a parent undertaking of
a licensed body, the licensed body) and the licensing authority the requirednotification within such period, after the person becomes so aware, as maybe specified by order made by the Lord Chancellor on the recommendationof the Board.
(3) A person who fails to comply with the duty to notify imposed by sub-
paragraph (2) is guilty of an offence.
(4) A person who is guilty of an offence under sub-paragraph (3) is liable on
summary conviction to a fine not exceeding level 5 on the standard scale.
P
ART 5
ENFORCEMENT
Divestiture
The divestiture condition
41 (1) The divestiture condition is satisfi ed in relation to a non-authorised person
and a licensed body if—
(a) the person holds a restricted interest in the licensed body in the
circumstances mentioned in sub-paragraph (2), and
(b) the person holds that interest, in whole or in part, by virtue of the
person’s shareholding in a body corporate with a share capital (inthis Part of this Schedule referred to as “the relevant shares”).
(2) The circumstances are that the person holds the restricted interest—
(a) as a result of the person taking a step in circumstances in which that
constitutes an offence under paragraph 24(1) (whether or not theperson is charged with or convicted of an offence under thatparagraph),
(b) in breach of conditions imposed under paragraph 17, 28, or 33, or
(c) in contravention of an objection by the licensing authority under
paragraph 31 or 36.
(3) In sub-paragraph (1)(b), references to a person’s shareholding are to be read
in accordance with paragraph 3(3) or 4(2) (as the case may be).Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 5 — Enforcement210
42 (1) If the relevant licensing rules make the provision mentioned in paragraph
38(1)(a) or (b), the divestiture condition is also satisfied in relation to a non-authorised person and a licensed body if—
(a) the person’s shareholding in the body, or a parent undertaking of the
body, exceeds the share limit, and the body or parent undertaking (asthe case may be) is a body corporate with a share capital, or
(b) the person’s entitlement to exercise or control the exercise of voting
rights in the body, or a parent undertaking of the body, exceeds thev o t i n g  l i m i t  b y  v i r t u e  o f  t h e  p e r s o n  h o l d i n g  s h a r e s  i n  a  b o d ycorporate with a share capital.
(2) In this Part of this Schedule, “excess shares” means 
(a) in a case within sub-paragraph (1)( a), the number of shares by which
the person’s shareholding exceeds the share limit, and
(b) in a case within sub-paragraph (1)(b), the number of shares held by
the person in excess of the number of shares the person could holdwithout the person’s entitlement to exercise, or control the exerciseof, voting rights exceeding the voting limit.
(3) References in this paragraph to a person’s shareholding (or holding of
shares) or entitlement are to be read in accordance with any applicablelicensing rules made under paragraph 38(3).
Application for divestiture
43 (1) If the divestiture condition is satisfied in relation to a non-authorised person
and a licensed body, the licensing authority may give the person a restrictionnotice under paragraph 44 and apply to the High Court for an order underparagraph 45.
(2) The licensing authority may not make an application to the High Court for
an order under paragraph 45 unless—
(a) it has notified the person that it intends to do so if the divestiture
condition is satisfied in relation to the person and the body at the endof the relevant period, and
(b) the relevant period has expired.
(3) The relevant period is such period (not less than the prescribed period) as
may be specified in the notice.
Restriction notice
44 (1) A restriction notice is a notice dire cting that such of the relevant shares or
excess shares (as the case may be) as are specified in the notice are, untilfurther notice, subject to one or more of the following restrictions.
(2) The restrictions are—
(a) a transfer of (or agreement to transfer) those shares, or in the case of
unissued shares a transfer of (or agreement to transfer) the right to beissued with them, is void;
(b) no voting rights are to be exercisable in respect of the shares;
(c) no further shares are to be issued in right of them or in pursuance of
any offer made to their holder;Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 5 — Enforcement211
(d) except in a liquidation, no payment is to be made of any sums due
from the company on the shares, whether in respect of capital orotherwise.
(3) A copy of the restriction notice must be given to the body to whose shares it
relates.
(4) A restriction notice ceases to have effect—
(a) in accordance with an order of the High Court under paragraph
45(4);
(b) if no application has been made to the High Court for an order under
paragraph 45 before the end of such period as may be prescribed, atthe end of that period;
(c) if the licensed body ceases to be licensed by the licensing authority.
Divestiture by High Court
45 (1) If the divestiture condition is satisfied by virtue of paragraph 41 the High
Court may, on the application of the licensing authority, order the sale of the
appropriate number of the relevant shares.
(2) The appropriate number of the relevant shares is the number of those shares,
the sale of which will result in the non-authorised person no longerholding—
(a) a restricted interest in the licensed body, or
(b) if the non-authorised person holds more than one kind of restricted
interest, a restricted interest the person’s holding of which is within
paragraph 41(2).
(3) If the divestiture condition is satisfied by virtue of paragraph 42 the High
Court may, on the application of the licensing authority, order the sale of the
excess shares.
(4) If shares are for the time bein g subject to any restriction under paragraph 44,
the court may order that they are to cease to be subject to that restriction.
(5) If the divestiture condition is satisfied by virtue of paragraph 41(2)(b) or (c),
no order may be made under sub-paragraph (1) or (4)—
(a) until the end of the period within which an appeal may be made
against the imposition of the conditions or the objection, or
(b) if an appeal is made, until the appeal has been determined or
withdrawn.
(6) If an order has been made under sub-paragraph (1) or (3) the court may, on
the application of the licensing author ity, make such further order relating
to the sale or transfer of the shares as it thinks fit.
(7) If shares are sold in pursuance of an order under this paragraph, the
proceeds of sale, less the costs of sale, must be paid into court for the benefitof the persons beneficially interested in them.
(8) Any such person may apply to the court for the whole or part of the proceeds
to be paid to the person.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 5 — Enforcement212
Conditions
Enforcement of conditions
46 (1) If a person holds a restricted in terest in a licensed body in breach of
conditions imposed under paragraph 17, 28 or 33, the licensing authoritymay make an application to the High Court for an order under thisparagraph.
(2) The licensing authority may not make such an application unless—
(a) it has notified the person that it intends to do so if the conditions are
not complied with before the end of the relevant period, and
(b) the relevant period has expired.
(3) The relevant period is such period (not less than the prescribed period) as
may be specified in the notice.
(4) The High Court may, on the application of the licensing authority, make
such order as the court thinks fit to secure compliance with the conditions towhich the person’s holding of the restricted interest is subject.
(5) No order may be made under this paragraph—
(a) until the end of the period within which an appeal may be made
against the imposition of the conditions, or
(b) if an appeal is made, until the appeal has been determined or
withdrawn.
Records of decisions
Duty to notify Board of decisions under this Schedule
47 (1) The relevant licensing authority must notify the Board where—
(a) it has objected under paragraph 19, 31, or 36 to a person’s holding of
a restricted interest, or
(b) it has imposed conditions under paragraph 17, 28, or 33 on a person’s
holding of a restricted interest.
(2) The notification must state—
(a) the reasons for the objection or imposition of conditions, and
(b) the kind of restricted interest to which the objection or conditions
related.
(3) If the licensing authority takes any action under paragraph 43 in relation to
a person notified to the Board under sub-paragraph (1), it must notify theBoard of that fact.
(4) If there is an appeal to the relevant appellate body against the objection or
imposition of conditions, the licensing authority must notify the Board of theoutcome of that appeal (and any subsequent appeal to the High Court).
(5) If the licensing authority has imposed conditions on a person’s holding of a
restricted interest, it must notify the Board of any decision taken by it underparagraph 35 (variation an d cancellation of conditions).
(6) The licensing authority must give the person and the licensed body
concerned a copy of any notification it gives the Board under this paragraph.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 5 — Enforcement213
48 (1) A licensing authority must notify the Board where under paragraph 16, 17,
27 or 28 it approves the holding of a restricted interest in a licensed body bya person included in the list kept by the Board under paragraph 51.
(2) The notification must state—
(a) if the approval was under paragraph 17 or 28, the conditions to
which the approval was subject, and
(b) the reasons for the licensing authority’s decision to approve the
person’s holding of the interest.
(3) If the approval was under paragraph 17 or 28 and there is an appeal to the
relevant appellate body against the imposi tion of conditions, the licensing
authority must notify the Board of the outcome of that appeal (and anysubsequent appeal to the High Court).
(4) If the approval was under paragraph 17 or 28, the licensing authority must
notify the Board of any decision taken by it under paragraph 35 (variationand cancellation of conditions).
(5) The licensing authority must give the person and the licensed body
concerned a copy of any notification it gives the Board under this paragraph.
Power to notify Board where share limit or voting limit breached
49 (1) This paragraph applies if the rele vant licensing rules make the provision
mentioned in paragraph 38(1)(a) or (b).
(2) The licensing authority may, if it considers it appropriate to do so in all the
circumstances of the case, notify the Board where a non-authorised personacquires—
(a) a shareholding in a licensed body or parent undertaking of a licensed
body which exceeds the share limit, or
(b) an entitlement to exercise, or control the exercise of, voting rights in
a licensed body or parent undertaking of a licensed body whichexceeds the voting limit.
(3) If the licensing authority proposes to make a notification under sub-
paragraph (2), it must give the person and the licensed body a warningnotice.
(4) The warning notice must—
(a) specify the reasons for the proposed notification, and
(b) state that representations may be made to the licensing authority
within the prescribed period.
(5) The licensing authority must consider any representations made within the
prescribed period.
(6) If the licensing authority notifies the Board under sub-paragraph (2), it must
give the person concerned and the licensed body a copy of the notificationand a notice stating the reasons for the notification.
(7) If the share limit or voting limit is breached in relation to a parent
undertaking of a licensed body, references in sub-paragraphs (3) and (6) tothe licensed body include the parent undertaking.Legal Services Act 2007 (c. 29)
Schedule 13 — Ownership of licensed bodies
Part 5 — Enforcement214
50 (1) The person concerned and the licensed body may before the end of the
prescribed period appeal to the relevant appellate body against thenotification.
(2) The relevant appellate body may—
(a) dismiss the appeal, or
(b) allow the appeal and order the person’s name to be removed from
the list kept by the Board under paragraph 51.
(3) A party to the appeal may before the end of the prescribed period appeal to
the High Court on a point of law arising from the decision of the relevantappellant body, but only with the permission of the High Court.
(4) The High Court may make such order as it thinks fit.
(5) The licensing authority must notify the Board of the outcome of any appeal
under this paragraph, and give the person concerned and the licensed bodya copy of the notification.
(6) If the share limit or voting limit is breached in relation to a parent
undertaking of a licensed body, references in sub-paragraphs (1) and (5) tothe licensed body include the parent undertaking.
Board’s list of persons subject to objections and conditions
51 (1) The Board must keep a list of the persons in respect of which it receives a
notification under paragraph 47(1) or 49(2).
(2) The list must record—
(a) in relation to a person notified to the Board under paragraph 47(1),
the information included in the notification by virtue of paragraph
47(2) and any notification under paragraph 47(3), and
(b) in relation to any person included in the list, the information
included in any notification relating to that person under paragraph48.
(3) If the Board receives a notification under paragraph 47(4) or (5), 48(3) or (4)
or 50(5) it must make such alterations to the list as it considers appropriatehaving regard to the decision of the licensing authority or the outcome of theappeal (which may include removing a person from the list).
(4) The Board must make the list kept by it under this paragraph available to
every licensing authority.
SCHEDULE 14
Section 102
LICENSING  AUTHORITY ’S POWERS  OF INTERVENTION
Introductory
1 (1) This Schedule applies—
(a) where, in relation to a licensed body and the relevant licensing
authority, one or more of the intervention conditions is satisfied;
(b) where a licence granted to a body has expired (and has not been
renewed or replaced by the relevant licensing authority). Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention215
(2) The intervention conditions are—
(a) that the licensing authority is satisfied that one or more of the terms
of the licensed body’s licence have not been complied with;
(b) that a person has been appointed receiver or manager of property of
the licensed body;
(c) that a relevant insolvency event has occurred in relation to the
licensed body;
(d) that the licensing authority has reason to suspect dishonesty on the
part of any manager or employee of the licensed body in connectionwith—
(i) that body’s business,
(ii) any trust of which that body is or was a trustee,
(iii) any trust of which the manager or employee of the body is or
was a trustee in that person’s capacity as such a manager oremployee, or
(iv) the business of another body in which the manager or
employee is or was a manager or employee, or the practice(or former practice) of the manager or employee;
(e) that the licensing authority is satisfied that there has been undue
delay—
(i) on the part of the licensed body in connection with any
matter in which it is or was acting  for a client or with any trust
of which it is or was a trustee, or
(ii) on the part of a person who is or was a manager or employee
of the licensed body in connection with any trust of whichthat pe rs on i s or was a t ruste e in that person’ s capa cit y assuch a manager or employee,
and the notice conditions are satisfied;
(f) that the licensing authority is satisfied that it is necessary to exercise
the powers conferred by this Schedule (or any of them) in relation toa licensed body to protect—
(i) the interests of clients (or former or potential clients) of the
licensed body,
(ii) the interests of the beneficiaries of any trust of which the
licensed body is or was a trustee, or
(iii) the interests of the beneficiaries of any trust of which a person
who is or was a manager or employee of the licensed body isor was a trustee in that person’s capacity as such a manageror employee.
(3) For the purposes of sub-paragraph (2) a relevant insolvency event occurs in
relation to a licensed body if—
(a) a resolution for a voluntary winding-up of the body is passed
without a declaration of solvency under section 89 of the InsolvencyAct 1986 (c. 45);
(b) the body enters administration within  the meaning of paragraph
1(2)(b) of Schedule B1 to that Act;
(c) an administrative receiver within the meaning of section 251 of that
Act is appointed;
(d) a meeting of creditors is held in relation to the body under section 95
of that Act (creditors’ meeting which has the effect of converting aLegal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention216
members’ voluntary winding up into a creditors’ voluntary winding
up);
(e) an order for the winding up of the body is made.
(4) The notice conditions referred to in sub-paragraph (2)(e) are—
(a) that the licensing authority has given the licensed body a notice
inviting it to give an explanation within such period (of not less than8 days) following the giving of the notice as may be specified in it;
(b) that the licensed body has failed within that period to give an
explanation which the licensing authority regards as satisfactory;and
(c) that the licensing authority gives notice of the failure to the licensed
body and (at the same time or later) notice that this Schedule appliesin its case by virtue of sub-paragraph (2)(e).
(5) Where this Schedule applies in relation to a licensed body by virtue of sub-
paragraph (1)(a) it continues to apply after the body’s licence has beenrevoked or has otherwise ceased to have effect.
(6) For the purposes of this Schedule “licensed body” includes—
(a) a body whose licence is suspended;
(b) a body to whom this Schedule continues to apply by virtue of sub-
paragraph (5);
(c) except in this paragraph, a body whose licence has ceased to have
effect as mentioned in sub-paragraph (1)(b).
Money: prohibition on payment
2 (1) The licensing authority may apply to the High Court for an order under sub-
paragraph (2), and the High Court may make the order if it thinks fit.
(2) The order is that a person holding money on behalf of the licensed body may
not make any payment of the money, except with the leave of the court.
(3) An order under sub-paragraph (2) may take effect in relation to a person—
(a) whether or not the person is named in the order;
(b) however the money is held;
(c) whether the money was received before or after the order was made.
(4) But an order under sub-paragraph (2) does not take effect in relation to a
person until the licensing authority—
(a) has given the person a copy of the order, and
(b) (in the case of a bank or other  financial institution) has indicated the
branches at which it believes money to which the order relates isheld.
(5) A person is not to be treated as having disobeyed an order under sub-
paragraph (2) by making a payment of money if the court is satisfied that theperson—
(a) exercised due diligence to ascertain whether it was money to which
the order related, and
(b) failed to ascertain that the order related to it.Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention217
Money etc: vesting in licensing authority
3 (1) The sums of money to which this paragraph applies, and the right to recover
or receive them, vest in the licensing authority if the licensing authoritydecides that they should do so.
(2) This paragraph applies to all sums of money held by or on behalf of the
licensed body in connection with—
(a) its activities as a licensed body,
(b) any trust of which it is or was a trustee, or
(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 sucha manager or employee.
(3) Sub-paragraph (1) applies whether the sums were received by the person
holding them before or after the licensing authority’s decision.
(4) Those sums and that right are held by the licensing authority—
(a) on trust to exercise the powers conferred by this Schedule in relation
to them, and
(b) subject to that and to rules under paragraph 6, on trust for the
persons beneficially entitled.
(5) The licensing authority must give the licensed body, and any other person
in possession of sums of money to which this paragraph applies—
(a) a copy of the licensing  authority’s decision, and
(b) a notice prohibiting the payment out of those sums.
(6) A person to whom a notice under sub-paragraph (5) is given may apply to
the High Court for an order directing the licensing authority to withdrawthe notice.
(7) An application under sub-paragraph (6) must be made within 8 days of the
licensing authority giving the person notice under sub-paragraph (5).
(8) The person must give not less than 48 hours notice of any application under
sub-paragraph (6)—
(a) to the licensing authority, and
(b) if the notice under sub-paragraph (5) gives the name of a solicitor
instructed by the licensing authority, to that solicitor.
(9) If the court makes the order, it may make any other order it thinks fit with
respect to the matter.
(10) It is an offence for a person to whom a notice has been given under sub-
paragraph (5) to pay out sums of money at a time when such payment isprohibited by the notice.
(11) A person who is guilty of an offence under sub-paragraph (10) is liable on
summary conviction to a fine not exceeding level 3 on the standard scale.
4 (1) Any rights to which this paragraph applies shall vest in the licensing
authority if the licensing auth ority decides that they should do so.
(2) This paragraph applies to any right to recover or receive debts due to the
licensed body in connection with its business.Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention218
(3) Any sums recovered by the licensing authority by virtue of the exercise of
rights vested under sub-paragraph (1) vest in the licensing authority and areheld by it—
(a) on trust to exercise the powers conferred by this Schedule in relation
to them, and
(b) subject to that and to rules under paragraph 6, on trust for the
persons beneficially entitled.
(4) The licensing authority must give the licensed body, and any other person
who owes a debt to which the order applies a copy of the licensingauthority’s decision.
5 (1) If the licensing authority takes possession of any sum of money to which
paragraph 3 applies or by virtue of paragraph 4, it must pay it into a specialaccount in the name of the licensing authority or a person nominated on itsbehalf.
(2) A person nominated under sub-paragraph (1) holds that sum—
(a) on trust to permit the licensing authority to exercise the powers
conferred by this Schedule in relation to it, and
(b) subject to that and rules under paragraph 6, on trust for the persons
beneficially entitled.
(3) A bank or other financial institut ion at which a special account is kept is
under no obligation to ascertain whether it is being dealt with properly.
6 (1) The licensing authority may make rules governing its treatment of sums
vested in it under paragraph 3 or 4(3).
(2) The rules may, in particular, make provision in respect of cases where the
licensing authority, having taken such steps to do so as are reasonable in allthe circumstances of the case, is unable to trace the person or personsbeneficially entitled to any sum veste d in the licensing authority under
paragraph 3 or 4(3) (including provision which requires amounts to be paidinto or out of any fund maintained by the licensing authority in connectionwith its compensation arrangements).
Money: information
7 (1) The licensing authority may apply to the High Court for an order requiring
a person to give the licensing authority—
(a) information about any money held by the person on behalf of the
licensed body, and the accounts in which it is held, or
(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
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.Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention219
Notice to produce or deliver documents
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 inconnection with—
(a) its activities as a licensed body,
(b) any trust of which it is or was a trustee, or
(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 sucha manager or employee.
(2) The notice may require the documents to be produced—
(a) to any person appointed by the licensing authority;
(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).
(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
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
relation to which the powers in paragraph 8 are exercisable havecome into the possession or under the control of some person otherthan the licensed body, in relation to that person and thosedocuments.
(2) An order for production or delivery is an order—
(a) requiring a person to produce or deliver documents to any person
appointed by the licensing authority, at a time and place specified inthe order, and
(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 th e licensing authority, authorise a
person appointed by the licensing authority to enter any premises (usingsuch force as is reasonably necessary) to search for and take possession of—
(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
in the possession or under the control of that body and hasLegal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention220
come into the possession or under the control of the person in
respect of whom the order is made,
which the licensing authority re asonably requires for the purpose of
accessing information contain ed in any such documents,
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
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.
(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 thedocuments or other property to such person as the applicant requires.
(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
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.
(2) A communications redirection order is an order that specified
communications to the licensed body are to be directed, in accordance withthe order, to the licensing authority or any person appointed by the licensingauthority.
(3) For the purposes of this paragraph—
(a) “specified communications” means communications of such
description as are specified in the order;
(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.
(4) A communications redirection order has effect for such time not exceeding
18 months as is specified in the order.Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention221
(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 communicati ons redirected in accordance with
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 havebeen payable for the redirection of the communications to which the orderrelates if the addressee—
(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—
(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
the licensing authority, or a person appointed by it, to take such steps as maybe specified in the order in relation to any website purporting to be or havebeen maintained by or on behalf of the licensed body, if the High Court issatisfied that the taking of those steps is necessary to protect the publicinterest or the interests of clients (or potential or former clients) of thelicensed 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).
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 possessionby virtue of paragraph 8, 9 or 11.
(2) The court may make any order it thinks fit.
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.
(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
substitution for it.Legal Services Act 2007 (c. 29)
Schedule 14 — Licensing authority’s powers of intervention222
(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, thelicensing authority may apply to the High Court for an order for theappointment of a new trustee in substitution for that person.
(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 appointmentunder section 41 of that Act.
General powers of licensing authority
15 The powers conferred by this Schedule in relation to sums of money,
documents or other property may be exercised despite any lien on them orright 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
17 (1) Any costs incurred by the licensing authority for the purposes of this
Schedule (including the costs of any person exercising powers under thisSchedule on behalf of th e 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
licensing authority.
(2) Sub-paragraph (1) is subject to an y 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 inparagraph 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
body.
(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 theconsent or connivance of, or was attributable to any neglect on the part of,the liable party.
(4) In this paragraph “specified” means specified in the order made by the High
Court.Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints223
SCHEDULE 15 Section 114
THE OFFICE  FOR LEGAL  COMPLAINTS
Membership
1 (1) The OLC is to consist of the following members—
(a) a chairman appointed by the Board with the approval of the Lord
Chancellor, and
(b) at least 6, but not more than 8, other persons appointed by the Board
after consultation with the chairman.
(2) The Lord Chancellor may by order amend sub-paragraph (1) by
substituting, for the limit on the maximum number of persons for the timebeing 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.
(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,
(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
authorised person in relation to an activity which is a reserved legal activityif that person has before the appointed day been—
(a) a barrister,
(b) a solicitor,
(c) a public notary,
(d) a licensed conveyancer,
(e) granted a certificate issued by the Institute of Legal Executives
authorising the person to practise as a legal executive,
(f) a registered patent attorney, within the meaning given by section
275(1) of the Copyright, Designs and Patents Act 1988 (c. 48),
(g) a registered trade mark attorney, within the meaning of the Trade
Marks Act 1994 (c. 26), or
(h) 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) ofthe Courts and Legal Services Act 1990 (c. 41) (rights of audience andrights to conduct litigation).
(5) For the purpose of sub-paragraph (4)—
“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.Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints224
(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—
(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,
(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
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 thisSchedule).
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
paragraph (a) to (e) of paragraph 2(3), that person ceases to be a member ofthe 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.
(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,
(c) is an undischarged bankrupt, or
(d) is otherwise unfit to hold the office or unable to discharge its
functions.
(3) The chairman may be removed from office under sub-paragraph (1)(b) only
with the consent of the Lord Chancellor.
(4) The Board must consult the chairman before removing a member (other
than the chairman) under sub-paragraph (1)(b).Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints225
(5) The Board may not remove an ordinary member on the ground mentioned
in paragraph (a) of sub-paragraph (2) mo re 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 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.
11 The terms of appointment of the ch airman or any other member may
provide for the Board to pay, or make payments towards the provision of, apension, allowance or gratuity to or in respect of that person.
12 If the Board thinks there are circumstances that make it right for a person
ceasing to hold office as chairman or another member to receivecompensation, the OLC may pay that person such compensation as theBoard may determine.
Staff
13 The OLC may appoint such staff as it  considers appropriate to assist in the
performance of its functions.
14 Staff appointed under paragraph 13 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.
15 A member of staff appointed under paragraph 13 may be a member (but not
chairman) of the OLC.
16 The terms and conditions on wh ich an ombudsman, or any member of staff
appointed under paragraph 13, is appointed may provide for the OLC topay, or make payments towards the provision of, a pension, allowance or
gratuity to or in respect of that person.
17 The OLC may pay compensation for loss of employment to or in respect of
an ombudsman (or former ombudsman), or a member (or former member)of staff appointed under paragraph 13.
Arrangements for assistance
1 8 ( 1 ) T h e  O L C  m a y  m a k e  a r r a n g e m e n t s  w i t h  s u c h  p e r s o n s  a s  i t  c o n s i d e r s
appropriate for assistance to be provided to it or to an ombudsman.
(2) Arrangements may include the paying of fees to such persons.
(3) The persons with whom the OLC may make arrangements include
approved regulators; and the arrangements it may make includearrangements for assistance to be provided to an ombudsman in relation tothe investigation and consideration of a complaint.
Committees
19 (1) The OLC may establish committees.Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints226
(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
persons.
Proceedings
20 (1) The OLC may regulate its own procedure, and the procedure of its
committees and sub-committees, including quorum.
(2) But the quorum of a committee or sub-committee must not be less than 3.
(3) The OLC must publish any rules of procedure made under this paragraph.
(4) This paragraph is without prejudice to any other power the OLC has under
this Act to make rules.
21 The validity of any act of the OLC is not affected—
(a) by a vacancy in the office of chairman or amongst the other members,
or
(b) by a defect in the appointment or any disqualification of a person as
chairman or another member of the OLC.
Delegation of functions
22 (1) The OLC may authorise—
(a) the chairman or any other member of the OLC,
(b) a committee or sub-committee of the OLC,
(c) an ombudsman, or
(d) a member of the OLC’s staff appointed under paragraph 13,
to exercise, on behalf of the OLC, such of its functions, in such
circumstances, as it may determine.
(2) Sub-paragraph (1) does not apply to—
(a) the OLC’s functions under section 118(1) (annual report),
(b) the OLC’s functions under section 122 (appointment of Chief
Ombudsman and assistant ombudsmen),
(c) the OLC’s functions under paragraph 20 or 23 of this Schedule, or
(d) any power or duty the OLC has to make rules under this Part of this
Act.
(3) A committee may delegate functions (including functions delegated to the
committee) to—
(a) a sub-committee,
(b) the chairman or any other member of the OLC,
(c) an ombudsman, or
(d) a member of the OLC’s staff appointed under paragraph 13.
Budget
23 (1) The OLC must, before the start of each financial year, adopt an annual
budget which has been approved by the Board.Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints227
(2) The OLC may, with the approval of the Board, vary the budget for a financial
year at any time after its adoption.
(3) The annual budget must include an indication of—
(a) the distribution of resources deployed in the operation of the
ombudsman scheme, and
(b) the amounts of income of the OLC arising or expected to arise from
the operation of the scheme.
Land
24 (1) During the initial 5 year period, the OLC must not acquire or dispose of an
interest in land, except with the approval of the Lord Chancellor.
(2) The initial 5 year period is the period of 5 years beginning with the day on
which the appointment of the first Interim Chief Executive under paragraph10 of Schedule 22 takes effect or the day on which the first appointment of amember of the OLC takes effect, whichever first occurs.
Borrowing
25 (1) The OLC must not borrow money, except—
(a) with the consent of the Board, or
(b) in accordance with a general  authorisation given by the Board.
(2) The Board may not consent or give a general authorisation for the purposes
of sub-paragraph (1), except with the consent of the Lord Chancellor.
Accounts
26 (1) The OLC must—
(a) keep proper accounts and proper records in relation to the accounts,
and
(b) prepare in respect of each financial year a statement of accounts.
(2) Each statement of accounts must compl y with any directions given by the
Lord Chancellor, with the approval of the Treasury, as to—
(a) the information to be contained in it and the manner in which it is to
be presented;
(b) the methods and principles according to which the statement is to be
prepared;
(c) the additional information (if any) which is to be provided for the
information of Parliament.
(3) The OLC must give a copy of each statement of accounts to the Board before
the end of the month of August next following the financial year to whichthe statement relates.
(4) The Board must give a copy of each statement received under sub-
paragraph (3)—
(a) to the Lord Chancellor, and
(b) to the Comptroller and Auditor General.
(5) The Comptroller and Auditor General must—Legal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints228
(a) examine, certify and report on each statement of accounts which is
received under sub-paragraph (4), and
(b) give a copy of the Comptroller and Auditor General’s report to the
Lord Chancellor.
(6) In respect of each financial year, the Lord Chancellor must lay before
Parliament a document consisting of—
(a) a copy of the statement of accounts for that year, and
(b) a copy of the Comptroller and Auditor General’s report on that
statement.
(7) “Financial year” means—
(a) the period beginning with the day on which the OLC is established
and ending with the next following 31 March, and
(b) each successive period of 12 months.
Status
27 (1) The OLC is not to be regarded—
(a) as the servant or agent of the Crown, or
(b) as enjoying any status, immunity or privilege of the Crown.
(2) Accordingly—
(a) the OLC’s property is not to be regarded as property of or held on
behalf of the Crown, and
(b) the staff appointed under paragraph 13 are not to be regarded as
servants or agents of the Crown or as enjoying any status, immunityor privilege of the Crown.
Application of seal and proof of instruments
28 The application of the seal of the OLC is to be authenticated by the signature
of any member of the OLC, or of its staff, who has been authorised (whethergenerally or specifically) by the OLC for the purpose.
29 Any contract or instrument which, if entered into or executed by an
individual, would not need to be under seal, may be entered into or executedon behalf of the OLC by any person who has been authorised (whethergenerally or specifically) by the OLC for the purpose.
30 A document purporting to be duly executed under the seal of the OLC, or
signed on its behalf—
(a) is to be received in evidence, and
(b) is to be taken to be executed or signed in that way, unless the
contrary is proved.
Disqualification
31 (1) In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(c. 24) (bodies of which all members are disqualified) at the appropriateplace insert—
“The Office for Legal Complaints.”
(2) In Part 3 of that Schedule (other disqualifying offices) at the appropriateLegal Services Act 2007 (c. 29)
Schedule 15 — The Office for Legal Complaints229
place insert—
“The Chief Ombudsman or an a ssistant ombudsman appointed
under section 122 of the Legal Services Act 2007 (ChiefOmbudsman and assistant ombudsmen appointed for thepurposes of the ombudsman scheme).”
(3) In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (c. 25) (bodies of which all members are disqualified) at theappropriate place insert—
“The Office for Legal Complaints.”
(4) In Part 3 of that Schedule (other disqualifying offices) at the appropriate
place insert—
“The Chief Ombudsman or an a ssistant ombudsman appointed
under section 122 of the Legal Services Act 2007 (ChiefOmbudsman and assistant ombudsmen appointed for thepurposes of the ombudsman scheme).”
Freedom of information
32 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (c. 36) (other
public bodies and offices which are public authorities) at the appropriateplace insert—
“The Office for Legal Complaints.”
Public records
33 In Schedule 1 to the Public Records Act 1958 (c. 51) (definition of public
records) at the appropriate place in Part 2 of the Table at the end ofparagraph 3 insert—
“The Office for Legal Complaints.”
Exemption from liability in damages
34 (1) This paragraph applies to—
(a) the OLC,
(b) a member of the OLC,
(c) an ombudsman, and
(d) a member of the OLC’s staff appointed under paragraph 13.
(2) A person to whom this paragraph applies is not liable in damages for
anything done or omitted in the exercise or purported exercise of thefunctions conferred on the person concerned by or by virtue of this or anyother enactment.
(3) But sub-paragraph (2) does not apply—
(a) if it is shown that the act or omission was in bad faith, or
(b) so as to prevent an award of damages made in respect of an act or
omission on the ground that the act or omission was unlawful as aresult of section 6(1) of the Human Rights Act 1998 (c. 42).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)230
SCHEDULE 16 Section 177
THE LAW SOCIETY , SOLICITORS , RECOGNISED  BODIES  AND  FOREIGN  LAWYERS
PART 1
THE SOLICITORS  ACT 1974 ( C. 47)
1 The Solicitors Act 1974 is amended in accordance with this Part of this
Schedule.
2 In section 1A (practising certificates: employed solicitors)—
(a) omit “or” at the end of paragraph (b),
(b) in paragraph (c) omit “by the Council of the Law Society”, and
(c) at the end of that paragraph insert “or
(d) by any other person who, for the purposes of the
Legal Services Act 2007, is an authorised person inrelation to an activity which is a reserved legalactivity (within the meaning of that Act).”
3 After section 1A insert—
“1B Restriction on practice as sole solicitor
(1) Rules under section 31 (rules as to professional practice etc) must
provide that a solicitor may not practise as a sole solicitor unless hehas in force—
(a) a practising certificate, and
(b) an endorsement of that certificate by the Society authorising
him to practise as a sole solicitor (a “sole solicitorendorsement”).
(2) The rules may provide that, for the purposes of the rules and this Act,
a solicitor is not to be regarded as practising as a sole solicitor in suchcircumstances as may be prescribed by the rules.
(3) The rules must prescribe the circumstances in which a solicitor may
be regarded by the Society as suitable to be authorised to practise asa sole solicitor.”
4 In section 2 (training regulations)—
(a) in subsection (1) omit “, with the concurrence of the Secretary of
State, the Lord Chief Justice and the Master of the Rolls,”, 
(b) in subsection (3)(a)—
(i) in sub-paragraph (i) omit “, whether by service under articles
or otherwise,”,
(ii) in sub-paragraph (v) omit “articles may be discharged or”,
and
(iii) in that sub-paragraph after “be” (in the second place) insert
“started or”, and
(c) omit subsections (4) and (5).
5 In section 3 (admission as solicitor), in subsection (2)—
(a) for “Master of the Rolls” (in each place) substitute “Society”, and
(b) for “his” substitute “its”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)231
6 In section 6 (keeping of the roll) omit subsections (2) to (4).
7 In section 7 (entry of name and restoration of name struck off)—
(a)  for paragraph (a) substitute—
“(a) of written evidence of admission of any person as a
solicitor by the Society,”, and
(b) for “Council” substitute “Society”.
8 (1) Section 8 (removal or restoration of name at solicitor’s request) is amended
as follows.
(2) In subsection (2) for “Council” substitute “Society”.
(3) In subsection (4) for “Master of the Rolls” substitute “High Court”.(4) After that subsection insert—
“(4A) In relation to an appeal under subsection (4) the High Court may
make such order as it thinks fit as to payment of costs.
(4B) The decision of the High Court on an appeal under subsection (4)
shall be final.”
(5) Omit subsection (5).
9 For sections 9 and 10 (applications for and issue of practising certificates)
substitute—
“9 Applications for practising certificates
(1) A person whose name is on the roll may apply to the Society to be
issued with a practising certificate.
(2) An application under this section may include an application for a
sole solicitor endorsement.
(3) An application under this section must be—
(a) made in accordance with regula tions under section 28, and
(b) accompanied by the appropriate fee.
(4) “The appropriate fee”, in relation to an application, means—
(a) any fee payable under subsection (1) of section 11 in respect
of the practising certificate applied for, and
(b) any additional fee payable under subsection (4) of that
section in respect of the application.
10 The issue of practising certificates
(1) Subject to the following provision s of this section, where an
application is made in accordan ce with section 9, the Society must
issue a practising certificate to the applicant if it is satisfied that theapplicant—
(a) is not suspended from practice, and
(b) is complying with any prescribed requirements imposed on
the applicant.
(2) A practising certificate issued to an applicant of a prescribed
description must be issued subject to any conditions prescribed inrelation to applicants of that description.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)232
(3) In such circumstances as may be prescribed, the Society must, if it
considers it is in the public interest to do so—
(a) refuse to issue a practising certificate under this section, or
(b) where it decides to issue a practising certificate, issue it
subject to one or more conditions.
(4) The conditions which may be imposed include—
(a) conditions requiring the person to whom the certificate is
issued to take specified steps that will, in the opinion of theSociety, be conducive to the carrying on by that person of anefficient practice as a solicitor (including, if the certificate hasa sole solicitor endorsement, an efficient practice as a solesolicitor);
(b) conditions which prohibit that person from taking any
specified steps, except with the approval of the Society.
(5) In this section —
“prescribed” means prescribed by regulations under section 28;“specified”, in relation to a condition imposed on a practising
certificate, means specified in the condition.”
10 After section 10 (as inserted by paragraph 9) insert—
“10A Register of holders of practising certificates
(1) The Society must keep a register of all solicitors who hold practising
certificates.
(2) The register must contain—
(a) the full name of each solicitor who holds a practising
certificate,
(b) in relation to each solicitor who holds a practising certificate,
a statement as to whether there is in force a sole solicitorendorsement, and
(c) such other information as may be specified in regulations
under section 28(1)(d).”
11 For section 11 (fee payable on issue of practising certificate) substitute—
“11 Fee payable on issue of practising certificates
(1) Before a practising certificate is issued, there must be paid to the
Society in respect of the certificate a fee of such amount as the Societymay from time to time determine.
(2) Different fees may be specified for different categories of applicant
and in respect of different circumstances.
(3) Subsection (4) applies where a soli citor makes an application for a
practising certificate if—
(a) the solicitor has failed to deliver an accountant’s report
required by rules under section  34(1) by such time or in such
circumstances as may be prescribed by those rules, and
(b) a practising certificate has not been issued by the Society to
the solicitor since the Society became aware of the failure.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)233
(4) Where this subsection applies, the solicitor’s application must be
accompanied by an additional fee of such amount as the Society fromtime to time determines.”
12 Omit section 12 (discretion of Society with respect to issue of practising
certificates in special cases).
13 Omit section 12A (additional fee payable by certain solicitors on applying
for practising certificates).
14 For section 13 (appeals in connection with issue of practising certificates)
substitute—
“13 Appeals etc in connection with the issue of practising certificates
(1) A person who makes an applic ation under section 9 may appeal to
the High Court against—
(a) a decision to refuse the application for a practising certificate,
(b) if the application included an application for a sole solicitor
endorsement, a decision to refuse the application for theendorsement, or
(c) a decision to impose a condition on a practising certificate
issued in consequence of the application.
(2) A person who holds a practising certificate subject to a condition
within section 10(4)(b) may appeal to the High Court against anydecision by the Society to refuse to approve the taking of any step forthe purposes of that condition.
(3) The Society may make rules which provide, as respects any
application under section 9 that is neither granted nor refused by the
Society within such period as may be specified in the rules, forenabling an appeal to be brought under this section in relation to theapplication as if it had been refused by the Society.
(4) On an appeal under subsection (1), the High Court may—
(a) affirm the decision of the Society,
(b) direct the Society to make a sole solicitor endorsement on the
applicant’s practising certificate and to issue that certificatesubject to such conditions (if any) as the High Court maythink fit,
(c) direct the Society to issue a certificate to the applicant free
f r o m  c o n d i t i o n s  o r  s u b j e c t  t o  s u c h  c o n d i t i o n s  a s  t h e  H i g hCourt may think fit,
(d) direct the Society not to issue a certificate,
(e) if a certificate has been issued, by order suspend it,
(f) if the certificate has been endorsed with a sole solicitor
endorsement, by order suspend the endorsement, or
(g) make such other order as the High Court thinks fit.
(5) On an appeal under subsection (2), the High Court may—
(a) affirm the decision of the Society,
(b) direct the Society to approve the taking of one or more steps
for the purposes of a condition  within section 10(4)(b), or
(c) make such other order as the High Court thinks fit.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)234
(6) In relation to an appeal under this section the High Court may make
such order as it thinks fit as to payment of costs.
(7) The decision of the High Court on an appeal under subsection (1) or
(2) shall be final.”
15 After section 13 insert—
“13ZAApplication to practise as sole practitioner while practising certificate 
in force
(1) A solicitor whose practising certificate for the time being in force (his
“current certificate”) does not have a sole solicitor endorsement, mayapply to the Society for such an endorsement.
(2) For the purposes of subsection (1) a practising certificate with a sole
solicitor endorsement which is suspended is to be treated as havingsuch an endorsement.
(3) A solicitor may not apply under subsection (1) if he is suspended
from practice as a sole solicitor.
(4) An application must be—
(a) made in accordance with regula tions under section 28, and
(b) accompanied by any fee payable under section 13ZB in
respect of the endorsement applied for.
(5) Where a sole solicitor endorsement is granted to an applicant of a
prescribed description, the applicant’s practising certificate shallhave effect subject to any conditions prescribed in relation toapplicants of that description.
“Prescribed” means prescribed by regulations under section
28(3B)(f).
(6) A person who makes an applicat ion under this section may appeal to
the High Court against—
(a) a decision to refuse the application, or
(b) a decision to impose a condition on a practising certificate in
accordance with subsection (5).
(7) The Society may by rules make provision, as respects any application
under this section that is neither granted nor refused by the Societywithin such period as may be specified  in the rules, for enabling an
appeal to be brought under this section in relation to the applicationas if it had been refused by the Society.
(8) On an appeal under this section the High Court may—
(a) affirm the decision of the Society,
(b) direct the Society to grant a sole solicitor endorsement,
(c) direct that the applicant’s practising certificate is to have
effect subject to such conditions (if any) as the High Courtthinks fit, or
(d) make such other order as the High Court thinks fit.
(9) In relation to an appeal under this section the High Court may make
such order as it thinks fit as to payment of costs.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)235
(10) The decision of the High Court on an appeal under this section shall
be final.
13ZB Fee payable on making of sole solicitor endorsement
(1) Before a sole solicitor endorsement is granted under section 13ZA,
there must be paid to the Society in respect of the endorsement a feeof such amount as the Society may from time to time determine.
(2) Different fees may be specified for different categories of applicant
and in different circumstances.
(3) If a fee payable under this section would not otherwise be a
practising fee for the purposes of section 51 of the Legal Services Act2007, it is to be treated for the purposes of that section as such a fee.
(4) In subsection (3) “practising fee” has the meaning given by that
section.”
16 (1) Section 13A (imposition of conditions while practising certificates are in
force) is amended as follows.
