Legal Services, England And Wales Citation, commencement and interpretation 1 1 This Order may be cited as the Legal Services Act 2007 (Chartered Institute of Legal Executives) (Modification of Functions) Order 2014 and comes into force on the day after the day on which it is made. 2 In this Order— “ the Act ” means the Legal Services Act 2007; “ CILEx ” means the Chartered Institute of Legal Executives ; “CILEx authorised entity” means a partnership (including a limited liability partnership), company or sole principal authorised by CILEx under the Act to — carry on an activity which is a reserved legal activity; or provide immigration advice or immigration services; “sole principal” includes a person consisting of one individual who is authorised or is required to be authorised by CILEx and one or more other individuals who are not so authorised and are not required to be so authorised. Compensation arrangements 2 1 CILEx may make compensation arrangements . 2 Any such arrangements may include provision as to— a the circumstances in which grants or other payments may and may not be made; b the form and manner in which a compensation claim is to be made; c the procedure for determining compensation claims; and d the minimum and maximum amounts payable in respect of a compensation claim. 3 Arrangements made by virtue of paragraph (2) may include in particular provision as to— a the nature of the loss or hardship in relation to which a compensation claim may and may not be made; and b the nature of any act or omission by a CILEx authorised entity or an employee of such an entity in relation to which a compensation claim may and may not be made. 4 If CILEx decides— a not to make a grant or other payment in respect of a compensation claim or any part of a compensation claim; or b to make a grant or other payment of less than the amount claimed, it must give reasons for its decision. 5 CILEx may prepare and publish guidance as to the criteria it will apply in deciding whether to make a grant or other payment in respect of a compensation claim, or any part of a compensation claim. 6 In this article “compensation claim” means a claim for a grant or other payment under compensation arrangements made by CILEx. Compensation fund 3 1 For the purpose of giving effect to compensation arrangements made under article 2, CILEx may make rules authorising it to establish and maintain a compensation fund (“the Fund”). 2 Any such rules may in particular make provision— a requiring a CILEx authorised entity to contribute to the Fund by making periodical payments to CILEx; and b providing for different payments to be made by different descriptions of CILEx authorised entity. 3 Any amount payable by virtue of such rules may be recovered as a debt due to CILEx. 4 For the purposes of establishing and maintaining the Fund, CILEx may make rules authorising it to— a invest any money which forms part of the Fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act); b borrow money; and c charge investments which form part of the Fund as security for borrowing by CILEx. 5 In addition to the making of grants or other payments in accordance with any arrangements under article 2, CILEx may use the Fund to— a repay money borrowed by CILEx for the purposes of the Fund and pay interest on any money borrowed for that purpose; b pay any other costs, charges or expenses incurred by CILEx in connection with the Fund; c pay any costs or damages incurred by CILEx, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of any power under this article or article 2. Insurance 4 For the purpose of giving effect to any compensation arrangements made under article 2, CILEx may make rules authorising it to take out and maintain insurance with authorised insurers (within the meaning of section 64 of the Act). Intervention arrangements 5 1 Schedule 14 to the Act (licensing authority’s powers of intervention) applies in relation to CILEx in its capacity as an approved regulator under the Act and as a designated qualifying regulator under Part 5 of the Immigration and Asylum Act 1999 and to CILEx authorised entities as it applies in relation to a licensing authority and licensed bodies, subject to the modifications in paragraph (2). 2 Schedule 14 is to be read as if each reference to— a a “licensed body” was a reference to a “CILEx authorised entity”; b the “licensing authority” or the “relevant licensing authority” was a reference to “CILEx”; and c a “licence” was a reference to an “authorisation”. Signed by authority of the Lord Chancellor Shailesh Vara Parliamentary Under Secretary of State Ministry of Justice 8th December 2014