Legal Services Act 2007

There is to be a body corporate called the Legal Services Board (“the Board”).

Schedule 1 is about the Board.

In discharging its functions the Board must comply with the requirements of this section.

The Board must prepare a report (“the annual report”) for each financial year.

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.

The Lord Chancellor must lay a copy of the annual report before Parliament.

The Board must establish and maintain a panel of persons (to be known as “the Consumer Panel”) to represent the interests of consumers.

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 the Lord Chancellor.

The Board must appoint one of the members of the Consumer Panel to be the chairman of the Panel.

But a person may be removed from office in accordance with those terms and conditions only with the approval of the Lord Chancellor.

A person who ceases to be chairman or another member of the Consumer Panel may be re-appointed.

The Consumer Panel may make such arrangements as it thinks fit for committees established by the Panel to give advice to the Panel about matters relating to the carrying out of the Panel’s functions.

The Consumer Panel may make such other arrangements for regulating its own procedure, and for regulating the procedure of the committees established by it, as it thinks fit.

Those arrangements may include arrangements as to quorums and as to the making of decisions by a majority.

The committees established by the Consumer Panel may include committees the membership of which includes persons who are not members of the Panel.

The membership of every committee established by the Consumer Panel must contain at least one person who is a member of the Panel.

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 such remuneration and expenses as the Board may determine.

The Board must consider any representations made to it by the Consumer Panel.

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 stating its reasons for disagreeing.

The Consumer Panel may publish such information as it thinks fit about any representations made by it to the Board.

Where the Consumer Panel publishes information about any representations made by it, the Board must publish any notice it gives under subsection (2) in respect of those representations.

The Board must consider any advice given and the results of any research carried out under this section.

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.

Schedule 2 makes provision about what constitutes each of those activities.

But “legal activity” does not include any activity of a judicial or quasi-judicial nature (including acting as a mediator).

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 of any person’s legal rights or liabilities.

Section 24 makes provision for adding legal activities to the reserved legal activities.

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 the provisions of this Act.

Subsection (2) is subject to section 23 (transitional protection for non-commercial bodies).

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 advice and immigration services except by certain persons).

It is an offence for a person to carry on an activity (“the relevant activity”) which is a reserved legal activity unless that person is entitled to carry on the relevant activity.

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 have been expected to know, that the offence was being committed.

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 conduct litigation, in relation to any proceedings or contemplated proceedings is also guilty of contempt of the court concerned and may be punished accordingly.

In relation to an offence under subsection (1) committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44), the reference in subsection (3)(a) to 12 months is to be read as a reference to 6 months.

This section applies for the interpretation of references in this Act to a person carrying on an activity which is a reserved legal activity.

For the purposes of subsection (2), it is irrelevant whether P is entitled to carry on the activity.

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, unless the provision of relevant services to the public or a section of the public (with or without a view to profit) is part of P’s business.

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.

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, the matters mentioned in paragraphs (a) to (d) of subsection (7).

The Lord Chancellor may make an order under subsection (7), (8) or (9) only on the recommendation of the Board.

If P is a body, references to an employee of P include references to a manager of P.

In subsection (7), “relevant activities”, in relation to a person who is or was a member of an independent trade union, means any employment (including self-employment), trade, occupation or other activity to which the person’s membership of the trade union relates or related.

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 P being entitled to carry on the relevant activity.

If P is a body, references in subsection (2) to an employee of P include references to a manager of P.

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 exercised all due diligence to avoid committing the offence.

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 conduct litigation, in relation to any proceedings or contemplated proceedings is also guilty of contempt of the court concerned and may be punished accordingly.

In relation to an offence under subsection (1) committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44), the reference in subsection (5)(a) to 12 months is to be read as a reference to 6 months.

In relation to an offence under subsection (1) committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44), the reference in subsection (2)(a) to 12 months is to be read as a reference to 6 months.

A licensable body may not be authorised to carry on the relevant activity as mentioned in subsection (1)(a).

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) in relation to certain activities during a transitional period).

A person other than a licensable body may not be authorised to carry on the relevant activity as mentioned in subsection (1)(b).

In this Act, the following expressions have the meaning given by this section—

“approved regulator”;

“relevant approved regulator”.

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 an activity which is a reserved legal activity.

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 approved regulator.