(2) For subsections (2) to (5) substitute—
“(2) The power conferred by subsection (1) is exercisable in relation to a
solicitor at any time during the period for which the solicitor’scurrent certificate is in force if— 
(a) under section 13ZA the Society grants a sole solicitor
endorsement, or
(b) it appears to the Society that the case is of a prescribed
description.
(3) “Prescribed” means prescribed by regulations under section 28.”
(3) In subsection (6) for “Master” to the end substitute “High Court against the
decision of the Society.”
(4) In subsection (7)—
(a) for “Master of the Rolls” (in both places) substitute “High Court”,
and
(b) for “he” substitute “it”.
(5) After that subsection insert—
“(7A) The decision of the High Court on an appeal under subsection (6)
shall be final.”
(6) For subsection (8) substitute—
“(8) Subsections (4) and (5) of section 10 apply for the purposes of
subsection (1) of this section as they apply for the purposes of thatsection.”
(7) After that subsection insert—
“(9) A solicitor who holds a practising certificate subject to a condition
imposed under subsection (1) which prohibits that solicitor fromtaking any steps specified in the condition, except with the approval
of the Society, may appeal to the High Court against any decision byLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)236
the Society to refuse to approve the taking of any step for the
purposes of that condition.
(10) On an appeal under subsection (9), the High Court may—
(a) affirm the decision of the Society,
(b) direct the Society to approve the taking of one or more steps
for the purposes of the condition, or
(c) make such other order as the High Court thinks fit.
(11) The decision of the High Court on an appeal under subsection (9)
shall be final.
(12) In relation to an appeal under this section the High Court may make
such order as it thinks fit as to payment of costs.”
17 In section 13B (suspension of practising certificates where solicitors
convicted of fraud or serious crime)—
(a) in subsection (1), after “practisin g certificate” insert “or sole solicitor
endorsement”,
(b) in subsection (6), after “practice” insert “or from practice as a sole
solicitor”,
(c) in subsection (7) for “Master of the Rolls” substitute “High Court”,
(d) in subsection (8)—
(i) for “Master of the Rolls” (in both places) substitute “High
Court”,
(ii) in paragraph (b), for “shall not be suspended but” substitute
“or sole solicitor endorsement shall not be suspended, butthat the appellant’s certificate”, and
(iii) in paragraph (d) for “he” substitute “it”, and
(e) after that subsection insert—
“(9) In relation to an appeal under subsection (7) the High Court
may make such order as it thinks fit as to payment of costs.
(10) The decision of the High Court on an appeal under
subsection (7) shall be final.”
18 Omit section 14 (commencement, expiry and replacement of practising
certificates).
19 In section 15 (suspension of practising certificates), in subsection (1A)—
(a) after “6(1)” insert “, 6A(1)”,
(b) after “1(1)(a)(i),” insert “(aa),”, and
(c) after “section” insert “31 or”.
20 (1) Section 16 (duration of suspension of practising certificates) is amended as
follows.
(2) For subsection (1) substitute—
“(1) Where a practising certificate is suspended, it expires on such date as
may be prescribed by regulations under section 28.”
(3) In subsection (3)(c) for “the replacement date of the certificate” substitute
“the date on which his certificate will expire”.
(4) In subsection (5)—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)237
(a) for “Master of the Rolls, who” substitute “High Court, which”, and
(b) in paragraph (b) for “he” substitute “it”.
(5) After that subsection insert—
“(6) In relation to an appeal under subsection (5) the High Court may
make such order as it thinks fit as to payment of costs.
(7) The decision of the High Court on an appeal under subsection (5)
shall be final.”
21 In section 17 (publicity in relation to  suspension of practising certificates), in
subsections (1) and (2) omit “in the London Gazette”.
22 After section 17 insert—
“17A Suspension of sole solicitor endorsement
(1) The making by the Tribunal or by the court of an order suspending a
solicitor from practice as a sole solicitor shall operate to suspend anysole solicitor endorsement of that solicitor for the time being in force.
(2) For the purposes of this Act, a sole solicitor endorsement shall be
deemed not to be in force at any time while it is suspended.
(3) Subsection (2) is subject to section 13ZA(2).
17B Duration and publicity of suspension of sole solicitor endorsement
(1) Where a sole solicitor endorsement is suspended, it expires on such
date as may be prescribed by regulations under section 28.
(2) Where a solicitor’s sole solicitor endorsement is suspended—
(a) by an order under section 13(4), or
(b) by virtue of section 17A(1) in circumstances where the period
of that suspension expires before the date on which hisendorsement will expire,
the solicitor may at any time before the endorsement expires apply
to the Society to terminate the suspension.
(3) Section 16(4) to (7) apply in relation to an application under
subsection (2) as they apply in relation to an application undersection 16(3).
(4) Where a solicitor’s sole solicitor endorsement is suspended by an
order under section 13(4) or by virtue of section 17A(1), the Societyshall forthwith cause notice of that suspension to be published and anote of it to be entered against the name of the solicitor on the roll.
(5) Where any suspension is terminated by virtue of section 16(4) or (5),
as applied by subsection (3) of this section, the Society shall forthwithcause a note of that termination to be entered against the name of thesolicitor on the roll and, if so requested in writing by the solicitor, anotice of it to be published.”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)238
23 For section 18 (evidence as to holding of practising certificates) substitute—
“18 Extracts from the roll or register etc as evidence
(1) An extract from the roll, or an extract from the register kept under
section 10A, which is certified as correct by the Society is evidence ofthe matters mentioned in it.
(2) A certificate from the Society stating that—
(a) a person’s name is or was on the roll, or
(b) a person is or was registered in the register kept under
section 10A,
is evidence of the matters stated.”
24 Omit section 19 (rights of practising and rights of audience).25 For section 20 (unqualified person not to act as solicitor) substitute—
“20 Unqualified person not to act as solicitor
(1) No unqualified person is to act as a solicitor.(2) Any person who contravenes subsection (1) is guilty of an offence
and liable on conviction on indictment to imprisonment for not morethan 2 years or to a fine, or to both.”
26 Omit—
(a) sections 22 and 22A (unqualified person not to prepare certain
instruments etc), and
(b) section 23 (unqualified person not to prepare papers for probate etc).
27 In section 24 (application of penal provisions to body corporate), in
subsection (2) from “sections” to the end substitute “section 20 the referenceto an unqualified person and the reference to a person both include areference to a body corporate.”
28 In section 26 (time limit for commencement of certain proceedings) omit “,
22 or 23”.
29 Omit section 27 (saving for persons authorised to conduct legal
proceedings).
30 (1) Section 28 (regulations) is amended as follows.
(2) In subsection (1)—
(a) for “Master of the Rolls” substitute “Society”,
(b) omit “, with the concurrence of the Secretary of State and the Lord
Chief Justice,”,
(c) in paragraph (c) omit “and applications for them”,
(d) after that paragraph insert—
“(ca) sole solicitor endorsements and applications for
them,”, and
(e) in paragraph (d) for “section 9” substitute “section 10A”.
(3) Omit subsections (2) and (3).(4) In subsection (3A)—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)239
(a) for “may—” insert “may (among other things)—
(za) make provision about the form in which the roll is to
be kept and the manner in which entries are to bemade, altered and removed;”,
(b) omit “and” at the end of paragraph (b), and
(c) after paragraph (d) insert—
“(e) require the informat ion on the roll to be made
available to the public;
(f) specify the manner in which informa tion is to be
made so available and require it to be made soavailable during office hours and without charge.”
(5) After that subsection insert—
“(3B) Regulations about practising certificates or sole solicitor
endorsements may (among other things)—
(a) prescribe the form and manner in which applications for, or
relating to, practising certificates or sole solicitorendorsements are to be made;
(b) prescribe information which must be included in or
accompany such applications;
(c) make provision about time limits for dealing with such
applications, and confer on a person power to extend or bringforward such a time limit in prescribed circumstances;
(d) prescribe the requirements which applicants for practising
certificates must satisfy before they may be issued with apractising certificate;
(e) prescribe descriptions of applicants, and conditions in
relation to them, for the purposes of section 10(2)(circumstances in which practi sing certificates must be issued
subject to prescribed conditions);
(f) prescribe descriptions of applicants, and conditions in
relation to them, for the purposes of section 13ZA(5)(circumstances in which a practising certificate endorsedwith a sole solicitor endorsement after it was issued must be
made subject to prescribed conditions);
(g) prescribe circumstances for the purposes of section 10(3)
(circumstances in which application may be refused etc in thepublic interest);
(h) make provision about when conditions imposed on
practising certificates take effect (including provisionconferring power on the Society to direct that a condition isnot to have effect until the conclusion of any appeal inrelation to it);
(i) make provision for the commencement, duration,
replacement, withdrawal and expiry of practising certificatesor sole solicitor endorsements;
(j) prescribe circumstances for the purposes of section 13A(2)
(circumstances in which conditions can be imposed duringperiod of practising certificate);
(k) require solicitors who hold practising certificates to notify the
Society of such matters as may be prescribed, at such times,
or in such circumstances as may be prescribed.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)240
(3C) Regulations about the keeping of the register under section 10A may
(among other things)—
(a) make provision about the form  in which the register is to be
kept and the manner in which entries are to be made, alteredand removed;
(b) require information of a specified kind to be included in
entries in the register;
(c) require information (or information of a specified
description) on the register to be made available to the public;
(d) specify the manner in which it is to be made so available and
require it to be made so available during office hours andwithout charge.
(3D) Regulations under this section may make provision for appeals to
the High Court against decisions made by the Society under theregulations.
(3E) In relation to an appeal under regulations made by virtue of
subsection (3D), the High Court may make such order as it thinks fit
as to payment of costs.
(3F) The decision of the High Court on  such an appeal shall be final.
(3G) Regulations under this section may—
(a) provide for a person to exercise a discretion in dealing with
any matter;
(b) include incidental, supplementary and consequential
provision;
(c) make transitory or transitional provision and savings;
(d) make provision generally or only in relation to specified
cases or subject to specified exceptions;
(e) make different provision for different cases.”
(6) Omit subsections (4) and (5).
31 (1) Section 31 (rules as to professional practice, conduct and discipline) is
amended as follows.
(2) In subsection (1)—
(a) for “Council may, if they think fit,” substitute “Society may”,
(b) omit “, with the concurrence of the Master of the Rolls,”,
(c) after “conduct” insert “, fitness to practise”,
(d) for “Council” (in the second place) substitute “Society”, and
(e) after “being” insert “, or have been,”.
(3) After that subsection insert—
“(1A) The powers conferred on the Society by subsection (1) include power
to make, in relation to solicitors, provision of a kind which theSociety would be prohibited from making but for section 157(5)(c) ofthe Legal Services Act 2007 (exception from prohibition on approvedregulators making provision for redress).”
(4) Omit subsections (3) and (4).
32 (1) Section 32 (accounts rules and trust accounts rules) is amended as follows.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)241
(2) In subsection (1)—
(a) for “Council” (in the first place) substitute “Society”,
(b) omit “, with the concurrence of the Master of the Rolls”,
(c) for paragraphs (a ) and (b) substitute—
“(a) as to the opening and keeping by solicitors of
a c c o u n t s  a t  b a n k s  o r  w i t h  b u i l d i n g  s o c i e t i e s  f o rmoney within subsection (1A);
(aa) as to the operation by solicitors of accounts kept by
their clients or other persons at banks or withbuilding societies or other financial institutions;
(b) as to the keeping by solicitors of accounts containing
information as to money received, held or paid bythem for or on account of their clients or other persons(including money received, held or paid under atrust); and”,
(d) in paragraph (c) of that subsection—
(i) for “Council” substitute “Society”,
(ii) for “them” substitute “it”, and
(iii) after “being” insert “, or have been,”, and
(e) omit from “and the rules” to the end.
(3) After that subsection insert—
“(1A) The money referred to in subsection (1) is money (including money
held on trust) which is received, held or dealt with for clients or otherpersons.”
(4) Omit subsection (2).
(5) In subsection (4)—
(a) for “Council” substitute “Society”,
(b) omit “or (2)”, and
(c) after “solicitor” (in both places) insert “or any of his employees”.
(6) In subsection (5) for “by virtue” to the end substitute “or a part of the rules.”(7) Omit subsection (6).
33 (1) Section 33 (interest on clients’ money) is amended as follows.
(2) For subsection (1) substitute—
“(1) Rules under section 32 may require a solicitor to pay interest, or sums
in lieu of and equivalent to interest, to a client, any other person orany trust, for whom the solicitor holds money.”
(3) In subsection (2), omit from “and the rules” to the end.
(4) For subsection (3) substitute—
“(3) Except as provided by the rules, a solicitor is not liable to account to
any client, other person or trust for interest received by the solicitoron money held at a bank or buildi ng society in an account which is
for money received or held for, or on account of—
(a) the solicitor’s clients, other persons or trusts, generally, or
(b) that client, person or trust, separately.”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)242
(5) For subsection (4) substitute—
“(4) Rules under section 32 may—
(a) prescribe the circumstances in which a solicitor may make
arrangements to limit or exclude an obligation imposed onthe solicitor by rules made by virtue of this section, and
(b) prescribe the requirements to be met by and in relation to
those arrangements.”
34 (1) Section 33A (inspection of practice bank accounts etc) is amended as follows.
(2) In subsection (1)—
(a) for “Council” (in each place) substitute “Society”, and 
(b) omit “, with the concurrence of the Master of the Rolls,”.
(3) In subsection (2) for “Council” substitute “Society”.
35 (1) Section 34 (accountants’ reports) is amended as follows.
(2) For subsections (1) to (5A) substitute—
“(1) The Society may make rules requiring solicitors to provide the
Society with reports signed by an accountant (in this section referred
to as an “accountant’s report”) at such times or in such circumstances
as may be prescribed by the rules.
(2) The rules may specify requirements to be met by, or in relation to, an
accountant’s report (including requirements relating to theaccountant who signs the report).”
(3) In subsection (6) for “this section or of any rules made under it” substitute
“any rules made under this section”.
(4) Omit subsections (7) and (8).
(5) At the end insert—
“(9) Where an accountant, during the course of preparing an
accountant’s report—
(a) discovers evidence of fraud or theft in relation to money held
by a solicitor for a client or any other person (includingmoney held on trust) or money held in an account of a clientof a solicitor, or an account of another person, which isoperated by the solicitor, or
(b) obtains information which the accountant has reasonable
cause to believe is likely to be of material significance indetermining whether a solicitor is a fit and proper person tohold money for clients or other persons (including moneyheld on trust) or to operate an account of a client of thesolicitor or an account of another person,
the accountant must immediately give a report of the matter to the
Society.
(10) No duty to which an accountant is subject is to be regarded as
contravened merely because of any informat ion or opinion
contained in a report under subsection (9).”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)243
36 After section 34 insert—
“Sole solicitors
34A Employees of solicitors
(1) Rules made by the Society may provide for any rules made under
section 31, 32, 33A or 34 to have effect in relation to employees ofsolicitors with such additions, omissions or other modifications asappear to the Society to be necessary or expedient.
(2) If any employee of a solicitor fails to comply with rules made under
section 31 or 32, as they have effect in relation to the employee byvirtue of subsection (1), any person may make a complaint in respectof that failure to the Tribunal.
(3) If any employee of a solicitor fails to comply with rules made under
section 34, as they have effect in relation to the employee by virtue ofsubsection (1), a complaint in respect of that failure may be made tothe Tribunal by or on behalf of the Society.
34B Employees of solicitors: accounts rules etc
(1) Where rules made under section 32(1) have effect in relation to
employees of solicitors by virtue of section 34A(1), section 85 appliesin relation to an employee to whom the rules have effect who keepsan account with a bank or building society in pursuance of such rulesas it applies in relation to a solicitor who keeps such an account inpursuance of rules under section 32.
(2) Subsection (3) applies where rules made under section 32—
(a) contain any such provision as is referred to in section 33(1),
and
(b) have effect in relation to employees of solicitors by virtue of
section 34A(1).
(3) Except as provided by the rules, an employee to whom the rules are
applied is not liable to account to any client, other person or trust fori n t e r e s t  r e c e i v e d  b y  t h e  e m p l o y e e  o n  m o n e y  h e l d  a t  a  b a n k  o rbuilding society in an account which is for money received or heldfor, or on account of—
(a) clients of the solicitor, other persons or trusts, generally, or
(b) that client, person or trust, separately.
(4) Subsection (5) applies where rules made under section 33A(1) have
e f f e c t  i n  r e l a t i o n  t o  e m p l o y e e s  o f  s o l i c i t o r s  b y  v i r t u e  o f  s e c t i o n34A(1).
(5) The Society may disclose a report on or information about the
accounts of any employee of a solicitor obtained in pursuance of suchrules for use—
(a) in investigating the possible commission of an offence by the
solicitor or any employees of the solicitor, and
(b) in connection with any prosecution of the solicitor or any
employees of the solicitor consequent on the investigation.
(6) Where rules made under section 34 have effect in relation to
employees of solicitors by virtue of section 34A(1), section 34(9) andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)244
(10) apply in relation to such an employee as they apply in relation
to a solicitor.”
37 For section 36 (compensation fund) substitute—
“36 Compensation grants
(1) The Society may make rules conc erning the grant of compensation
by the Society in respect of loss that a person has suffered, or is likelyto suffer, as a result of—
(a) an act or omission of a solicitor or former solicitor;
(b) an act or omission of an employee or former employee of a
solicitor or former solicitor;
(c) the exercise by the Society of any of its powers under Part 2
of Schedule 1.
(2) The rules may (among other things) make provision—
(a) as to the circumstances in which such grants may and may
not be made;
(b) as to the form and manner in which a compensation claim is
to be made;
(c) as to the procedure for determining compensation claims;
(d) for the making of grants in respect of a compensation claim
before it is finally determined;
(e) for a grant to be made by way of loan in such circumstances
and on such terms as may be prescribed in, or determined inaccordance with, the rules;
(f) for a grant to be made by way of making good a deficiency in
monies held in trust by the Society under paragraph 6 or 6Aof Schedule 1;
(g) as to the minimum and maxim um grants payable in respect
of a compensation claim (or a claim of a prescribeddescription);
(h) for the Society to be subrogated, to such extent as may be
prescribed, to any rights and remedies of a person to whom agrant is made in relation to th e loss in respect of which the
grant is made.
(3) The circumstances which may be prescribed by virtue of subsection
(2)(a) include in particular—
(a) the nature of the loss;
(b) in a case within subsection (1)(a) or (b), the nature of the act
or omission.
(4) For the purposes of subsection (2)(f), there is a deficiency if the
monies mentioned in that subsection  are insufficient to satisfy the
claims of all persons with a beneficial interest in the monies.
(5) The Society may prepare and publish guidance as to the criteria it
will apply in deciding whether to make a grant in respect of acompensation claim, or any part of a compensation claim.
(6) Where the Society decides—
(a) not to make a grant in respect of a compensation claim or any
part of a compensation claim, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)245
(b) to make a grant of less than the amount claimed,
it must give reasons for its decision.
(7) Rules under subsection (1) which are not regulatory arrangements
within the meaning of the Legal Services Act 2007 are to be treated assuch arrangements for the purposes of that Act.
(8) In this section—
“compensation claim” means a claim for the Society to make a
grant of the kind mentioned in subsection (1);
“prescribed” means prescribed in rules under subsection (1).
36A Compensation funds
(1) Compensation rules may require or authorise the Society to establish
or maintain a fund or funds (“compensation funds”) for the purposeof making grants in respect of compensation claims.
(2) Compensation rules may require solicitors, or solicitors of a
description prescribed in the rules, to make contributions tocompensation funds of such amounts, at such times and in suchcircumstances, as may be prescribed in or determined in accordancewith the rules.
(3) Any amount payable by virtue of such a requirement may be
recovered as a debt due to the Society.
(4) Subsection (2) does not apply to a solicitor who is a Crown
Prosecutor.
(5) The Society may invest any money which forms part of a
compensation fund in any investments in which trustees may investunder the general power of investment in section 3 of the Trustee Act2000 (as restricted by sections 4 and 5 of that Act).
(6) The Society may insure with authorised insurers, in relation to
compensation funds, for such purposes and on such terms as itconsiders appropriate.
(7) The Society may, in such circumstances and subject to such
conditions as may be prescribed in or determined in accordance withcompensation rules—
(a) borrow for the purposes of a compensation fund;
(b) charge investments which form part of a compensation fund
as security for borrowing by the Society for the purposes ofthat fund.
(8) A compensation fund may be applied by the Society for the purposes
mentioned in subsection (9) (in addition to the making of grants inrespect of compensation claims).
(9) The purposes are—
(a) payment of premiums on insurance policies effected under
subsection (6);
(b) repayment of money borrowed by the Society for the
purposes of the fund and payment of interest on any moneyso borrowed;Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)246
(c) payment of any other costs, ch arges or expenses incurred by
the Society in establishing,  maintaining, protecting
administering or applying the fund;
(d) payment of any costs, charges or expenses incurred by the
Society in exercising its powers under Part 2 of Schedule 1;
(e) payment of any costs or damages incurred by the Society, its
employees or agents as a result of proceedings against it orthem for any act or omission of its or theirs in good faith andin the exercise or purported exercise of such powers.
(10) In this section—
“compensation claim” has the same  meaning as in section 36;
“compensation fund” has the meaning given by subsection (1);
“compensation rules” means rules under section 36(1).”
38 In section 37 (professional indemnity)—
(a) in subsection (1) for “Council, with the concurrence of the Master of
the Rolls,” substitute “Society”, and
(b) in subsection (3)(h)—
(i) for “Council” substitute “Society”,
(ii) for “they consider” substitute “it considers”, and
(iii) after “being” insert “, or have been,”.
39 Omit section 37A (redress for inadequate professional services).40 Omit section 40 (solicitor not to commence or defend actions while in
prison).
41 (1) Section 41 (employment by solicitor of person struck off or suspended) is
amended as follows.
(2) After subsection (1A) insert—
“(1B) Where—
(a) a solicitor (“the employed solicitor”) is employed by another
solicitor in accordance with a written permission grantedunder this section, and
(b) the employed solicitor is disqualified from practising as a
solicitor by reason of a fact mentioned in subsection (1)(b) or(c),
section 20(1) does not apply in relation to anything done by the
employed solicitor in the course of that employment.”
(3) In subsection (3)—
(a) for “Master of the Rolls who” substitute “High Court which”, and
(b) in paragraph (b) for “he” substitute “it”.
(4) In subsection (4) for “shall” to the end substitute “may—
(a) order that his name be struck off the roll,
(b) order that he be suspended from practice for such period as
the Tribunal or court thinks fit, or
(c) make such other order in the matter as it thinks fit.”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)247
(5) After that subsection insert—
“(4A) In relation to an appeal under subsection (3) the High Court may
make such order as it thinks fit as to payment of costs.
(4B) The decision of the High Court on an appeal under subsection (3)
shall be final.”
(6) Omit subsection (5).
42 (1) Section 43 (control of solicitors’ employees and consultants) is amended as
follows.
(2) For subsections (1), (1A) and (2) substitute—
“(1) Where a person who is or was involved in a legal practice but is not
a solicitor—
(a) has been convicted of a criminal offence which is such that in
the opinion of the Society it would be undesirable for theperson to be involved in a legal pr actice in one or more of the
ways mentioned in subsection (1A), or
(b) has, in the opinion of the Society, occasioned or been a party
to, with or without the connivance of a solicitor, an act ordefault in relation to a legal practice which involved conducton his part of such a nature that in the opinion of the Societyit would be undesirable for him to be involved in a legalpractice in one or more of the ways mentioned in subsection(1A),
the Society may either make, or make an application to the Tribunal
for it to make, an order under subsection (2) with respect to thatperson.
(1A) A person is involved in a legal practice for the purposes of this
section if the person—
(a) is employed or remunerated by a solicitor in connection with
the solicitor’s practice;
(b) is undertaking work in the name of, or under the direction or
supervision of, a solicitor;
(c) is employed or remunerated by a recognised body;
(d) is employed or remunerated by a manager or employee of a
recognised body in connection with that body’s business;
(e) is a manager of a recognised body;
(f) has or intends to acquire an interest in such a body.
(2) An order made by the Society or the Tribunal under this subsection
is an order which states one or more of the following—
(a) that as from the specified date—
(i) no solicitor shall employ or remunerate, in connection
with his practice as a solicitor, the person with respectto whom the order is made,
(ii) no employee of a solicitor shall employ or
remunerate, in connection with the solicitor’spractice, the person with respect to whom the order ismade,
(iii) no recognised body shall employ or remunerate that
person, andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)248
(iv) no manager or employee of a recognised body shall
employ or remunerate that person in connection withthe business of that body,
except in accordance with a Society permission;
(b) that as from the specified date no recognised body or
manager or employee of such a body shall, except inaccordance with a Society perm ission, permit the person with
respect to whom the order is made to be a manager of thebody;
(c) that as from the specified date no recognised body or
manager or employee of such a body shall, except inaccordance with a Society perm ission, permit the person with
respect to whom the order is made to have an interest in thebody.
(2A) The Society may make regulations prescribing charges to be paid to
the Society by persons who are the subject of an investigation by theSociety as to whether there are grounds for the Society—
(a) to make an order under subsection (2), or
(b) to make an application to the Tribunal for it to make such an
order.
(2B) Regulations under subsection (2A) may—
(a) make different provision for different cases or purposes;
(b) provide for the whole or part of a charge payable under the
regulations to be repaid in such circumstances as may beprescribed by the regulations.
(2C) Any charge which a person is required to pay under regulations
under subsection (2A) is recoverable by the Society as a debt due tothe Society from the person.”
(3) In subsection (5) omit—
(a) “by any solicitor”, and
(b) the words from “but” to the end.
(4) After that subsection insert—
“(5A) In this section—
“manager”, in relation to a recognised body, has the same
meaning as it has in relation to a body in the Legal ServicesAct 2007 (see section 207 of that Act);
“recognised body” means a body recognised under section 9 of
the Administration of Justice Act 1985;
“specified date” means such date as may be specified in the
order;
“Society permission” means permission in writing granted by
the Society for such period and subject to such conditions asthe Society may think fit to specify in the permission.
(5B) A person has an interest in a recognised body for the purposes of this
section if the person has an inter est in that body within the meaning
of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of thatAct).”
43 In section 44 (offences in conn ection with orders under section 43(2))—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)249
(a) for subsection (1) substitute—
“(1) It is an offence for a person in respect of whom there is in
force an order under section 43(2) which contains provisionwithin section 43(2)(a)—
(a) to seek or accept any employment or remuneration
from a solicitor, or an employee of a solicitor, inconnection with the practice carried on by thatsolicitor without previously informing the solicitor oremployee of the order;
(b) to seek or accept any employment or remuneration
from a recognised body, or a manager or employee ofa recognised body, in connection with that body’sbusiness, without previously informing the body, ormanager or employee, of the order.
(1A) It is an offence for a person in respect of whom there is in
force an order under section 43(2) which contains provisionwithin section 43(2)(b) to seek or accept a position as amanager of a recognised body, without previously informingthat body of the order.
(1B) It is an offence for a person in respect of whom there is in
force an order under section 43(2) which contains provisionwithin section 43(2)(c) to seek or accept an interest in arecognised body from any person, without previouslyinforming that person and (if different) the recognised bodyof the order.
(1C) A person guilty of an offence under subsection (1), (1A) or
(1B) is liable on summary conviction to a fine not exceedinglevel 3 on the standard scale.”,
(b) in subsection (2) for “the employment of that person” substitute “the
taking of any action”, and
(c) after subsection (4) insert—
“(5) In this section—
“manager” has the same meaning as in section 43;“recognised body” means a body recognised under
section 9 of the Administration of Justice Act 1985;
and for the purposes of subsection (1B) a person seeks or
accepts an interest in a recogn ised body if the person seeks or
accepts an interest which if it were obtained by the person
would result in the person hav ing an i nte re st in tha t bodywithin the meaning of Part 5 of the Legal Services Act 2007(see sections 72 and 109 of that Act).”
44 For section 44B (examination of files) substitute—
“44B Provision of information and documents by solicitors etc
( 1 ) T h e  S o c i e t y  m a y  b y  n o t i c e  r e q u i r e  a  p e r s o n  t o  w h o m  t h i s  s e c t i o n
applies—
(a) to provide information, or information of a description,
specified in the notice, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)250
(b) produce documents, or documents of a description, specified
in the notice.
(2) This section applies to—
(a) a solicitor;
(b) an employee of a solicitor;
(c) a recognised body;
(d) an employee or manager of, or a person with an interest in, a
recognised body.
(3) The Society may give a notice under this section only if it is satisfied
that it is necessary to do so for the purpose of investigating—
(a) whether there has been professional misconduct by a
solicitor;
(b) whether a solicitor, or an employee of a solicitor, has failed to
comply with any requirements imposed by or by virtue ofthis Act or any rules made by the Society;
(c) whether a recognised body, or any of its managers or
employees has failed to comply with any requirementimposed by or by virtue of the Administration of Justice Act1985 or any rules made by the Society and applicable to thebody, manager or employee by virtue of section 9 of that Act;
(d) whether there are grounds for making, or making an
application to the Tribunal for it to make, an order undersection 43(2) with respect to a person who is or was involvedin a legal practice (within the meaning of section 43(1A)).
(4) A notice under this section—
(a) may specify the time and place at which, and manner and
form in which, the information is to be provided or documentis to be produced;
(b) must specify the period within which the information is to be
provided or the document produced;
(c) may require the information to be provided or document to
be produced to the Society or to a person specified in thenotice.
(5) The Society may pay to any person such reasonable costs as may be
incurred by that person in connection with the provision of anyinformation, or production of any document, by that personpursuant to a notice under this section.
(6) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in
relation to the powers to obtain information conferred by thissection, but for this purpose— 
(a) paragraph 9 of that Schedule has effect as if—
(i) in sub-paragraph (3) for “such documents” there were
substituted “information to which a notice given tohim under section 44B applies”,
(ii) in that sub-paragraph for “sub-paragraph (1)” there
were substituted “the notice”, and
(iii) in sub-paragraph (4) for “produce” (in the first place)
to the end there were substituted “provideinformation pursuant to a notice under section 44B toLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)251
provide the information to any person appointed by
the Society at such time and place as may be specifiedin the order.”, and
(b) the reference to the solicitor or his personal representative in
paragraph 13 of that Schedule is to be construed as areference to the person to whom the notice was given underthis section.
(7) Paragraphs 9 (other than sub-paragraphs (1) and (3)), 12, 13, 15 and
16 of Schedule 1 apply in relation to the powers to obtain documentsconferred by this section as they apply in relation to the powersconferred by paragraph 9(1) of that Schedule, except that for thispurpose—
(a) any reference in paragraph 9 of that Schedule to a person
appointed, or to a requirement, under sub-paragraph (1) ofthat paragraph is to be construed as a reference to a personappointed, or to a requirement to produce documents, underthis section,
(b) any reference in that paragraph  to any such documents as are
mentioned in paragraph 9(1) of that Schedule is to beconstrued as a reference to any documents to which a noticeunder this section applies,
(c) the references to the solicitor or his firm in paragraph 9(5) and
(6) of that Schedule, and the reference to the solicitor orpersonal representative in paragraph 9(7) of that Schedule,are to be construed as references to the person to whom thenotice was given under this section, and
(d) the reference in paragraph  9(12) of that Schedule to the
Society is to be construed as including a reference to a personspecified under subsection (4)(c).
(8) Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are
exercisable in relation to a person within paragraph (a), (b), (c) or (d)of subsection (2), they continue to be so exercisable after the personhas ceased to be a person within the paragraph in question.
(9) In this section—
“manager” has the same meaning as in the Legal Services Act
2007 (see section 207 of that Act);
“recognised body” means a body recognised under section 9 of
the Administration of Justice Act 1985;
and the reference to a person who has an interest in a recognised
body is to be construed in accordance with sections 72 and 109 of theLegal Services Act 2007.
44BA Power to require explanation of document or information
(1) The Society may, by notice, require a person to whom a notice is
given under section 44B (or a representative of the person) to attendat a time and place specified in the notice to provide an explanationof any information provided or document produced pursuant to thenotice.
(2) The Society may pay to any person such reasonable costs as may be
incurred by that person in connection with that person’s compliancewith a requirement imposed under subsection (1).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)252
(3) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in
relation to a notice under this section, except that for this purpose—
(a) paragraph 9 of that Schedule has effect as if—
(i) in sub-paragraph (3) for “having” to “sub-paragraph
(1)” there were substituted “refuses, neglects orotherwise fails to comply with a requirement undersection 44BA(1)”, and
(ii) in sub-paragraph (4) for “produce” (in the first place)
to the end there were substituted “provide anexplanation of any information provided or
document produced pursuant to a notice undersection 44B (or a representative of such a person) toattend at a time and place specified in the order toprovide an explanation of any information soprovided or document so produced.”, and
(b) the reference to the solicitor or his personal representative in
paragraph 13 of that Schedule is to be construed as areference to the person to whom the notice was given underthis section.
44BB Provision of information and documents by other persons
(1) The High Court, on the application of the Society, may order a
person to whom section 44B does not apply—
(a) to provide information, or information of a description,
specified in the notice, or
(b) to produce documents, or documents of a description,
specified in the notice.
(2) The High Court may make an order under this section only if it is
satisfied—
(a) that it is likely that the information or document is in the
possession or custody of, or under the control of, the person,and
(b) that there is reasonable cause to believe that the information
or document is likely to be of material significance to aninvestigation into any of th e matters mentioned in section
44B(3)(a) to (d).
(3) An order under this section may direct the Society to pay to a person
specified in the order such reasonable costs as may be incurred bythat person in connection with the provision of any information, orproduction of any document, by that person pursuant to the order.
(4) Section 44B(4) applies in relation to an order under this section as it
applies in relation to a notice under section 44B.
(5) Paragraphs 9(5A) and (7) to (12), 12, 13, 15 and 16 of Schedule 1 apply
in relation to an order under this section as they apply in relation toan order under paragraph 9(4) of that Schedule, except that for thispurpose—
(a) the reference to the solicitor or personal representative in
paragraph 9(7) of that Schedule is to be construed as areference to the person in respect of whom the order under
this section is made,Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)253
(b) the reference in paragraph 9(12) of that Schedule to the
Society is to be read as including a reference to a personspecified under section 44B(4)(c) (as applied by subsection (4)of this section), and
(c) the reference to the solicitor or his personal representative in
paragraph 13 of that Schedule is to be construed as areference to the person to whom the notice was given underthis section.
44BC  Information offences
(1) It is an offence for a person who knows or suspects an investigation
into any of the matters mentioned in  section 44B(3)(a) to (d) is being
or is likely to be conducted—
(a) to falsify, conceal, destroy or otherwise dispose of a
document which the person knows or suspects is or would berelevant to the investigation, or
(b) to cause or permit the falsification, concealment, destruction
or disposal of such a document.
(2) In proceedings for an offence under subsection (1) it is a defence for
the accused to show that the accused had no intention of concealingfacts disclosed by the documents from the person conducting theinvestigation.
(3) It is an offence for a person, in purported compliance with a
requirement imposed on the person under section 44B, 44BA or44BB—
(a) to provide information which the person knows to be false or
misleading in a material particular, or
(b) recklessly to provide information which is false or
misleading in a material particular.
(4) A person who is guilty of an offence under subsection (1) or (3) is
liable—
(a) on summary conviction, to imprisonment for a term not
exceeding 12 months or a fine not exceeding the statutorymaximum, or both;
(b) on conviction on indictment, to imprisonment for a term not
exceeding 2 years or a fine, or both.
(5) In relation to an offence under subsection (1) or (3) committed before
the commencement of section 154(1) of the Criminal Justice Act 2003t h e  r e f e r e n c e  i n  s u b s e c t i o n  ( 4 ) ( a )  t o  1 2  m o n t h s  i s  t o  b e  r e a d  a s  areference to 6 months.”
45 For section 44C (payment of costs of investigations) substitute—
“44C Power to charge for costs of investigations
(1) The Society may make regulations prescribing charges to be paid to
the Society by solicitors who are the subject of a disciplineinvestigation.
(2) A “discipline investigation” is an investigation carried out by the
Society into—
(a) possible professional misconduct by a solicitor, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)254
(b) a failure or apprehended failure by a solicitor to comply with
any requirement imposed by or by virtue of this Act or anyrules made by the Society.
(3) Regulations under this section may—
(a) make different provision for different cases or purposes;
(b) provide for the whole or part of a charge payable under the
regulations to be repaid in such circumstances as may beprescribed by the regulations.
(4) Any charge which a solicitor is required to pay under regulations
under this section is recoverable by the Society as a debt due to theSociety from the solicitor.
(5) This section (other than subsection  (2)(a)) applies in relation to an
employee of a solicitor as it applies in relation to a solicitor.”
46 After that section insert—
“Disciplinary powers of the Society
44D Disciplinary powers of the Society
(1) This section applies where the Society is satisfied—
(a) that a solicitor or an employee of a solicitor has failed to
comply with a requirement imposed by or by virtue of this
Act or any rules made by the Society, or
(b) that there has been professional misconduct by a solicitor.
(2) The Society may do one or both of the following—
(a) give the person a written rebuke;
(b) direct the person to pay a penalty not exceeding £2,000.
(3) The Society may publish details of any action it has taken under
subsection (2)(a) or (b), if it considers it to be in the public interest todo so.
(4) Where the Society takes action against a person under subsection
(2)(b), or decides to publish under subsection (3) details of any actiontaken under subsection (2)(a) or (b), it must notify the person inwriting that it has done so.
(5) A penalty imposed under subsection (2)(b) does not become payable
until—
(a) the end of the period during which an appeal against the
decision to impose the penalty, or the amount of the penalty,may be made under section 44E, or
(b) if such an appeal is made, such time as it is determined or
withdrawn.
(6) The Society may not publish under subsection (3) details of any
action under subsection (2)(a) or (b)—
(a) during the period within which an appeal against—
(i) the decision to take the action,
(ii) in the case of action under subsection (2)(b), the
amount of the penalty, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)255
(iii) the decision to publish the details,
may be made under section 44E, or
(b) if such an appeal has been made, until such time as it is
determined or withdrawn.
(7) The Society must make rules—
(a) prescribing the circumstances in which the Society may
decide to take action under subsection (2)(a) or (b);
(b) about the practice and procedure to be followed by the
Society in relation to such action;
(c) governing the publication under subsection (3) of details of
action taken under subsection (2)(a) or (b);
and the Society may make such other rules in connection with the
exercise of its powers under this section as it considers appropriate.
(8) Before making rules under subsection (7), the Society must consult
the Tribunal.
(9) A penalty payable under this section may be recovered as a debt due
to the Society, and is to be forfeited to Her Majesty.
(10) The Lord Chancellor may, by order, amend paragraph (b) of
subsection (2) so as to substitute for the amount for the time beingspecified in that paragraph such other amount as may be specified inthe order.
(11) Before making an order under subsection (10), the Lord Chancellor
must consult the Society.
(12) An order under subsection (10) is to be made by statutory instrument
subject to annulment in pursuance of a resolution of either House ofParliament.
(13) This section is without prejudice to any power conferred on the
Society or any other person to make an application or complaint tothe Tribunal.
44E Appeals against disciplinary action under section 44D
(1) A person may appeal against—
(a) a decision by the Society to rebuke that person under section
44D(2)(a) if a decision is also made to publish details of therebuke;
(b) a decision by the Society to impose a penalty on that person
under section 44D(2)(b) or the amount of that penalty;
(c) a decision by the Society to publish under section 44D(3)
details of any action taken against that person under section44D(2)(a) or (b).
(2) Subsections (9)(b), (10)(a) and (b), (11) and (12) of section 46
(Tribunal rules about procedure for hearings etc) apply in relation toappeals under this section as they apply in relation to applications orcomplaints, except that subsection (11) of that section is to be read asif for “the applicant” to “application)” there were substituted “anyparty to the appeal”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)256
(3) Rules under section 46(9)(b) may, in particular, make provision
about the period during which an appeal under this section may bemade.
(4) On an appeal under this section, the Tribunal has power to make
such order as it thinks fit, and such an order may in particular—
(a) affirm the decision of the Society;
(b) revoke the decision of the Society;
(c) in the case of a penalty imposed under section 44D(2)(b), vary
the amount of the penalty;
(d) in the case of a solicitor, contain provision for any of the
matters mentioned in paragraphs (a) to (d) of section 47(2);
(e) in the case of an employee of a solicitor, contain provision for
any of the matters mentioned in section 47(2E);
(f) make such provision as the Tribunal thinks fit as to payment
of costs.
(5) Where by virtue of subsection (4)(e) an order contains provision for
any of the matters mentioned in section 47(2E)(c), section 47(2F) and(2G) apply as if the order had been made under section 47(2E)(c).
(6) An appeal from the Tribunal shall lie to the High Court, at the
instance of the Society or the person in respect of whom the order ofthe Tribunal was made.
(7) The High Court shall have power to make such order on an appeal
under this section as it may think fit.
(8) Any decision of the High Court on an appeal under this section shall
be final.
(9) This section is without prejudice to any power conferred on the
Tribunal in connection with an application or complaint made to it.”
47 (1) Section 46 (solicitors disciplinary tribunal) is amended as follows.
(2) For subsection (5) substitute—
“(5) The Tribunal may pay its members such remuneration, fees or
allowances as it may determine with the approval of the LegalServices Board.”
(3) After that subsection insert—
“(5A) The Tribunal may do anythin g calculated to facilitate, or incidental
or conducive to, the carrying out of any of its functions.”
(4) Omit subsections (6) to (8).
(5)  In subsection (9)—
(a) for “Subject to subsections (6) to (8), the” substitute “The”,
(b) omit “, with the concurrence of the Master of the Rolls,”, and
(c) in paragraph (b) after “complaints” insert “(including provision
about the composition of the Tribunal)”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)257
48 After that section insert—
“46A Funding of the Tribunal
(1 ) The Tribunal m us t submi t to the Socie ty in respec t of ea ch year a
budget for the year approved by the Legal Services Board.
(2) A budget for a year is a statement of the amount of money which the
Tribunal estimates is required to enable it to meet all of itsexpenditure in that year (having regard to any amounts received butnot spent in previous years).
(3) Before approving a statement for the purposes of subsection (1) the
Legal Services Board must consult the Society.
(4) The budget for a year must be submitted to the Society under
subsection (1) no later than the date in the preceding year specifiedby the Society for the purposes of this subsection.
(5) Before specifying a date for this purpose the Society must consult the
Tribunal.
(6) The amount specified in a budget submitted under subsection (1)
must be paid by the Society to the Tribunal—
(a) in such instalments and at such times as may be agreed
between the Society and the Tribunal, or
(b) in the absence of such agreement, before the beginning of the
year to which the budget relates.
(7) The Society may pay the Tribunal such other amounts as the Society
considers appropriate.
(8) In this section “year” means a calendar year.”
49 In section 47 (jurisdiction and powers of Tribunal)—
(a) in subsection (1), after paragraph (e) insert—
“(ea) by a solicitor who has been suspended from practice
as a sole solicitor for an unspecified period, by orderof the Tribunal, for the termination of thatsuspension;”,
(b) in subsection (2) for “subsection” (where it first occurs) substitute
“subsections (2E) and”,
(c) after subsection (2)(b) insert—
“(ba) the revocation of that solicitor’s sole solicitor
endorsement (if any);
(bb) the suspension of that solicitor from practice as a sole
solicitor indefinitely or for a specified period;”,
(d) in subsection (2)(c) omit “not exceeding £5,000”,
(e) after subsection (2)(e) insert—
“(ea) the termination of that solicitor’s unspecified period
of suspension from practice as a sole solicitor;”,
(f) after subsection (2D) insert—
“(2E) On the hearing of any complaint made to the Tribunal by
virtue of section 34A(2) or (3), the Tribunal shall have powerto make one or more of the following—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)258
(a) an order directing the payment by the employee to
whom the complaint relates of a penalty to beforfeited to Her Majesty;
(b) an order requiring the Society to consider taking such
steps as the Tribunal may specify in relation to thatemployee;
(c) if that employee is not a solicitor, an order which
states one or more of the matters mentioned inparagraphs (a) to (c) of section 43(2);
(d) an order requiring the Society to refer to an
appropriate regulator any matter relating to theconduct of that employee.
(2F) Subsections (1) to (1C), (3) and (4) of section 44 apply in
relation to an order under subsection (2E)(c) as they apply inrelation to an order under section 43(2).
(2G) Section 44(2), paragraph 16(1)(d) and (1A)(d) of Schedule 2 to
the Administration of Justice Act 1985 and paragraph 15(3A)of Schedule 14 to the Courts and Legal Services Act 1990apply in relation to an order under subsection (2E)(c) as theyapply in relation to an order under section 43(2).
(2H) For the purposes of subsection (2E)(d) an “appropriate
regulator” in relation to an employee means—
(a) if the employee is an authorised person in relation to
a reserved legal activity (within the meaning of theLegal Services Act 2007), any relevant approvedregulator (within the meaning of that Act) in relationto that employee, and
(b) if the employee carries on activities which are not
reserved legal activities (within the meaning of thatAct), any body which regulates the carrying on ofsuch activities by the employee.”,
(g) after subsection (3A) insert—
“(3B) For the avoidance of doubt, nothing in this section permits
the Tribunal to make an order requiring redress to be madein respect of any act or omission of any person.”, and
(h) omit subsections (4) and (5).
50 In section 48 (orders of Tribunal)—
(a) in subsection (2)(b)—
(i) after “(e),” insert “(ea),”, and
(ii) omit “in the London Gazette”,
(b) in subsection (3) for “Subject to section 43(5), any” substitute “Any”,
and
(c) after subsection (4) insert—
“(5) In the case of orders of the Tribunal under section 44E, the
reference in subsection (2)(a) to the application or complaintis to be read as a reference to the Tribunal’s order.”
51 (1) Section 49 (appeals from Tribunal) is amended as follows.
(2) In subsection (1) for “lie—” to the end substitute “lie to the High Court”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)259
(3) In subsection (2), after “(3)” insert “and to section 43(5) of the Administration
of Justice Act 1985”.
(4) In subsection (3) for “legal aid work (within the meaning of that section)”
substitute “providing representation funded by the Legal ServicesCommission as part of the Criminal Defence Service”.
(5) In subsection (4)—
(a) omit “and the Master of the Rolls”, and
(b) for “they” substitute “it”.
(6) For subsection (6) substitute—
“(6) Any decision of the High Court—
(a) on an application under section 43(3) or 47(1)(d), (e), (ea) or
(f), or
(b) against an order under section 43(3A),
shall be final.”
(7) Omit subsection (7).
52 After that section insert—
“49A Appeals to the Tribunal instead of the High Court
(1) The Society may, with the approval of the Tribunal, make rules
which provide that in such cir cumstances as may be prescribed by
the rules an appeal under any of  the provisions listed in subsection
(2) lies to the Tribunal and not to the High Court.
(2) Those provisions are—
(a) section 8(4);
(b) section 13A(6);
(c) section 16(5);
(d) section 28(3D);
(e) section 41(3);
(f) paragraph 14 of Schedule 14 to the Courts and Legal Services
Act 1990 (foreign lawyers: appeals against conditions orrefusals).
(3) Any decision of the Tribunal on an appeal by virtue of rules made
under this section shall be final.”
53 In section 54 (restrictions on powers to strike names off roll)—
(a) in subsection (1) for “service under articles” substitute “persons
seeking admission as solicitors”, and
(b) in subsection (2) for paragraphs (a) and (b) substitute—
“(a) that a solicitor who undertook a training
responsibility for him under training regulationsneglected or omitted to take out a practisingcertificate; or
(b) that the name of a solicitor who undertook such a
responsibility for a period has been removed from orstruck off the roll after the end of that period.”
54 (1) Section 56 (orders as to remuneration for non-contentious business) is
amended as follows.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)260
(2) In subsection (1)—
(a) in paragraph (a) for “Secretary of State” substitute “Lord
Chancellor”,
(b) after paragraph (d) insert—
“(da) a member of the Legal Services Board nominated by
that Board;”, and
(c) in paragraph (e) for “Secretary of State” substitute “Lord
Chancellor”.
(3) In subsection (2) for “(the Secretary of State” to “think fit” substitute “(the
Lord Chancellor being on e), may make general or ders prescribing the
general principles to be applied when determining”.
(4) In subsection (3)— 
(a) for “Secretary of State” substitute “Lord Chancellor”, and
(b) for “Council” (in both places) substitute “Society”.
(5) In subsection (4) for “An order” to the end of paragraph (a) substitute—
   “The principles prescribed by an order under this section may
provide that solicitors sh ould be remunerated—”.
(6) In subsection (5)— 
(a) for “An order” to “reference” substitute—
   “The general principles prescribed by an order under this section
may provide that the amount of such remuneration is to bedetermined by having regard”, and
(b) in paragraph (d) after “solicitor” insert “, or any employee of his who
is an authorised person,”.
(7) After that subsection insert—
“(5A) In subsection (5) “authorised person” means a person who is an
authorised person in relation to an activity which is a reserved legalactivity, within the meaning of the Legal Services Act 2007 (seesection 18 of that Act).”
(8) In subsection (6)(a) for “taxation” substitute “assessment”.
(9) In subsection (7)—
(a) for “taxation” substitute “assessment”, and
(b) for “regulated by” substitute “subject to”.
55 In section 57 (non-contentious business agreements)—
(a) in subsection (2) for “stamps” substitute “taxes”,
(b) in subsection (5)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxing officer” substitute “costs officer”, and
(c) in subsection (7)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxing officer” substitute “costs officer”.
56 In section 60 (effect of contentious business agreements)—
(a) in subsection (1) for “taxation” substitute “assessment”,
(b) in subsection (2)—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)261
(i) for “taxed” substitute “assessed”, and
(ii) for “taxation” substitute “assessment”, and
(c) for subsection (5) substitute—
“(5) A provision in a contentious business agreement that the
solicitor shall not be liable for his negligence, or that of anyemployee of his, shall be void if the client is a natural personwho, in entering that agreement, is acting for purposes whichare outside his trade, business or profession.
(6) A provision in a contentious business agreement that the
solicitor shall be relieved from any responsibility to which hewould otherwise be subject as a solicitor shall be void.”
57 In section 61 (enforcement of contentious business agreements)—
(a) in subsection (2)(b) for “taxed” substitute “assessed”,
(b) in subsection (3) for “taxing officer” substitute “costs officer”,
(c) in subsection (4)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxed” substitute “assessed”,
(d) in subsection (4B)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxing officer” substitute “costs officer”, and
(e) in subsection (5) for “taxed” substitute “assessed”.
58 In section 62 (contentious business agreements by certain representatives)—
(a) in subsection (1) for “taxing officer” substitute “costs officer”, and
(b) in subsection (2)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxed” substitute “assessed”.
59 In section 63 (effect on contentious business agreement of death etc)—
(a) in subsection (2)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxing officer” substitute “costs officer”, and
(b) in subsection (3)—
(i) for “taxation” substitute “assessment”,
(ii) for “taxing officer” (in both places) substitute “costs officer”,
and
(iii) after “solicitor” (in the thir d place) insert “, or any of his
employees,”.
60 In section 64 (form of bill of costs for contentious business)—
(a) in subsection (3) for “taxed” substitute “assessed”, and
(b) in subsection (4)—
(i) for “taxed” substitute “assessed”,
(ii) for “taxation” substitute “assessment”, and
(iii) for “taxing officer” (in both places) substitute “costs officer”.
61 In section 65 (security for costs and ter mination of retainer), in subsection (1)
for “taxation” substitute “assessment”.
62 In section 66 (taxations with respect to contentious business)—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)262
(a) in the section heading for “Taxations” substitute “Assessments”,
(b) for “taxation” substitute “assessment”,
(c) for “taxing officer” substitute “costs officer”,
(d) in paragraph (a), after “solicitor” (in the second place) insert “or an
employee of the solicitor”, and
(e) in paragraph (b), after “him” insert “or by any employee of his who
is an authorised person (within the meaning of section 56(5A))”.
63 In section 67 (inclusion of disbursements in bill of costs), in paragraph (b)—
(a) for “taxed” substitute “assessed”,
(b) for “taxing officer” substitute “costs officer”, and
(c) for “taxation” substitute “assessment”.
64 (1) Section 69 (action to recover solicitor’s costs) is amended as follows.
(2) In subsection (1) for “taxed” substitute “assessed”.(3) For subsection (2) substitute—
“(2) The requirements referred to in subsection (1) are that the bill must
be—
(a) signed in accordance with subsection (2A), and
(b) delivered in accordance with subsection (2C).
(2A) A bill is signed in accordance with this subsection if it is—
(a) signed by the solicitor or on his behalf by an employee of the
solicitor authorised by him to sign, or
(b) enclosed in, or accompanied by, a letter which is signed as
mentioned in paragraph (a) and refers to the bill.
(2B) For the purposes of subsection (2A) the signature may be an
electronic signature.
(2C) A bill is delivered in ac cordance with this subsection if—
(a) it is delivered to the party to be charged with the bill
personally,
(b) it is delivered to that party by being sent to him by post to, or
left for him at, his place of business, dwelling-house or lastknown place of abode, or
(c) it is delivered to that party—
(i) by means of an electronic communications network,
or
(ii) by other means but in a form that nevertheless
requires the use of apparatus by the recipient torender it intelligible,
and that party has indicated to the person making the
delivery his willingness to accept delivery of a bill sent in theform and manner used.
(2D) An indication to any person for the purposes of subsection (2C)(c)—
(a) must state the address to be used and must be accompanied
by such other information as that person requires for themaking of the delivery;
(b) may be modified or withdrawn at any time by a notice given
to that person.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)263
(2E) Where a bill is proved to have been delivered in compliance with the
requirements of subsections (2A) and (2C), it is not necessary in thefirst instance for the solicitor to prove the contents of the bill and it isto be presumed, until the contrary is shown, to be a bill bona fidecomplying with this Act.
(2F) A bill which is delivered as mentioned in subsection (2C)(c) is to be
treated as having been delivered on the first working day after theday on which it was sent (unless the contrary is proved).”
(4) At the end insert—
“(5) In this section references to an electronic signature are to be read in
accordance with section 7(2) of the Electronic Communications Act
2000 (c. 7).
(6) In this section—
“electronic communications network” has the same meaning as
in the Communications Act 2003 (c. 21);
“working day” means a day other  than a Saturday, a Sunday,
Christmas Day, Good Friday or a bank holiday in Englandand Wales under the Banking and Financial Dealings Act1971 (c. 80).”
65 In section 70 (taxation on application of party chargeable or solicitor)—
(a) in the section heading for “Taxation” substitute “Assessment”,
(b) in subsection (1)—
(i) for “taxed” substitute “assessed”, and
(ii) for “taxation” substitute “assessment”,
(c) in subsection (2)—
(i) for “taxation” (in both places) substitute “assessment”, and
(ii) for “taxed” substitute “assessed”,
(d) in subsections (3) to (5) for “taxation” (in each place) substitute
“assessment”,
(e) in subsection (6)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxed” substitute “assessed”,
(f) in subsection (7)—
(i) for “taxation” (in each place) substitute “assessment”,
(ii) for “taxing officer” substitute “costs officer”, and
(iii) for “tax” substitute “assess”,
(g) in subsection (8) for “taxation” (in each place) substitute
“assessment”,
(h) in subsection (9)—
(i) for “for taxation” (in both places) substitute “for assessment”,
(ii) for “the taxation” (in both places) substitute “the assessment”,
(iii) for “a taxation” substitute “an assessment”, and
(iv) for “one fifth of the amount of the bill is taxed off” substitute
“the amount of the bill is reduced by one fifth”,
(i) in subsection (10)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxation” (in both places) substitute “assessment”,Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)264
(j) omit subsection (11), and
(k) in subsection (12)—
(i) for “of the bill taxed off” substitute “of the reduction in the
bill”,
(ii) for “taxation” substitute “assessment”, and
(iii) for “taxed” (in the second place) substitute “assessed”.
66 In section 71 (taxation on  application of third parties)—
(a) in the section heading for “Taxation” substitute “Assessment”,
(b) in subsection (1) for “taxation” substitute “assessment”,
(c) in subsection (3) —
(i) for “taxed” substitute “assessed”, and
(ii) for “taxation” substitute “assessment”,
(d) in subsection (4) for “taxation” substitute “assessment”,
(e) in subsection (6)—
(i) for “taxation” substitute “assessment”, and
(ii) for “taxed” substitute “assessed”, and
(f) in subsection (7) for “taxed” substitute “assessed”.
67 In section 72 (supplementary provisions as to taxations)—
(a) in the section heading for “taxations” substitute “assessments”,
(b) in subsection (1) for “taxation” substitute “assessment”,
(c) in subsection (2)—
(i) for “taxing officer” (in each  place) substitute “costs officer”,
(ii) for second and fourth “taxing” substitute “assessing”, and
(iii) for “tax” substitute “assess”,
(d) in subsection (3)—
(i) for “taxing officer” (in both places) substitute “costs officer”,
(ii) for “tax” substitute “assess”, and
(iii) for “taxing” (in second place) substitute “assessing”, and
(e) in subsection (4)—
(i) for “taxing officer” substitute “costs officer”, and
(ii) for “taxed” substitute “assessed”.
68 In section 73 (charging orders), in subsection (1)—
(a) for “taxed” substitute “assessed”, and
(b) for “taxation” substitute “assessment”.
69 In section 74 (special provisions as to contentious business done in county
courts)—
(a) in subsection (2)—
(i) for “registrar” substitute “district judge”,
(ii) for “taxing officer” substitute “costs officer”, and
(iii) for “taxation” (in both places) substitute “assessment”, and
(b) in subsection (3) for “taxation” substitute “assessment”.
70 Omit the following provisions—
section 76 (non-practising solicitor s eligible for membership of Society),
section 77 (annual subscription to Society), andsection 78 (cessation and suspension of membership of Society).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)265
71 For section 79 (committees and sub-committees of the Council) substitute—
“79 Discharge of the Council’s functions
(1) The Council may arrange for any function of the Council (including
any function exercisable by the Council by virtue of section 80) to beexercised by—
(a) a committee of the Council,
(b) a sub-committee of such a committee,
(c) a body corporate which is established for the purpose of
providing services to the Council (or any committee of theCouncil) and is a wholly-owned subsidiary of the Society, or
(d) an individual (whether or not a member of the Society’s
staff).
(2) Where by virtue of subsection (1) any function may be discharged by
a committee, the committee may arrange for the discharge of thefunction by—
(a) a sub-committee of that committee,
(b) a body corporate which is established for the purpose of
providing services to the Council (or any committee of theCouncil) and is a wholly-owned subsidiary of the Society, or
(c) an individual (whether or not a member of the Society’s
staff).
(3) Where, by virtue of subsection (1) or (2), any function may be
discharged by a sub-committee, that sub-committee may arrange forthe discharge of the function by an individual (whether or not amember of the Society’s staff).
(4) Arrangements made under this section in respect of a function may
provide that the function is to be exercised in accordance with thearrangements only (and not by the delegating body).
(5) In subsection (4) “the delegating body” means—
(a) in the case of arrangements under subsection (1), the Council;
(b) in the case of arrangements under subsection (2), the
committee;
(c) in the case of arrangements under subsection (3), the sub-
committee.
(6) Subsections (2) and (3) have effect subject to any contrary direction
given by the Council.
(7) Where arrangements under subsection (3) relate to a function
delegated by a committee under subsection (2), subsection (3) alsohas effect subject to any contrary direction given by that committee.
(8) Any power given by subsection (1), (2) or (3) may be exercised so as
to impose restrictions or condition s on the body or individual by
whom the function is to be discharged.
(9) A committee or sub-committee may include or consist of individuals
other than—
(a) members of the Council;
(b) members of the Society;Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)266
(c) solicitors.
(10) A sub-committee of a committee may also include or consist of
individuals other than members of the committee.
(11) The Council may make arrangements for the appointment and
removal of members of any committee to be made other than by theCouncil.
(12) A committee or sub-committee may regulate its own procedure,
including quorum.
(13) The validity of any proceedings of a committee or sub-committee is
not affected by any vacancy among its members.
(14) In this section “wholly-owned subsidiary” has the meaning given by
section 1159 of the Companies Act 2006.
(15) This section is subject to any pr ovision to the contrary made by or
under any enactment.”
72 In section 80 (powers to act on behalf of Society)—
(a) in subsection (1) for “of any instrument made under it” substitute
“any other enactment (or of any instrument made under this Act orany other enactment)”, and
(b) omit subsection (2).
73 Omit sections 81 and 81A (administration of oaths and taking of affidavits).74 Before section 87 (interpretation) insert—
“86A Rules
(1) Rules made by the Society under this Act may —
(a) make provision generally or subject to exceptions or only in
relation to specified cases;
(b) make different provision for different cases or circumstances
or for different purposes.
(2) Without prejudice to the generality of subsection (1), any rules
prescribing a fee may provide for that fee to be reduced or waived insuch circumstances as may be specified in the rules.”
75 In section 87(1) (interpretation)— 
(a) in the definition of “client account”, for “in” to the end substitute
“subject to rules under section 32(1)(a)”,
(b) after the definition  of “sole solicitor” insert—
““sole solicitor endorsement” has the same meaning as
in section 1B;”, and
(c) omit the following definitions—
“articles”“controlled trust”
“duly certificated notary public”
“employee”“indemnity conditions”“replacement date”
“training conditions”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)267
76 In section 89 (consequential amendments etc.), omit subsection (7).
77 (1) Schedule 1 (intervention in solicitor’s practice) is amended as follows.
(2) In paragraph 1 (grounds for intervention)—
(a) in sub-paragraph (1)(a)—
(i) for “Council have” substitute “Society has”,
(ii) after “solicitor’s practice” insert “or former practice”, and
(iii) after “trustee” insert “or that employee is or was a trustee in
his capacity as such an employee”,
(b) after that sub-paragraph insert—
“(aa) the Society has reason to suspect dishonesty on the
part of a solicitor (“S”) in connection with—
(i) the business of any person of whom S is or
was an employee, or of any body of whichS is or was a manager, or
(ii) any business which is or was carried on by
S as a sole trader;”,
(c) in sub-paragraph (1)(b)—
(i) for “Council consider” substitute “Society considers”, and
(ii) for “controlled trust” substitute “trust”,
(d) in sub-paragraph (1)(c) for “Council are” substitute “Society is”,
(e) in sub-paragraph (1)(ee)—
(i) for “Council are” substitute “Society is”, and
(ii) after “illness” insert “, injury”,
(f) in sub-paragraph (1)(h)—
(i) for “Council are” substitute “Society is”, and
(ii) omit “sole”,
(g) in sub-paragraph (1)(i) and (k) for “Council are” substitute “Society
is”,
(h) in sub-paragraph (1)(l)—
(i) for “Council are” substitute “Society is”,
(ii) in sub-paragraph (iii) for “an officer” substitute “a manager”,
and
(iii) in that sub-paragraph for “Council of the Law Society”
substitute “Society”,
(i) after sub-paragraph (1)(l) insert—
“(m) the Society is satisfied that it is necessary to exercise
the powers conferred by Part 2 of this Schedule (orany of them) in relation to a solicitor to protect—
(i) the interests of clients (or former or
potential clients) of the solicitor or his firm,or
(ii) the interests of the beneficiaries of any trust
of which the solicitor is or was a trustee.”,
(j) after sub-paragraph (1) insert—
 “(1A) In sub-paragraph (1) “mana ger” has the same meaning as
in the Legal Services Act 2007 (see section 207 of that Act).”,and
(k) omit sub-paragraph (2).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)268
(3) In paragraph 3 (intervention following an undue delay)—
(a) for “10(3)” substitute “10(9)”,
(b) for paragraph (a) substitute—
“(a) the Society is satisfied that there has been undue
delay—
(i) on the part of a solicitor in connection with
any matter in which the solicitor or his firmis or was acting on behalf of a client or withany trust, or
(ii) on the part of an employee of a solicitor in
connection with any trust of which theemployee is or was a trustee in his capacityas such an employee; and”,
(c) in paragraph (c) for “Council regard” substitute “Society regards”.
(4) In paragraph 4(2) (continuation of powers after death etc of solicitor)—
(a) after “6(2) and (3)” insert “, 6A”,
(b) for “and (5)” substitu te “, (5) and (6)”, and
(c) for “10(1)” substitute “10(2) and (7)”.
(5) In paragraph 6 (vesting of sums in Society)—
(a) in sub-paragraph (1)—
(i) for “Council pass” substitute “Society passes”,
(ii) for “Council’s” substitute “Society’s”, and
(iii) after “thereto” insert “an d to rules under paragraph 6B”,
(b) in sub-paragraph (2)(a) for “his practice” to the end substitute—
“(i) his practice or former practice,
(ii) any trust of which he is or formerly was a
trustee, or
(iii) any trust of which a person who is or was
an employee of the solicitor is or was atrustee in the person’s capacity as such anemployee;”, and
(c) in sub-paragraph (2)(c) for “to which the complaint relates”
substitute “in connection with which the Society is satisfied there hasbeen undue delay as mentioned in sub-paragraph (a) of thatparagraph”.
(6) After paragraph 6 insert—
“6A (1) Without prejudice to paragraph 5, if the Society passes a
resolution to the effect that any rights to which this paragraphapplies shall vest in the Society, those rights shall vest accordingly.
(2) This paragraph applies to any right to recover or receive debts due
to the solicitor or his firm in connection with his practice or formerpractice.
(3) Any sums recovered by the Society by virtue of the exercise of
rights vested under sub-paragraph (1) shall vest in the Society andshall be held by it on trust to exercise in relation to them thepowers conferred by this Part of this Schedule and, subject to those
powers and to rules under paragraph 6B, upon trust for the
persons beneficially entitled to them.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)269
(4) The Society shall serve on the solicitor or his firm, and any person
who owes a debt to which the order applies, a certified copy of theSociety’s resolution.
6B (1) The Society may make rules governing its treatment of sums
vested in it under paragraph 6 or 6A(3).
(2) The rules may in particular make provision in respect of cases
where the Society, having taken such steps to do so as arereasonable in all the circumstances of the case, is unable to tracethe person or persons beneficially entitled to any sum vested in theSociety under paragraph 6 or 6A(3) (including provision whichrequires amounts to be paid into or out of compensation funds(within the meaning of section 36A)).”
(7) In paragraph 7(1) (holding of sums vested in Society)— 
(a) after “paragraph 6” insert “or 6A(3)”, and
(b) after “thereto” insert “and to rules under paragraph 6B”.
(8) In paragraph 8 (information as to money held) for “holds money” to the end
substitute—
“(a) holds money on behalf of the solicitor or his firm, or
(b) has information which is relevant to identifying any
money held by or on behalf of the solicitor or his firm,
the court may require that person to give the Society information
as to any such money and the accounts in which it is held.”
(9) In paragraph 9 (documents)—
(a) in sub-paragraph (1)(a)—
(i) after “possession” insert “or under the control”, and
(ii) for “or with any controlled trust” substitute “or former
practice or with any trust of which the solicitor is or was atrustee”,
(b) in sub-paragraph (1)(b)—
(i) after “possession” insert “or under the control”, and
(ii) for “to which the complaint relates” substitute “of which the
Society is satisfied”,
(c) in sub-paragraph (3) after “possession” insert “or control”,
(d) in sub-paragraph (5) after “the possession” insert “or under the
control”,
(e) after sub-paragraph (5) insert—
 “(5A) In the case of a document which consists of information
which is stored in electronic form, a requirement imposedby a notice under sub-paragraph (1) or an order under sub-paragraph (4) or (5), is a requirement to produce or deliverthe information in  a form in which it is legible or from
which it can readily be produced in a legible form.”,
(f) in sub-paragraph (6) after “possession of” insert “(a)”,
(g) at the end of that sub-paragraph insert—
“(b) any property—
(i) in the possession of or under the control of
the solicitor or his firm, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)270
(ii) in the case of an order under sub-paragraph
(5), which was in the possession or underthe control of such a person and has comeinto the possession or under the control ofthe person in respect of whom the order ismade,
which the Society reasonab ly requires for the
purpose of accessing information contained in suchdocuments,
and to use property obtained under paragraph (b) for that
purpose.”,
(h) in sub-paragraph (7) after “documents” insert “or other property”,
(i) in sub-paragraph (8) after “documents” insert “or other property”,
and
(j) in sub-paragraph (10) after “documents” insert “or other property”.
(10) For paragraph 10 (mail) substitute—
“Mail and other forms of communication
10 (1) The High Court, on the application of the Society, may from time
to time make a communications redirection order.
(2) A communications redirection order is an order that specified
communications to the solicitor or his firm are to be directed, inaccordance with the order, to the Society or any person appointedby the Society.
(3) For the purposes of this paragraph—
(a) “specified communications” means communications of
such description as are specified in the order;
(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.
(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 Society
or the person appointed by the Society may take possession orreceipt of the communications redirected in accordance with theorder.
(6) Where a communications redirection order is made, the Society
must pay to—
(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,
the like charges (if any) as would have been payable for the
redirection of the communications to which the order relates if theaddressee had permanently ceased to occupy or use the premisesor other destination of the communications and had applied to theLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 1 — The Solicitors Act 1974 (c. 47)271
postal operator or the specified person (as the case may be) to
redirect the communications to him as mentioned in the order.
(7) The High Court may, on the application of the Society, authorise
the Society, or a person appointed by it, to take such steps as maybe specified in the order in relation to any website purporting tobe or have been maintained by or on behalf of the solicitor or hisfirm if the High Court is satisfied that the taking of those steps isnecessary to protect the public interest or the interests of clients (orpotential or former clients ) of the solicitor or his firm.
(8) In this paragraph “postal operator” and “postal packet” have the
meaning given by section 125(1) of the Postal Services Act 2000.
(9) This paragraph does not apply where the powers conferred by this
Part of this Schedule are exercisable by virtue of paragraph 3.”
(11) In paragraph 11(1) (trusts) for “controlled trust” substitute “trust”.(12) In paragraph 12 (liens) for “and documents” substitute “, documents and
other property”.
(13) After paragraph 13 (costs) insert—
“13A(1) The High Court, on the application of the Society, may order a
former partner of the solicitor to pay a specified proportion of thecosts mentioned in paragraph 13.
(2) The High Court may make an order under this paragraph only if
it is satisfied that the conduct (or any part of the conduct) byreason of which the powers conferred by this Part were exercisablein relation to the solicitor was conduct carried on with the consentor connivance of, or was attributable to any neglect on the part of,the former partner.
(3) In this paragraph “specified” means specified in the order made
by the High Court.”
78 Omit Schedule 1A (inadequate professional services).79 Omit Schedule 2 (the compensation fund).
P
ART 2
THE ADMINISTRATION  OF JUSTICE  ACT 1985 ( C. 61)
80 The Administration of Justice Act 1985 is amended in accordance with this
Part of this Schedule.
81 (1) Section 9 (incorporated practices) is amended as follows.
(2) In subsection (1)—
(a) for “Council” (in both places) substitute “Society”,
(b) in paragraph (a) for “by solicitors” to the end substitute “of legal
services bodies;”,
(c) in paragraph (b) for “any such services” substitute “any solicitor
services or other relevant legal services”, and
(d) in paragraph (c)—
(i) for “conditions” substit ute “requirements”, andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)272
(ii) omit “corporate”.
(3) After that subsection insert—
“(1A) Where the Society makes rules under subsection (1), it must by rules
under subsection (1)(c) prescribe the requirement that (subject to anyexceptions provided by the rules) recognised bodies must notprovide services other than—
(a) solicitor services, or
(b) solicitor services and other relevant legal services.
(1B) “Relevant legal services” means—
(a) solicitor services, and
(b) where authorised persons other than solicitors or registered
European lawyers are managers or employees of, or have aninterest in, a recognised body, services of the kind providedby individuals practising as such authorised persons(whether or not those services involve the carrying on ofreserved legal activities within the meaning of the LegalServices Act 2007).
(1C) The Society may by rules under this section provide that services
specified, or of a description specified, in the rules are not to betreated as solicitor services or oth er relevant legal services.”
(4) In subsection (2)—
(a) for “Council” (in both places) substitute “Society”,
(b) in paragraph (a) for “are to be” to the end substitute “, or for the
renewal of such recognition, ar e to be made, and requiring such
applications to be accompanied by a fee of such amount as theSociety may from time to time determine;”,
(c) after that paragraph insert—
“(aa) for the manner and form in which other applications
under the rules are to be made, and requiring suchapplications to be accompanied by a fee of suchamount as the Society may from time to timedetermine;”,
(d) for paragraphs (c) to (e) substitute—
“(c) about the time when any recognition, or renewal of
recognition, takes effect and the period for which it is(subject to the provisions made by or under this Part)to remain in force;
(d) for the suspension or revocation of any such
recognition, on such grounds and in suchcircumstances as may be prescribed by the rules;
(e) about the effect on the recognition of a partnership or
other unincorporated body (“the existing body”) ofany change in the membership of the existing body,including provision for  the existing body’s
recognition to be transferred where the existing bodyceases to exist and another body succeeds to thewhole or substantially the whole of its business;
(ea) for the keeping by the Society of a register containing
the names and places of business of all bodies which
are for the time being recognised under this section,Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)273
and such other information relating to those bodies as
may be specified in the rules;
(eb) for information (or information of a specified
description) on such a register to be made available tothe public, including provision about the manner inwhich, and times at which, information is to be madeso available;”, and
(e) after paragraph (f) insert—
“(fa) about the education and training requirements to be
met by managers and employees of recognisedbodies;
(fb) for rules made under any provision of the 1974 Act to
have effect in relation to managers and employees ofrecognised bodies with such additions, omissions orother modifications as appear to the Society to benecessary or expedient;
(fc) requiring recognised bodies to appoint a person or
persons to monitor compliance, by the recognisedbody, its managers and its employees, withrequirements imposed on them by or by virtue of thisAct or any rules applicable to them by virtue of thissection;”.
(5) After subsection (2) insert—
“(2A) If rules under this section provi de for the recognition of legal services
bodies which have one or more managers who are not legallyqualified, the rules must make provision—
(a) for the recognition of such bodies to be suspended or
revoked, on such grounds and in such circumstances as maybe prescribed by the rules;
(b) as to the criteria and procedure for the Society’s approving,
as suitable to be a manager of a recognised body, anindividual who is not legally qualified (and for the Society’swithdrawing such approval).
(2B) Rules under this section may make provision for appeals to the High
Court against decisions made by the Society under the rules—
(a) to suspend or revoke the recognition of any body;
(b) not to approve, as suitable to be the manager of a recognised
body, an individual who is not legally qualified (or towithdraw such approval).
(2C) The rules may provide for appeals against decisions within
subsection (2B)(b) to be brought by the individual to whom thedecision relates (as well as the body).
(2 D) In relati on to an appeal under rules  ma de b y v irtue of subse ction
(2B), the High Court may make such order as it thinks fit as topayment of costs.
(2E) The decision of the High Court on such an appeal shall be final.
(2F) Where the Society decides to recognise a body under this section it
must grant that recognition subject to one or more conditions if—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)274
(a) the case is of a kind prescribed for the purposes of this section
by rules made by the Society, and
(b) the Society considers that it is in the public interest to do so.
(2G) While a body is recognised under this section, the Society—
(a) must direct that the body’s recognition is to have effect
subject to one or more conditions if—
(i) the case is of a prescribed kind, and
(ii) the Society considers that it is in the public interest to
do so;
(b) may, in such circumstances as may be prescribed, direct that
the body’s recognition is to have effect subject to suchconditions as the Society may think fit.
“Prescribed” means prescribed by rules made by the Society.
(2H) The conditions which may be imposed under subsection (2F) or (2G)
include—
(a) conditions requiring the body to take specified steps that
will, in the opinion of the Society, be conducive to thecarrying on by the body of an efficient business;
(b) conditions which prohibit the body from taking any specified
steps except with the approval of the Society;
(c) if rules under this section provide for the recognition of legal
services bodies which have one or more managers who arenot legally qualified, a condition  that all the managers of the
body must be legally qualified.
“Specified” means specified in the condition.
(2I) Rules made by the Society may make provision about when
conditions imposed under this section take effect (includingprovision conferring power on the Society to direct that a conditionis not to have effect until the conclusion of any appeal in relation toit).
(2J) Section 86A of the 1974 Act applies to rules under this section as it
applies to rules under that Act.
(2K) Rules under this section may contain such incidental, supplemental,
transitional or transitory provisions or savings as the Societyconsiders necessary or expedient.”
(6) For subsection (3) substitute—
“(3) Despite section 24(2) of the 1974 Act, section 20 of that Act
(prohibition on unqualified person acting as solicitor) does not applyto a recognised body; and nothing in section 24(1) of that Act appliesin relation to such a body.”
(7) Omit subsection (4).
(8) In subsection (5) omit “corporate”.(9) In subsection (7)— 
(a) for “Secretary of State” (in both places) substitute “Lord Chancellor”,
andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)275
(b) for “the commencement of this section” substitute “or in the same
session as the Legal Services Act 2007 was passed”.
(10) In subsection (8)—
(a) after the definition of “the 1974 Act” insert—
““authorised person” means an author ised person in relation to an
activity which is a reserved legal activity (within the meaning ofthe Legal Services Act 2007);”,
(b) for ““the Council” and “the Society” have” substitute ““the Society”
has”,
(c) after the definition of “the Society” insert—
““legally qualified” and “legal ser vices body” have the meaning
given by section 9A;
“manager”, in relation to a body, has the same meaning as in the
Legal Services Act 2007 (see section 207 of that Act);”,
(d) omit the definition of “officer”,
(e) in the definition of “recognised body” omit “corporate”, and
(f) after the definition of “registered European lawyer” insert—
““solicitor services” means professional services such as are
provided by individuals practising as solicitors or lawyers ofother jurisdictions;
and a person has an interest in a body if the person has an interest in
the body within the meaning of Part 5 of the Legal Services Act 2007(see sections 72 and 109 of that Act).”
(11) Omit subsection (9).
82 After that section insert—
“9A Legal services bodies
(1) For the purposes of section 9, a “legal services body” means a body
(corporate or unincorporate) in respect of which —
(a) the management and control condition, and
(b) the relevant lawyer condition,
are satisfied.
(2) The management and control condition is satisfied if—
(a) at least 75% of the body’s managers are legally qualified,
(b) the proportion of shares in the body held by persons who are
legally qualified is at least 75%,
(c) the proportion of voting rights in the body which persons
who are legally qualified are entitled to exercise, or controlthe exercise of, is at least 75%,
(d) all the persons with an interest in the body who are not
legally qualified are managers of the body, and
(e) all the managers of the body who are not legally qualified are
individuals approved by the Society as suitable to bemanagers of a recognised body.
(3) The Society may by rules under section 9 provide that, in relation to
specified kinds of bodies, subsection (2) applies as if the references to75% were to such greater percentage as may be specified (anddifferent percentages may be specified for different kinds of bodies).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)276
(4) The relevant lawyer condition is satisfied in relation to a body if at
least one manager of the body is—
(a) a solicitor,
(b) a registered European lawyer, or
(c) a qualifying body.
(5) For that purpose a qualifyin g body is a body in respect of which—
(a) the management and control condition would be satisfied if
the references in subsection (2) to persons who are legallyqualified were to persons who are legally qualified by virtueof subsection (6)(a) to (c),
(b) the relevant lawyer condition is satisfied by virtue of
subsection (4)(a) or (b), and
(c) the services condition is satisfied.
(6) For the purposes of this section the following are legally qualified—
(a) an authorised person who is an individual;
(b) a registered foreign lawyer (within the meaning of section 89
of the Courts and Legal Services Act 1990 (c. 41));
(c) a person entitled to pursue professional activities under a
professional title to which the Directive applies in a state towhich the Directive applies (other than the title of barrister orsolicitor in England and Wales);
(d) an authorised person which is a body in respect of which—
(i) the services condition is satisfied, and
(ii) the management and control condition would be
satisfied if the references in subsection (2) to personswho are legally qualified were to persons who arelegally qualified by virtue of paragraphs (a) to (c);
(e) a body which provides professional services such as are
provided by individuals who are authorised persons orlawyers of other jurisdictions, and in respect of which themanagement and control condition would be satisfied if thereferences in subsection (2) to persons who are legallyqualified were to persons who are legally qualified by virtueof paragraphs (a) to (c).
(7) For the purposes of this section, the services condition is satisfied in
relation to a body if the body provides only services which may beprovided by a recognised body (having regard to rules under section9(1A) and (1C)).
(8) For the purposes of this section—
“authorised person” has the same meaning as in section 9;
“the Directive” means Directive 98/5/EC of the European
Parliament and the Council, to facilitate practice of theprofession of lawyer on a permanent basis in a Member Stateother than that in which th e qualification was obtained;
“manager”, in relation to a body, ha s the meaning given by
section 9;
“recognised body” has the same meaning as in section 9;
“registered European lawyer” has the same meaning as in
section 9;Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)277
“shares” has the same meaning as for the purposes of Part 5 of
the Legal Services Act 2007 (see sections 72 and 109 of thatAct);
“specified” means specified in rules made by the Society;
and a person has an interest in a body if the person has an interest in
the body for the purposes of section 9.”
83 (1) Section 10 (penalty for pretending to be a body recognised under section 9)
is amended as follows.
(2) In subsection (1) omit “corporate” (in both places).(3) In subsection (2) omit “corporate”.
(4) For subsection (3) substitute—
“(3) Where an offence under this section committed by a body corporate
is proved to have been committed with the consent or connivance ofor to be attributable to any neglect on the part of an officer of thebody corporate, that officer (as well as the body corporate) is guiltyof the offence and is liable to be proceeded against and punishedaccordingly.
(4) Where the affairs of a body corporate are managed by its members,
subsection (3) applies in relation to the acts and defaults of a memberin connection with the member’s functions of management as itapplies to an officer of the body corporate.
(5) Proceedings for an offence under this section alleged to have been
committed by an unincorporated body are to be brought in the nameof that body (and not in that of an y of its members) and, for the
purposes of any such proceedings, any rules of court relating to theservice of documents have effect as if that body were a corporation.
(6) A fine imposed on an unincorporated body on its conviction of an
offence under this section is to be paid out of the funds of that body.
(7) If an unincorporated body is charged with an offence under this
section, section 33 of the Criminal Justice Act 1925 (c. 86) andSchedule 3 to the Magistrates’ Courts Act 1980 (c. 43) (procedure oncharge of an offence against a corporation) have effect in like manneras in the case of a corporation so charged.
(8) Where an offence under this section committed by an
unincorporated body (other than a partnership) is proved to havebeen committed with the consent or connivance of, or to beattributable to any neglect on the part of, any officer of the body orany member of its governing body, that officer or member as well as
the unincorporated body is guilty of the offence and liable to beproceeded against and punished accordingly.
(9) Where an offence under this section committed by a partnership is
proved to have been committed with the consent or connivance of,or to be attributable to any neglect on the part of, a partner, thatpartner as well as the partnership is guilty of the offence and liableto be proceeded against and punished accordingly.
(10) In this section “officer”, in relation to a body corporate, means—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)278
(a) any director, secretary or other similar officer of the body
corporate, or
(b) any person who was purporting to act in any such capacity.”
84 (1) Section 43 (jurisdiction and power s of Solicitors Disciplinary Tribunal in
relation to complaints against solicitors) is amended as follows.
(2) In subsection (2)(a) for “(7) to” substitute “(9) to”.
(3) After subsection (3) insert—
“(3A) Nothing in section 157  of the Legal Services Act 2007 (approved
regulators not to make provision for redress) prevents an order beingmade under subsection (3).”
(4) For subsection (5) substitute—
“(5) An appeal under section 49 of the Solicitors Act 1974 against an order
of the Tribunal under subsection (3) lies only at the instance of thesolicitor with respect to whom the legal aid complaint was made.”
85 In the title of Schedule 2, for “Incorporated practices” substitute “Legal
services practices”.
86 In paragraph 1 of that Schedule (interpretation)—
(a) in sub-paragraph (1) omit “corporate”,
(b) in sub-paragraph (2) omit—
(i) paragraph (b) and the “or” immediately preceding it,
(ii) “corporate”, and
(iii) “or application”,
(c) after that sub-paragraph insert—
 “(2A) References in this Schedule to a manager or employee of a
recognised body, in relation to a complaint (other thansuch a complaint as is mentioned in paragraph 16(1A)(a)),include references to a person who was such a manager oremployee at the time when the conduct to which thecomplaint relates took place.”,
(d) omit sub-paragraph (3),
(e) in sub-paragraph (4) omit from “; and for those purposes” to the end,
(f) in sub-paragraph (5) for “sub-paragraphs (3) and (4)” substitute
“sub-paragraphs (4) and (6)”, and
(g) for sub-paragraph (6) substitute—
 “(6) In this Schedule—
“manager”, in relation to a body, has the same
meaning as in the Legal Services Act 2007 (seesection 207 of that Act);
“registered European lawyer” has the same meaning
as in section 9A;
“the 1974 Act” means the Solicitors Act 1974.”
87 For paragraph 2 of that Schedule (appeal against refusal of Council to grantLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)279
recognition) substitute—
“Appeal against refusal of Society to grant recognition etc
2 (1) A body may appeal to the High Court against—
(a) a decision to refuse an application by the body for
recognition under section 9;
(b) a decision to impose a condition under subsection (2F) of
that section on the body’s recognition under that section;
(c) a decision to impose a condition under subsection (2G) of
that section on the body’s recognition under that section.
(2) A recognised body whose recognition is subject to a condition
within section 9(2H)(b) may appe al to the High Court against any
decision by the Society to refuse to approve the taking of any stepfor the purposes of that condition.
(3) Rules made by the Society may make provision, as respects any
application for recognition that is  neither granted nor refused by
the Society within such period as may be specified in the rules, forenabling an appeal to be brought un der this paragraph in relation
to the application as if it had been refused by the Society.
(4) On an appeal under sub-paragraph (1)(a) or (b), the High Court
may—
(a) affirm the decision of the Society,
(b) direct the Society to grant the body recognition under
section 9 free from conditions or subject to such conditionsas the High Court may think fit,
(c) direct the Society not to recognise the body,
(d) if the Society has recognised the body, by order suspend
the recognition, or
(e) make such other order as the High Court thinks fit.
(5) On an appeal under sub-paragr aph (1)(c), the High Court may—
(a) affirm the decision of the Society,
(b) direct that the body’s recognition under section 9 is to have
effect subject to such conditions as the High Court maythink fit,
(c) by order revoke the direction given by the Society under
section 9(2G), or
(d) make such other order as the High Court thinks fit.
(6) On an appeal under sub-parag raph (2), the High Court may—
(a) affirm the decision of the Society,
(b) direct the Society to approve the taking of one or more
steps for the purposes of a condition within section9(2H)(b), or
(c) make such other order as the High Court thinks fit.
(7) In relation to an appeal under this paragraph, the High Court may
make such order as it thinks fit as to payment of costs.
(8) The decision of the High Court on an appeal under this paragraph
is final.”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)280
88 For paragraph 3 of that Schedule (accounts rules) substitute—
“3 (1) This paragraph applies where rules made under section 32(1) of
the 1974 Act are applied—
(a) to recognised bodies in accordance with section 9(2)(f) of
this Act, or
(b) to managers or employees of such bodies in accordance
with section 9(2)(fb) of this Act.
(2) The Society may disclose a report on or information about the
accounts of a recognised body, or a manager or employee of arecognised body, obtained in pursuance of such rules for use—
(a) in investigating the possible commission of an offence by
the body or any of its managers or employees, and
(b) in connection with any prosecution of the body or any of
its managers or employees consequent on theinvestigation.”
89 In paragraph 4 of that Schedule (interest on clients’ money)—
(a) in sub-paragraph (1)—
(i) for “section 33(1)(a)” substitute “section 33(1)”, and
(ii) for the words from “and subject to” to the end substitute “, a
recognised body is not liable to account to any client, otherperson or trust for interest received by the recognised bodyon money held at a bank or building society in an accountwhich is for money received or  held for, or on account of— 
(a) clients of the recognised body, other persons or trusts,
generally, or
(b) that client, person or trust separately.”, and
(b) omit sub-paragraph (2).
90 After that paragraph insert—
“4ZA Where rules made under section 32 of the 1974 Act and containing
any such provision as is referred to in section 33(1) of that Act areapplied to managers or employees of recognised bodies inaccordance with section 9(2)(fb), then, except as provided by therules, a manager or employee to whom the rules are applied is notliable to account to any client, other person or trust for interestreceived by the manager or employee on money held at a bank orbuilding society in an account which is for money received or heldfor, or on account of— 
(a) clients of the recognised body, other persons or trusts,
generally, or
(b) that client, person or trust, separately.”
91 For paragraph 4A of that Schedule (inspection of bank accounts)
substitute—
“4A (1) This paragraph applies where rules made under section 33A(1) of
the 1974 Act are applied—
(a) to recognised bodies in accordance with section 9(2)(f) of
this Act, or
(b) to managers or employees of such bodies in accordance
with section 9(2)(fb) of this Act.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)281
(2) The Society may disclose information about the accounts of a
recognised body, or a manager or employee of a recognised body,obtained in pursuance of such rules for use—
(a) in investigating the possible commission of an offence by
the body or any of its managers or employees, and
(b) in connection with any prosecution of the body or any of
its managers or employees consequent on theinvestigation.”
92 For paragraph 5 of that Schedule (accountants’ reports) substitute—
“5 Where rules made under section 34 of the 1974 Act are applied to
recognised bodies in accordance with section 9(2)(f), section 34(9)and (10) of that Act apply in relation to a recognised body as theyapply in relation to a solicitor.”
93 After that paragraph insert—
“5A Where rules made under section 34 of the 1974 Act are applied to
managers or employees of recognised bodies in accordance withsection 9(2)(fb), section 34(9) and (10) of that Act apply in relationto a manager or employee to which the rules are applied as theyapply in relation to a solicitor.”
94 For paragraph 6 of that Schedule (compensation fund) substitute—
“6 (1) Section 36 of the 1974 Act applies in relation to recognised bodies
as if for paragraphs (a) and (b) of subsection (1) there weresubstituted—
“(a) an act or omission of a recognised body or former recognised
body;
(b) an act or omission of a manager or employee, or former
manager or employee, of a recognised body or formerrecognised body;”.
(2) Section 36A(2) and (3) of the 1974 Act applies in relation to
recognised bodies as it applies in relation to solicitors.”
95 In paragraph 7 of that Schedule (solicitor who is justice of the peace not to
act in certain proceedings) for “an officer” (in both places) substitute “amanager”.
96 In paragraph 9 of that Schedule (restriction on employment of person struck
off roll or suspended)—
(a) the existing provision becomes sub-paragraph (1) and in that sub-
paragraph after “recognised body” insert “(and any manager oremployee of it)”, and
(b) after that sub-paragraph insert—
 “(2) No recognised body (or manager or employee of such a
body) may, except in accordance with a written permission
granted by the Society under this paragraph, permit aperson to whom sub-paragraph (3) applies to—
(a) be a manager of the body, or
(b) have an interest in the body;
and for this purpose a person has an interest in the body if
he has an interest in the body within the meaning of Part 5Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)282
of the Legal Services Act 2007 (see sections 72 and 109 of
that Act).
(3) This sub-paragraph applies to a person who to the
knowledge of the recognised body (or, as the case may be,the manager or employee) is a person—
(a) who is disqualified from practising as a solicitor by
reason of one of the facts mentioned in section41(1)(a), (b) or (c) of the 1974 Act (name struck offthe roll, suspension etc), or
(b) in respect of whom there is a direction in force
under section 47(2)(g) of that Act (prohibition onrestoration to roll).
(4) Permission granted for the purposes of sub-paragraph (2)
may be granted for such period and subject to suchconditions as the Society thinks fit.
(5) A person aggrieved by the refusal of the Society to grant
permission under sub-paragraph (4), or by any conditionsattached by the Society to the grant of any such permissionmay appeal to the High Court which may—
(a) confirm the refusal or the conditions, as the case
may be, or
(b) grant a permission under this paragraph for such
period and subject to such conditions as it thinksfit.
(6) In relation to an appeal under sub-paragraph (5) the High
Court may make such order as it thinks fit as to paymentof costs.
(7) The decision of the High Court on an appeal under sub-
paragraph (5) is final.”
97 In paragraph 10 of that Schedule (failure to disclose striking off or
suspension)—
(a) the existing paragraph becomes sub -paragraph (1) of that paragraph,
(b) in that sub-paragraph after “recognised body” insert “(or any
manager or employee of such a body)”, and
(c) after that sub-paragraph insert—
 “(2) It is an offence for a person (“P”) to whom sub-paragraph
(3) applies—
(a) to seek or accept from any person an interest in a
recognised body, without previously informingthat person (and, if different, the recognised body)that P is a person to whom that sub-paragraphapplies, or
(b) to seek or accept a position as a manager of a
recognised body, without previously informingthat body that P is such a person.
(3) This sub-paragraph applies to a person—
(a) who is disqualified from practising as a solicitor by
reason of one of the facts mentioned in sectionLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)283
41(1)(a), (b) or (c) of the 1974 Act (name struck off
the roll, suspension etc), or
(b) in respect of whom there is a direction in force
under section 47(2)(g) of that Act (prohibition onrestoration to roll).
(4) A person guilty of an offence under sub-paragraph (2) is
liable on summary conviction to a fine not exceeding level3 on the standard scale.
(5) Subsection (2) of section 42 of the 1974 Act applies in
relation to an offence under sub-paragraph (2) as it appliesin relation to an offence under that section.
(6) For the purposes of sub-paragraph (2)(a) a person seeks or
accepts an interest in a recognised body if the person seeksor accepts an interest which if  it were obtained by the
person would result in the person having an interest in thatbody within the meaning of Part 5 of the Legal Services Act2007 (see sections 72 and 109 of that Act).”
98 Omit paragraph 11 of that Schedule (control of employment of persons
convicted of offences of dishonesty and certain other persons).
99 Omit paragraph 12 of that Schedule (offences in connection with orders
under section 43(2) of the 1974 Act).
100 Omit paragraph 13 of that Schedule (redress for inadequate professional
services).
101 For paragraph 14 of that Schedule (examination of files) substitute—
“Information about suitability for recognition
14 (1) The Society may give a notice under this paragraph if it is satisfied
t h a t  i t  i s  n e c e s s a r y  t o  d o  s o  f o r  t h e  p u r p o s e  o f  i n v e s t i g a t i n gwhether—
(a) a recognised body continues to be suitable to be recognised
under section 9, or
(b) a manager of a recognised body who is not legally
qualified (within the meaning of section 9A) continues tobe suitable to be a manager of a recognised body.
(2) A notice under this paragraph is a notice which requires a person
within sub-paragraph (3)—
(a) to provide information, or information of a description,
specified in the notice, or
(b) to produce documents, or documents of a description,
specified in the notice.
(3) The persons are—
(a) the recognised body;
(b) an employee or manager of the recognised body;
(c) a person who has an interest in the recognised body
(within the meaning of the Legal Services Act 2007 (seesections 72 and 109 of that Act)).Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)284
(4) For the purposes of this paragraph, section 44B(4) to (7) of the 1974
Act applies—
(a) in relation to a notice under this paragraph as if it were a
notice under section 44B of that Act, and
(b) in relation to a person given a notice under this paragraph
as if that person were a person given a notice under thatsection,
and references in subsections (6) and (7) of that section to powers
conferred by that section are to be read as references to powersconferred by this paragraph.
(5) Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are
exercisable in relation to a person within paragraph (a), (b) or (c)of sub-paragraph (3), they continue to be so exercisable after theperson has ceased to be a person within the paragraph in question.
(6) Section 44BA of the 1974 Act (power to require explanation of
document or information) applies in relation to a notice under thisparagraph and the person to whom such a notice is given as itapplies in relation to a notice under section 44B of the 1974 Act andthe person to whom such a notice is given.
(7) Subsection (1) of section 44BC of that Act (falsification of
documents etc) applies in relation to an investigation of the kindmentioned in sub-paragraph (1) as it applies in relation to theinvestigations mentioned in that subsection, and subsections (2),(4) and (5) of that section apply accordingly.
(8) Subsection (3) of that section (provision of false information etc)
applies in relation to a requirement imposed under this paragraphas it applies in relation to a requirement imposed by section 44B ofthat Act, and subsections (4) and (5) of that section apply
accordingly.”
102 For paragraph 14A of that Schedule (payment of costs of investigations)
substitute—
“Power to charge for costs of investigation
14A (1) The Society may make regulations prescribing charges to be paid
to the Society by recognised bodies who are the subject of adiscipline investigation.
(2) A discipline investigation is an  investigation carried out by the
Society into a failure or apprehended failure by a recognised bodyto comply with any requirement imposed by or by virtue of thisAct or any rules applicable to it by virtue of section 9.
(3) Regulations under this paragraph may—
(a) make different provision for different cases or purposes;
(b) provide for the whole or part of a charge payable under the
regulations to be repaid in such circumstances as may beprescribed by the regulations.
(4) Any charge which a recognised body is required to pay under
regulations under this paragraph is recoverable by the Society asa debt due to the Society from the recognised body.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)285
(5) This paragraph applies in relation to a manager or employee of a
recognised body as it applies in relation to a recognised body.”
103 After that paragraph insert—
“Disciplinary powers of the Society
14B (1) This paragraph applies where the Society is satisfied that a
recognised body, or a manager or employee of a recognised body,has failed to comply with a requirement imposed by or by virtueof this Act or any rules applicable to that person by virtue ofsection 9 of this Act.
(2) The Society may do one or both of the following—
(a) give the person a written rebuke;
(b) direct the person to pay a penalty not exceeding £2,000.
(3) The Society may publish details of any action it has taken under
sub-paragraph (2)(a) or (b), if it  considers it to be in the public
interest to do so.
(4) Where the Society takes action against a person under sub-
paragraph (2)(b), or decides to publish under sub-paragraph (3)details of such action under sub-paragraph (2)(a) or (b), it mustnotify the person in writing that it has done so.
(5) A penalty imposed under sub-paragraph (2)(b) does not become
payable until—
(a) the end of the period during which an appeal against the
decision to impose the penalty, or the amount of thepenalty, may be made under paragraph 14C, or
(b) if such an appeal is made, such time as it is determined or
withdrawn.
(6) The Society may not publish under sub-paragraph (3) details of
any action under sub-paragraph (2)(a) or (b)—
(a) during the period within which an appeal against—
(i) the decision to take the action,
(ii) in the case of action under sub-paragraph (2)(b),
the amount of the penalty, or
(iii) the decision to publish the details,
may be made under paragraph 14C, or
(b) if such an appeal has been made, until such time as it is
determined or withdrawn.
(7) The Society must make rules—
(a) prescribing the circumstances in which the Society may
decide to take action under sub-paragraph (2)(a) or (b);
(b) about the practice and procedure to be followed by the
Society in relation to such action;
(c) governing the publication under sub-paragraph (3) of
details of action taken under sub-paragraph (2)(a) or (b);
and the Society may make su ch other rules in connection with the
exercise of its powers under this paragraph as it considers
appropriate.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)286
(8) Before making rules under sub-paragraph (7), the Society must
consult the Tribunal.
(9) A penalty under this paragraph may be recovered as a debt due to
the Society, and is to be forfeited to Her Majesty.
(10) The Lord Chancellor may, by order, amend paragraph (b) of sub-
paragraph (2) so as to substitute for the amount for the time beingspecified in that paragraph such other amount as may be specifiedin the order.
(11) Before making an order under sub-paragraph (10), the Lord
Chancellor must consult the Society.
(12) An order under sub-paragraph (10) is to be made by statutory
instrument subject to annulment in pursuance of a resolution ofeither House of Parliament.
(13) This paragraph is without prejudice to any power conferred on the
Society, or any other person, to make an application or complaintto the Tribunal.
14C (1) A person may appeal against—
(a) a decision by the Society to rebuke that person under
paragraph 14B(2)(a) if a decision is also made to publishdetails of the rebuke;
(b) a decision by the Society to impose a penalty on that
person under paragraph 14B(2)(b) or the amount of thatpenalty;
(c) a decision by the Society to publish under paragraph
14B(3) details of any action taken against that person underparagraph 14B(2)(a) or (b).
(2) Subsections (9)(b), (10)(a) and (b), (11) and (12) of section 46 of the
1974 Act (Tribunal rules about procedure for hearings etc) applyin relation to appeals under this paragraph as they apply inrelation to applications or complaints, except that subsection (11)o f  t h a t  s e c t i o n  i s  t o  b e  r e a d  a s  i f  f o r  “ t h e  a p p l i c a n t ”  t o“application)” there were substituted “any party to the appeal”.
(3) Rules under section 46(9)(b) of the 1974 Act may, in particular,
make provision about the period during which an appeal underthis paragraph may be made.
(4) On an appeal under this paragraph, the Tribunal has power to
make an order which—
(a) affirms the decision of the Society;
(b) revokes the decision of the Society;
(c) in the case of a penalty imposed under paragraph
14B(2)(b), varies the amount of the penalty;
(d) in the case of a recognised body, contains provision for any
of the matters mentioned in paragraph 18(2);
(e) in the case of a manager or employee of a recognised body,
contains provision for an y of the matters mentioned in
paragraph 18A(2);
(f) makes such provision as the Tribunal thinks fit as to
payment of costs.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)287
(5) Where, by virtue of sub-paragraph (4)(e), an order contains
provision for any of the matters mentioned in sub-paragraph (2)(c)of paragraph 18A, sub-paragraphs (5) and (6) of that paragraphapply as if the order had been made under sub-paragraph (2)(c) ofthat paragraph.
(6) An appeal from the Tribunal shall lie to the High Court, at the
instance of the Society or the person in respect of whom the orderof the Tribunal was made.
(7) The High Court shall have power to make such order on an appeal
under this paragraph as it may think fit.
(8) Any decision of the High Court on an appeal under this section
shall be final.
(9) This paragraph is without prejudice to any power conferred on the
Tribunal in connection with an application or complaint made toit.”
104 In paragraph 16 of that Schedule (complaints to Tribunal with respect to
recognised bodies)—
(a) in sub-paragraph (1), in paragraph (a) omit “in the United
Kingdom”,
(b) in paragraph (b) of that sub-paragraph for “section 34 of the 1974
Act” substitute “any requirement imposed by or by virtue of thisAct”,
(c) for paragraph (c) of th at sub-paragraph substitute—
“(c) a complaint that the body has acted in
contravention of section 41 of the 1974 Act orparagraph 9(2) of this Schedule or of anyconditions subject to which a permission has beengranted under section 41 of that Act or thatparagraph of this Schedule; or”, and
(d) after that sub-paragraph insert—
 “(1A) The Tribunal shall have jurisdiction to hear and determine
any of the following complaints made to it under thisparagraph with respect to a manager or employee of arecognised body (“the relevant person”)—
(a) a complaint that the relevant person has been
convicted by any court of a criminal offence whichrenders that person unsuitable to be a manager oremployee (or both) of a recognised body;
(b) a complaint that the relevant person has failed to
comply with any requirement imposed by or byvirtue of this Act or any rules applicable to therelevant person by virtue of section 9 of this Act;
(c) a complaint that the relevant person has acted in
contravention of section 41 of the 1974 Act orparagraph 9(2) of this Schedule or of anyconditions subject to which a permission has beengranted under that section or for the purposes ofparagraph 9(2) of this Schedule;
(d) a complaint that the relevant person has knowingly
acted in contravention of an order under sectionLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)288
43(2) of the 1974 Act or of any conditions subject to
which a permission has been granted under suchan order.”
105 In paragraph 17 of that Schedule (procedure on applications and
complaints)—
(a) for “(7)” substitute “(9)”,
(b) in paragraph (a)—
(i) omit “11(1), 15(2) or”,
(ii) omit “13(3) or”, and
(iii) after “16(1)” insert “or (1A)”, and
(c) in paragraph (c) after “body” insert “or, in the case of such a
complaint as is mentioned in paragraph 16(1A), to a manager oremployee of such a body”.
106 In paragraph 18 of that Schedule (powers of Tribunal with respect to
recognised bodies)—
(a) in sub-paragraph (1) after “this Schedule” insert “(other than
paragraph 16(1A)”,
(b) in paragraph (b) of that sub-paragraph for “section 34 of the 1974
Act” substitute “any requirement imposed by or by virtue of thisAct”,
(c) omit paragraph (d) of that sub-paragraph and the “or” immediately
preceding it,
(d) in sub-paragraph (2) omit “not exceeding £3,000”, and
(e) omit sub-paragraphs (3) and (4).
107 After that paragraph insert—
“18A(1) Where, on the hearing of any complaint made to it under
paragraph 16(1A) of this Schedule, the Tribunal is satisfied that amanager or employee of a recognised body—
(a) has been convicted as mentioned in paragraph (a) of
paragraph 16(1A),
(b) has failed to comply with any requirement imposed by or
by virtue of this Act or any rules applicable to the relevantperson by virtue of section 9 of this Act, or
(c) has acted as mentioned in paragraph (c) or (d) of
paragraph 16(1A),
the Tribunal may, if it thinks fit, make one or more of the orders
referred to in sub-paragraph (2).
(2) Those orders are—
(a) an order directing the payment by the relevant person of a
penalty to be forfeited to Her Majesty;
(b) an order requiring the Society to consider taking such steps
as the Tribunal may specify in relation to the relevantperson;
(c) if the person is not a solicitor, an order which states one or
more of the matters mentioned  in sub-paragraph (3);
(d) an order requiring the Society to refer to an appropriate
regulator any matter relating to the conduct of the relevant
person.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)289
(3) The matters referred to in sub-paragraph (2)(c) are—
(a) that as from the specified date—
(i) no solicitor or employee of a solicitor shall employ
or remunerate, in connection with the practicecarried on by that solicitor, the person with respectto whom the order is made, and
(ii) no recognised body, or manager or employee of
such a body, shall employ or remunerate thatperson, in connection with the business of therecognised body,
except in accordance with a Society permission;
(b) that as from the specified date no recognised body or
manager or employee of such a body shall, except inaccordance with a Society permission, permit the personwith respect to whom the order is made to be a manager ofthe body;
(c) that as from the specified date no recognised body or
manager or employee of such a body shall, except inaccordance with a Society permission, permit the personwith respect to whom the order is made to have an interestin the body.
(4) For this purpose a person has an interest in a body if the person
has an interest in the body within the meaning of Part 5 the LegalServices Act 2007 (see sections 72 and 109 of that Act).
(5) Subsections (1) to (1C), (3) and (4) of section 44 of the 1974 Act
(offences in connection with order s under section 43(2) of that Act)
apply in relation to an order under sub-paragraph (2)(c) as theyapply in relation to an order under section 43(2) of that Act, exceptthat references in those subsections to provision within section43(2)(a), (b) or (c) of that Act are to be read as references toprovision within sub-parag raph (3)(a), (b) or (c).
(6) Section 44(2) of the 1974 Act, paragraph 16(1)(d) and (1A)(d) of
this Schedule and paragraph 15(3A) of Schedule 14 to the Courtsand Legal Services Act 1990 apply in relation to an order undersub-paragraph (2)(c) as they apply in relation to an order undersection 43(2) of the 1974 Act.
(7) For the purposes of sub-paragraph (2)(d) an “appropriate
regulator” in relation to the relevant person means—
(a) if the person is an authorised person in relation to a
reserved legal activity for the purposes of the LegalServices Act 2007, any relevant approved regulator (withinthe meaning of that Act) in relation to that person, and
(b) if the person carries on activities which are not reserved
legal activities, any body which regulates the carrying onof such activities by the person.”
108 In paragraph 20 of that Schedule (powers of Tribunal in respect of legal aid
complaints), in sub-paragraph (1)—
(a) for “an officer” substitute “a manager”,
(b) for “director” substitute “manager”, andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)290
(c) for “legal aid work” substitute “providing representation funded by
the Legal Services Commission as part of the Criminal Defence
Service”,
and omit sub-paragraph (2).
109 In paragraph 21 of that Schedule (revocation of recognition by reason of
default by director)—
(a) in sub-paragraph (1), in paragraph (a) for “director” substitute
“manager”,
(b) in paragraph (b) of that sub-paragraph for “director” (in both places)
substitute “manager”,
(c) in paragraph (c) of that sub-paragraph for “director” (in both places)
substitute “manager”,
(d) in sub-paragraph (3) for “director” (in both places) substitute
“manager”, and
(e) after that sub-paragraph insert—
 “(4) The reference in paragraph (c) of sub-paragraph (1) to a
person employed by a recognised body includes areference to a person who was so employed at the time ofthe conduct leading to the making of the order referred toin that paragraph.”
110 In paragraph 23 (orders as to remuneration for non-contentious business)—
(a) the existing provision becomes sub-paragraph (1) of that paragraph,
(b) in that sub-paragraph for “regulating (in accordance with paragraph
22)” substitute “prescribing (by virtue of paragraph 22) generalprinciples to be applied when determining”,
(c) in that sub-paragraph for paragraph (b) substitute—
“(b) in paragraph (d), the reference to the solicitor or
any employee of the solicitor who is an authorisedperson were a reference to any manager oremployee of the recognised body who is anauthorised person.”, and
(d) after that sub-paragraph insert—
 “(2) In this paragraph “authorised person” means a person
who is an authorised person in relation to an activitywhich is a reserved legal acti vity, within the meaning of
the Legal Services Act 2007 (see section 18 of that Act).”
111 For paragraph 24 of that Schedule (effect of contentious business
agreements) substitute—
“24 (1) This paragraph applies in relation to a contentious business
agreement made between a recognised body and a client.
(2) A provision in the agreement that the body shall not be liable for
the negligence of any of its managers or employees shall be void ifthe client is a natural person who, in entering that agreement, isacting for purposes which are outside his trade, business orprofession.
(3) A provision in the agreement that the body shall be relieved from
any responsibility to which it would otherwise be subject in theLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)291
course of carrying on its business as a recognised body shall be
void.
(4) A provision in the agreement that any manager of the body shall
be relieved from any responsibility to which the manager wouldotherwise be subject in the course of the carrying on by the bodyof its business as a recognised body shall be void.”
112 In paragraph 25 of that Schedule (effect of supervening incapacity on
contentious business agreements)—
(a) for sub-paragraph (1)(b) substitute—
“(b) a relevant insolvency even t occurs in relation to the
body;”,
(b) in sub-paragraphs (2) and (3)—
(i) for “taxation” (in each place) substitute “assessment”, and
(ii) for “taxing officer” (in each place) substitute “costs officer”, 
(c) in sub-paragraph (3) for “any officer” substitute “any manager”, and
(d) after that sub-paragraph insert—
 “(4) For the purposes of this paragraph a relevant insolvency
event occurs in relation to a recognised body if—
(a) a resolution for a voluntary winding-up of the
body is passed without a declaration of solvencyunder section 89 of the Insolvency Act 1986;
(b) the body enters administration within the meaning
of paragraph 1(2)(b) of Schedule B1 to that Act;
(c) an administrative receiver within the meaning of
section 251 of that Act is appointed;
(d) a meeting of creditors is held in relation to the body
under section 95 of that Act (creditors’ meetingwhich has the effect of converting a members’voluntary winding up into a creditors’ voluntarywinding up);
(e) an order for the winding up of the body is made.”
113 In paragraph 26 of that Schedule (tax ations with respect to contentious
business)—
(a) in the paragraph heading for “Taxations” substitute “Assessments”,
(b) the existing paragraph becomes sub-paragraph (1) and in that sub-
paragraph —
(i) for “taxation” substitute “assessment”,
(ii) for “taxing officer” substitute “costs officer”,
(iii) after “the body” (in the second place) insert “or any manager
or employee of the body”, and
(iv) for “any solicitor, being an officer” substitute “any authorised
person, being a manager”, and
(c) after that sub-paragraph insert—
 “(2) In this paragraph “authorised person” means an
authorised person, in relation to an activity which is areserved legal activity, within the meaning of the LegalServices Act 2007.”Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)292
114 In paragraph 28 (power of court to order recognised body to pay over
clients’ money) after “client” (in the third place) insert “or any manager or
employee of such a body”.
115 For paragraph 29 of that Schedule (actions to recover costs) substitute—
“29 (1) Subsection (2A) of section 69 of the 1974 Act shall have effect in
relation to a bill of costs delivered by a recognised body as if forparagraphs (a) and (b) there were substituted—
“(a) signed on behalf of the recognised body by any manager or
employee of the body authorised by it to do so, or
(b) enclosed in, or accompanied by, a letter which is so signed
and refers to the bill.”
(2) Subsection (2E) of that section shall have effect in relation to such
a bill as if for “the solicitor” there were substituted “the recognisedbody”.”
116 In paragraph 30 (power of Society to inspect files relating to certain
proceedings), for paragraph (b) substitute—
“(b) for the appointment of an administrative receiver within
the meaning of section 251 of the Insolvency Act 1986; or”.
117 In paragraph 31 of that Schedule (bank accounts)—
(a) omit “or (2)”, and
(b) after “bank” insert “or building society”.
118 After that paragraph insert—
“31A Where rules made under section 32(1) of the 1974 Act are applied
to managers or employees in accordance with section 9(2)(fb) ofthis Act, section 85 of the 1974 Act shall apply in relation to amanager or employee to whom the rules are applied who keeps anaccount with a bank or building socie ty in pursuance of any such
rules as it applies in relation to a solicitor who keeps such anaccount in pursuance of rules under section 32.”
119 (1) Paragraph 32 of that Schedule (intervention by Society) is amended as
follows.
(2) In sub-paragraph (1)(a)—
(a) for “Council are” substitute “Society is”,
(b) after “recognised body” insert “or a manager of such a body”, and
(c) for “it” substitute “the body or manager”.
(3) For sub-paragraph (1)(c) substitute—
“(c) a relevant insolvency event occurs in relation to a
recognised body; or”.
(4) In sub-paragraph (1)(d)—
(a) for “Council have” substitute “Society has”,
(b) for “officer” substitute “manager”, and
(c) for “that body’s” to the end substitute—
“(i) that body’s business,
(ii) any trust of which that body is or was a
trustee,Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)293
(iii) any trust of which the manager or
employee is or was a trustee in his capacityas such a manager or employee, or
(iv) the business of another body in which the
manager or employee is or was a manageror employee or the practice (or formerpractice) of the manager or employee; or”.
(5) After sub-paragraph (1)(d) insert—
“(e) the Society is satisfied that it is necessary to exercise the
powers conferred by Part 2 of Schedule 1 to the 1974 Act(or any of them) in relation to a recognised body toprotect—
(i) the interests of clients (or former or potential
clients) of the recognised body,
(ii) the interests of the beneficiaries of any trust of
which the recognised body is or was a trustee, or
(iii) the interests of the beneficiaries of any trust of
which a person who is or was a manager oremployee of the recognised body is or was a trusteein that person’s capacity as such a manager or
employee;”.
(6) After sub-paragraph (1) insert—
 “(1A) For the purposes of this paragraph a relevant insolvency event
occurs in relation to a recognised body if—
(a) a resolution for a voluntary winding-up of the body is
passed without a declaration of solvency under section 89of the Insolvency Act 1986;
(b) the body enters administration within the meaning of
paragraph 1(2)(b) of Schedule B1 to that Act;
(c) an administrative receiv er within the meaning of section
251 of that Act is appointed;
(d) a meeting of creditors is held in relation to the body under
section 95 of that Act (creditors’ meeting which has theeffect of converting a members’ voluntary winding up intoa creditors’ voluntary winding up);
(e) an order for the winding up of the body is made.”
(7) Omit sub-paragraph (2).
120 For paragraph 33 of that Schedule (further grounds for intervention)—
(a) for paragraph (a) substitute—
“(a) the Society is satisfied that there has been undue
delay—
(i) on the part of a recognised body in
connection with any matter in which it is orwas acting on behalf of a client or with anytrust of which it is or was a trustee, or
(ii) on the part of a person who is or was a
manager or employee of a recognised bodyin connection with any trust of which themanager or employee is or was a trustee inLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)294
his capacity as such a manager or
employee;”, and
(b) in paragraph (c) for “Council regard” substitute “Society regards”.
121 In paragraph 34 of that Schedule (powers of intervention on revocation of
recognition etc), in sub-paragraph (1)—
(a) omit “corporate” (in both places), and
(b) in paragraph (a), after “revoked” insert “in accordance with rules
under that section or”.
122 In paragraph 35 of that Schedule (provision relating to the application of
Part 2 of Schedule 1 to the Solicitors Act 1974)—
(a) in paragraph (a) omit “corporate”, and
(b) omit “and” at the end of paragraph (b) and after paragraph (c)
insert—
“(d) paragraph 6(2)(a) of that Schedule is to be
construed as including a reference to sums ofmoney held by or on behalf of the recognised bodyin connection with any trust of which a person whois or was a manager of the recognised body is orwas a trustee in his capacity as such a manager;
(e) paragraph 9 of that Schedule is to be construed—
(i) as if sub-paragraph (1) included a reference
to documents in the possession or under thecontrol of the recognised body inconnection with any trust of which a personwho is or was a manager or employee of therecognised body is or was a trustee in hiscapacity as such a manager or employee,and
(ii) as applying to such a manager or employee
and documents and property in hispossession or under his control inconnection with such a trust as it applies toa solicitor and documents and property inthe possession or under the control of thesolicitor;
(f) paragraph 11(1) of that Schedule is to be construed
as including a power for the Society to apply to theHigh Court for an order for the appointment of anew trustee to a trust in substitution for a personwho is a trustee, in his capacity as a manager oremployee of the recognised body; and
(g) paragraph 13A of that Schedule is to be read as if
the references to a former partner werereferences—
(i) in the case of a recognised body which is a
partnership, to a former partner in thepartnership, and
(ii) in any other case to a manager or former
manager of the recognised body.”
123 In paragraph 36 of that Schedule (privilege from disclosure etc)—Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 2 — The Administration of Justice Act 1985 (c. 61)295
(a) for sub-paragraph (1) substitute—
 “(1) Where a recognised body acts as such for a client, any
communication, document, mater ial or information is
privileged from disclosure in like manner as if therecognised body had at all material times been a solicitoracting for the client.”,
(b) in sub-paragraph (3) for “an officer” substitute “a manager”, and
(c) after that sub-paragraph insert—
 “(4) This paragraph does not apply to a recognised body which
holds a licence under Part 5 of the Legal Services Act 2007(alternative business structures).”
P
ART 3
THE COURTS  AND  LEGAL  SERVICES  ACT 1990 ( C. 41)
124 The Courts and Legal Services Act 1990 is amended in accordance with this
Part of this Schedule.
125 In section 89 (foreign lawyers: recognised bodies and partnerships with
solicitors)—
(a) for subsection (3)(a)(iv) substitute—
“(iv) sections 36 and 36A (compensation grants);
and”,
(b) in subsection (4), for paragraphs (a) to (d) substitute “to make
different provision with respect to registered foreign lawyers to theprovision made with respect to solicitors.”,
(c) in subsection (5) for “Secretary of State” substitute “Lord
Chancellor”,
(d) in paragraph (a) of that subsection for “the commencement of this
section” substitute “or in the same Session as the Legal Services Act2007 was passed”,
(e) in subsection (6) for “Secretary of State” substitute “Lord
Chancellor”,
(f) in subsection (7) for “Secretary of State” (in both places) substitute
“Lord Chancellor”,
(g) in paragraph (a) of that subsection for “the commencement of this
section” substitute “or in the same Session as the Legal Services Act2007 was passed”,
(h) in that subsection for “officers” substitute “managers”,
(i) after subsection (8) insert—
“(8A) Rules and regulations made by the Law Society under, or by
virtue of, this section or Schedule 14 which are not regulatory
arrangements within the meaning of the Legal Services Act2007 are to be treated as such arrangements for the purposesof that Act.”, and
(j) in subsection (9), after the definition of “foreign lawyer” insert—
““manager”, in relation to a body, has the same meaning
as in the Legal Services Act 2007 (see section 207 of
that Act);”.Legal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)296
126 Schedule 14 to that Act (foreign lawyers: partnerships and recognised
bodies) is amended as follows.
127 In paragraph 1 (interpretation) omit the definitions of “the Council” and
“controlled trust”.
128 In paragraph 2 (application for registration)—
(a) for “Council” in each place substitute “Society”,
(b) in sub-paragraph (1)(b) for “the Master of the Rolls” substitute “the
Legal Services Board”,
(c) in sub-paragraph (2)—
(i) for “Law Society” substitute “Society”, and
(ii) for paragraphs (a) and (b) substitute “for members of that
profession to be managers of recognised bodies.”,
(d) omit sub-paragraph (3),
(e) in sub-paragraph (4)—
(i) for “Master of the Rolls” substitute “Legal Services Board”,
and
(ii) in paragraph (a) after “including” insert “the form of the
register and”,
(f) in that sub-paragraph, after paragraph (b) insert “and
(c) the making available to the public of the
information contained in the register (including themanner in which, and hours during which, theinformation is to be made so available and whetherthe information is to be made available free ofcharge).”, and
(g) omit sub-paragraph (5).
129 After paragraph 2 insert—
“2A (1) The Society may direct that a foreign lawyer’s registration is to
have effect subject to such conditions as the Society thinks fit toimpose.
(2) A direction under sub-paragraph (1) may be given in respect of a
foreign lawyer
(a) at the time he is first registered, or
(b) at any time when the registration has effect.”
130 In paragraph 3 (duration of registration) in sub-paragraphs (2) and (3)(c) for
“Council” substitute “Society”.
131 In paragraph 5 (intervention in practices)—
(a) in sub-paragraph (3)(a) and (b)— 
(i) for “Council have” substitute “Society has”, and
(ii) omit “by virtue of his being a member of that partnership”,
(b) after sub-paragraph (3)(b) insert—
“(ba) the Society has reason to suspect dishonesty on the
part of the registered foreign lawyer (“L”) inconnection with—
(i) the business of any person of whom L is or
was an employee, or of any body of which
L is or was a manager, orLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)297
(ii) any business which is or was carried on by
L as a sole trader;”,
(c) in sub-paragraph (3)(c) for “Council are” substitute “Society is”,
(d) after sub-paragraph (3)(e) insert—
“(ea) the Society is satisfied that he has abandoned his
practice;”,
(e) in sub-paragraph (3)(i)—
(i) for “Council are” substitute “Society is”, and
(ii) for “an officer” (in both places) substitute “a manager”,
(f) after that sub-paragraph insert—
“(j) the Society is satisfied that it is necessary to exercise
the intervention powers (or any of them) in relationto the registered foreign lawyer to protect—
(i) the interests of clients (or former or
potential clients) of the registered foreignlawyer or the multi-national partnership, or
(ii) the interests of the beneficiaries of any trust
of which the registered foreign lawyer is orwas a trustee.”,
(g) omit sub-paragraph (4),
(h) in sub-paragraph (5)(a) for “a complaint is made to the Society”
substitute “the Society is satisfied”,
(i) in sub-paragraph (5)(a)(ii) for “controlled trust” substitute “trust”,
(j) in sub-paragraph (5)(c) for “Council regard” substitute “Society
regards”, and
(k) after sub-paragraph (9) insert—
 “(10) In this paragraph “manager”, in relation to a recognised
body, has the same meaning as in the Legal Services Act2007 (see section 207 of that Act).”
132 For paragraph 6 (compensation fund) substitute—
“6 Section 36 of the 1974 Act applies in relation to registered foreign
lawyers as if for paragraphs (a) and (b) of subsection (1) there weresubstituted—
“(a) an act or omission of a registered foreign lawyer or former
registered foreign lawyer;
(b) an act or omission of an employee or former employee of a
registered foreign lawyer or former registered foreignlawyer;”.”
133 For paragraph 7 (contributions to fund) substitute—
“7 Section 36A(2) and (3) of the 1974 Act applies in relation to
registered foreign lawyers as it applies in relation to solicitors.”
134 For paragraph 8 (accountants’ reports) substitute —
“8 Section 34 of the Act of 1974 applies in relation to registered
foreign lawyers as it applies in relation to solicitors.”
135 In paragraph 14 (appeal against conditions or refusals)—
(a) in sub-paragraph (1)—
(i) for “Master of the Rolls” substitute “High Court”, andLegal Services Act 2007 (c. 29)
Schedule 16 — The Law Society, solicitors, recognised bodies and foreign lawyers
Part 3 — The Courts and Legal Services Act 1990 (c. 41)298
(ii) for “2(3)” substitute “2A”,
(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
(d) after that sub-paragraph insert—
 “(4) In relation to an appeal under this paragraph the High
Court may make such order as it thinks fit as to paymentof costs.
(5) The decision of the High Court on an appeal under this
paragraph shall be final.”
136 In paragraph 15 (jurisdiction an d powers of disciplinary tribunal)—
(a) after sub-paragraph (3) insert—
 “(3A) Any person who alleges that a registered foreign lawyer
has knowingly acted in contravention of any order undersection 43(2) of the Act of 1974 or of any conditions subjectto which a permission has been granted under such anorder may make a complaint to the Tribunal.”,
(b) in sub-paragraph (4)(c), omit “not exceeding £5,000”, and
(c) omit sub-paragraph (5).
137 In paragraph 16(2) (foreign lawyers assisting Tribunal) for “Master of the
Rolls” substitute “Legal Services Board”.
138 In paragraph 17 (appeals from Tribunal)—
(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”,
(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 inthe case of an order on an appl ication under paragraph 15(2)(d) or
(e), or the refusal of any such application,”, and
(d) omit sub-paragraph (4).
SCHEDULE 17
Section 182
LICENSED  CONVEYANCING
PART 1
ADMINISTRATION  OF JUSTICE  ACT 1985 ( C. 61)
1 Part 2 of the Administration of Justice Act 1985 (licensed conveyancing) is
amended in accordance with this Part.Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)299
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 whoare recognised bodies.”,
(b) for subsection (3) substitute—
“ ( 3 ) R e f e r e n c e s  i n  t h i s  P a r t  t o  c o n v e y a n c i n g  s e r v i c e s  a r e
references to—
(a) the preparation of tra nsfers, conveyances, contracts
and other documents in connection with, and otherservices 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 Act2007 (see section 12 of and Schedule 2 to that Act).
(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 isreferred to in section 54(2) of the Law ofProperty 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).
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 thelicence.”
(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—
“(ca) after the Investigating Committee established under
section 24 has made any order in his case undersection 24A;”, and
(b) after paragraph (e) insert—
“(ea) when, having been required by rules made under
section 22 to deliver to the Council a report by anaccountant, he has not delivered such a report withinthe period required by the rules;
(eb) after having been disqualified under section 99 of the
Legal Services Act 2007 (disqualification from beingmanager or employee of a licensed body etc);Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)300
(ec) after his holding of a restricted interest in a licensed
body has been approved subject to conditions underparagraph 17, 28 or 33 of Schedule 13 to that Act(ownership of licensed bodies) or objected to underparagraph 19, 31 or 36 of that Schedule;”.
(3) In subsection (4)—
(a) after “paragraph” insert “(ca),”, and
(b) after “(e),” insert “(ea), (eb), (ec),”.
(4) In subsection (5) for “or” at the end of paragraph (a) substitute—
“(aa) pending the hearing and determination of any appeal
brought by the applicant under paragraph 18, 20, 29,32, 34 or 37 of Schedule 13 to the Legal Services Act2007;
(ab) pending the review by a licensing authority, in
accordance with its licensing rules, of a determinationthat the applicant should be disqualified undersection 99 of the Legal Services Act 2007; or”.
(5) After that subsection insert—
“(6) In this section—
“licensed body”, “licensing au thority” and “licensing rules”
have the same meaning as in  the Legal Services Act 2007 (see
sections 71, 73 and 83 of that Act);
“restricted interest”, in relation to a body, has the same meaning
as in Schedule 13 to that Act (ownership of licensed bodies).”
6 After section 16 insert—
“16A Additional fee payable by certain persons when applying for licences
(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 thecircumstances 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 ofthis section.”
7 (1) Section 17 (imposition of conditions during currency of licence) is amended
as follows.
(2) In subsection (2)(a)—
(a) after “paragraph” insert “(ca),”, and
(b) after “(e),” insert “(ea), (eb), (ec),”.
(3) In subsection (4), for “or” at the end of paragraph (a) substitute—
“(aa) pending the hearing and determination of any appeal
brought by the licensed conveyancer underparagraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to theLegal Services Act 2007;
(ab) pending the review by a licensing authority, in
accordance with its licensing rules, of a determination
that the licensed conveyancer should be disqualified
under section 99 of the Legal Services Act 2007; or”.Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)301
(4) After subsection (5) insert—
“(6) In this section “licensing author ity” and “licensing rules” have the
same meaning as in the Legal Services Act 2007 (see sections 73 and
83 of that Act).”
8 After section 17 insert—
“17A Variation of conditions
(1) This section applies where a licensed conveyancer’s licence has effect
subject to conditions.
(2) On an application made by the licensed conveyancer, the Council
may in prescribed circumstances direct—
(a) the removal of a condition;
(b) the variation of a condition in the manner described in the
application.
(3) “Prescribed” means prescribed by rules made by the Council.
(4) Section 14 (applications for licences) applies in relation to an
application under this section as it applies in relation to applicationsfor a licence under this Part.”
9 In section 18 (suspension or termination of licences), after subsection (2)
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 ofparagraph 1(1)(a)(i), (aa), (c) or (e) of that Schedule, the exercise ofthat power shall operate immediately to suspend any licence held bythat 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
exercised, the Council gives a direction to that effect, the licensedconveyancer concerned may continue to act in relation to any matterspecified in the direction as if the licence had not been suspended byvirtue of subsection (2A), but subject to such conditions (if any) as theCouncil sees fit to impose.
(2D) Subject to subsection (2E), where a licence is suspended by virtue of
subsection (2A) the suspension of the licence shall continue until thelicence expires.
(2E) The licensed conveyancer may, at any time before the licence expires,
apply to the Council to terminate the suspension.
(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.Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)302
(2G) If on an application by a licensed conveyancer under subsection (2E)
the Council refuses the application or terminates the suspensionsubject to conditions, the licensed conveyancer may appeal againstthe decision of the Council to the High Court which may—
(a) affirm the decision, or
(b) terminate the suspension either unconditionally 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.”
10 In section 20 (rules as to professional practice, conduct and discipline), in
subsection (1) omit “, in pursuance of its general duty referred to in section12(2),”.
11 In section 22 (keeping of accounts an d establishment of client accounts)—
(a) in subsection (3)(a) omit “qualified”, and
(b) for subsections (4) and (5) substitute—
“(4) Provision made in rules by virtue of subsection (3)(a) may
provide that the reports delivered to the Council must bereports given by accountants in respect of whomrequirements prescribed by the rules are met.”
12 (1) Section 24 (preliminary investigation of disciplinary cases) is amended as
follows.
(2) In subsection (1)—
(a) for “preliminary investiga tion” substitute “consideration”,
(b) omit paragraph (b), and
(c) 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—
(a) hear and determine the allegation, or
(b) refer the allegation to the Discipline and Appeals Committee
established under section 25 for hearing and determinationby that Committee under section 26.”
(4) Omit subsection (2).
(5) In subsection (3) omit—
(a) “or (2)”,
(b) “or complaint” (in both places), and
(c) “or paragraph (b)”.
(6) After subsection (4) insert—
“(4A) The Council shall make rules as to the cases in which the
Investigating Committee may hear an d determine an allegation, and
the cases in which they must refer an allegation to the Discipline andAppeals Committee.”
(7) In subsection (5) omit “or complaint” (in both places).Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)303
(8) After that subsection insert—
“(6) Before making a direction under subsection (5), the Investigating
Committee must give the licensed conveyancer an opportunity tomake 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 paymentof 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,and on any such appeal the Committee may make such order as theythink fit.
(9) Where an order has been made under subsection (7) the Council or
the licensed conveyancer may appeal to the Discipline and AppealsCommittee, 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 
(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)
shall be final.”
13 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—
(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,
the Committee may, if they think fit, make an order directing the
payment by the licensed conveyancer of a penalty to be forfeited toHer Majesty.
(2) In relation to proceedings before the Investigating Committee by
virtue of section 24(1A)(a), the Committee may make such order asthey 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
brought was heard (in person, or through a representative)Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)304
by the Committee in the course of the proceedings, that
person.
(3) In subsection (2), for the purposes of paragraph (a) or (b) of that
subsection, the reference to costs includes costs incurred inconnection with a preliminary in vestigation of the allegation under
section 24(1A).
(4) The amount of any penalty required to be paid under subsection (1)
may not exceed such amount as may be prescribed by rules made bythe Council for the purposes of this subsection.
(5) 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 effectin relation to proceedings before the Discipline and AppealsCommittee under section 26, and
(b) orders of the Investigating Committee, as they have effect in
relation to orders of the Discipline and Appeals Committee.
(6) A person against whom an order is made by the Investigating
Committee by virtue of subsection (1) may appeal to the Disciplineand Appeals Committee, and on an y such appeal the Discipline and
Appeals Committee may make such order as they think fit.
(7) Where an order is made by the Investigating Committee by virtue of
subsection (2), a person listed in paragraphs (a) to (c) of thatsubsection may appeal to the Discipline and Appeals Committee,and on any such appeal the Discipline and Appeals Committee maymake such order as they think fit.
(8) Where an order is made by the Discipline and Appeals Committee
under subsection (6) or (7)—
(a) a party to the appeal, or
(b) if not within paragraph (a), the Council,
may appeal against the order to the High Court.
(9) On an appeal under subsection (8) the High Court may make such
order as it thinks fit.
(10) The decision of the High Court on an appeal under subsection (8)
shall be final.”
14 In section 25 (the Discipline and Appeals Committee), in subsection (1)(b)
for “sections 27 to” substitute “section 24A, 27, 28 or”.
15 (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)—
(a) in paragraph (e), for “£3,000” substitute “such amount as may be
prescribed by rules made by the Council for the purposes of thisparagraph”,Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)305
(b) for paragraph (f) substitute—
“(f) an order reprimanding the licensed conveyancer.”,
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 orderas 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
brought was heard (in person, or through a representative)by the Committee in the course of the proceedings, thatperson.
(2B) In subsection (2A), for the purposes of paragraph (a) or (b) of that
subsection, the reference to costs includes costs incurred inconnection with a preliminary in vestigation of the allegation under
section 24(1A).”
(5) Omit subsections (5) and (6).
(6) After subsection (7) insert—
“(7A) Where the Discipline and Appeals Committee make an order under
s u b s e c t i o n  ( 2 A ) ,  a  p e r s o n  l i s t e d  i n  p a r a g r a p h s  ( a )  t o  ( c )  o f  t h a tsubsection may appeal to the High Court, and on any such appealthe High Court may make such order as it thinks fit.”
(7) In subsection (8), after “(7)” insert “or (7A)”.
16 In section 27 (removal of disqualific ation 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—
(a) the Council;
(b) the applicant.”
17 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
subsection (1), the Discipline and Appeals Committee may makesuch 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.
(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;Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)306
(b) the applicant.”
18 In section 29 (appeals from decisions of Council in relation to licences)—
(a) in subsection (1), omit “or” at the end of paragraph (b),
(b) in that subsection, at the end of paragraph (c) insert “or
(d) refuses an application made by that person under
section 17A,”, and
(c) in subsection (2), after paragraph (b) insert—
“(ba) in the case of an appeal under subsection (1)(d), by
order direct the Council to grant the application;”.
19 (1) Section 31 (application of Schedule 5) is amended as follows.
(2) In subsection (2) omit—
(a) “or complaint” (in each place), and
(b) “or paragraph (b)”.
(3) In subsection (3), for “and 12” substitute “to 12A”.
(4) In subsection (4) omit “or complaint”.
20 (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;”.
(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 Act2007, to carry on reserved instrument activities, or theadministration of oaths, within the meaning of that Act;”.
(5) In subsection (1)(c) for “conditions” substitute “requirements”.
(6) In subsection (2) omit “corporate”.(7) In subsection (3)—
(a) in paragraph (a) after “section” insert “, or for the renewal of such
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—
“(c) about the time when any recognition granted under
this section, or renewal of such recognition, takeseffect and the period for which it is (subject to theprovisions of this Part) to remain in force;
(ca) for the suspension or revocation of any such
recognition, on such grounds and in suchcircumstances as may be prescribed in the rules;
(cb) about the effect on the recognition of a partnership or
other unincorporated body (“the existing body”) ofany change in its memb ership, including provisionLegal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)307
for the existing body’s recognition to be transferred
where the existing body ceases to exist and anotherbody succeeds to the whole or substantially the wholeof its business;”,
(d) omit paragraph (d),
(e) in paragraph (e)—
(i) for “a list” substitute “a register”,
(ii) omit “corporate”, and
(iii) for “, and for the” to the end substitute “and such other
information relating to those bodies as may be specified inthe rules;”,
(f) after that paragraph insert—
“(ea) for information (or information of a specified
description) on such a register to be made available tothe public, and about the manner in which and timesat which, information is to be made so available;”,
(g) after paragraph (f) insert—
“(fa) about the education and training requirements to be
met by managers and employees of recognisedbodies;
(fb) for rules made under any other provision of this Part
to have effect in relation to managers and employeesof recognised bodies with such additions, omissionsor other modifications as appear to the Council to benecessary or expedient;”, and
(h) in paragraph (g) after “recognised bodies” insert “or managers or
employees of such bodies”.
(8) After subsection (3) insert—
“(3A) Rules made by the Council may provide for the Council to grant a
body recognition under this section subject to one or moreconditions.
(3B) At any time while a body is recognised under this section, the
Council may, in such circumstances as may be prescribed, direct that
the body’s recognition is to have effect subject to such conditions asthe Council may think fit.
“Prescribed” means prescribed by rules made by the Council.
(3C) The conditions which may be imposed under subsection (3A) or (3B)
include—
(a) conditions restricting the kinds of conveyancing services that
may be provided by the body;
(b) conditions imposed by reference to criteria of general
application;
(c) conditions requiring the body to take any specified steps that
will, in the opinion of the Council, be conducive to the bodycarrying on an efficient business;
and conditions may be imposed despite the fact that they may result
in expenditure being incurred by the body.
(3D) On an application made by a recognised body, the Council may, in
such circumstances as may be prescribed, direct—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)308
(a) the removal of a condition subject to which the body’s
recognition has effect;
(b) the variation of such a condition in the manner described in
the application.
(3E) For the purposes of subsection (3D)—
(a) section 14 applies in relation to an application under that
s u b s e c t i o n  a s  i t  a p p l i e s  i n  r e l a t i o n  t o  a n  a p p l i c a t i o n  f o r  alicence under this Part of this Act, and
(b) “prescribed” means prescribed by rules made by the Council.
(3F) Rules under subsection (3A) or (3B) may make provision about when
conditions imposed take effect (including provision conferringpower on the Council to direct that a condition is not to have effectuntil the conclusion of any appeal in relation to it).
(3G) Rules under this section may contain such incidental, supplemental,
transitional or transitory provisions or savings as the Councilconsiders necessary or expedient.”
(9) Omit subsections (4) and (5).
(10) In subsection (6)—
(a) in paragraph (a) omit “corporate”, and
(b) for paragraph (b) substitute—
“(b) that a body’s recognition under this section does not
have effect subject to any conditions or has effectsubject to any particular conditions,”.
(11) After subsection (7) insert—
“(8) In this section “conveyancing services body” and “relevant legal
services” have the meaning given by section 32A.
(9) The Council is capable of being designated as a licensing authority
for the purposes of, and subject to, Part 5 of the Legal Services Act2007 (alternative business structures).”
21 After section 32 (provision of conveyancing by recognised bodies) insert—
“32A Conveyancing services bodies
(1) For the purposes of section 32 a “con veyancing services body” means
a body (corporate or unincorporate) in respect of which—
(a) the management and control condition, and
(b) the services condition,
are satisfied.
(2) The management and control condition is satisfied in the case of a
partnership if at least one of the partners is a licensed conveyancer.
(3) The management and control condition is satisfied in the case of an
unincorporated body (other than a partnership), or a body corporatewhich is managed by its members, if at least one of those members isa licensed conveyancer.Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)309
(4) The management and control condition is satisfied in the case of any
other body corporate if at least one director of the body is a licensedconveyancer.
(5) The services condition is satisfied in respect of a body if the body is
carrying on a business consisting of the provision of—
(a) conveyancing services, or
(b) conveyancing services and other relevant legal services.
(6) For the purposes of this section—
“authorised person” means an authorised person in relation to
an activity which is a reserved legal activity (within themeaning of the Legal Services Act 2007);
“relevant legal services”, in relation to a body, means—
(a) conveyancing services, and
(b) where authorised persons are managers or employees
of, or have an interest in, the body, services such asare provided by individuals practising as suchauthorised persons (whether or not those servicesinvolve the carrying on of reserved legal activitieswithin the meaning of the Legal Services Act 2007);
and a person has an interest in a body if the person has an interest in
the body within the meaning of Part 5 of the Legal Services Act 2007(see sections 72 and 109 of that Act).”
22 For section 33 (legal professional privilege), substitute—
“33 Legal professional privilege
(1) Subsection (2) applies where a licensed conveyancer or recognised
body acts as such for a client.
(2) Any communication, document, material or information is
privileged from disclosure in like manner as if the licensedconveyancer or body had at all material times been acting as theclient’s solicitor.
(3) This section does not apply to a recognised body which holds a
licence under Part 5 of the Legal Services Act 2007 (alternativebusiness structures).”
23 After that section insert—
“33A Administration of oaths by licensed conveyancers
The Council may make rules prescribing its arrangements for
authorising licensed conveyancers, for the purposes of the LegalServices Act 2007, to carry on activities which consist of theadministration of oaths.”
24 In section 34 (modification of existing  enactments relating to conveyancing
etc), omit subsection (2)(c) to (e).
25 In section 35 (penalty for pretending to be a licensed conveyancer or
recognised body), in subsection (2) omit “corporate”.
26 In section 36 (offences by bodies corporate)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)310
(a) the existing section becomes subsection (1) of that section and in that
subsection for “director” to “capacity” substitute “officer of the bodycorporate”, and
(b) after that subsection insert—
“(2) Where the affairs of a body corporate are managed by its
members, subsection (1) applies in relation to the acts anddefaults of a member in connection with the member’sfunctions of management as it applies to an officer of thebody corporate.
(3) Proceedings for an offence under this section alleged to have
been committed by an unincorporated body are to bebrought in the name of that body (and not in that of any of itsmembers) and, for the purposes of any such proceedings, anyrules of court relating to the service of documents have effectas if that body were a corporation.
(4) A fine imposed on an unincorporated body on its conviction
of an offence under this section is to be paid out of the fundsof that body.
(5) If an unincorporated body is charged with an offence under
this section, section 33 of th e Criminal Justice Act 1925 and
Schedule 3 to the Magistrates’ Courts Act 1980 (procedure oncharge of an offence against a corporation) have effect in likemanner as in the case of a corporation so charged.
(6) Where an offence under this section committed by an
unincorporated body (other than a partnership) is proved tohave been committed with the consent or connivance of, or tobe attributable to any neglect on the part of, any officer of thebody or any member of its governing body, that officer ormember as well as the unincorporated body is guilty of theoffence and liable to be proceeded against and punishedaccordingly.
(7) Where an offence under this section committed by a
partnership is proved to have been committed with theconsent or connivance of, or to be attributable to any neglecton the part of, a partner, that partner as well as thepartnership is guilty of the offence and liable to be proceededagainst and punished accordingly.
(8) In this section “officer”, in relation to a body corporate,
means—
(a) any director, secretary or other similar officer of the
body corporate, or
(b) any person who was purporting to act in any such
capacity.”
27 In section 38 (rules)—
(a) omit subsection (1), and
(b) in subsection (2) for “such rules” substitute “rules made by the
Council under this Part”.
28 In section 39(1) (interpretation of Part 2)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)311
(a) in the definition of “client”, in paragraph (a) omit “or his firm”,
(b) omit the definitions of “director” and “officer”,
(c) at the appropriate place insert—
““manager”, in relation to a body, has the same meaning
as in the Legal Services Act 2007 (see section 207 ofthat Act);”, and
(d) in the definition of “recognised body” omit “corporate”.
29 (1) Schedule 3 (Council for Licensed Conveyancers: supplementary provisions)
is amended as follows.
(2) In paragraph 2(1), for “elected or nominated” substitute “appointed”.
(3) In paragraph 2(2), for “elect” substitute “appoint”.(4) Omit paragraph 2(3).
(5) Omit paragraph 3.
(6) In paragraph 4(1)—
(a) for “election or nomination” (in both places) substitute
“appointment”,
(b) for “election of” substitute “appointment of”, and
(c) for “elected or nominated” substitute “appointed”.
(7) In paragraph 4(2), for “elected or nominated” (in each place) substitute
“appointed”.
(8) In paragraph 4(3), for the words from “Secretary of State” (in the first place)
to the end substitute “Legal Services Board.”
(9) In paragraph 4(4)—
(a) for “Secretary of State” (in both places) substitute “Legal Services
Board”,
(b) for “him” substitute “it”, and
(c) for “he” (in both places) substitute “it”.
(10) In paragraph 9, for “election or nomination” substitute “appointment”.
(11) In paragraph 10 for “Secretary of State” (in both places) substitute “Lord
Chancellor”.
(12) In paragraph 11(3) for “Secretary of State” substitute “Lord Chancellor”.
30 (1) Schedule 4 (the Discipline and Appeals Committee: supplementary
provisions) is amended as follows.
(2) In paragraph 1 (rules of procedure)—
(a) omit sub-paragraph s (3) and (4), and
(b) in sub-paragraph (5), for “paragraphs 2 and 3” substitute “paragraph
2”.
(3) Omit paragraph 3.
31 (1) Schedule 5 (intervention in licensed conveyancer’s practice) is amended as
follows.
(2) In paragraph 1 (grounds for intervention)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)312
(a) in sub-paragraph (1)(a) after “practice” insert “or former practice or
in connection with any trust of which that licensed conveyancer is orwas a trustee”,
(b) after that sub-paragraph insert—
“(aa) the Council has reason to suspect dishonesty on the
part of a licensed conveyancer (“L”) in connectionwith—
(i) the business of any person of whom L is or
was an employee, or of any body of whichL is or was a manager, or
(ii) any business which is or was carried on by
L as a sole trader;”,
(c) in sub-paragraph (1)(b) after “practice” insert “or in connection with
any trust”,
(d) in sub-paragraph (1)(c), after “section” insert “20, 21(3)(c),”,
(e) after sub-paragraph (1)(e) insert—
“(ea) the Council is satisfied that a licensed conveyancer
has abandoned his practice;
(eb) the Council is satisfied that a licensed conveyancer
has been practising in breach of any conditionssubject to which his licence has effect;”,
(f) in sub-paragraph (1)(f), after “illness” insert “, injury”,
(g) for sub-paragraph (1)(g) substitute—
“(g) a licensed conveyancer lacks capacity (within the
meaning of the Mental Capacity Act 2005) to act asa licensed conveyancer and powers under section
15 to 20 or section 48 of that Act are exercisable inrelation to the licensed conveyancer;”,
(h) after sub-paragraph (1)(h) insert—
“(i) the Council is satisfied that it is necessary to
exercise the powers conferred by Part 2 of thisSchedule (or any of them) in relation to a licensedconveyancer to protect—
(i) the interests of clients (or former or
potential clients) of the licensedconveyancer or his firm, or
(ii) the interests of the beneficiaries of any trust
of which the licensed conveyancer is or wasa trustee.”, and
(i) omit sub-paragraph (2).
(3) In paragraph 3 (intervention following an undue delay)—
(a) for “10(3)” substitute “10(9)”,
(b) in paragraph (a) for “a complaint is made to the Council” substitute
“the Council is satisfied”,
(c) in that paragraph for “was instructed” substitute “is or was acting”,
and
(d) in that paragraph after “client” insert “or in connection with any
trust”.
(4) In paragraph 4(2) (continuation of powers after death etc of licensed
conveyancer)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)313
(a) after “and (3)” insert “, 6A”,
(b) for “and (5)” substitu te “, (5) and (6)”, and
(c) for “10(1)” substitute “10(2) and (7)”.
(5) In paragraph 6 (vesting of sums in Council)—
(a) in sub-paragraph (1) after “thereto” insert “and to rules under
paragraph 6B”, and
(b) in sub-paragraph (2)(a) after “practice” insert “or former practice or
with any trust of which he is or was a trustee”.
(6) After paragraph 6 insert—
“6A (1) Without prejudice to paragraph 5, if the Council passes a
resolution to the effect that any rights to which this paragraphapplies shall vest in the Council, those rights shall vestaccordingly.
(2) This paragraph applies to any right to recover or receive debts due
to the licensed conveyancer or his firm in connection with hispractice or former practice.
(3) Any sums recovered by the Council by virtue of the exercise of
rights vested under sub-paragraph (1) shall vest in the Counciland shall be held by it on trust to exercise in relation to them thepowers conferred by this Part of this Schedule and, subject to thosepowers and to rules under paragraph 6B, upon trust for thepersons beneficially entitled to them.
(4) The Council shall serve on the licensed conveyancer or his firm,
and any person who owes a debt to which the order applies acertified copy of the Council’s resolution.
6B (1) The Council may make rules governing its treatment of sums
vested in it under paragraph 6 or 6A(3).
(2) The rules may, in particular, make provision in respect of cases
where the Council, having taken such steps to do so as arereasonable in all the circumstances of the case, is unable to tracethe person or persons beneficially entitled to any sum vested in theCouncil under paragraph 6 or 6A(3) (including provision which
requires amounts to be paid into or out of a fund maintainedunder section 21).”
(7) In paragraph 7(1) (holding of sums vested in Council) after “thereto” insert
“and to rules under paragraph 6B”.
(8) In paragraph 8 for “holds money” to the end substitute—
“(a) holds money on behalf of the licensed conveyancer or his
firm, or
(b) has information which is relevant to identifying any
money held by or on behalf of the licensed conveyancer orhis firm,
the court may require that person to give the Council information
as to any such money and the accounts in which it is held.”
(9) In paragraph 9 (documents)—
(a) in sub-paragraph (1)(a)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)314
(i) after “possession” insert “or under the control”, and
(ii) after “practice” insert “or former practice or with any trust of
which the licensed conveyancer is or was a trustee”,
(b) in sub-paragraph (1)(b)—
(i) after “possession” insert “or under the control”, and
(ii) for “to which the complaint relates” substitute “of which the
Council is satisfied”,
(c) in sub-paragraph (3) after “possession” insert “or control”,
(d) in sub-paragraph (5) after “possession” insert “or are under the
control”,
(e) after that sub-paragraph insert—
 “(5A) In the case of a document which consists of information
which is stored in electronic form, the requirementimposed by a notice under sub-paragraph (1) or an orderunder sub-paragraph (4) or (5), is a requirement to produce
or deliver the informat ion in a form in which it is legible or
from which it can readily be produced in a legible form.”,
(f) in sub-paragraph (6) after “possession of” insert “(a)”,
(g) at the end of that sub-paragraph insert—
“(b) any property—
(i) in the possession or under the control of the
licensed conveyancer or his firm, or
(ii) in the case of an order under sub-paragraph
(5), which was in the possession or underthe control of such a person and has comeinto the possession or under the control ofthe person in respect of whom the order ismade,
which the Council reason ably requires for the
purpose of accessing information contained in suchdocuments,
and to use property obtained under paragraph (b) for that
purpose.”,
(h) in sub-paragraph (7) after “documents” insert “or other property”,
(i) in sub-paragraph (8) after “documents” insert “or other property”,
and
(j) in sub-paragraph (10) after “documents” insert “or other property”.
(10) For paragraph 10 (mail) substitute—
“Redirection of communications
10 (1) The High Court, on the a pplication of the Council, may from time
to time make a communications redirection order.
(2) A communications redirection order is an order that specified
communications to the licensed conveyancer or his firm are to bedirected, in accordance with the order, to the Council, or anyperson appointed by the Council.
(3) For the purposes of this paragraph—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)315
(a) “specified communications” means communications of
such description as are specified in the order;
(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.
(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 Council
or the person appointed by the Council may take possession orreceipt of the communications redirected in accordance with theorder.
(6) Where a communications redirection order is made the Council
must pay to—
(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,
the like charges (if any) as would have been payable for the
redirection of the communications to which the order relates if theaddressee had permanently ceased to occupy or use the premisesor other destination of the communications and had applied to thepostal operator or the specified person (as the case may be) toredirect the communications to him as mentioned in the order.
(7) The High Court may, on the application of the Council, authorise
the Council, or a person appointed by it, to take such steps as maybe specified in the order in relation to any website purporting tobe or have been maintained by or on behalf of the licensedconveyancer or his firm if the High Court is satisfied that thetaking of those steps is necessary to protect the public interest orthe interests of clients (or potenti al or former clients) of the
licensed conveyancer or his firm.
(8) In this paragraph “postal operator” and “postal packet” have the
meaning given by section 125(1) of the Postal Services Act 2000.
(9) This paragraph does not apply where the powers conferred by this
Part of this Schedule are exercisable by virtue of paragraph 3.”
(11) After paragraph 10 insert—
“Trusts
10A (1) If the licensed conveyancer or his personal representative is a
trustee of a trust, the Council may apply to the High Court for anorder for the appointment of a new trustee in substitution for him.
(2) The Trustee Act 1925 has effect in relation to an appointment of a
new trustee under this paragraph as it has effect in relation to anappointment under section 41 of that Act.”
(12) In paragraph 11 (liens) for “and documents” substitute “, documents and
other property”.Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)316
(13) After paragraph 12 (costs) insert—
“12A(1) The High Court, on the application of the Council, may order a
former partner of the licensed conveyancer to pay a specifiedproportion of the costs mentioned in paragraph 12.
(2) The High Court may make an order under this paragraph only if
it is satisfied that the conduct (or any part of the conduct) byreason of which the powers conferred by this Part were exercisablein relation to the licensed conveyancer was conduct carried onwith the consent or connivance of, or was attributable to anyneglect on the part of, the former partner.
(3) In this paragraph “specified” means specified in the order made
by the High Court.”
32 (1) Schedule 6 (bodies recognised under section 32: supplementary provisions)
is amended as follows.
(2) In paragraph 1—
(a) omit “corporate” (in both places), and
(b) in sub-paragraph (2) omit—
(i) “or complaint” (in both places), and
(ii) “or (b)”.
(3) In paragraph 2 (disciplinary control of recognised bodies) after “24” insert “,
24A”.
(4) In paragraph 3—
(a) in sub-paragraph (1), in paragraph (a)(i) omit “by any court in the
United Kingdom”,
(b) after paragraph (a) of that sub-paragraph insert—
“(aa) it is alleged that a manager or employee of a
recognised body who is not a licensed conveyancerhas failed to comply with any rules applicable tohim by virtue of section 32;
(ab) it is alleged that a recognised body (while a
recognised body) has failed to comply with acondition subject to which its recognition haseffect.”,
(c) in that sub-paragraph omit—
(i) paragraph (b), and
(ii) from “with a view” to the end, and
(d) after sub-paragraph (1) insert—
 “(1A) After making such an investigation, the Investigating
Committee may—
(a) hear and determine the allegation, or
(b) refer the allegation to the Discipline and Appeals
Committee for hearing and determination by thatCommittee under paragraph 4.
(1B) The Council shall make rule s as to the cases in which the
Investigating Committee may hear and determine anallegation, and the cases in which they must refer anallegation to the Discipline and Appeals Committee.”Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)317
(5) After paragraph 3 insert—
“3A (1) Where, on hearing an allegation by virtue of paragraph 3(1A)(a),
the Investigating Committee are satisfied—
(a) in a case within paragraph 3(1)(a), that a recognised body
has failed to comply with any such rules as are mentionedin sub-paragraph (ii) of that paragraph, or
(b) in a case within paragraph 3(1)(aa), that a manager or
employee has failed to comply with any such rules as arementioned in that paragraph, or
(c) in a case within paragraph 3(1)(ab), that a recognised body
has failed to comply with any condition mentioned in that
paragraph,
the Committee may make an order directing the payment by the
recognised body, manager or employee of a penalty to be forfeitedto Her Majesty.
(2) In relation to proceedings before the Investigating Committee by
virtue of paragraph 3(1A)(a), the Committee may make such orderas they consider fit as to the payment of costs by—
(a) the Council;
(b) the recognised body, manager or employee against whom
the proceedings were brought;
(c) if the person on whose allegation the proceedings were
brought was heard (in person, or through a representative)by the Committee in the course of the proceedings, thatperson.
(3) In sub-paragraph (2), for the purposes of paragraph (a) or (b) of
that sub-paragraph, the reference to costs includes costs incurredin connection with a preliminary investigation of the allegationunder paragraph 3.
( 4 ) T h e  a m o u n t  o f  a n y  p e n a l t y  r e q u i r e d  t o  b e  p a i d  u n d e r  s u b -
paragraph (1) may not exceed such amount as is prescribed byrules made by the Council for the purposes of this sub-paragraph.
(5) 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 haveeffect in relation to proceedings before the Discipline andAppeals Committee under section 26, and
(b) orders of the Investigating Committee, as they have effect
in relation to orders of the Discipline and AppealsCommittee.
(6) A person against whom an order is made by the Investigating
Committee by virtue of sub-paragraph (1) may appeal to theDiscipline and Appeals Committee, and on any such appeal theDiscipline and Appeals Committee may make such order as theythink fit.
(7) If an order is made by the Investigating Committee by virtue of
sub-paragraph (2), a person listed in paragraphs (a) to (c) of thatsub-paragraph may appeal to the Discipline and AppealsLegal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)318
Committee, and on any such a ppeal the Discipline and Appeals
Committee may make such order as they think fit.
(8) Where an order is made by the Discipline and Appeals Committee
under sub-paragr aph (6) or (7)—
(a) a party to the appeal, or
(b) if not within paragraph (a), the Council,
may appeal against the order to the High Court.
(9) On an appeal under sub-paragraph (8) the High Court may make
such order as it thinks fit.
(10) The decision of the High Court on an appeal under sub-paragraph
(8) shall be final.”
(6) In paragraph 4—
(a) in sub-paragraph (1) after “allegation” insert “within paragraph
3(1)(a) or (ab)”,
(b) in that sub-paragraph, after paragraph (b) insert “, or
(c) has failed to comply with any such
condition as is mentioned inparagraph 3(1)(ab),”,
(c) in sub-paragraph (2), in paragraph (b), for “£3,000” substitute “such
amount as may be prescribed by rules made by the Council for thepurposes of this sub-paragraph”,
(d) after paragraph (b) of that sub-paragraph insert—
“(ba) an order reprimanding that body;
(bb) an order that the recognition of that body under
section 32 is to have effect subject to such conditionsas may be specified in the order;”,
(e) omit paragraph (c) of that sub-paragraph,
(f) after that sub-paragraph insert—
 “(2A) Where on the hearing of any allegation within paragraph
3(1)(aa) the Discipline and Appeals Committee aresatisfied that a manager or employee has failed to complywith any such rules as are mentioned in sub-paragraph (ii)of that paragraph, the Committee may, if they think fit,make one or more of the orders referred to in sub-paragraph (2B).
(2B) Those orders are—
(a) an order directing the payment by the manager or
employee of a penalty not exceeding such amountas may be prescribed by rules made by the Councilfor the purposes of this sub-paragraph;
(b) an order requiring the Council to consider taking
such steps as the Committee may specify in relationto the manager or employee;
(c) an order requiring the Council to refer to an
appropriate regulator any matter relating to theconduct of the manager or employee.
(2C) For the purposes of sub-paragraph (2B)(c) an “appropriate
regulator” in relation to a manager or employee means—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)319
(a) if the person is an authorised person in relation to
a reserved legal activity for the purposes of theLegal Services Act 2007, any relevant approvedregulator (within the meaning of that Act) inrelation to that person, and
(b) if the person carries on activities which are not
reserved legal activities, any person who exercisesregulatory functions in relation to the carrying onof such activities by the person.
(2D) In relation to proceedings under this paragraph, the
Committee may make such order as they consider fit as tothe payment of costs by—
(a) the Council;
(b) the recognised body or manager or employee
against whom the proceedings were brought;
(c) if the person on whose allegation the proceedings
were brought was heard (in person, or through arepresentative) by the Committee in the course ofthe proceedings, that person.
(2E) In sub-paragraph (2D), for the purposes of paragraph (a)
or (b) of that sub-paragraph, the reference to costs includescosts incurred in connection with a preliminaryinvestigation of the allegation under paragraph 3.”, and
(g) omit sub-paragraphs (3), (3A) and (4).
(7) In paragraph 5—
(a) in sub-paragraph (1)—
(i) after “26” insert “or paragraph 4”, and
(ii) for “director” (in each place) substitute “manager”,
(b) in sub-paragraph (3) for “director” (in both places) substitute
“manager”, and
(c) after sub-paragraph (3) insert—
 “(4) In relation to proceedings for the revocation of a
recognition under sub-paragr aph (1), the Discipline and
Appeals Committee may make such order as they considerfit as to the payment of costs by—
(a) the Council;
(b) the body to whose recognition the proceedings
relate.”.
(8) In paragraph 6 (appeals against orders of the Committee)—
(a) in sub-paragraph (1)—
(i) for “body corporate” substitute “person”,
(ii) after “4(1)” insert “or (2A)”, and
(iii) for “5” substitute “5(1)”, and
(b) after that sub-paragraph insert—
 “(1A) Where an order is made by the Committee under
paragraph 4(2D) or 5(4) a person listed in that paragraphmay appeal to the High Court, and on any such appeal theHigh Court may make such order as it thinks fit.”Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)320
(9) After paragraph 7 (revocation of recognition on grounds of fraud or error)—
(a) in sub-paragraph (1) and (2) omit “corporate”, and
(b) after sub-paragraph (2) insert—
 “(3) In relation to proceedings for the revocation of a
recognition under sub-paragr aph (1), the Discipline and
Appeals Committee may make such order as they considerfit as to the payment of costs by—
(a) the Council;
(b) the body to whose recognition the proceedings
relate.
(4) In relation to proceedings on an application under sub-
paragraph (2), the Discipline and Appeals Committee maymake such order as they consider fit as to the payment ofcosts by—
(a) the Council;
(b) the applicant.”
(10) In paragraph 8 (appeal against decis ion of Council in relation to grant of
recognition)—
(a) in sub-paragraph (1) omit “corporate”,
(b) in paragraph (b) of that sub-paragraph for “restrictions” substitute
“conditions”,
(c) after that paragraph insert “, or
(c) decides to give a direction in relation
to that body under section 32(3B), or
(d) refuses an application by that body
under section 32(3D),”,
(d) in sub-paragraph (2) for “this paragraph” substitute “sub-paragraph
(1)(a) or (b)”,
(e) in paragraph (a) of that sub-paragraph—
(i) for “restrictions” (in the first place) substitute “conditions”,
and
(ii) for “restrictions falling within subsection (3)(d) of that
section” substitute “conditions”, and
(f) after that sub-paragraph insert—
 “(2A) On an appeal under sub-paragraph (1)(c), the Discipline
and Appeals Committee may—
(a) revoke the direction of the Council under section
32(3B),
(b) direct that the body’s recognition is to have effect
subject to such conditions as may be specified bythe Council in the direction, or
(c) affirm the decision of the Council,
and the Committee may make such order as to the
payment of costs by the Council or by that body as theythink fit.
(2B) On an appeal under sub-paragraph (1)(d), the Discipline
and Appeals Committee may—
(a) direct the Council to grant the application, orLegal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)321
(b) affirm the decision of the Council,
and the Committee may make such order as to the
payment of costs by the Council or by that body as theythink fit.”
(11) In paragraph 9 (rules of procedure etc) in sub-paragraph (1)—
(a) for “, 2 and 3” substitute “and 2”, and
(b) for “paragraph 4 or 5” substitute “paragraph 3A, 4 or 5”.
(12) In paragraph 10 (intervention by Council)—
(a) in sub-paragraph (1), in paragraph (a) after “recognised body” insert
“or a manager of such a body”,
(b) after that paragraph insert—
“(aa) the Council is satisfied that a recognised body has
b e e n  c a r r y i n g  o n  b u s i n e s s  i n  b r e a c h  o f  a n ycondition subject to which the body’s recognitionunder section 32 of this Act has effect; or”,
(c) for paragraph (c) of th at sub-paragraph substitute—
“(c) a relevant insolvency event occurs in relation to a
recognised body; or”,
(d) in paragraph (d) of that sub-paragraph for “officer” substitute
“manager”,
(e) in that paragraph for “that body’s” to the end of the paragraph
substitute—
“(i) that body’s business,
(ii) any trust of which that body is or was a
trustee,
(iii) any trust of which the manager or
employee is or was a trustee in his capacityas such a manager or employee, or
(iv) the business of another body in which the
manager or employee is or was a manageror employee or the practice (or formerpractice) of the manager or employee;”,
(f) after that paragraph insert “or
(e) the Council is satisfied that it is necessary to
exercise the powers conferred by Part 2 of Schedule5 (or any of them) in relation to a recognised bodyto protect—
(i) the interests of clients (or former or
potential clients) of the recognised body,
(ii) the interests of the beneficiaries of any trust
of which the recognised body is or was atrustee, or
(iii) the interests of the beneficiaries of any trust
of which a person who is or was a manageror employee of the recognised body is orwas a trustee in that person’s capacity assuch a manager or employee,”,
(g) after sub-paragraph (1) insert—
 “(1A) For the purposes of this paragraph a relevant insolvency
event occurs in relation to a recognised body if—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)322
(a) a resolution for a voluntary winding-up of the
body is passed without a declaration of solvencyunder section 89 of the Insolvency Act 1986;
(b) the body enters administration within the meaning
of paragraph 1(2)(b) of Schedule B1 to that Act;
(c) an administrative receiver within the meaning of
section 251 of that Act is appointed;
(d) a meeting of creditors is held in relation to the body
under section 95 of that Act (creditors’ meetingwhich has the effect of converting a members’voluntary winding up into a creditors’ voluntarywinding up);
(e) an order for the winding up of the body is made.”,
and
(h) omit sub-paragraph (2).
(13) For paragraph 11(a) substitute—
“(a) the Council is satisfied that there has been undue delay on
the part of—
(i) a recognised body in connection with any matter in
which it is or was acting on behalf of a client or withany trust of which it is or was a trustee, or
(ii) a person who is or was a manager or employee of a
recognised body in connection with any trust ofwhich he is or was a trustee in his capacity as sucha manager or employee; and”.
(14) In paragraph 12(1) omit “corporate” (in both places).(15) In paragraph 13—
(a) in paragraph (a) omit “corporate”, and
(b) omit “and” at the end of paragraph (b) and after paragraph (c)
insert—
“(d) paragraph 6(2)(a) of that Schedule is to be
construed as including a reference to sums ofmoney held by or on behalf of the recognised bodyin connection with any trust of which a person whois or was manager or employee of that body is orwas a trustee in his capacity as such a manager oremployee;
(e) paragraph 9 of that Schedule is to be construed—
(i) as if sub-paragraph (1) included a reference
to documents in the possession or under thecontrol of the recognised body inconnection with any trust of which a personwho is or was a manager or employee ofthat body is or was a trustee in his capacityas such a manager or employee, and
(ii) as applying to a person who is or was a
manager or employee of the recognisedbody and documents and property in hispossession or under his control inconnection with such a trust as it applies toa recognised body and documents andLegal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)323
property in the possession or under the
control of that body;
(f) paragraph 10A(1) of that Schedule is to be
construed as including power for the Council toapply to the High Court for an order for theappointment of a new trustee to a trust insubstitution for a person who is a trustee in hiscapacity as a manager or employee of therecognised body; and
(g) paragraph 12A of that Schedule is to be read as if
the references to a former partner werereferences—
(i) in the case of a recognised body which is a
partnership, to a former partner in thepartnership, and
(ii) in any other case to a manager or former
manager of the recognised body.”
(16) In paragraph 14 (examination of files)—
(a) for sub-paragraph (1) substitute—
 “(1) Where the Investigating Committee are satisfied that it is
necessary to do so for the purpose of investigating anysuch allegation as is mention ed in paragraph 3(1)(a)(ii),
(aa) or (ab), the Committee may give an information noticeto a relevant person.
(1A) An information notice is a notice requiring the production
or delivery to any person appointed by the Committee, ata time and a place to be fixed by the Committee, of alldocuments in the possession or under the control of therelevant person in connection with the matters to whichthe allegation relates (whether or not they relate also toother matters).
(1B) In this section “r elevant person” means—
(a) in the case of an allegation against a recognised
body, the recognised body or any of its managersor employees, and
(b) in the case of an allegation against a manager or
employee of a recognised body, the manager oremployee, the recognised body or any othermanager or employee of the recognised body.”,and
(b) in sub-paragraph (2)—
(i) for “and 12” substitute “to 12A”,
(ii) for “sub-paragraph (1) of this paragraph” (except where it
appears in paragraph (d)) substitute “sub-paragraphs (1) and(1A) of this paragraph”,
(iii) in paragraph (b) after “body” insert “, manager or employee”,
and
(iv) in paragraph (d) for “sub-paragraph (1)” substitute “sub-
paragraph (1A)”.
(17) Omit paragraph 15 (application of rules relating to accounts etc).Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)324
(18) In paragraph 16 (interest on client’s money)—
(a) in sub-paragraph (1)—
(i) after “recognised bodies” insert “or managers or employees
of such bodies,”,
(ii) after “recognised body” insert “, manager or employee”,
(iii) for “it keeps” substitute “it or he keeps”,
(iv) for “its clients” substitute “clients of the recognised body”,
and
(v) after “received by it” insert “or him”, and
(b) in sub-paragraph (2), for “and any of its clients” substitute “, or any
manager or employee of such a body, and any of the clients of the
recognised body”.
PART 2
COURTS  AND  LEGAL  SERVICES  ACT 1990 ( C. 41)
33 The Courts and Legal Services Act 1990 is amended in accordance with this
Part.
34 (1) Section 53 (the Council for Licensed Conveyancers) is amended as follows.
(2) For subsections (1) to (3) substitute—
“(1) The Council for Licensed Conveyancers has the powers necessary to
enable it to become designated as an approved regulator in relationto one or more of the reserved legal activities within subsection (1A).
(1A) The reserved legal activities to which this subsection applies are—
(a) the exercise of a right of audience;
(b) the conduct of litigation;
(c) probate activities.
(2) If the Council becomes an approved regulator in relation to one or
more of those activities, it may, in that capacity, authorise a person tocarry on a relevant activity only if the person is a licensedconveyancer.
(3) Where the Council authorises a licensed conveyancer to carry on a
relevant activity, it is to do so by issuing a licence to the licensedconveyancer.”
(3) Omit subsection (5).
(4) For subsection (6) substitute—
“(6) Where the Council exercises any of its powers in connection with—
(a) an application for designation as an approved regulator in
relation to a reserved legal activity within subsection (1A), or
(b) the authorising of a person to carry on a relevant activity,
it is to do so subject to any requirements to which it is subject in
accordance with the provisions of the Legal Services Act 2007.”
(5) In subsection (8), for “Secretary of State” substitute “Lord Chancellor”.(6) In subsection (9)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)325
(a) for “Secretary of State” substitute “Lord Chancellor”, and
(b) omit paragraph (e).
(7) After that subsection insert—
“(10) For the purposes of this section—
(a) “right of audience”, “conduct of litigation”, “probate
activities” and “reserved legal activity” have the samemeaning as in the Legal Services Act 2007;
(b) references to designation as an approved regulator are to
designation as an approved regulator—
(i) by Part 1 of Schedule 4 to the Legal Services Act 2007,
by virtue of an order under paragraph 5 of Schedule22 to that Act, or
(ii) under Part 2 of Schedule 4 to that Act;
(c) “relevant activity” means an activity which is a reserved legal
activity—
(i) which is within subsection (1A), and
(ii) in relation to which the Council is designated as an
approved regulator by Part 1 of Schedule 4 to that Act(by virtue of an order under paragraph 5 of Schedule22 to that Act) or under Part 2 of that Schedule.”
35 (1) Schedule 8 (licensed conveyancers) is amended as follows.
(2) In paragraph 1 (definitions)—
(a) in the definition of “advocacy licence” for “and constituting” to the
end substitute “by which the Council authorises the licensedconveyancer concerned to exercise a right of audience;”,
(b) in the definition of “litigation licence” for “and constituting” to the
end substitute “by which the Council authorises the licensedconveyancer concerned to carry on activities which constitute theconduct of litigation;”,
(c) in the definition of “probate licence” for “and constituting” to the end
substitute “by which the Council authorises the licensedconveyancer concerned to carry on activities which constituteprobate activities;”, and
(d) at the end insert—
““reserved legal activity” has the same meaning as in the
Legal Services Act 2007 (see section 12 of andSchedule 2 to that Act).”
(3) In paragraph 2 (qualification regula tions and rules of conduct), in sub-
paragraph (1)—
(a) for “rules of conduct” substitute “conduct rules”, and
(b) for “granting of the rights or exemption” substitute “carrying on of
the reserved legal activities”.
(4) In paragraph 4 (issue of licences), in sub-paragraph (1)—
(a) in paragraph (a) for “rules of conduct” substitute “conduct rules”,
and
(b) in paragraph (c) for “provide the advocacy, litigation or probate
services” substitute “carry on the reserved legal activities”.
(5) In paragraph 5 (conditional licences)—Legal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)326
(a) for sub-paragraph (1)(d) substitute—
“(d) after the Investigating Committee have made any
order in his case under section 24A(1) of the Act of1985 or the Discipline and Appeals Committeehave made any order in his case under section 26(1)of that Act.”,
(b) in sub-paragraph (6)—
(i) in paragraph (a) for “service that may be provided” substitute
“activities that may be carried on”, and
(ii) in paragraph (b) for “provides the additional services”
substitute “carries on the additional activities”, and
(c) after sub-paragraph (7) insert—
 “(8) Where a person applies for an advocacy, litigation or
probate licence at a time when this paragraph has effect inrelation to that person by reason of the circumstancesmentioned in section 16(1)(ea) of the Act of 1985, section16A(2) of that Act has effect as it has effect in relation to anapplication for a licence under Part 2 of that Act.”
(6) Omit paragraph 7 (code of conduct).(7) In paragraph 9 (removal of disqualification from holding a licence) after sub-
paragraph (2) insert—
 “(3) In relation to proceedings on an application under sub-paragraph
(1), the Discipline and Appeals Committee may make such orderas they consider fit as to the payment of costs by—
(a) the Council;
(b) the applicant.”
(8) In paragraph 10 (revocation on grounds of error or fraud), after sub-
paragraph (4) insert—
 “(5) In relation to proceedings for the revocation of a licence under
sub-paragraph (1), the Discipline and Appeals Committee maymake such order as they consider fit as to the payment of costsby—
(a) the Council;
(b) the licensed conveyancer to whose licence the proceedings
relate.
(6) In relation to proceedings on an application under sub-paragraph
(2), the Discipline and Appeals Committee may make such orderas they consider fit as to the payment of costs by—
(a) the Council;
(b) the applicant.”
(9) Omit paragraph 11.
(10) In paragraph 12 (delegation of powers etc)—
(a) in sub-paragraph (1) for “Subj ect” to “enactment, the” substitute
“The”,
(b) in that sub-paragraph, for paragraph (b) substitute—
“(b) by a sub-committee of such a committee; orLegal Services Act 2007 (c. 29)
Schedule 17 — Licensed conveyancing
Part 2 — Courts and Legal Services Act 1990 (c. 41)327
(c) by an individual (whether or not a member of the
Council’s staff).”,
(c) after that sub-paragraph insert—
 “(1A) Where by virtue of sub-paragraph (1) any function may be
discharged by a committee, the committee may arrange forthe discharge of that function by—
(a) a sub-committee of that committee; or
(b) an individual, whether or not a member of the
Council’s staff.
(1B) Sub-paragraph (1A) is subject to any contrary direction
given by the Council.
(1C) Arrangements made under sub-paragraph (1) or (1A) in
respect of a function may provide that the function is to beexercised in accordance with the arrangements only (andnot by the delegating body).
(1D) For this purpose “the delegating body” means—
(a) in the case of arrangements under sub-paragraph
(1), the Council, and
(b) in the case of arrangements under sub-paragraph
(1A), the committee.”,
(d) for sub-paragraph (3) substitute—
 “(3) Any power conferred by sub-paragraph (1), (1A) or (2)
may be exercised so as to impose restrictions or conditionson the body or individual by whom the function is to bedischarged.”,
(e) for sub-paragraphs (6) and (7) substitute—
 “(6) A committee or sub-committee established under this
paragraph may include or consist of individuals otherthan—
(a) members of the Council;
(b) licensed conveyancers.
(7) A sub-committee of a committee established under this
paragraph may also include or consist of individuals otherthan members of the committee.
(7A) The Council may make arrangements for the appointment
and removal of members of any committee to be madeother than by the Council.
(7B) A committee or sub-committee may regulate its own
procedure, including quorum.”, and
(f) after sub-paragraph (9) insert—
 “(10) This paragraph is subject to any provision to the contrary
made by or under any enactment.”
(11) Omit paragraph 13 (Counc il’s intervention powers).Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 1 — Qualifying regulators328
SCHEDULE 18 Section 186
IMMIGRATION  ADVICE  AND  IMMIGRATION  SERVICES
PART 1
QUALIFYING  REGULATORS
Designation orders
1 In this Part of this Schedule “designation order” means an order made under
section 86A(6) of the Immigration an d Asylum Act 1999 (c. 33) (designated
qualifying regulators entitled to authorise persons to provide immigrationadvice and immigration services).
Continuity of existing rights
2 Each of the following bodies is a qualifying regulator for the purposes of
Part 5 of the Immigration and Asylum Act 1999—
(a) the Law Society;
(b) the Institute of Legal Executives;
(c) the General Council of the Bar.
Application to become a qualifying regulator
3 (1) This paragraph applies where a body wishes to become a qualifying
regulator for the purposes of Part 5 of the Immigration and Asylum Act1999.
(2) A body may apply to the Board for the Board—
(a) to designate the body as a qualifying regulator for those purposes,
and
(b) to approve what the applicant proposes as its regulatory
arrangements if a designation order is made (“the proposedregulatory arrangements”).
(3) But a body may make an application under this paragraph only if—
(a) it is an approved regulator (other than the Board), or
(b) it has made an application under Part 2 of Schedule 4 (designation of
approved regulators).
( 4 ) A n  a p p l i c a t i o n  u n d e r  t h i s  p a r a g r a p h  m u s t  b e  m a d e  i n  s u c h  f o r m  a n d
manner as the Board may specify in rules and must be accompanied by—
(a) details of the applicant’s proposed regulatory arrangements,
(b) such explanatory material as the applicant considers is likely to be
needed for the purposes of this Part of this Schedule, and
(c) the prescribed fee.
(5) The prescribed fee is the fee prescribed in, or determined in accordance with,
rules made by the Board with the consent of the Lord Chancellor.
(6) An applicant may, at any time, withdraw the application by giving notice to
that effect to the Board.Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 1 — Qualifying regulators329
Consultation and representations
4 Paragraphs 4 to 12 of Schedule 4 (consultation requirements etc in relation
to applications for designation as approved regulator) apply in relation to anapplication under paragraph 3 as they apply in relation to an application
under paragraph 3 of that Schedule, but as if—
(a) in paragraphs 6(2), 7(2), and 9(3) of that Schedule the references to
making an order under paragraph 17 in accordance with therecommendation were references to making a designation order inrespect of the applicant, and
(b) in paragraph 6(2) of that Schedule the reference to the market for
reserved legal services were a reference to the market forimmigration advice and immigration services.
Determination of application
5 (1) The Board must make rules specifying how it will determine applications
under paragraph 3.
(2) Rules under sub-paragraph (1 ) must, in particular, provide that the Board
may grant an application only if it is satisfied—
(a) that, if a designation order were to be made in relation to the
applicant, the applicant would have appropriate internalgovernance arrangements in place at the time the order takes effect,
(b) that, if such an order were made, the applicant would be competent
to perform the role of designated qualifying regulator (within themeaning of section 86A of the Immigration and Asylum Act 1999(c. 33)) at that time,
(c) that the arrangements made by the applic ant for authorising persons
to provide immigration advice or immigration services provide that
persons may not be so authorised unless they are persons who arealso authorised by the applicant to carry on activities which arereserved legal activities,
(d) that the applicant’s proposed regulatory arrangements make
appropriate provision, and
(e) that the applicant’s proposed regulatory arrangements comply with
the requirements imposed by sections 112 and 145 (requirementsimposed in relation to the handling of complaints).
(3) The rules made for the purposes of sub-paragraph (2)(a) must in particular
require the Board to be satisfied—
(a) that the exercise of the applicant’s regulatory functions would not be
prejudiced by any of its representative functions, and
(b) that decisions relating to the exercise of its regulatory functions
would so far as reasonably practicable be taken independently fromdecisions relating to the exercise of its representative functions.
(4) In subsection (2)(c) the reference to persons who are also authorised by the
applicant to carry on activities which are reserved legal activities includes,in relation to any application by the Law Society, registered foreign lawyers(within the meaning of section 89 of the Courts and Legal Services Act 1990).
6( 1 ) A f t e r  c o n s i d e r i n g —
(a) the application and accompanying material,
(b) any other information provided by the applicant,Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 1 — Qualifying regulators330
(c) any advice duly given and representations duly made by virtue of
paragraph 4, and
(d) any other information which the Board considers relevant to the
application,
the Board must decide whether to grant the application.
(2) The Board must give notice of its decision to the applicant (“the decision
notice”).
(3) Where the Board decides to refuse the application, the decision notice must
specify the reasons for that decision.
(4) The Board must publish the decision notice.
(5) Paragraph 15 of Schedule 4 (period within which decision must be made)
applies in relation to a decision notice un der this paragraph as it applies in
relation to a decision notice under paragraph 14 of that Schedule.
Effect of application
7 (1) Where an application is granted under paragraph 6, the decision notice must
specify that the applicant is a qualifying regulator for the purposes of Part 5of the Immigration and Asylum Act 1999 (c. 33).
(2) Where an application is granted under paragraph 6, the proposed
regulatory arrangements are at the same time treated as having beenapproved by the Board.
(3) But if the application was made in reliance upon paragraph 3(3)(b), the
applicant’s status as such a qualifying regulator and the approval of itsproposed regulatory arrangements under sub-paragraph (2) are conditionalupon the Lord Chancellor making an order under Part 2 of Schedule 4designating the body as an approved regulator in relation to one or morereserved legal activities.
Loss of qualifying regulator status
8 (1) Where a qualifying regulator—
(a) ceases to be an approved regulator, or
(b) ceases to be a designated qualifying regulator within the meaning of
section 86A of the Immigration and Asylum Act 1999 by virtue of anorder under subsection (3) or (4) of that section,
it also ceases to be a qualifying regulator.
(2) But sub-paragraph (1) is without prejudice to a body’s ability to make a
further application under paragraph 3.
(3) If a body in the list in paragraph 2 ceases to be a qualifying regulator by
virtue of sub-paragraph (1), the Lord Chancell or must, by order, remove it
from that list.
P
ART 2
AMENDMENTS  OF THE IMMIGRATION  AND  ASYLUM  ACT 1999 ( C. 33)
9 The Immigration and Asylum Act 1999 is amended in accordance with this
Part of this Schedule.Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 2 — Amendments of the Immigration and Asylum Act 1999 (c. 33)331
10 In section 82(1) (interpretation of Part 5), after the definition of “designated
professional body” insert—
““designated qualifying regulator” has the meaning given by
section 86A;”.
11 In section 83 (the Immi gration Services Commissioner ), after subsection (6)
insert—
“(6A) The duties imposed on the Commissioner by subsections (3) and (5)
apply in relation to persons within section 84(2)(ba) only to theextent that those duties have effect in relation to the Commissioner’sfunctions under section 92 or 92A.”
12 (1) Section 84 (provision of immigration services) is amended as follows.
(2) In subsection (2)—
(a) after paragraph (b) insert—
“(ba) a person authorised to provide immigration advice or
immigration services by a designated qualifyingregulator,”, and
(b) in paragraph (c)(ii) after “(b)” insert “or (ba)”.
(3) After subsection (3) insert—
“(3A) A person’s entitlement to provide immigration advice or
immigration services by virtue of subsection (2)(ba)—
(a) is subject to any limitation on that person’s authorisation
imposed by the regulatory arrangements of the designatedqualifying regulator in question, and
(b) does not extend to the provision of such advice or services by
the person other than in England and Wales (regardless ofwhether the persons to whom they are provided are inEngland and Wales or elsewhere).
(3B) In subsection (3A) “regulatory arrangements” has the same meaning
as in the Legal Services Act 2007 (see section 21 of that Act).”
13 (1) Section 86 (designated professional bodies) is amended as follows.
(2) Omit subsections (1)(a), (d) and (e) and (4)(b).
(3) In subsection (5)(a) omit “England and Wales or”.(4) In subsection (6)—
(a) omit paragraph (a), and
(b) in paragraph (b) for “it” substitute “the order”.
(5) In subsection (8) after “that a body” insert “(other than a body in England
and Wales)”.
14 After section 86 insert—
“86A Designated qualifying regulators
(1) “Designated qualifying regulator” means a body which is a
qualifying regulator and is listed in subsection (2).
(2) The listed bodies are—
(a) the Law Society;Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 2 — Amendments of the Immigration and Asylum Act 1999 (c. 33)332
(b) the Institute of Legal Executives;
(c) the General Council of the Bar.
(3) The Secretary of State may by order remove a body from the list in
subsection (2) if the Secretary of State considers that the body hasfailed to provide effective regulation of relevant authorised personsin their provision of immigration advice or immigration services.
(4) If a designated qualifying regulator asks the Secretary of State to
amend subsection (2) so as to remove its name, the Secretary of Statemay by order do so.
(5) Where, at a time when a body is listed in subsection (2), the body
ceases to be a qualifying regulator by virtue of paragraph 8(1)(a) ofSchedule 18 to the Legal Services Act 2007 (loss of approvedregulator status), the Secretary of State must, by order, remove itfrom the list.
(6) If the Secretary of State considers that a body which—
(a) is a qualifying regulator,
(b) is not a designated qualifying regulator, and
(c) is capable of providing effective regulation of relevant
authorised persons in their provision of immigration adviceor immigration services,
ought to be designated, the Secretary of State may, by order, amend
the list in subsection (2) to include the name of that body.
(7) If the Secretary of State is proposing to act under subsection (3) or (6),
the Secretary of State must, before doing so, consult theCommissioner.
(8) If the Secretary of State is proposing to act under subsection (3), the
Secretary of State must, before doing so, also —
(a) notify the body concerned of the proposal and give it a
reasonable period within which to make representations, and
(b) consider any representations duly made.
(9) An order under subsection (3) or (6) requires the approval of the
Lord Chancellor.
(10) If the Legal Services Board considers that a designated qualifying
regulator is failing to provide effective regulation of relevantauthorised persons in their provision of immigration advice orimmigration services, the Legal Services Board must make a reportto this effect to—
(a) the Secretary of State, and
(b) the Lord Chancellor.
(11) In this section—
“qualifying regulator” means a body which is a qualifying
regulator for the purposes of this Part of this Act by virtue ofPart 1 of Schedule 18 to the Legal Services Act 2007 (approvedregulators approved by the Legal Services Board in relationto immigration matters);
“relevant authorised persons”, in relation to a designated
qualifying regulator, means persons who are authorised byLegal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 2 — Amendments of the Immigration and Asylum Act 1999 (c. 33)333
the designated qualifying regulator to provide immigration
advice or immigration services.”
15 (1) Section 90 (orders by disciplinary bodies) is amended as follows.
(2) In subsection (2), for paragraph (a) substitute—
“(a) appearing to the Secretary of State to be established for the
purpose of hearing disciplinary charges against—
(i) members of a designated professional body, or
(ii) persons regulated by designated qualifying
regulators; and”.
(3) In subsection (3) after “body” insert “or designated qualifying regulator”.
(4) In subsection (5)—
(a) after “means” insert “—
“(a) ”, and
(b) after “that body” insert “, or
(b) a person who is authorised by the designated
qualifying regulator concerned to provideimmigration advice or immigration services.”
16 In section 166(4) (orders requir ing approval by Parliament), after paragraph
(d) insert—
“(da) section 86A(3),”.
17 (1) Schedule 5 (the Immigration Services Commissioner) is amended as follows.
(2) In paragraph 3 (code of standards)—
(a) after sub-paragraph (3)(a) insert—
“(aa) a person who is authorised by a
designated qualifying regulator toprovide immigration advice orimmigration services;”,
(b) in sub-paragraph (3)(b) after “paragraph (a)” insert “or (aa)”,
(c) after sub-paragraph (6)(a) insert—
“(aa) each of the designated qualifying
regulators;”, and
(d) omit sub-paragraph (6)(b).
(3) In paragraph 4 (extension of scope of the code)—
(a) omit sub-paragraph (2)(b),
(b) in sub-paragraph (3)(a) omit “England and Wales or”, and
(c) omit sub-paragraph (4)(a).
(4) In paragraph 5 (investigation of complaints)—
(a) in sub-paragraph (3), for the words from “but” to the end
substitute—
   “but not if the complaint is excluded by sub-paragraph
(3A).”,
(b) after that sub-paragraph insert—
 “(3A) A complaint is excluded if—Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 2 — Amendments of the Immigration and Asylum Act 1999 (c. 33)334
(a) it relates to a person who is excluded from the
application of subsection (1) of section 84 bysubsection (6) of that section, or
(b) it relates to a person within section 84(2)(ba).”
P
ART 3
TRANSITIONAL  PROVISION
The transitional period
18 (1) In this Part of this Schedule references to “the transitional period” are to the
period which—
(a) begins with the day appointed for the coming into force of section 13
(entitlement to carry on reserved legal activities), and
(b) ends with the day appointed by the Lord Chancellor by order for the
purposes of this paragraph.
(2) Different days may be appointed under sub-paragraph (1)(b) for different
purposes.
(3) An order may be made under sub-paragraph (1)(b) only on the
recommendation of the Board.
Barristers etc
19 (1) During the transitional period, every barrister is deemed to be authorised by
the General Council of the Bar to provide immigration advice andimmigration services.
(2) That authority is exercisable in accordance with, and subject to, the
regulatory arrangements of the General Council of the Bar.
(3) A person is not authorised under sub-paragraph (1) unless the person has in
force a certificate issued by the General Coun cil of the Bar authorising the
person to practise as a barrister.
20 (1) During the transitional period, every registered European lawyer registered
with the Inns of Court and the General Council of the Bar is deemed to beauthorised by the General Council of the Bar to provide immigration adviceand immigration services if the registe red European lawyer is entitled to
provide immigration advice and immigration services under his homeprofessional title by virtue of the European regulations.
(2) That authority is exercisable in accordance with, and subject to, the
regulatory arrangements of the General Council of the Bar (as they apply tothe registered European lawyer by virtue of the European regulations).
(3) In this paragraph—
“European regulations” means the European Communities (Lawyer’s
Practice) Regulations 2000 (S.I. 2000/1119);
“home professional title” and “registered European lawyer” have the
same meaning as in th e European regulations.Legal Services Act 2007 (c. 29)
Schedule 18 — Immigration advice and immigration services
Part 3 — Transitional provision335
Solicitors etc
21 (1) During the transitional period, each of the following is deemed to be
authorised by the Law Society to provide immigration advice andimmigration services—
(a) every qualified solicitor;
(b) every registered foreign lawyer (within the meaning of section 89 of
the Courts and Legal Services Act 1990 (c. 41));
(c) every legal partnership (within the mea ning of paragraph 7(4) of
Schedule 5);
(d) every body recognised under section 9 of the Administration of
Justice Act 1985 (c. 61).
(2) That authority is exercisable in accordance with, and subject to, the
regulatory arrangements of the Law Society.
(3) “Qualified solicitor” means a person who is qualified under section 1 of the
Solicitors Act 1974 (c. 47) to act as a solicitor.
22 (1) During the transitional period, every registered European lawyer registered
with the Law Society is deemed to be authorised by the Law Society toprovide immigration advice and immigration services if the registeredEuropean lawyer is entitled to provide immigration advice and immigrationservices under his home professional title by virtue of the Europeanregulations.
(2) That authority is exercisable in accordance with, and subject to, the
regulatory arrangements of the Law Society (as they apply to the registeredEuropean lawyer by virtue of the European regulations).
(3) In this paragraph—
“European regulations” means the European Communities (Lawyer’s
Practice) Regulations 2000 (S.I. 2000/1119);
“home professional title” and “registered European lawyer” have the
same meaning as in th e European regulations.
Legal Executives
23 (1) During the transitional period, a person who is authorised by the Institute of
Legal Executives to practise as a member of the profession of legalexecutives is deemed to be authorised by that Institute to provideimmigration advice and immigration services.
(2) That authority is exercisable in accordance with and subject to the regulatory
arrangements of the Institute of Legal Executives.
(3) A person is not authorised under sub-paragraph (1) unless the person has in
force a certificate issued by the Institute of Legal Executives authorising theperson to practise as a legal executive.Legal Services Act 2007 (c. 29)
Schedule 19 — Claims management services336
SCHEDULE 19 Section 187
CLAIMS  MANAGEMENT  SERVICES
1 The Compensation Act 2006 (c. 29) is amended in accordance with this
Schedule.
2 (1) Section 4 (provision of regulated claims management services) is amended
as follows.
(2) After subsection (2) insert—
“(2A) The Secretary of State may not make an order under subsection (2)(e)
unless—
(a) it is made in accordance with a recommendation made by the
Legal Services Board, or
(b) the Secretary of State has consulted the Legal Services Board
about the making of the order.” 
3 (1) Section 5 (the Regulator) is amended as follows.
(2) After subsection (1) insert—
“(1A) The Secretary of State may designate a person only on the
recommendation of the Legal Services Board.”
(3) In subsection (2) for “The Secretary of State may designate a person”
substitute “The Legal Services Board may recommend a person fordesignation”.
(4) Omit subsection (3). (5) In subsection (4)—
(a) in paragraphs (a), (b), (d) and (e) for “Secretary of State” substitute
“Legal Services Board”, and
(b) omit paragraph (c). 
(6) In subsection (8) after “may” insert “, on the recommendation of the Legal
Services Board,”.
(7) In subsection (9) for “Secretary of State” substitute “Legal Services Board”.
(8) In subsection (10)—
(a) after “may” insert “, on the recommendation of the Legal Services
Board,”, and
(b) for “Secretary of State” (in the second place) substitute “Legal
Services Board”.
(9) After that subsection insert—
“(11) In discharging any function by virtue of subsection (9) or (10), the
Legal Services Board must take such steps as are necessary to ensurean appropriate financial and organisational separation between theactivities of the Board that relate to the carrying out of thosefunctions and the other activities of the Board.”Legal Services Act 2007 (c. 29)
Schedule 19 — Claims management services337
4 In section 6 (exemptions) after subsection (3) insert—
“(3A) The Secretary of State may not make an order under subsection (1) or
(2) unless—
(a) it is made in accordance with a recommendation made by the
Legal Services Board, or
(b) the Secretary of State has consulted the Legal Services Board
about the making of the order.” 
5 (1) Section 7 (enforcement: offence) is amended as follows.
(2) In subsection (2)(b)—
(a) in sub-paragraph (i) for “51 weeks” substitute “12 months”, and
(b) in sub-paragraph (ii) for “level 5 on the standard scale” substitute
“the statutory maximum”.
(3) For subsection (3) substitute—
“(3) In relation to an offence committed before the commencement of
section 154(1) of the Criminal Justice Act 2003 the reference insubsection (2)(b)(i) to 12 months is to be read as a reference to 6months.”
6 (1) Section 8 (enforcement: the Regulator) is amended as follows.
(2) In subsection (5)—
(a) after “the Regulator” (in the second place) insert “—
(a) ”, and
(b) after “Part” insert “, and
(b) to take possession of any written or electronic records
found on the search for the purposes of subsection(6).”
(3) After subsection (8) insert—
“(9) The Secretary of State may not make regulations under subsection (8)
unless—
(a) they are made in accordance with a recommendation made
by the Legal Services Board, or
(b) the Secretary of State has consulted the Legal Services Board
about the making of the regulations.” 
7 In section 9 (regulations), after subsection (2) insert—
“(2A) The Secretary of State may not make regulations under this section
unless—
(a) they are made in accordance with a recommendation made
by the Legal Services Board, or
(b) the Secretary of State has consulted the Legal Services Board
about the making of the regulations.”
8 (1) Section 11 (pretending to be authorised etc) is amended as follows.
(2) In subsection (4)(b)—
(a) in sub-paragraph (i) for “51 weeks” substitute “12 months”, and
(b) in sub-paragraph (ii) for “level 5 on the standard scale” substitute
“the statutory maximum”.Legal Services Act 2007 (c. 29)
Schedule 19 — Claims management services338
(3) For subsection (6) substitute—
“(6) In relation to an offence committed before the commencement of
section 154(1) of the Criminal Justice Act 2003 the reference insubsection (4)(b)(i) to 12 months is to be read as a reference to 6months.”
9 In section 13 (appeals and references to Claims Management Services
Tribunal), in subsection (4) for “against” substitute “on a point of law arisingfrom”.
10 In section 14 (interpretation), in the definition of “the Regulator” for
“Secretary of State” substitute “Legal Services Board”.
11 (1) The Schedule (claims management regulations) is amended as follows.
(2) In paragraph 5(3)(a) for “, guidance or a code given or issued” substitute “or
guidance given”.
(3) In paragraph 7—
(a) in paragraph (e) for “Secretary of State” substitute “Legal Services
Board”,
(b) in paragraph (g)—
(i) for “Secretary of State” substitute “Legal Services Board”, and
(ii) after “Fund” insert “after consultation with the Secretary of
State”.
(4) In paragraph 8(2)(a)(ii) for “Secretary of State” substitute “Legal Services
Board”.
(5) In paragraph 9(2)(a)(ii) for “Secretary of State” substitute “Legal Services
Board”.
(6) In paragraph 14, in sub-paragraph (2) for “to enter” to the end substitute—
“(a) to enter and search premises on which a person conducts
or is alleged to conduct regulated claims managementbusiness, for the purposes of—
(i) investigating a complaint about the activities of an
authorised person, or
(ii) assessing compliance with terms and conditions of
an authorisation, and
(b) to take possession of written or electronic records found on
the search for the purposes of taking copies in accordancewith regulations under sub-paragraph (3).”
SCHEDULE 20
Section 195
AMENDMENTS  IN RELATION  TO THE LEGAL  PROFESSION  AND  LEGAL  AID (SCOTLAND ) ACT 
2007 ( ASP 5)
Solicitors (Scotland) Act 1980 (c. 46)
1 (1) The Solicitors (Scotland) Act 1980 is amended as follows.
(2) In section 3A(5), omit paragraphs (a) and (ad).Legal Services Act 2007 (c. 29)
Schedule 20 — Amendments in relation to the Legal Profession and Legal Aid (Scotland) Act 2007 (asp 5)339
(3) In section 15(2)—
(a) in paragraph (e), for “38” substitute “62A”, and
(b) omit paragraph (j).
(4) In section 20(2), omit “, 53A(2)(ba)”.
(5) In section 24C(2)—
(a) in paragraph (d), for “38” substitute “62A”, and
(b) omit paragraph (i).
(6) In section 34, omit subsections (4), (4C) and (4D).
(7) Omit sections 38, 39, 42A and 42B.(8) In section 42C—
(a) in subsection (1)—
(i) omit paragraphs (a) and (c),
(ii) omit “to the solicitor or his firm or”, and
(iii) omit “or, where” to the end,
(b) in subsection (2), in paragraphs (a) and (b) omit (in each place)
“solicitor, firm or”,
(c) in subsection (3)—
(i) in paragraph (a), omit “the solicitor or his firm or, as the case
may be,”,
(ii) in paragraph (b), omit “of which the solicitor” to “be,”,
(d) in subsection (4), omit (in each place) “38,”, and
(e) omit subsection (5).
(9) In section 51—
(a) in subsection (2)—
(i) omit “a solicitor may have been guilty” to “Fund) or”, and
(ii) omit “or a solicitor” to “services”, and
(b) omit subsection (2A).
(10) In section 52, in subsection (2)(aa) omit “42A(7) or”.
(11) In section 53, omit subsections (3), (10) and (11).(12) Omit sections 53A, 53B and 53C.
(13) In section 54, omit subsections (1), (2B) and (2C).
(14) In section 55, omit subsection (8).(15) Omit section 56A.
(16) In section 62A, in subsections (1) and (2) omit (in each place) “38,”.
(17) In section 65—
(a) in subsection (1), omit the definition of “inadequate professional
services”, and
(b) omit subsection (5).
(18) In Part 2 of Schedule 3, in paragraph 5(1), (2) and (3) omit (in each place)
“38,”.
(19) In Part 2 of Schedule 4—Legal Services Act 2007 (c. 29)
Schedule 20 — Amendments in relation to the Legal Profession and Legal Aid (Scotland) Act 2007 (asp 5)340
(a) in paragraph 9(a) and (b), omit (in each place) “or, as the case may be,
of provision of inadequate professional services”,
(b) in paragraph 16, omit sub-paragraphs (f) and (g), and
(c) in paragraph 23, omit “, 42A(7)”.
(20) In the side-note to section 62A, omit “38,”.
Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 (c. 40)
2 In the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990, omit
section 33.
SCHEDULE 21 Section 208
MINOR  AND  CONSEQUENTIAL  AMENDMENTS
Public Notaries Act 1801 (c. 79)
1 The Public Notaries Act 1801 is amended in accordance with paragraphs 2
and 3.
2 In section 1 (no person to be created to act as public notary, to do any notarial
act etc unless duly admitted), omit “, or use and exercise the office of anotary, or do any notarial act,”.
3 In section 14 (Act not to extend to certain persons), omit from “proctor” to
“any other”.
Public Notaries Act 1843 (c. 90)
4 The Public Notaries Act 1843 is amended in accordance with paragraphs 5
to 7.
5 After section 7 insert—
“7A Effect of admission or grant of faculty
(1) Despite any provision made by the Public Notaries Acts, a person’s
entitlement to carry on an activity which is a notarial activity is to bedetermined in accordance with the Legal Services Act 2007.
(2) Nothing in the Public Notaries Acts is to be regarded, for the
purposes of paragraph 5(2) of Schedule 3 to the Legal Services Act2007 (exempt persons in relation to notarial activities) as authorisinga person to carry on such an activity. 
(3) For this purpose—
“the Public Notaries Acts” means this Act and the Public
Notaries Act 1801;
“exempt person” and “notarial activ ity” have the same meaning
as in the Legal Services Act 2007.”
6 In section 8 (Master of Faculties may issue commissions to take oaths)—
(a) the existing provision becomes subsection (1), andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments341
(b) after that subsection insert—
“(2) For the purposes of the Legal Services Act 2007, the issue of a
commission under subsection (1) is to be treated as anauthorisation to carry on the relevant activities by virtue ofanother enactment (see paragraph 6(2) of Schedule 3 to thatAct).
(3) In subsection (2), “relevant activities” means the activities
authorised by the commission.”
7 Omit section 10 (offence of practising as notary without authorisation).
Bills of Exchange Act 1882 (c. 61)
8 The Bills of Exchange Act 1882 is amended in accordance with paragraphs 9
and 10.
9 In section 51 (noting or protest of bill), after subsection (7) insert— 
“(7A) In subsection (7) “notary” includes a person who, for the
purposes of the Legal Services Act 2007, is an authorisedperson in relation to any activity which constitutes a notarialactivity (within the meaning of that Act).”
10 In section 94 (protest when notary not accessible)—
(a) the existing provision becomes subsection (1), and
(b) after that subsection insert—
“(2) In subsection (1), “notary” includes a person who, for the
purposes of the Legal Services Act 2007, is an authorisedperson in relation to any activity which constitutes a notarialactivity (within the meaning of that Act).”
Commissioners for Oaths Act 1889 (c. 10)
11 The Commissioners for Oaths Act 1889 is amended in accordance with
paragraphs 12 and 13.
12 In section 1(3) (powers of commissioners for oaths) omit from “in which” (in
the first place) to “solicitor, or”.
13 In section 6 (powers as to oaths and notarial acts abroad), after subsection (1)
insert—
“(1A) In subsection (1), “notary public” includes a person who, for the
purposes of the Legal Services Act 2007, is an authorised person inrelation to any activity which constitutes a notarial activity (withinthe meaning of that Act).”
Benefices Act 1898 (c. 48)
14 In section 3 of the Benefices Act 1898 (appeal against refusal of benefice)—
(a) in subsection (2) for “counsel or a solicitor” substitute “an authorised
person”, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments342
(b) after that subsection insert—
“(2A) In subsection (2) “authorised person” means a person who,
for the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity which constitutesthe exercise a right of audience (within the meaning of thatAct).”
Children and Young Persons Act 1933 (c. 12)
15 The Children and Young Persons Act 1933 is amended in accordance with
paragraphs 16 to 20.
16 In section 37(1) (power to clear cou rt while child or young person giving
evidence), for “counsel or solicitors” substitute “legal representatives”.
17 In section 43 (admission of deposition in evidence), for “counsel or solicitor”
substitute “legal representative”.
18 In section 47(2)(b) (procedure in youth courts), for “solicitors and counsel”
substitute “legal representatives”.
19 In section 49(11) (restrictions on reports of proceedings), omit the definition
of “legal representative”.
20 In section 107 (interpretation), after the definition of “legal guardian”
insert—
““legal representative” means a person who, for the purposes of
the Legal Services Act 2007, is an authorised person inrelation to an activity which constitutes the exercise of a rightof audience or the conduct of litigation (within the meaning
of that Act);”.
London Building Acts (Amendment) Act 1939 (c. xcvii)
21 In section 115 of the London Building Acts (Amendment) Act 1939
(jurisdiction of tribunal of appeal)—
(a) in subsection (2), for “cou nsel solicitor” substitute “an authorised
person”, and
(b) after that subsection insert—
“(2A) In subsection (2) “authorised person” means a person who,
for the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity which constitutesthe exercise of a right of audience (within the meaning of thatAct).”
Accommodation Agencies Act 1953 (c. 23)
22 In section 1 of the Accommodation Agencies Act 1953 (illegal commissions
and advertisements)—
(a) in subsection (3), after “solicitor” insert “or an authorised person”,
and
(b) in subsection (6), after “say:—” insert—
““authorised person” means a person (other than a
solicitor) who, for the purposes of the Legal ServicesLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments343
Act 2007, is an authorised person in relation to an
activity which is a reserved legal activity (within themeaning of that Act);”.
Geneva Conventions Act 1957 (c. 52)
23 In section 3 of the Geneva Conven tions Act 1957 (legal representation of
certain persons), after subsection (5) insert—
“(6) In this section—
“counsel” includes any person who, for the purposes of the
Legal Services Act 2007, is an authorised person in relation toan activity which constitutes the exercise of a right ofaudience (within the meaning of that Act);
“solicitor” includes any person who, for the purposes of that
Act, is an authorised person in relation to an activity whichconstitutes the conduct of litigation (within the meaning ofthat Act).”
Horserace Betting Levy Act 1969 (c. 14)
24 In section 4 of the Horserace Betting Levy Act 1969 (non-renewal of
bookmaker’s permit)—
(a) in subsection (2), for “or a solicitor” substitute “, a solicitor or an
authorised person”, and
(b) after that subsection insert—
“(2A) In subsection (2), “author ised person” means a person (other
than counsel or a solicitor) who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to anactivity which constitutes the exercise of a right of audienceor the conduct of litigation (within the meaning of that Act).”
Taxes Management Act 1970 (c. 9)
25 In section 20B of the Taxes Management Act 1970 (restrictions on power to
require documents)—
(a) in subsection (3), for “barrister, advocate or solicitor” (in both places)
substitute “relevant lawyer”,
(b) in subsection (8), for “barrister, advocate or a solicitor” substitute
“relevant lawyer”, and
(c) after subsection (14) insert—
“(15) In this section “relevant lawyer” means a barrister, advocate,
solicitor or other legal representative communications withwhom may be the subject of a claim to professionalprivilege.”
Powers of Attorney Act 1971 (c. 27)
26 In section 3 of the Powers of Attorney Act 1971 (proof of instruments
creating powers of attorney)—
(a) in subsection (1)(b) for “duly certificated notary public” substitute “,
authorised person”, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments344
(b) in subsection (3) for from ““duly” to “Act and” substitute
““authorised person” means a person (other than a solicitor) who, forthe purposes of the Legal Services Act 2007, is an authorised personin relation to any activity which constitutes a notarial activity (withinthe meaning of that Act) and”.
Poisons Act 1972 (c. 66)
27 In section 9(7) of the Poisons Act 1972 (right to conduct proceedings), omit
“notwithstanding that he is not of counsel or a solicitor”.
Local Government Act 1972 (c. 70)
28 In section 223 of the Local Government Act 1972 (appearance of local
authorities in legal proceedings), in subsection (1) for “, notwithstanding” tothe end substitute “to conduct any such proceedings.”
Matrimonial Causes Act 1973 (c. 18)
29 In section 6 of the Matrimon ial Causes Act 1973 (attempts at reconciliation
of parties to marriage) in subsection (1) for “solicitor” substitute “legalrepresentative”.
Fair Trading Act 1973 (c. 41)
30 In section 29 of the Fair Trading Act 1973 (powers of entry and seizure)—
(a) in subsection (5), for “barrister, advocate or solicitor” substitute
“relevant lawyer”, and
(b) after subsection (5) insert—
“(6) “Relevant lawyer” means a barrister, advocate, solicitor, or
other legal representative communications with whom maybe the subject of a claim to privilege.”
Consumer Credit Act 1974 (c. 39)
31 In section 146 of the Consumer Credit Act 1974 (exceptions from section
145), after subsection (2) insert—
“(2A) An authorised person (other than a barrister or solicitor) engaging in
contentious business is not to be treated as doing so in the course ofany ancillary credit business.
(2B) In subsection (2A)—
“authorised person” means a person who, for the purposes of
the Legal Services Act 2007, is an authorised person inrelation to an activity which constitutes the exercise of a rightof audience or the conduct of litigation (within the meaning
of that Act);
“contentious business” means business done in or for the
purposes of proceedings begun before a court or before anarbitrator, not being non-contentious or common formprobate business (within the meaning of section 128 of theSupreme Court Act 1981).”Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments345
Sex Discrimination Act 1975  (c. 65)
32 In section 77 of the Sex Discrimination Act 1975 (validity and revision of
contracts), in subsection (4BB)(a) for “a barrister” (in the first place) to theend substitute “a person who, for the purposes of the Legal Services Act2007, is an authorised person in relation to an activity which constitutes theexercise of a right of audience or the conduct of litigation (within themeaning of that Act), and”.
Bail Act 1976 (c. 63)
33 The Bail Act 1976 is amended in accordance with paragraphs 34 and 35.
34 In section 3 (general provisions), in subsection (6)(e) for “an authorised
advocate” to the end substitute “a person who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to an activity whichconstitutes the exercise of a right of audience or the conduct of litigation(within the meaning of that Act);”.
35 In section 5 (supplementary pr ovisions about decisions on bail)—
(a) in subsection (5), for “is represented by counsel or a solicitor unless
his counsel or solicitor” substitute “has legal representation unlesshis legal representative”, and
(b) in subsection (6), for “is not represented by counsel or a solicitor”
substitute “does not have legal representation”.
Race Relations Act 1976 (c. 74)
36 The Race Relations Act 1976 is amended in accordance with paragraphs 37
to 39.
37 In section 67A (national security: procedure), in subsection (3)(a) for “have a
general” to the end substitute “be a person who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to an activity whichconstitutes the exercise of a right of audience or the conduct of litigation(within the meaning of that Act), and”.
38 In section 72 (validity and revision of contracts), in subsection (4BB)(a) for “a
barrister” (in the first place) to the end substitute “a person who, for thepurposes of the Legal Services Act 2007, is an authorised person in relationto an activity which constitutes the exercise of a right of audience or theconduct of litigation (within the meaning of that Act), and”.
39 In Schedule 1A (bodies and other persons subject to general statutory duty),
in Part 2, in the entry for the Chartered Institute of Patent Agents, for“Agents” substitute “Attorneys”.
Patents Act 1977 (c. 37)
40 In section 102 of the Patents Act 197 7 (rights of audience etc in proceedings
before the comptroller)—
(a) after subsection (2) insert—
“(2A) For the purposes of subsection (2), as it has effect in relation
to England and Wales, “the enactment relating to thepreparation of documents by persons not qualified” meanssection 14 of the Legal Services Act 2007 (offence to carry onLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments346
a reserved legal activity if not entitled) as it applies in relation
to an activity which amounts to the carrying on of reservedinstrument activities within the meaning of that Act.”, and
(b) for subsection (5) substitute—
“(5) Nothing in this section is to be taken to limit any entitlement
to prepare deeds conferred on a registered patent attorney byvirtue of the Legal Services Act 2007.”
Estate Agents Act 1979 (c. 38)
41 In section 11 of the Estate Agents Act 1979 (powers of entry and
inspection)—
(a) in subsection (8), for “counsel or solicitor” substitute “a relevant
lawyer”, and
(b) after that subsection insert—
“(9) For the purposes of subsection (8) “relevant lawyer” means
counsel, a solicitor or other legal representativecommunications with whom may be the subject of a claim toprivilege.”
Magistrates’ Courts Act 1980 (c. 43)
42 The Magistrates’ Courts Act 1980 is amended in accordance with
paragraphs 43 and 44.
43 In section 144 (rule committee and rules of procedure)—
(a) in subsection (3)(c), for fr om “granted” to “right” substitute
“authorised by a relevant approved regulator”, and
(b) after subsection (3) insert—
“(3A) In this section “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”
44 In section 150 (interpretation), in subsection (1), in the definition of “legal
representative” for “an authorised advocate” to the end substitute “a personwho, for the purposes of the Legal Services Act 2007, is an authorised personin relation to an activity which constitutes the exercise of a right of audienceor the conduct of litigation (within the meaning of that Act);”.
Supreme Court Act 1981 (c. 54)
45 The Supreme Court Act 1981 is amended in accordance with paragraphs 46
and 47.
46 In section 86 (Crown Court Rule Committee)—
(a) in subsection (1)(g), for from “granted” to “right” substitute
“authorised by a relevant approved regulator”, and
(b) after subsection (6) insert—
“(7) In this section “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments347
47 In section 90(3B) (conduct of proceedings by Official Solicitor) for “section
28(2)(a) of the Courts and Legal Services Act 1990” substitute “the fact thathe is a person who, for the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity which constitutes the conduct oflitigation (within the meaning of that Act)”.
Representation of the People Act 1983 (c. 2)
48 The Representation of the People Act 1983 is amended in accordance with
paragraphs 49 to 52.
49 In section 86 (authorised excuses for failures as to return and declarations)—
(a) in subsection (1A), for “or solicitor” substitute “, solicitor or
authorised person”, and
(b) after that subsection insert—
“(1B) In subsection (1A) “authorised person” means a person
(other than a barrister or solicitor) who, for the purposes ofthe Legal Services Act 2007, is an authorised person inrelation to an activity which constitutes the exercise of a rightof audience (within the meaning of that Act).”
50 In section 156 (costs of trying election petition)— 
(a) in subsection (5), for “or solicitor” substitute “, a solicitor or an
authorised person”, and
(b) after that subsection insert—
“(5A) In subsection (5) “authorised person” means a person (other
than counsel or a solicitor) who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to anactivity which constitutes the exercise of a right of audience(within the meaning of that Act).”
51 In section 162 (member of legal and certain other professions)—
(a) the existing provision becomes subsection (1),
(b) in that subsection—
(i) after “solicitor” insert “, authorised person”, and
(ii) for “or tribunal” (in both places) substitute “, tribunal or other
body”, and
(c) after that subsection insert—
“(2) In subsection (1) “authorised person” means a person (other
than a barrister or solicitor) who, for the purposes of theLegal Services Act 2007, is an authorised person in relation toan activity which constitutes a reserved legal activity (withinthe meaning of that Act).”
52 In section 181 (Director of Public Prosecutions)—
(a) in subsection (3), for “or so licitor” substitute “, solicitor or authorised
person”, and
(b) after that subsection insert—
“(3A) In subsection (3) “authorised person” means a person (other
than a barrister or solicitor) who, for the purposes of theLegal Services Act 2007, is an authorised person in relation toLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments348
an activity which constitutes the exercise of a right of
audience (within the meaning of that Act).”
Mental Health Act 1983 (c. 20)
53 The Mental Health Act 1983 is amended in accordance with paragraphs 54
to 60.
54 In section 35 (remand to hospital for report on accused's mental condition),
in subsection (6) for “counsel or a solicitor and his counsel or solicitor”substitute “an authorised person who”.
55 In section 36 (removal of accused person to hospital for treatment), in
subsection (5) for “counsel or a solicitor and his counsel or solicitor”substitute “an authorised person who”.
56 In section 38 (interim hospital orders), in subsection (2) for “counsel or a
solicitor and his counsel or solicitor” substitute “an authorised person who”.
57 In section 52 (further provisions as to persons remanded by magistrates'
courts), in subsection (7)(b) for “counsel or a solicitor” substitute “anauthorised person”.
58 In section 54 (requirements as to medical evidence), in subsection (3)(a)—
(a) for “counsel or a solicitor” substitute “an authorised person”, and
(b) for “his counsel or solicitor” substitute “that authorised person”.
59 In section 55 (interpretation of Part 3), in subsection (1) before the definitions
of “child” and “young person” insert—
““authorised person” means a person who, for the purposes of the
Legal Services Act 2007, is an authorised person in relation to anactivity which constitutes the exercise of a right of audience (withinthe meaning of that Act);”.
60 In section 78 (procedure of Mental Health Review Tribunals), in subsection
(7) for “counsel or a solicitor” substitute “an authorised person (within themeaning of Part 3)”.
County Courts Act 1984 (c. 28)
61 In section 147 of the County Courts Act 1984 (interpretation), in subsection
(1), in the definition of “legal representative” for “an authorised advocate” tothe end substitute “a person who, for the purposes of the Legal Services Act2007, is an authorised person in relation to an activity which constitutes theexercise of a right of audience or the conduct of litigation (within themeaning of that Act);”.
Inheritance Tax Act 1984 (c. 51)
62 In section 219 of the Inheritance Tax Act 1984 (power to require
information)— 
(a) in subsection (3) for “barrister or solicitor” substitute “relevant
lawyer”,
(b) in subsection (4) for “solicitor” (in both places) substitute “relevant
lawyer”, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments349
(c) after that subsection insert— 
“(5) In this section “relevant lawyer” means a barrister, advocate,
solicitor or other legal representative communications withwhom may be the subject of a claim to professionalprivilege.”
Companies Act 1985 (c. 6)
63 In Schedule 15D of the Companies Act 1985 (disclosures)—
(a) the existing paragraph 46 becomes sub-paragraph (1) of that
paragraph,
(b) in that sub-paragraph for “solicitor, barrister” substitute “relevant
lawyer”, and
(c) after that sub-paragraph insert—
 “(2) “Relevant lawyer” means—
(a) a person who, for the purposes of the Legal
Services Act 2007, is an authorised person inrelation to an activity which constitutes a reservedlegal activity (within the meaning of that Act),
(b) a solicitor or barrister in Northern Ireland, or
(c) a solicitor or advocate in Scotland.”
Prosecution of Offences Act 1985 (c. 23)
64 In section 15 of the Prosecution of Offences Act 1985 (interpretation), in
subsection (1), in the definition of “legal representative” for “an authorisedadvocate” to the end substitute “a person who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to an activity whichconstitutes the exercise of a right of audience or the conduct of litigation(within the meaning of that Act);”.
Administration of Justice Act 1985 (c. 61)
65 The Administration of Justice Act 1985 is amended in accordance with
paragraphs 66 and 67.
66 In section 41 (application of discipl inary provisions to legal aid complaints
against barristers), in subsection (2) after “those provisions” insert “anddespite section 157 of the Legal Services Act 2007 (approved regulators notto make provision for redress)”.
67 In section 69(2) (commencement) for “Secretary of State” substitute “Lord
Chancellor”.
Social Security Act 1986 (c. 50)
68 In section 56 of the Social Security Act 1986 (legal proceedings), in subsection
(1) omit “although not a barrister or solicitor”.
Building Societies Act 1986 (c. 53)
69 The Building Societies Act 1986 is amended in accordance with paragraphs
70 to 72.Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments350
70 In section 52 (powers to obtain information and documents etc)—
(a) in subsection (8) for “barrister, solicitor or advocate” substitute
“relevant lawyer”, and
(b) in subsection (13) after the definition of “approved” insert—
““relevant lawyer” means a barrister, advocate, solicitor
or other legal representative communications withwhom may be the subject of a claim to professionalprivilege;”.
71 In section 67 (directors, etc, not to accept commission in connection with
loans), in subsection (7), in the definition of “solicitor” for “licensed
conveyancer” substitute “any person who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to an activity whichconstitutes a reserved instrument activity (within the meaning of that Act)”.
72 In section 69 (disclosure and record of income of related businesses), in
subsection (17), in the definition of “solicitor” for “licensed conveyancer” tothe end substitute “any person who, for the purposes of the Legal ServicesAct 2007, is an authorised person in relation  to an activity which constitutes
a reserved instrument activity (within the meaning of that Act).”
Ministry of Defence Police Act 1987 (c. 4)
73 In section 4 of the Ministry of De fence Police Act 1987 (representation at
disciplinary proceedings)—
(a) in subsection (2) for “either by counsel or by a solicitor” substitute
“by a relevant lawyer”,
(b) in subsection (7) for “counsel or a solicitor” substitute “a relevant
lawyer”, and
(c) after that subsection insert—
“(8) In this section “relevant lawyer” means—
(a) in relation to Scotland or Northern Ireland, counsel or
a solicitor, and
(b) in relation to England and Wales, a person who, for
the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity whichconstitutes the exercise of a right of audience (withinthe meaning of that Act).”
Income and Corporation Taxes Act 1988 (c. 1)
74 In the Income and Corporation Taxes Act 1988, in section 778 (power to
obtain information)—
(a) in subsection (3) for “solicitor” substitute “relevant lawyer”, and
(b) after that subsection insert—
“(4) In subsection (3) “relevant lawyer” means a barrister,
advocate, solicitor or other legal representativecommunications with whom may be the subject of a claim toprofessional privilege or, in Scotland, protected fromdisclosure in legal proceedings on the grounds ofconfidentiality of communication.”Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments351
Copyright, Designs and Patents Act 1988 (c. 48)
75 The Copyright, Designs and Patents Act 1988 is amended in accordance with
paragraphs 76 to 80.
76 In section 276 (persons entitled to describe themselves as patent agents)—
(a) in subsection (1) for “registered patent agent” substitute “registered
patent attorney”, and
(b) in subsection (4) for “agent” (in the second place) substitute
“attorney”.
77 In section 280 (privilege for communications with patent agents)—
(a) in subsection (1), after “to” (in the first place) insert “—
(a) “,
(b) at the end of that subsection insert “, and
(b) documents, material or information relating to any
matter mentioned in paragraph (a).”,
(c) for subsection (2) substitute—
“(2) Where a patent attorney acts for a client in relation to a matter
mentioned in subsection (1), any communication, document,material or information to which this section applies is
privileged from disclosure in like manner as if the patentattorney had at all material times been acting as the client’ssolicitor.”,
(d) in subsection (3)—
(i) for “agent” (in each place) substitute “attorney”, and
(ii) for “agents” substitute “attorneys”, and
(e) omit subsection (4).
78 In section 281 (power of comptroller to refuse to deal with certain agents) in
subsection (2) for “agents” (in both places) substitute “attorneys”.
79 In section 286 (interpretation)—
(a) for “agent”” substitute “attorney””, and
(b) for “(1)” substitute “(2)”.
80 Omit section 292 (rights and duties of registered patent agents in relation to
proceedings in patent county courts).
Law of Property (Miscellaneous Provisions) Act 1989 (c. 34)
81 In section 1 of the Law of Property (Miscellaneous Provisions) Act 1989
(deeds and their execution)—
(a) in subsection (5) for “a solicitor” (in the first place) to “conveyancer”
(in the second place) substitute “a relevant lawyer, or an agent oremployee of a relevant lawyer”, and
(b) in subsection (6) for the definition  of “duly certificated notary public”
substitute—
““relevant lawyer” means a person who, for the
purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity whichconstitutes a reserved instrument activity (within the
meaning of that Act).”Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments352
Companies Act 1989 (c. 40)
82 In section 87 of the Companies Act 1989 (exceptions from restrictions on
disclosure)—
(a) in subsection (2), in paragraph  (c)(i), for “solicitor” substitute
“relevant lawyer”, and
(b) after that subsection insert—
“(2A) In subsection (2)(c)(i) “relevant lawyer” means—
(a) a person who, for the purposes of the Legal Services
Act 2007, is an authorised person in relation to anactivity which constitutes a reserved legal activity(within the meaning of that Act),
(b) a solicitor or barrister in Northern Ireland, or
(c) a solicitor or advocate in Scotland.”
Courts and Legal Services Act 1990 (c. 41)
83 The Courts and Legal Services Act 1990 is amended in accordance with
paragraphs 84 to 101.
84 Omit the following provisions—
(a) section 17 (the statutory objective and the general principle);
(b) section 18 (the statutory duty);
(c) section 18A (the Consultative Panel);
(d) section 27 (rights of audience);
(e) section 28 (rights to conduct litigation);
(f) section 29 (authorised bodies);
(g) section 31 (barristers and solicitors: rights of audience and rights to
conduct litigation);
(h) section 31A (employed advocates).
85 In section 31B (advocates and litigators employed by Legal Services
Commission)—
(a)  for subsection (1) substitute—
“(1) This section applies where a person—
(a) is authorised by a relevant approved regulator (“the
regulator”) to carry on an activity which constitutesthe exercise of a right of audience or the conduct oflitigation, and
(b) is employed by the Legal Services Commission, or by
any body established and maintained by thatCommission.
(1A) Any rules of the regulator which fall within subsection (2)
shall not have effect in relation to that person.”,
(b) in subsection (2)—
(i) for “body” (in each place) substitute “regulator”, and
(ii) for “rules of conduct” substitute “conduct rules”,
(c) in subsection (3) for “body” substitute “regulator”, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments353
(d) after subsection (3) insert—
“(4) For the purposes of this section “relevant approved
regulator” is to be construed in accordance with section 20(3)of the Legal Services Act 2007.”
86 In section 31C (change of authorised body)—
(a) for subsection (1) substitute—
“(1) Where a person—
(a) has at any time been authorised by a relevant
approved regulator to exercise a right of audiencebefore a court in relation to proceedings of aparticular description, and
(b) becomes authorised by another relevant approved
regulator to exercise a right of audience before thatcourt in relation to that description of proceedings,
any qualification regulations of the relevant approved
regulator mentioned in paragraph (b) which relate to thatright are not to have effect in relation to the person.”,
(b) in subsection (2) for “the body” substitute “the relevant approved
regulator”,
(c) in subsection (3) for “body” (in each place) substitute “relevant
approved regulator”, and
(d) after that subsection insert—
“(4) In this section “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”
87 Omit sections 34 to 52 (extension of conveyancing services).
88 Omit sections 54 and 55 (preparation of probate papers etc).
89 In section 60 (regulation of right of Scottish and Northern Ireland lawyers to
practise in England and Wales)—
(a) in subsection (1) for “Secretary of State” substitute “Lord
Chancellor”,
(b) in subsection (2) for “Secretary of State” substitute “Lord
Chancellor”, 
(c) after subsection (2) insert—
“(2A) Regulations may be made under this section only if—
(a) the Legal Services Board has made a recommendation
under section 60A,
(b) draft regulations were annexed to the
recommendation, and
(c) the regulations are in the same form as, or a form not
materially different from, the draft regulations.”, and
(d) in subsection (4) for “Secretary of State” substitute “Lord
Chancellor”.Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments354
90 After that section insert—
“60A Procedural requirements relating to recommendations for the 
purposes of section 60
(1) Before making a recommendation under this section, the Legal
Services Board must publish a draft of—
(a) the proposed recommendation, and
(b) the proposed draft regulations.
(2) The draft must be accompanied by a notice which states that
representations about the proposals may be made to the Boardwithin a specified period.
(3) Before making the recommendation, the Board must have regard to
any representations duly made.
(4) If the draft regulations to be annexed to the recommendation differ
from the draft regulations published under subsection (1)(b) in a waywhich is, in the opinion of the Board, material, the Board must,before making the recommendation, publish the draftrecommendations along with a statement detailing the changes
made and the reasons for the changes.”
91 Omit section 63 (legal professional privilege).92 Omit section 69 (exemption from liability for damages etc).
93 Omit section 70 (offences).
94 In section 71 (qualification for ju dicial and certain other appointments)—
(a) in subsection (4) for “granted by an authorised body” substitute
“exercisable by virtue of an auth orisation given by a relevant
approved regulator”,
(b) in subsection (6) for “the authorised body concerned” substitute “the
relevant approved regulator”, and
(c) after that subsection insert—
“(6A) In this section “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”
95 In section 75 (judges etc barred from legal practice), after paragraph (b)
insert—
“(ba) carry on any notarial activ ities (within the meaning of the
Legal Services Act 2007);”.
96 Omit section 113 (administration of oaths and taking of affidavits).
97 (1) Section 119 (interpretation) is amended as follows.
(2) In subsection (1) omit the following definitions—
“authorised advocate”
“authorised body” and “appropriate authorised body”
“authorised litigator”“authorised practitioner”
“Consultative Panel”
“duly certificated notary public”Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments355
“the general principle”
“qualified person”
“the statutory objective”.
(3) In that subsection, for the definition of “court” substitute—
““court” has the same meaning as in the Legal Services Act 2007
(see section 207 of that Act);”.
(4) In that subsection, for the definition of “qualification regulations” and “rules
of conduct” substitute—
““qualification regulations” and “conduct rules”, in relation to a
body, have the same meaning as in the Legal Services Act2007 (see section 21 of that Act);”.
(5) In that subsection, in the definition of “right to conduct litigation”—
(a) in paragraph (a) after “court” insert “in England and Wales”,
(b) for “and” at the end of that paragraph substitute—
“(aa) to commence, prosecute and defend such
proceedings; and”.
(6) In subsection (3) for from “(including” to the end substitute “to conduct rules
includes a reference to practice rules (within the meaning of the LegalServices Act 2007 (see section 21 of that Act)).”
98 In section 120 (regulations and orders) omit—
(a) in subsection (4) —
(i) “26(1), 37(10), 40(1)”, and
(ii) from “paragraph 24” to “Schedule 9”, and
(b) subsection (5).
99 In section 125 (power to make provision consequential on provision made
by Part 2 of Administration of Justice Act 1985 etc)—
(a) in subsection (4) for “Secretary of State” substitute “Lord
Chancellor”, and
(b) for subsection (5) substitute—
“(5) In subsection (4)—
(a) “relevant enactments” means such enactments or
instruments passed or made before or in the sameSession as the Legal Services Act 2007 was passed asmay be specified in the order, and
(b) the reference to Part 2 is a reference to that Part as
amended by that Act or any enactment or instrumentspassed or made before or in the same Session as thatAct was passed.”
100 Omit the following provisions—
(a) Schedule 4 (authorised bodies);
(b) Schedule 5 (the Authorised Conveyancing Practitioners Board);
(c) Schedule 6 (the Conveyancing Appeals Tribunals);
(d) Schedule 7 (the Conveyancing Ombudsman Scheme);
(e) in Part 2 of Schedule 8 (amendments of provisions relating to powers
of Conveyancing Licensing Coun cil etc), paragraphs 14 to 20 and
21(1)(b);Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments356
(f) Schedule 9 (probate).
101 In paragraph 17 of Schedule 19 (revocation of appointment under section
1(1) of the Commissioners for Oaths Act 1889) for “Secretary of State”substitute “Lord Chancellor”.
Environmental Protection Act 1990 (c. 43)
102 In section 114 (appointment etc of inspectors), in subsection (4) omit “,
although not of counsel or a solicitor,”.
Friendly Societies Act 1992 (c. 40)
103 In section 62 of the Friendly Societies Act 1992 (powers to obtain information
and documents etc)—
(a) in subsection (7), for paragraphs (a) and (b) substitute—
“ ( a ) b y  a  r e l e v a n t  l a w y e r  o f  a  d o c u m e n t  o r  m a t e r i a l
contained in a privileged communication or, inScotland, a communication which is protected fromdisclosure on the ground of confidentiality, made byor to the relevant lawyer in that capacity or thefurnishing of information contained in suchcommunication so made;”, and
(b) in subsection (12), at the end insert “; and
“relevant lawyer” means a barrister, advocate, solicitor
or other legal representative communications withwhom may be the subject of a claim to professionalprivilege or, in Scotland,  be protected from disclosure
in legal proceedings on grounds of confidentiality ofcommunication.”
Trade Union and Labour Relations Consolidation Act 1992 (c.52)
104 The Trade Union and Labour Relations  Consolidation Act 1992 is amended
in accordance with paragraphs 105 to 107.
105 In section 194 (offence of failure to notify), in subsection (2) omit “, although
not of counsel or a solicitor,”.
106 In section 216 (constitution and proceedings of court of inquiry)—
(a) in subsection (6) for “counsel or solicitor” (in both places) substitute
“a relevant lawyer”, and
(b) after subsection (6) insert—
“(7) In subsection (6) “relevant lawyer” means—
(a) a person who, for the purposes of the Legal Services
Act 2007, is an authorised person in relation to anactivity which constitutes the exercise of a right ofaudience or the conduct of litigation within themeaning of that Act, or
(b) an advocate or solicitor in Scotland.”
107 In section 288 (restriction on contracting out), in subsection (4B)(a) for “a
barrister” (in the first place) to the end substitute “a person who, for the
purposes of the Legal Services Act 2007, is an authorised person in relationLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments357
to an activity which constitutes the exercise of a right of audience or the
conduct of litigation (within the meaning of that Act), and”.
Finance Act 1993 (c. 34)
108 In Schedule 21 of the Finance Act 1993 (oil taxation)—
(a) the existing paragraph 7 becomes sub-paragraph (1) of that
paragraph,
(b) in that sub-paragraph for “barrister, advocate or a solicitor”
substitute “relevant lawyer”, and
(c) after that sub-paragraph insert—
 “(2) “Relevant lawyer” means a barrister, advocate, solicitor or
other legal representative communications with whommay be the subject of a claim to professional privilege.”
Trade Marks Act 1994 (c. 26)
109 The Trade Marks Act 1994 is amended in accordance with paragraphs 110 to
115.
110 In section 52 (power to make provision in connection with Community trade
mark regulation), in subsection (3)(b) for “trade mark agents and registeredtrade mark agents” substitute “trade mark attorneys and registered trademark attorneys”.
111 In section 84 (unregistered persons not to be described as registered trade
mark agents)—
(a) in subsection (1)—
(i) for “agent” (in the first place) substitute “attorney”,
(ii) in paragraph (a) after “agent”” insert “or registered trade
mark attorney”, and
(iii) in paragraph (b) after “agent” insert “or a registered trade
mark attorney”,
(b) in subsection (2)—
(i) in paragraph (a) after “agent”” insert “or registered trade
mark attorney”, and
(ii) in paragraph (b) after “agents”” insert “or registered trade
mark attorneys”, and
(c) in subsection (3)—
(i) in paragraph (a) after “agent”” insert “or registered trade
mark attorney”, and
(ii) in paragraph (b) after “agent” insert “or a registered trade
mark attorney”.
112 In section 86 (use of the term “trade mark attorney”) in subsection (1) for
“agent” substitute “attorney”.
113 In section 87 (privilege for communications with registered trade mark
agents)—
(a) in subsection (1), after “to” (in the first place) insert “—
(a) ”,Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments358
(b) at the end of that subsection insert “, and
(b) documents, material or information relating to any
matter mentioned in paragraph (a).”,
(c) for subsection (2) substitute—
“(2) Where a trade mark attorney acts for a client in relation to a
matter mentioned in subsection (1), any communication,document, material or information to which this sectionapplies is privileged from disclosure in like manner as if the
trade mark attorney had at all material times been acting asthe client’s solicitor.”, and
(d) in subsection (3)—
(i) for “agent” (in each place) substitute “attorney”, and
(ii) for “agents” substitute “attorneys”.
114 In section 88 (power of registrar to refuse to deal with certain agents)—
(a) in paragraph (b) for “agents” substitute “attorneys”, and
(b) in paragraph (c) for “agents” substitute “attorneys”.
115 In section 104 (index of defined expressions, in the entry for “registered trade
mark agent”—
(a) for “agent” substitute “attorney”, and
(b) for “(1)” substitute “(2)”.
Criminal Justice and Public Order Act 1994  (c. 33)
116 In section 38 of the Criminal Justice and Public Order Act 1994
(interpretation and savings for sections 34 to 37 of that Act) in subsection (1),in the definition of “legal representative” for “an authorised advocate” to theend substitute “a person who, for the purposes of the Legal Services Act2007, is an authorised person in relation to an activity which constitutes theexercise of a right of audience or the conduct of litigation (within themeaning of that Act); and”.
Environment Act 1995 (c. 25)
117 In section 54 of the Environment Act 1995 (appearance in legal proceedings),
omit “although not of counsel or a solicitor”.
Disability Discrimination Act 1995 (c. 50)
118 In Part 1 of Schedule 3A to the Disability Discrimination Act 1995 (validity
and revision of contracts), in paragraph  2(5)(a) for “a barrister” (in the first
place) to the end substitute “a person who, for the purposes of the LegalServices Act 2007, is an authorised person in relation to an activity whichconstitutes the exercise of a right of audience or the conduct of litigation(within the meaning of that Act); and”.
Police Act 1996 (c. 16)
119 In section 84 of the Police Act 1996 (representation at disciplinary and other
proceedings)—
(a) in subsection (2) for “either by counsel or by a solicitor” substitute
“by a person who, for the purposes of the Legal Services Act 2007, isLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments359
an authorised person in relation to an activity which constitutes the
exercise of a right of audience (within the meaning of that Act)”, and
(b) in subsection (6), for “counsel or a solicitor” substitute “a person
who, for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to an activity which constitutes the exercise of aright of audience (within the meaning of that Act)”.
Employment Rights Act 1996 (c. 18)
120 In section 203 of the Employment Rights Act 1996 (restrictions on
contracting out), in subsection (4)(a) for “a barrister” (in the first place) to theend substitute “a person who, for the purposes of the Legal Services Act2007, is an authorised person in relation to an activity which constitutes theexercise of a right of audience or the conduct of litigation (within themeaning of that Act), and”.
Family Law Act 1996 (c. 27)
121 In Schedule 4 of the Family Law Act 1996—
(a) for paragraph 1 substitute—
“1 In this Schedule “legal representative” means a person
who, for the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity whichconstitutes a reserved instrument activity (within themeaning of that Act).”,
(b) in paragraph 3(3) for “solicitor” substitute “legal representative”, and
(c) in paragraph 5(2)(a) for “solicitor” substitute “legal representative”.
Civil Procedure Act 1997 (c. 12)
122 In section 2 of the Civil Procedure Act 1997 (Civil Procedure Rule
Committee)—
(a) in subsection (2), in paragraph (f) for from “granted” to “right”
substitute “authorised by a relevant approved regulator”, and
(b) after that subsection insert—
“(2A) In subsection (2)(f) “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”
Sexual Offences (Protected Material) Act 1997 (c. 39)
123 In section 2 of the Sexual Offenc es (Protected Material) Act 1997 (meaning of
other expressions), in subsection (1) in the definition of “legalrepresentative” for “any authorised advocate” to “Act 1990)” substitute “aperson who, for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to an activity which constitutes the exercise of a right ofaudience or the conduct of litigation (within the meaning of that Act) andwho is”.
National Minimum Wage Act 1998 (c. 39)
124 The National Minimum Wage Act 1998 is amended in accordance with
paragraphs 125 and 126.Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments360
125 In section 33 (proceedings for offences)—
(a) in subsection (1) omit paragraph (a), and
(b) after that subsection insert—
“(1A) The persons who may conduct proceedings for an offence
under this Act in England and Wales, before a magistrates’court, shall include any person authorised for the purpose bythe Secretary of State.”
126 In section 49 (restrictions on contracting out) for subsection (7)(a)
substitute— 
“(a) as regards England and Wales, a person who, for the
purposes of the Legal Services Act 2007, is an authorisedperson in relation to an activity which constitutes the exerciseof a right of audience or the conduct of litigation (within themeaning of that Act);”.
Access to Justice Act 1999 (c. 22)
127 The Access to Justice Act 1999 is amended in accordance with paragraphs
128 to 131.
128 In section 16(4) (code of conduct) after “consult” insert “the Legal Services
Board,”.
129 In section 44 (barristers employed by solicitors)—
(a) in subsection (1)—
(i) omit “is employed by”,
(ii) for paragraphs (a) and (b) substitute—
“(a) is employed by an authorised person, or
(b) is a manager of such a person,”, and
(iii) for “his employer” substitute “the authorised person of
which the barrister is an employee or a manager”,
(b) in subsection (2) after “employees” insert “or managers of an
authorised person”, and
(c) after that subsection insert—
“(3) In this section—
“authorised person” means a person who, for the
purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity which is areserved legal activity (within the meaning of thatAct), and
“manager” has the same mean ing as in that Act (see
section 207 of that Act).”
130 In section 45 (fees on application for appointment as Queen’s Counsel), in
subsections (1) and (2) for “Secretary of State” (in each place) substitute“Lord Chancellor”.
131 In section 46 (Bar practising certificates)—
(a) omit subsection (2)(b) and the “but” immediately preceding it, and
(b) omit subsections (3) to (6).Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments361
Youth Justice and Criminal Evidence Act 1999 (c. 23)
132 In section 63 of the Youth Just ice and Criminal Evidence Act 1999 (general
interpretation etc of Part 2), in subsection (1), in the definition of “legalrepresentative” for “any authorised advocate” to the end substitute “aperson who, for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to an activity which constitutes the exercise of a right ofaudience or the conduct of litigation (within the meaning of that Act);”.
Criminal Justice and Court Services Act 2000 (c. 43)
133 In section 15 of the Criminal Justice and Court Services Act 2000 (right to
conduct litigation and right of audience)—
(a) in subsection (2) for “section 28(2)(a) of the Courts and Legal Services
Act 1990” substitute “the fact that he is a person who, for thepurposes of the Legal Services Act 2007, is an authorised person inrelation to that activity”, and
(b) in subsection (3) for “section 27(2)(a) of the Courts and Legal Services
Act 1990” substitute “the fact that he is a person who, for thepurposes of the Legal Services Act 2007, is an authorised person inrelation to that activity”.
Finance Act 2002 (c. 23)
134 The Finance Act 2002 is amended in accordance with paragraphs 135 and
136.
135 In Schedule 34 (stamp duty: withdrawal of group relief: supplementary
provisions), in paragraph 10—
(a) in sub-paragraph (2) for “A barrister or solicitor” substitute “A
relevant lawyer”, and
(b) after that sub-paragraph insert—
 “(2A) “Relevant lawyer” means a barrister, advocate, solicitor or
other legal representative communications with whommay be the subject of a claim to professional privilege.”
136 In Schedule 35 (stamp duty: withdrawal of relief for company acquisitions:
supplementary provisions), in paragraph 11—
(a) in sub-paragraph (2) for “A barrister or solicitor” substitute “A
relevant lawyer”, and
(b) after that sub-paragraph insert—
 “(2A) “Relevant lawyer” means a barrister, advocate, solicitor or
other legal representative communications with whommay be the subject of a claim to professional privilege.”
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
137 In section 343 of the Income Tax (Earnings and Pensions) Act 2003
(deduction for professional membership fees), in the table in subsection(2)—
(a) for “patent agent” and “patent agents” (in each place) substitute
“patent attorney” and “patent attorneys” respectively, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments362
(b) for “trade mark agent” and “trade mark agents” (in each place)
substitute “trade mark attorney” and “trade mark attorneys”respectively.
Finance Act 2003 (c. 14)
138 In Schedule 13 to the Finance Act 2003 (stamp duty land tax: information
powers)—
(a) in paragraph 22, in sub-paragraphs (1) and (2), for “barrister,
advocate or solicitor” substitute “relevant lawyer”,
(b) after sub-paragraph (2) of that paragraph insert—
 “(3) “Relevant lawyer” means a barrister, advocate, solicitor or
other professional legal adviser communications withwhom may be the subject of a claim to legal privilege.
(4) “Legal privilege” here has the same meaning as in
paragraph 35 of this Schedule.”, and
(c) in paragraph 25 for “barrister, advocate or solicitor” substitute
“relevant lawyer (within the meaning of paragraph 22(3))”.
Licensing Act 2003 (c. 17)
139 The Licensing Act 2003 is amended in accordance with paragraphs 140 and
141.
140 In section 58 (meaning of “certif ied copy” in section 57 of that Act), after
subsection (3) insert—
“(4) In this section “notary” means a person (other than a solicitor) who,
for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to any activity which constitutes a notarial activity(within the meaning of that Act).”
141 In section 95 (meaning of “certif ied copy” in section 94 of that Act), after
subsection (3) insert—
“(4) In this section “notary” means a person (other than a solicitor) who,
for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to any activity which constitutes a notarial activity(within the meaning of that Act).”
Courts Act 2003 (c. 39)
142 The Courts Act 2003 is amended in accordance with paragraphs 143 and 144.
143 In section 70 (Criminal Procedure Rule Committee)—
(a) in subsection (2), in paragraph (i)(i) for from “granted” to “right”
substitute “authorised by a relevant approved regulator”, and
(b) after that subsection insert—
“(2A) In subsection (2)(i)(i) “relevant approved regulator” is to be
construed in accordance with section 20(3) of the LegalServices Act 2007.”
144 (1) Section 77 (Family Procedure Rule Committee) is amended as follows.
(2) In subsection (2)—Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments363
(a) in paragraph (k) for from “granted” to “right” substitute “authorised
by a relevant approved regulator”,
(b) in paragraph (l) for “granted that right” substitute “authorised”, and
(c) in paragraph (m) for “granted that right” substitute “authorised”.
(3) For subsection (5)(b) substitute—
“(b) is a relevant approved regula tor in relation to the exercise of
a right of audience or the conduct of litigation (or both).”
(4) After subsection (7) insert—
“(8) In this section “relevant approved regulator” is to be construed in
accordance with section 20(3) of the Legal Services Act 2007.”
Criminal Justice Act 2003  (c. 44)
145 The Criminal Justice Act 2003 is amended in accordance with paragraphs
146 to 148.
146 In section 56 (interpretation of Part 8), in subsection (1), in the definition of
“legal representative”, for “an authorised advocate” to the end substitute “aperson who, for the purposes of the Legal Services Act 2007, is an authorisedperson in relation to an activity which constitutes the exercise of a right ofaudience or the conduct of litigation (within the meaning of that Act),”.
147 In section 159 (disclosure of pre-sentence reports etc), in subsection (2)(a) for
“counsel or solicitor” substitute “legal representative”.
148 In section 160 (other reports of local probation boards and members of youth
offending teams) in subsection (2)(a) for “counsel or solicitor” substitute“legal representative”.
Children Act 2004 (c. 31)
149 In section 37 of the Children Act 2004 (Welsh family proceedings officers)—
(a) in subsection (2) for “section 28(2)(a) of the Courts and Legal Services
Act 1990 (c 41)” substitute “the fact that he is a person who, for thepurposes of the Legal Services Act 2007, is an authorised person inrelation to that activity”, and
(b) in subsection (3) for “section 27(2)(a) of the Courts and Legal Services
Act 1990” substitute “the fact that he is a person who, for thepurposes of the Legal Services Act 2007, is an authorised person inrelation to that activity”.
Civil Partnership Act 2004 (c. 33)
150 In section 42 of the Civil Partnership Act 2004 (attempts at reconciliation of
civil partners) in subsection (2) for “solicitor” substitute “legalrepresentative”.
Public Services Ombudsman (Wales) Act 2005 (c. 10)
151 In section 13 of the Public Services Ombudsman (Wales) Act 2005
(investigations by Ombudsman)—
(a) in subsection (4)(b), for “counsel, solicitor” substitute “an authorised
person”, andLegal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments364
(b) after subsection (4) insert—
“(4A) In subsection (4) “authorised person” means a person who,
for the purposes of the Legal Services Act 2007, is anauthorised person in relation to an activity which constitutesthe exercise of a right of audience or the conduct of litigation(within the meaning of that Act).”
Equality Act 2006 (c. 3)
152 In Schedule 2 to the Equality Ac t 2006 (representations to Commission in
relation to inquiry etc.), in paragraph 8—
(a) in sub-paragraph (2)(b), for “a barrister, an advocate or a solicitor”
substitute “a relevant lawyer”, and
(b) after sub-paragraph (2) insert—
 “(2A) “Relevant lawyer” means—
(a) an advocate or solicitor in Scotland, or
(b) a person who, for the purposes of the Legal
Services Act 2007, is an authorised person inrelation to an activity which constitutes the exerciseof a right of audience or the conduct of litigation(within the meaning of that Act).”
Natural Environment and Rural Communities Act 2006 (c. 16)
153 In section 12(2) of the Natural Env ironment and Rural Communities Act
2006 (power to bring criminal proceedings) omit “even though he is not abarrister or solicitor”.
National Health Service Act 2006 (c. 41)
154 In section 194(4) of the National Health Service Act 2006 (conduct of
proceedings under section 194) omit “, although he is not a barrister orsolicitor,”.
National Health Service (Wales) Act 2006 (c. 42)
155 In section 142(4) of the National Health Service (Wales) Act 2006 (conduct of
proceedings under section 142) omit “, although he is not a barrister orsolicitor,”.”
Companies Act 2006 (c. 46)
156 In Schedule 2 to the Companies Act 2006 (exceptions from restrictions on
disclosure), in paragraph 67—
(a) for “solicitor, barrister, advocate” substitute “relevant lawyer”, and
(b) for ““Foreign lawyer”” to the end substitute—
“In this paragraph—
“foreign lawyer” means a person (other than a
relevant lawyer) who is a foreign lawyer within themeaning of section 89(9) of the Courts and LegalServices Act 1990;
“relevant lawyer” means—Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments365
(a) a person who, for the purposes of the Legal
Services Act 2007, is an authorised personin relation to an activity which constitutes areserved legal activity (within the meaning
of that Act),
(b) a solicitor or barrister in Northern Ireland,
or
(c) a solicitor or advocate in Scotland.”
Income Tax Act 2007 (c. 3)
157 The Income Tax Act 2007 is amended in accordance with paragraphs 158 to
161.
158 In section 748 (power to obtain information)—
(a) in subsection (4) for “solicitor” substitute “relevant lawyer”,
(b) after that subsection insert—
“(4A) In this section “relevant lawyer” means a barrister, advocate,
solicitor or other legal representative communications withwhom may be the subject of a claim to professional privilegeor, in Scotland, protected from disclosure in legalproceedings on grounds of confidentiality ofcommunication.”, and
(c) in subsection (5) for “solicitors” substitute “relevant lawyers”.
159 In section 749 (restrictions on par ticulars to be provided by solicitors)—
(a) in the heading for “solicitors” substitute “relevant lawyers”,
(b) for “solicitor” (in each place) substitute “relevant lawyer”, and
(c) for subsection (7) substitute—
“(7) In this section—
“relevant lawyer” means a barrister, advocate, solicitor
or other legal representative communications withwhom may be the subject of a claim to professionalprivilege or, in Scotland, protected from disclosure inlegal proceedings on grounds of confidentiality ofcommunication;
“settlement” and “settlor” have the meanings given by
section 620 of ITTOIA 2005.”
160 In section 771 (power to obtain information)—
(a) in subsections (5) and (6) for “solicitor” (in each place) substitute
“relevant lawyer”, and
(b) after subsection (6) insert—
“(7) In this section “relevant lawyer” means a barrister, advocate,
solicitor or other legal representative communications withwhom may be the subject of a claim to professional privilegeor, in Scotland, protected from disclosure in legalproceedings on grounds of confidentiality ofcommunication.”
161 In section 788 (power to obtain information)—Legal Services Act 2007 (c. 29)
Schedule 21 — Minor and consequential amendments366
(a) in subsections (5) and (6) for “solicitor” (in each place) substitute
“relevant lawyer”, and
(b) after subsection (6) insert—
“(7) In this section “relevant lawyer” means a barrister, advocate,
solicitor or other legal representative communications withwhom may be the subject of a claim to professional privilegeor, in Scotland, protected from disclosure in legalproceedings on grounds of confidentiality ofcommunication.”
Tribunals, Courts and Enforcement Act 2007 (c. 15)
162 (1) Section 51 of the Tribunals, Courts and Enforcement Act 2007 (meaning of
“relevant qualification”) is amended as follows.
(2) In subsection (2), for from “awarded” to the end substitute “awarded by a
body which, for the purposes of the Legal Services Act 2007, is an approvedregulator in relation to the exercise of a right of audience or the conduct oflitigation (within the meaning of that Act).”
(3) In subsection (4)—
(a) in paragraph (b), for “(2)(b)” substitute “(2)”,
(b) in paragraph (c), for from “the body” to “of that Act” substitute “, for
the purposes of the Legal Services Act 2007, the body—
(i) is not an approved regulator in relation to the
exercise of a right of audience (within themeaning of that Act), and
(ii) is not an approved regulator in relation to the
conduct of litigation (within the meaning ofthat Act),”, and
(c) for from “paragraph 33(1)” to the end substitute “section 46 of the
Legal Services Act 2007 (transitional  etc. provision in consequence of
cancellation of designation as approved regulator).”
SCHEDULE 22
Section 209
TRANSITIONAL  AND  TRANSITORY  PROVISION
Transitory power to modify the functions of bodies
1 (1) Paragraphs 2 to 4 have effect until such time as the Board is first constituted
in accordance with paragraph 1 of Schedule 1.
(2) Where an order under paragraph 2 has effect immediately before that time,
it is to be treated from that time as if it were an order made by the LordChancellor under section 69 (and in  accordance with that section and section
70).
(3) Where that order is made by virtue of paragraph 4, the reference in sub-
paragraph (2) to section 69 is a reference to that section as modified bysection 180.Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision367
2 (1) The Lord Chancellor may by order modify, or make any other provision
relating to, the functions of a designated regulator or any other body.
(2) For this purpose “designated regulator” means—
(a) The Law Society;
(b) The General Council of the Bar;
(c) The Master of the Faculties;
(d) The Institute of Legal Executives;
(e) The Council for Licensed Conveyancers;
(f) The Chartered Institute of Patent Attorneys;
(g) The Institute of Trade Mark Attorneys;
(h) The Association of Law Costs Draftsmen;
(i) any other body which is a body to which sub-paragraph (3) applies.
(3) This sub-paragraph applies to—
(a) a body designated as an authorised body for the purposes of section
27 or 28 of the Courts and Legal Services Act 1990 (c. 41) (rights ofaudience and rights to conduct litigation);
(b) a body approved under Schedule 9 to that Act (approval of body to
grant exemption from prohibition on preparation of probate papersetc);
(c) a body prescribed by regulations under section 113 of that Act
(administration of oaths and taking of affidavits).
(4) The Lord Chancellor may make an order under sub-paragraph (1) only if—
(a) the body to which the order relates has made a recommendation
under this paragraph to which was annexed a draft order, and
(b) the body to which the order relates consents to the order which is
made.
(5) The Lord Chancellor may make an order under this paragraph only for the
purpose of enabling the body to which it relates to do one or more of thefollowing—
(a) to become a body within sub-paragraph (3);
(b) to grant its members rights for the purposes of section 27 or 28 of the
Courts and Legal Services Act 1990, to exempt its members for thepurposes of section 55 of that Act or to authorise its members for thepurposes of section 113 of that Act;
(c) if it is or becomes a designated regulator, to regulate its members
more effectively or efficiently;
(d) if it is or becomes a designated regulator, to expand the categories of
persons who are eligible to be members of the body;
(e) to do any of the things mentioned in paragraphs (a) to (e) of section
69(3) at a time after paragraph 1 of Schedule 4 comes into force.
(6) An order under this paragraph may make provision in relation to the body
to which the order relates, and members of that body, corresponding to theprovision which by virtue of subsection (4) or (5) of section 69 may be madeby an order under that section in relation to an approved regulator andpersons authorised by that regulator to carry on reserved legal activities orto provide immigration advice or immigration services.
(7) Any provision made by an order under this paragraph may be expressed to
be conditional upon—Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision368
(a) the coming into force of paragraph 1 of Schedule 4;
(b) the body to which the order relates being designated by an order
under Part 2 of that Schedule as an approved regulator, or by anorder under Part 1 of Schedule 10 as a licensing authority, in relationto one or more reserved legal activities specified in the order;
(c) the body to which the order relates becoming a designated
qualifying regulator under section 86A of the Immigration andAsylum Act 1999 (c. 33).
(8) An order under this paragraph may modify provisions made by or under
any enactment (including this Act or any Act passed after this Act),prerogative instrument or other instrument or document.
( 9 ) T h e  p o w e r s  t o  m a k e  a n  o r d e r  c o n f e r r e d  b y  t h i s  p a r a g r a p h  a r e  w i t h o u t
prejudice to any powers (statutory or non-statutory) which a designatedregulator or other body may have apart from this section.
(10) In this paragraph “member” in relat ion to a body includes any person who
is not a member of the body but who may be subject to disciplinary sanctionsfor failure to comply with any of its rules.
3 (1) This paragraph applies where a body makes a recommendation under
paragraph 2.
(2) The Lord Chancellor must pub lish a document containing—
(a) the recommendation, and
(b) the draft order annexed to it.
(3) The document must be accompanied by a notice which states that
representations about it may be made to the Lord Chancellor within aspecified period.
(4) The Lord Chancellor must give a copy of the document to the Office of Fair
Trading and the Lord Chief Justice, and invite each of them to provideadvice on it within that period.
(5) The Lord Chancellor may give a copy of the document to the Legal Services
Consultative Panel or any other person, and invite them to provide adviceon it within that period.
(6) The Lord Chancellor must have regard to any representations and advice
duly given.
(7) If the order which the Lord Chancellor proposes to make differs from the
draft order published under sub-paragraph (2), the Lord Chancellor must,before making the order, publish the revised draft order along with astatement detailing the changes made and the reasons for those changes.
4 Paragraphs 2 and 3 apply in relation to the Solicitors Disciplinary Tribunal
as they apply in relation to a designated regulator, but as if in paragraph 2—
(a) in sub-paragraph (4)(a) the reference to the body to which the order
relates were a reference to the Solicitors Disciplinary Tribunal or theLaw Society, and
(b) for sub-paragraph (5) of that paragraph there were substituted—
 “(5) The Lord Chancellor may make an order under this
paragraph only for the purpose of enabling the SolicitorsLegal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision369
Disciplinary Tribunal to carry out its role more effectively
or efficiently.”, and
(c) sub-paragraphs (6) and (7) of that paragraph were omitted.
Approved regulators
5 (1) Sub-paragraph (2) applies where during the pre-commencement period—
(a) an Order in Council is made designating a body as an authorised
body for the purposes of section 27 of the Courts and Legal ServicesAct 1990 (c. 41) (rights of audience) and that body’s qualificationregulations and rules of conduct (within the meaning of that section)have been approved for the purposes of that section,
(b) an Order in Council is made designating a body as an authorised
body for the purposes of section 28 of that Act (right to conductlitigation) and that body’s qualification regulations and rules ofconduct (within the meaning of that section) have been approved forthe purposes of that section,
(c) an order is made under paragraph 4 of Schedule 9 to that Act
(approval of body to grant exemption from prohibition onpreparation of probate papers etc), or
(d) regulations are made prescribing a body for the purposes of section
113 of that Act (administration of oaths and taking of affidavits).
(2) The Lord Chancellor may by order modify the Table in paragraph 1 of
Schedule 4 (existing regulators) so as—
(a) to insert, in the first column, a reference to the body and, in the
second column, a reference to the relevant activities, or
(b) if the body is already listed in the first column, to add a reference to
the relevant activities to the corresponding entry in the secondcolumn.
(3) Sub-paragraph (4) applies where during the pre-commencement period—
(a) an Order in Council is made revoking the designation of a body as
an authorised body for the purposes of section 27 of the Courts andLegal Services Act 1990,
(b) an Order in Council is made revoking the designation of a body as
an authorised body for the purposes of section 28 of that Act,
(c) an order is made under paragraph 6 of Schedule 9 to that Act
revoking a body’s approval, or
(d) regulations prescribing a body for the purposes of section 113 of that
Act are revoked.
(4) The Lord Chancellor may by order modify the Table in paragraph 1 of
Schedule 4 so as to—
(a) remove any reference to the relevant activities from the entry in the
second column of that Table corresponding to the entry for the bodyin the first column, and
(b) if there are no other activities in that entry in the second column,
remove the reference to the body from the first column of that Table.
(5) An order under sub-paragraph (2) in relation to a body may—
(a) in a case within sub-paragraph (1)(a) or (b), modify Part 1 of
Schedule 5 (authorised persons: continuity of rights) so as to ensurethe continuity of any authority given by the body to a person toLegal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision370
exercise rights of audience or, as the case may be, to conduct
litigation;
(b) in a case within sub-paragraph (1)(c), modify Part 1 of that Schedule
(authorised persons: continuity of rights) to provide for exemptionsgranted by a body by virtue of section 55 of the Courts and LegalServices Act 1990 (c. 41) (persons exempt from prohibition onpreparation of probate papers etc) which have effect immediatelybefore paragraph 1 of Schedule 4 comes into force to be deemed to beauthorisations to carry on probate activities granted by that body atthe time that paragraph comes into force;
(c) in a case within sub-paragraph (1)(d), modify Part 2 of Schedule 5, to
provide during the transitional period for members of the body to bedeemed to be authorised by the body to carry on the administrationof oaths.
(6) An order under sub-paragraph (4) in relation to a body may—
(a) in a case within sub-paragraph (3)(a) or (b), modify Part 1 of
Schedule 5 (authorised persons: continuity of rights) so as to removeprovision made to ensure the continuity of any authority given bythe body to a person to exercise rights of audience or, as the case maybe, to conduct litigation;
(b) in a case within sub-paragraph (3)(c), modify Part 1 of that Schedule
so as to remove any provision deeming persons to have beenauthorised by the body to carry on probate activities;
(c) in a case within sub-parag raph (3)(d), modify Part 2 of that Schedule
so as to remove any provision deeming persons to have beenauthorised by the body to carry on the administration of oaths.
(7) No order under this paragraph may be made after the end of the pre-
commencement period.
(8) In this paragraph—
“pre-commencement period” means the period before the coming into
force of paragraph 1 of Schedule 4 (including any period before thepassing of this Act);
“relevant activities” means—
(a) in a case within sub-paragraph (1)(a) or (3)(a), the exercise of
a right of audience;
(b) in a case within sub-paragraph (1)(b) or (3)(b), the conduct of
litigation;
(c) in a case within sub-paragraph (1)(c) or (3)(c), probate
activities;
(d) in a case within sub-paragraph (1)(d) or (3)(d), the
administration of oaths;
“the transitional period” has th e meaning given by paragraph 3 of
Schedule 5.
Licensed Conveyancers
6 (1) In this paragraph the transitio nal period means the period which—
(a) begins with the day on which paragraph 29 of Schedule 17 (which
amends Schedule 3 to the Administration of Justice Act 1985 (c. 61))comes into force, andLegal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision371
(b) ends with the day on which members of the new Council are first
appointed in accordance with a scheme approved by the LegalServices Board under Schedule 3 to that Act (as amended by thatparagraph).
(2) During the transitional period, the Council for Licensed Conveyancers is to
be constituted in accordance with Schedule 3 to that Act as it had effectimmediately before paragraph 29 of Schedule 17 came into force.
(3) The term of office of persons who are members of the Council for Licensed
Conveyancers by virtue of sub-paragraph (2) immediately before the end ofthe transitional period ends at the same time as the transitional period.
7 (1) This paragraph applies to any licence issued by the Council for Licensed
Conveyancers under section 15 of the Administration of Justice Act 1985(c. 61) which—
(a) is endorsed under section 15(7) of that Act, and
(b) is in force when paragraph 4(4) of Schedule 17 (which repeals
subsections (7) and (8) of section 15 of that Act (endorsement oflicences)) comes into force.
(2) Notwithstanding the repeal of those subsections, until the licence expires—
(a) the licence continues to have effect in accordance with the
endorsement, and
(b) rules made under section 15(8) of that Act continue to have effect in
relation to the licence.
8 Until the repeal of paragraphs 17 an d 19 of Schedule 8 to the Courts and
Legal Services Act 1990 (c. 41) by Schedule 23 to this Act comes into force,those paragraphs have effect as if—
(a) in paragraph 17 (inadequate professional services: failure to comply
with direction), after sub-paragraph (2) there were inserted—
 “(3) In relation to proceedings before the Discipline and
Appeals Committee in respect of such a complaint, theCommittee may make such order as they consider fit as tothe payment of costs by—
(a) the Council;
(b) the licensed conveyancer against whom the
complaint was made;
(c) if the person on whose complaint the proceedings
were brought was heard (in person, or through arepresentative) by the Committee in the course ofthe proceedings, that person.”, and
(b) paragraph 19(b) (inadequate professional services: costs) were
omitted.
Exercise of Board’s functions pending appointment of Chief Executive
9 (1) Until the first Chief Executive of the Board is appointed under paragraph 13
of Schedule 1, the Board’s functions under—
(a) Schedule 1,
(b) Schedule 15, and
(c) paragraph 10(8) of this Schedule,
may be exercised by the ordinary members of the Board.Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision372
(2) For that purpose “ordinary member” ha s the same meaning as in Schedule 1.
Interim Chief Executive of the OLC
10 (1) The Lord Chancellor may appoint a person as the Interim Chief Executive of
the OLC.
(2) The Interim Chief Executive is to be—
(a) appointed on terms and conditions determined by the Lord
Chancellor, and
(b) paid by the Lord Chancellor in accordance with provision made by
or under the terms of appointment.
(3) Appointment as the Interim Chief Executive does not confer the status of
Crown servant.
(4) In this paragraph—
“the first interim period” means the period which—
(a) begins when sub-paragraph (5) comes into force, and
(b) ends when the chairman of the Board, and at least 7 other
ordinary members of the Board (within the meaning ofSchedule 1), have been appointed in accordance withparagraph 1 of Schedule 1;
“the second interim period” means the period which—
(a) begins when the chairman of the Board, and at least 7 other
ordinary members of the Board (within the meaning ofSchedule 1), have been appointed in accordance withparagraph 1 of Schedule 1, and
(b) ends when the membership of the OLC is first constituted in
accordance with paragraph 1 of Schedule 15.
(5) The Interim Chief Executive may incur expenditure and do other things in
the name of and on behalf of the OLC—
(a) from the beginning of the first interim period, and
(b) after that time until the OLC determines otherwise.
(6) The things which may be done under sub-paragraph (5)—
(a) include the appointment of staff under paragraph 13 of Schedule 15
and making arrangements for assistance under paragraph 18 of thatSchedule, but
(b) do not include the appointment of an ombudsman under section 122
or the making of scheme rules.
(7) During the first interim period, the Interim Chief Executive must comply
with any supervisory directions given by the Lord Chancellor.
(8) During the second interim period, the Interim Chief Executive must comply
with any supervisory directions given by the Board.
(9) The supervisory directions are—
(a) a direction requiring the Interim Chief Executive to provide the
person giving the direction with a report on, or information relatingto, such matters as are specified in the direction;Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision373
(b) a direction requiring th e Interim Chief Executive to obtain the
approval of the person giving the direction before incurringexpenditure in such circumstances as are specified in the direction;
(c) any other direction relating to the exercise of the Interim Chief
Executive’s functions which the person giving the directionconsiders appropriate.
(10) Paragraph 34 of Schedule 15 (exemption from liability in damages) applies
to the Interim Chief Executive as it applies to a member of the OLC.
Solicitors
11 (1) Until such time as section 59(1) of the Constitutional Reform Act 2005 (c. 4)
comes into force, the reference in section 207(1), in the definition of“solicitor”, to the Senior Courts is to be read as a reference to the SupremeCourt.
(2) Until such time as section 59(2) of that Act (renaming of Supreme Court of
Judicature of Northern Ireland as Court of Judicature of Northern Ireland)comes into force, the references in sections 8(5) and 190(5)(e), paragraph2(4)(f) of Schedule 1, paragraphs 1(9) and 2(5) of Schedule 3 and paragraph2(3)(e) of Schedule 15 to the Court of Judicature of Northern Ireland are tobe read as references to the Supreme Court of Judicature of NorthernIreland.
Solicitors Act 1974 (c. 47)
12 (1) During the transitional period, the reference to an authorised person in
section 1A(d) of the Solicitors Act 1974 (practising certificates: employedsolicitors) is to be read as a reference to a person listed in paragraph 15(1),other than a person listed in  paragraph (b) or (c) of that paragraph.
(2) For this purpose “the transitional period” means the period which— 
(a) begins with the day on which section 1A(d) of the Solicitors Act 1974
(as inserted by Schedule 16) comes into force, and
(b) ends with the day appointed for the coming into force of section 13
(entitlement to carry on a reserved legal activity).
13 (1) During the transitional period, section 44B of the Solicitors Act 1974
(provision of information and documents by solicitors etc) has effect as if thelist of persons in subsection (2) of that section included a legal partnership(within the meaning of paragraph 7 of Schedule 5).
(2) For this purpose “the transitional period” means the period which—
(a) begins with the day on which section 44B of the Solicitors Act 1974
(as substituted by Schedule 16) comes into force, and
(b) ends with the day appointed for the coming into force of section 13
(entitlement to carry on a reserved legal activity).
14 (1) During the transitional period, section  69 of the Solicitors Act 1974 (action to
recover solicitor’s costs) has effect as if—
(a) after subsection (2A)(a) of that section there were inserted—
“(aa) in a case where the costs are due to a firm, signed by
a partner of the firm, either in his own name or in thename of the firm, or on his behalf by any employee of
the firm authorised by him to sign, or”, andLegal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision374
(b) in subsection (2A)(b), after “paragraph (a)” there were inserted “or
(aa)”.
(2) For this purpose “the transitional period” means the period which—
(a) begins with the day on which subsections (2) to (2F) of that section
(as substituted by Schedule 16) come into force, and
(b) ends with the day appointed for the coming into force of section 13
(entitlement to carry on a reserved legal activity).
(3) This paragraph does not apply in relation to section 69 of the Solicitors Act
1974 as it has effect by virtue of paragraph 29 of Schedule 2 to theAdministration of Justice Act 1985.
Recognised bodies
15 (1) During the transitional period, any re ference in sections 9, 9A or 32A of, or
Schedule 2 or 6 to, the Administration of Justice Act 1985 (c. 61) (recognitionof legal services bodies and conveyancing services bodies) to an authorisedperson is to be read as a reference to—
(a) a person who has in force a certificate issued by the General Council
of the Bar authorising the person to practise as a barrister,
(b) a person who is qualified under section 1 of the Solicitors Act 1974
(c. 47) to act as a solicitor,
(c) a recognised body under section 9 of the Administration of Justice
Act 1985,
(d) a registered European lawyer (within the meaning of the European
Communities (Lawyer’s Practice) Regulations 2000 (S.I. 2000/1119)),
(e) a person who has in force a certificate issued by the Institute of Legal
Executives authorising the person to practise as a legal executive,
(f) licensed conveyancers (within the meaning of section 11(2) of the
Administration of Justice Act 1985),
(g) a recognised body under section 32 of that Act,
(h) a duly certificated notary (within the meaning of paragraph 12(4) of
Schedule 5),
(i) a person who (having regard to section 15) carries on notarial
activities through an employee or manager of the person who iswithin paragraph (h),
(j) a registered patent attorney within the meaning given by section
275(1) of the Copyright, Designs and Patents Act 1988 (c. 48),
(k) a patent attorney body (within the meaning of paragraph 14(7) of
Schedule 5),
(l) a registered trade mark attorney within the meaning of the Trade
Marks Act 1994 (c. 26),
(m) a trade mark attorney body (within the meaning of paragraph 16(7)
of Schedule 5),
(n) an authorised member of the Association of Law Costs Draftsmen
(within the meaning of paragraph 17(2) of Schedule 5), or
(o) a person who (having regard to section 15) carries on an activity
which is a reserved legal activity within paragraph 18(2) of Schedule
5 through an employee or manager of the person who is withinparagraph (n).Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision375
(2) After the end of the transitional period, any reference in section 9, 9A or 32A
of, or Schedule 2 or 6 to, the Administration of Justice Act 1985 (c. 61) to anauthorised person includes a person who is an exempt person—
(a) by virtue of paragraph 13 of Schedule 5, in relation to the carrying on
of an activity which is a notarial activity, or
(b) by virtue of paragraph 18 of that Schedule, in relation to the carrying
on of an activity which is a reserved legal activity within sub-paragraph (2) of that paragraph.
(3) For this purpose “the transitional period” means the period which—
(a) begins with the day on  which sections 9, 9A, 32 and 32A of the
Administration of Justice Act 1985 (as amended and substituted bySchedules 16 and 17) come into force, and
(b) ends with the day appointed for the coming into force of section 13
(entitlement to carry on a reserved legal activity).
16 (1) During the transitional period (within  the meaning of paragraph 15), the
Law Society may make rules to which this sub-paragraph applies only withthe concurrence of the Lord Chancellor (as well as the Master of the Rolls).
(2) Sub-paragraph (1) applies to — 
(a) rules made under section 9 of the Administration of Justice Act 1985
by virtue of subsections (1A), (1C), (2F), (2G) or (2I) of that section orsection 9A of that Act, and
(b) any other rules made under section 9 of that Act, in so far as they
apply in relation to bodies which have one or more managers whoare not legally qualified (within the meaning of section 9A of that
Act), or managers or employees of such bodies.
17 (1) During the relevant period, the leg al professional privilege provisions apply
to a body which—
(a) is recognised under section 9 of the 1985 Act, and
(b) has one or more managers who ar e not legally qualified (within the
meaning of section 9A of that Act),
as if the body were a licensed body.
(2) Sub-paragraph (1) applies whether or not the legal professional privilege
provisions have been brought into force for other purposes.
(3) The relevant period is the period which—
(a) begins when section 9A of the 1985 Act comes into force, and
(b) ends when paragraph 7 of Schedule 5 ceases to apply in relation to
the body.
(4) The legal professional privilege provisions are—
(a) paragraph 36(4) of Schedule 2 to the 1985 Act (as inserted by
Schedule 16 to this Act), and
(b) section 190(3) to (7) of this Act.
(5) During the transitional period (wit hin the meaning of paragraph 15), section
190(5)(h) (as it applies by virtue of this paragraph) applies as if for “anauthorised person in relation to an acti vity which is a reserved legal activity”
there were substituted “within paragraph 15(1) of Schedule 22”.
(6) “The 1985 Act” means the Administration of Justice Act 1985.Legal Services Act 2007 (c. 29)
Schedule 22 — Transitional and transitory provision376
Functions transferred to the Lord Chancellor
18 (1) This paragraph applies where, by virtue of an amendment made to an
enactment by this Act, a function of the Secretary of State is transferred to theLord Chancellor.
(2) In this paragraph such a function is  referred to as a “transferred function”.
(3) Any subordinate legislation made by the Secretary of State in exercise of a
transferred function is to have effect as if made or done by the LordChancellor.
(4) So far as is appropriate in consequence of the transfer, anything else done by
the Secretary of State in exercise of a transferred function is to be treated asif done by the Lord Chancellor.Legal Services Act 2007 (c. 29)
Schedule 23 — Repeals377
SCHEDULE 23 Section 210
REPEALS
Short title and chapter Extent of repeal
Public Notaries Act 1801 (c. 79) In section 1, “, or use and exercise the office of a
notary, or do any notarial act,”.
In section 14, from “p roctor” to “any other”.
Public Notaries Act 1843 (c. 90) Section 10.
Commissioners for Oaths Act
1889 (c. 10)In section 1(3), from “in which” (in the first
place) to “solicitor, or”.
Children and Young Persons
Act 1933 (c. 12)In section 49(11), the definition of “legal
representative”.
Public Records Act 1958 (c. 51) In Schedule 1, “The Legal Services
Ombudsman.”
Parliamentary Commissioner
Act 1967 (c. 13)In Schedule 2, “Authorised Conveyancing
Practitioners Board.” and “The Legal ServicesComplaints Commissioner.”
Superannuation Act 1972 (c. 11) In Schedule 1, “Employment by the Legal
Services Ombudsman” and “The office of theLegal Services Ombudsman”.
Poisons Act 1972 (c. 66) In section 9( 7), “notwithstanding that he is not
of counsel or a solicitor”.
Solicitors Act 1974 (c. 47) In section 1A—
(a) “or” at the end of paragraph (b), and
(b) in paragraph (c) “by the Council of the
Law Society”.
In section 2—
(a) in subsection (1), “, with the concurrence
of the Secretary of State, the Lord ChiefJustice and the Master of the Rolls,”, 
(b) in subsection (3)(a)(i), “, whether by
service under articles or otherwise,”,
(c) in subsection (3)(a)(v), “articles may be
discharged or”, and
(d) subsections (4) and (5).
Section 6(2) to (4).
Section 8(5).Section 12.
Section 12A.
Section 14.In section 17(1) an d (2), “in the London
Gazette”.
Section 19.
Sections 22 to 23.In section 26, “, 22 or 23”.
Section 27.Legal Services Act 2007 (c. 29)
Schedule 23 — Repeals378
Solicitors Act 1974 (c. 47)— cont. In section 28—
(a) in subsection (1), “, with the concurrence
of the Secretary of State and the LordChief Justice,”,
(b) in subsection (1)(c), “and applications for
them”,
(c) subsections (2) and (3),
(d) in subsection (3A), the “and” at the end
of paragraph (b), and
(e) subsections (4) and (5).
In section 31—
(a) in subsection (1) “, with the concurrence
of the Master of the Rolls,”, and
(b) subsections (3) and (4).
In section 32(1)—
(a) “, with the concurrence of the Master of
the Rolls,”, and
(b) from “and the rules” to the end.
Section 32(2).
In section 32(4) “or (2)”.
Section 32(6).In section 33(2), “and the rules” to the end.
In section 33A(1) “, with the concurrence of the
Master of the Rolls,”.
Section 34(7) and (8).Section 37A.
Section 40.
Section 41(5).In section 43(5)—
(a) “by any solicitor”, and
(b) from “but” to the end.
Section 46(6) to (8).
In section 46(9) “, with  the concurrence of the
Master of the Rolls,”.
In section 47—
(a) in subsection (2)(c), “not exceeding
£5,000”, and
(b) subsections (4) and (5).
In section 48(2)(b) “in the London Gazette”.In section 49(4) “and the Master of the Rolls”.
Section 49(7).
Section 70(11). Sections 76 to 78.
Section 80(2).
Sections 81 and 81A.Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals379
Solicitors Act 1974 (c. 47)— cont. In section 87(1) the definitions of— 
(a) “articles”,
(b) “controlled trust”,
(c) “duly certificated notary public”,
(d) “employee”,
(e) “indemnity conditions”,
(f) “replacement date”, and
(g) “training conditions”.
Section 89(7).In Schedule 1— 
(a) in paragraph 1(1)(h), “sole”, and
(b) paragraph 1(2).
Schedule 1A.
Schedule 2.
In Schedule 3, paragraph 9.
House of Commons
Disqualification Act 1975(c. 24)In Part 2 of Schedule 1, “The Authorised
Conveyancing Practitioners Board.”
In Part 3 of Schedule 1, “The Legal Services
Complaints Commissioner.” and “The LegalServices Ombudsman.”
Northern Ireland Assembly
Disqualification Act 1975(c. 25)In Part 2 of Schedule 1, “The Authorised
Conveyancing Practitioners Board.”
In Part 3 of Schedule 1, “The Legal Services
Complaints Commissioner.” and “The LegalServices Ombudsman.”
Race Relations Act 1976 (c. 74) In Schedule 1A, in Part 2, “The Legal Services
Consultative Panel.”
Patents Act 1977 (c. 37) Section 102A.Solicitors (Scotland) Act 1980
(c. 46)Section 3A(5)(a) and (ad).
Section 15(2)(j).
In section 20(2) “, 53A(2)(ba)”.Section 24C(2)(i).
Section 34(4), (4C) and (4D).
Sections 38, 39, 42A and 42B.
In section 42C(1)—
(a) paragraphs (a) and (c),
(b) “to the solicitor or his firm or”, and
(c) “or, where” to the end.
In section 42C(2)(a) and (b) “solicitor, firm or”
(in each place).
In section 42C(3)—
(a) in paragraph (a) “the solicitor or his firm
or, as the case may be,”, and
(b) in paragraph (b) from “of which the
solicitor” to “be,”.
In section 42C(4) “38,” (in each place).Section 42C(5).Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals380
Solicitors (Scotland) Act 1980
(c. 46)— cont.In section 51(2)—
(a) “a solicitor may have been guilty” to
“Fund) or”, and
(b) “or a solicitor” to “services”.
Section 51(2A).
In section 52(2)(aa) “42A(7) or”.
Section 53(3), (10) and (11).Sections 53A, 53B and 53C.
Section 54(1), (2B) and (2C).
Section 55(8).Section 56A.
In section 62A(1) and (2) “38,” (in each place).
In section 65—
(a) in subsection (1), the definition of
“inadequate professional services”, and
(b) subsection (5).
In Schedule 3, in Part 2, in paragraph 5(1), (2)
and (3) “38,” (in each place).
In Schedule 4, in Part 2—
(a) in paragraph 9(a) and (b) “or, as the case
may be, of provision of inadequateprofessional services” (in each place),
(b) paragraph 16(f) and (g), and
(c) in paragraph 23 “, 42A(7)”.
In the side-note to section 62A “38,”.
Mental Health Act 1983 (c. 20) In Schedule 4, paragraph 38(a).County Courts Act 1984 (c. 28) In Schedule 2, paragraph 49.
Prosecution of Offences Act
1985 (c. 23)Section 4(6).
Administration of Justice Act
1985 (c. 61)Section 2.
Section 4.
Sections 6 and 7.
In section 9—
(a) in subsection (1)(c) “corporate”,
(b) subsection (4),
(c) in subsection (5) “corporate”,
(d) in subsection (8) the definition of
“officer”, and in the definition of“recognised body”, “corporate”, and
(e) subsection (9).
In section 10—
(a) in subsection (1) “corporate” (in both
places), and
(b) in subsection (2) “corporate”.
Section 11(4).Section 12(2).
Section 15(7) and (8).
In section 20(1) “, in pursuance of its general
duty referred to in section 12(2),”.
In section 22(3)(a) “qualified”.Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals381
Administration of Justice Act
1985 (c. 61)— cont.In section 24—
(a) in subsection (1), paragraph (b) and the
“or” immediately preceding it,
(b) in that subsection the words from “with
a view” to the end,
(c) subsection (2),
(d) in subsection (3), “or (2)”, “or complaint”
(in both places) and “or paragraph (b)”,and
(e) in subsection (5), “or complaint” (in both
places).
Section 26(2)(g), (5) and (6).
In section 29(1), “or” at the end of paragraph (b).
In section 31—
(a) in subsection (2), “or complaint” (in each
place) and “or paragraph (b)”, and
(b) in subsection (4), “or complaint”.
In section 32—
(a) in subsection (2) “corporate”,
(b) subsection (3)(d),
(c) in subsection (3)(e) “corporate”,
(d) subsections (4) and (5), and
(e) in subsection (6)(a) “corporate”.
Section 34(2)(c) to (e).In section 35(2), “corporate”.
Section 38(1).
In section 39(1)—
(a) in the definition of “client”, in paragraph
(a) “or his firm”,
(b) the definitions of “director” and
“officer”, and
(c) in the definition of “recognised body”,
“corporate”.
In Schedule 1 paragraphs 5, 8(3), 9 and 14.Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals382
Administration of Justice Act
1985 (c. 61)— cont.In Schedule 2—
(a) in paragraph 1(1) “corporate”,
(b) in paragraph 1(2)—
(i) paragraph (b) and the “or”
immediately preceding it,
(ii) “corporate”, and
(iii) “or application”,
(d) paragraph 1(3),
(e) in paragraph 1(4) from “, and for those
purposes” to the end,
(f) paragraph 4(2),
(g) paragraphs 11, 12 and 13,
(h) in paragraph 16(1), in paragraph (a) “in
the United Kingdom”,
(i) in paragraph 17(a) “11(1), 15(2) or” and
“13(3) or”,
(j) paragraph 18(1)(d) and the “or”
immediately preceding it,
(k) in paragraph 18(2) “not exceeding
£3,000”,
(l) paragraph 18(3) and (4),
(m) paragraph 20(2),
(n) in paragraph 31 “or (2)”,
(o) paragraph 32(2),
(p) in paragraph 34(1), “corporate” (in both
places), and
(q) in paragraph 35, in paragraph (a)
“corporate” and the “and” at the end ofparagraph (b).
In Schedule 3, paragraphs 2(3) and 3.In Schedule 4, paragraphs 1(3) and (4) and 3.
In Schedule 5, paragraph 1(2).Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals383
Administration of Justice Act
1985 (c. 61)— cont.In Schedule 6—
(a) in paragraph 1 “corporate” (in both
places), and in sub-paragraph (2) “orcomplaint” (in both places) and “or (b)”,
(b) in paragraph 3(1), in paragraph (a)(i) “by
any court in the United Kingdom”,paragraph (b), and from “with a view” tothe end,
(c) paragraph 3(2),
(d) paragraph 4(2)(c),
(e) paragraph 4(3), (3A) and (4),
(f) in paragraph 7(1) and (2) “corporate”,
(g) in paragraph 8(1), “corporate”,
(h) paragraph 9(2),
(i) paragraph 10(2),
(j) in paragraph 12(1), “corporate” (in both
places),
(k) in paragraph 13, in paragraph (a)
“corporate”, and the “and” at the end ofparagraph (b),
(l) paragraph 15.
In Schedule 9, paragraphs 2, 4 and 6.
Insolvency Act 1985 (c. 65) In Schedule 8, paragraph 25.Social Security Act 1986 (c. 50) In section 56(1), “although not a barrister or
solicitor”.
Building Societies Act 1986
(c. 53)In Schedule 18, paragraph 11(2) and (3).
Copyright, Designs and Patents
Act 1988 (c. 48) Section 279.
In section 280—
(a) in subsection (3) “or” at the end of
paragraph (b), and
(b) subsection (4).
Section 292.
Law of Property (Miscellaneous
Provisions) Act 1989 (c. 34) In Schedule 1, paragraph 8.
Law Reform (Miscellaneous
Provisions) (Scotland) Act1990 (c. 40)Section 33.
Courts and Legal Services Act
1990 (c. 41)Sections 17, 18 and 18A.
Sections 21 to 29.
Sections 31 and 31A.Sections 34 to 52.
In section 53—
(a) subsection (5), and
(b) subsection (9)(e).
Sections 54 and 55.
Section 63.Sections 68 to 70.Section 73(5)(d).Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals384
Courts and Legal Services Act
1990 (c. 41)— cont.Section 86 to 88.
Section 90.
Section 93.Section 94(1) and (2).
Section 96.
Section 113.In section 119(1), the definitions of—
(a) “authorised advocate”,
(b) “authorised body” and “appropriate
authorised body”,
(c) “authorised litigator”,
(d) “authorised practitioner”,
(e) “Consultative Panel”,
(f) “duly certificated notary public”,
(g) “the general principle”,
(h) “qualified person”, and 
(i) “the statutory objective”.
In section 120—
(a) in subsection (4), “26(1), 37(10), 40(1)”,
and from “paragraph 24” to “Schedule9”, and
(b) subsection (5).
Schedules 3 to 7.
In Schedule 8, paragraphs 7, 11, 13 to 20, 21(1)(b)
and 23.
Schedule 9.
In Schedule 10, paragraph 64.
In Schedule 14—
(a) in paragraph 1, the definitions of
“controlled trust” and “the Council”,
(b) paragraph 2(3) and (5),
(c) in paragraph 5—
(i) in sub-paragraph (3)(a) and (b),
“by virtue of his being a memberof that partnership”, and
(ii) sub-paragraph (4),
(c) paragraph 14(2),
(d) in paragraph 14(3) “to him”,
(e) in paragraph 15, in sub-paragraph (4)(c)
“not exceeding £5,000”, and sub-paragraph (5),
(f) in paragraph 17(2), “and the Master of
the Rolls”, and
(g) paragraph 17(4).
Schedule 15.
In Schedule 17, paragraphs 4, 8, 10 and 20.Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 23 — Repeals385
Courts and Legal Services Act
1990 (c. 41)— cont.In Schedule 18—
(a) in paragraph 1(1), ““The Authorised
Conveyancing Practitioners Board”” and““The Conveyancing Ombudsman””,
(b) paragraph 1(2), and
(c) paragraphs 9 to 12, 18, 20 and 56.
Environmental Protection Act
1990 (c. 43) In section 114(4), “, although not of counsel or a
solicitor,”.
Friendly Societies Act 1992
(c. 40)In Schedule 21, paragraph 5.
Trade Union and Labour
Relations (Consolidation) Act1992 (c. 52)In section 194(2), “, although not of counsel or a
solicitor,”.
Statute Law (Repeals) Act 1993
(c. 50)In Schedule 2, paragraph 3.
Trade Marks Act 1994 (c. 26) Section 85.
In Schedule 4, paragraph 5.
Agricultural Tenancies Act 1995
(c. 8) Section 35.
Environment Act 1995 (c. 25) In sec tion 54, “although not of counsel or a
solicitor”.
Bank of England Act 1998 (c. 11) Section 41(4).
In Schedule 5, paragraph 67.
National Minimum Wage Act
1998 (c. 39) Section 33(1)(a).
Access to Justice Act 1999 (c. 22) Sections 35(2) to (4), 36, 37 and 40 to 42.
In section 44(1), “is employed by”.
In section 46—
(a) subsection (2)(b) and the word “but”
immediately preceding it, and
(b) subsections (3) to (6).
Section 47.Sections 49 to 52.
In Schedule 4, paragraph 46.
Schedule 5.In Schedule 6, paragraphs 1 to 3, 5 to 8 and 11.
In Schedule 7, paragraphs 7(2)(a) and 10 to 12.
Schedule 8.In Schedule 14, paragraph 14.
Immigration and Asylum Act
1999 (c. 33)In section 86—
(a) subsections (1)(a), (d) and (e),
(b) subsection (4)(b),
(c) in subsection 5(a), “England and Wales
or”, and
(d) subsection (6)(a).Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 24 — Index of defined expressions386
SCHEDULE 24 Section 213
INDEX  OF DEFINED  EXPRESSIONSImmigration and Asylum Act
1999 (c. 33)— cont.In Schedule 5—
(a) paragraph 3(6)(b),
(b) paragraph 4(2)(b),
(c) in paragraph 4(3)(a) “England and
Wales or”, and
(d) paragraph 4(4)(a).
Trustee Act 2000 (c. 29) In Schedule 2, paragraph 37.
Freedom of Information Act
2000 (c. 36)In Part 6 of Schedule 1—
(a) “The Authorised Conveyancing
Practitioners Board.”,
(b) “The Legal Services Complaints
Commissioner.”,
(c) “The Legal Services Consultative
Panel.”, and
(d) “The Legal Services Ombudsman.”
Enterprise Act 2002 (c. 40) In Schedule 25, paragraph 23(2) to (6) and (10).Pensions Act 2004 (c. 35) In Schedule 4, paragraph 21.
Constitutional Reform Act 2005
(c. 4)In Schedule 4, paragraphs 92 and 202.
In Schedule 11, paragraphs 1(2), 21(3) and 23(2)
and (3).
 Mental Capacity Act 2005 (c. 9) In Schedule 6, paragraph 22(2).
Serious Organised Crime and
Police Act 2005 (c. 15) In Part 3 of Schedule 7, paragraph 42(2).
Natural Environment and Rural
Communities Act 2006 (c. 16) In section 12(2) “even though he is not a
barrister or solicitor”.
Compensation Act 2006 (c. 29) Section 5(3), (4)(c) and (5).
Section 15(6).
National Health Service Act
2006 (c. 41)In section 194(4), “, although he is not a barrister
or solicitor,”.
National Health Service (Wales)
Act 2006 (c. 42)In section 142(4), “, although he is not a barrister
or solicitor,”.
Legal Profession and Legal Aid
(Scotland) Act 2007 (asp 5)Section 77.
Expression Interpretation provisions
administration of oaths Schedule 2Short title and chapter Extent of repealLegal Services Act 2007 (c. 29)
Schedule 24 — Index of defined expressions387
approved regulator section 20
authorised person, in relation to
an activitysection 18
barrister section 207
the Board section 2compensation arrangements section 21complainant (in Part 6) section 160conduct of litigation Schedule 2conduct rules section 21consumers section 207conveyancing services section 207court section 207discipline rules section 21document section 201exempt person section 19 and Schedules 3 and 5functions section 207“immigration advice” and
“immigration services”section 207
indemnification arrangements section 21
independent trade union section 207indirect interest (of a non-
authorised person in a licensablebody)section 72
interest, in a body section 72
intervention direction section 41legal activity section 12licensable body section 72licensed activity (in Part 5) section 111licensed body section 71licensing authority section 73licensing rules section 83manager, in relation to a body section 207Expression Interpretation provisionsLegal Services Act 2007 (c. 29)
Schedule 24 — Index of defined expressions388
material interest, in a body (in Part
5)Schedule 13
modify section 207
non-authorised person (in Part 5) section 111non-commercial legal services section 207non-reserved activity (in Part 5) section 111not for profit body section 207notarial activities Schedule 2the OFT section 207the OLC section 114ombudsman section 122the ombudsman scheme section 115person section 207practice rules section 21probate activities Schedule 2qualification regulations section 21regulatory arrangements section 21regulatory functions section 27regulatory objectives section 1relevant appellate body (in Part 5) section 111relevant approved regulator, in
relation to an activitysection 20
relevant approved regulator, in
relation to a personsection 20
relevant authorising body (in Part
6)section 160
relevant licensing authority, in
relation to a licensed body (in Part5)section 73
relevant licensing authority, in
relation to an applicant for alicence (in Part 5)section 73
representative functions section 27Expression Interpretation provisionsLegal Services Act 2007 (c. 29)
Schedule 24 — Index of defined expressions389
reserved instrument activities Schedule 2
reserved legal activity section 12 and Schedule 2reserved legal services section 207respondent (in Part 6) section 160right of audience Schedule 2scheme rules (in Part 6) section 115shares section 72solicitor section 207terms of a licence (in Part 5) section 85Expression Interpretation provisions
?Crown copyright 2007
Printed in the UK by The Stationery O Yce Limited
under the authority and superintendence of Carol Tullo, Controller of
Her Majesty’s Stationery O Yce and Queen’s Printer of Acts of Parliament
11/2007 383482 19585