In this Act—

“compensation arrangements”, in relation to a body, means arrangements to provide for grants or other payments for the purposes of relieving or mitigating 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 activities which constitute a reserved legal activity, or of employees of theirs, in connection with their activities as such authorised persons, and

b

failure, on the part of regulated persons, to account for money received by them in connection with their activities as such regulated persons;

“conduct rules”, in relation to a body, means any rules or regulations (however they may be described) as to the conduct required of regulated persons;

“discipline rules”, in relation to a body, means any rules or regulations (however they may be described) as to the disciplining of regulated persons;

“indemnification arrangements”, in relation to a body, means arrangements for the purpose of ensuring the indemnification of those who are or were regulated persons against losses arising from claims in relation to any description of civil liability incurred by them, or by employees or former employees of theirs, in connection with their activities 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 of regulated persons;

“qualification regulations”, in relation to a body, means—

a

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 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 immigration services, and

c

any other rules or regulations relating to the education and training which regulated persons must receive or any other requirements which must be met by or in respect of them,

(however they may be described).

In relation to an authorised person other than an individual, references in subsection (2) and (3) to employees of the person include managers of the person.

During the transitional period, a body within subsection (2) is entitled to carry on any activity which is a reserved legal activity.

Different days may be appointed under subsection (3)(b) for different purposes.

An order may be made under subsection (3)(b) only on the recommendation of the Board.

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 are reserved legal activities for the purposes of this Act.

An order under subsection (1) may be made only on the recommendation of the Board.

Schedule 6 makes provision about the making of recommendations for the purposes of this section.

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 reasons for that decision.

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 may be specified by the order, with such modifications as may be so specified.

For this purpose—

“provisional reserved activity” means an activity in respect of which a provisional report under paragraph 10 of Schedule 6 states that the Board is minded to make a recommendation for the purposes of section 24;

“provisional designation order” means an order made by the Lord Chancellor under Part 2 of Schedule 4 or Part 1 of Schedule 10 which is conditional upon the Lord Chancellor making an order under section 24 in respect of the provisional reserved activity, pursuant to a recommendation 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.

The Board may recommend that an activity should cease to be a reserved legal activity.

Schedule 6 makes provision about the making of recommendations for the purposes of this section.

The Lord Chancellor must consider any recommendation made by the Board for the purposes of this section (but nothing in section 208 (minor and consequential provision etc) authorises the Lord Chancellor to give effect to such a recommendation).

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 include the Lord Chancellor’s reasons for disagreeing.

In this Act references to the “representative functions” of an approved regulator are to any functions the approved regulator has in connection with the representation, or promotion, of the interests of persons regulated by it.

In discharging its regulatory functions (whether in connection with a reserved legal activity or otherwise) an approved regulator must comply with the requirements of this section.

Nothing in this Act authorises the Board to exercise its functions in relation to any representative function of an approved regulator.

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.

A direction under subsection (1)(b) may impose conditions with which the performance targets must conform.

Before taking action under this section, the Board must consider any representations which are duly made.

In exercising its regulatory functions, an approved regulator must seek to meet any performance target set for or by it under this section.

The Board must publish any target set or direction given by it under this section.

An approved regulator must publish any target set by it pursuant to a direction under subsection (1)(b).

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 has been, met.

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 the other regulatory objectives.

The Board may not exercise its powers under this section so as to give a direction requiring an approved regulator to take steps in respect of a specific disciplinary case or other specific regulatory proceedings (as opposed to all, or a specified class of, such cases or proceedings).

For the purposes of this section a direction to take steps includes a direction which requires an approved regulator to refrain from taking a particular course of action.

The power to give a direction under this section is subject to any provision made by or under any other enactment.

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, complied with.

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 an application to the High Court under this section.

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 may order the approved regulator to take such steps as the High Court directs for securing that the direction is complied with.

This section is without prejudice to any other powers conferred on the Board by this Part.

The Board may publish a statement censuring the approved regulator for the act or omission (or series of acts or omissions).

Before publishing the statement, the Board must consider any representations which are duly made.

Before varying the proposal, the Board must consider any representations which are duly made.

The Board may impose a penalty, in respect of the failure, of such an amount as it considers appropriate, but not exceeding the maximum amount prescribed under subsection (4).

The Board must make rules prescribing the maximum amount of a penalty which may be imposed under this section.

Rules may be made only under subsection (4) with the consent of the Lord Chancellor.

A penalty under this section is payable to the Board.

In sections 38 to 40 references to a “penalty” are to a penalty under this section.

Before imposing a penalty on an approved regulator, the Board must consider any representations which are duly made.

Before varying the proposal, the Board must consider any representations which are duly made.

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 the penalty are to be paid.

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.

The Board must publish any notice given under this section.

An approved regulator on whom a penalty is imposed may appeal to the court on one or more of the appeal grounds.

Where the court 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.

Where the court specifies as a time by which the penalty, or a portion of the penalty, is to be paid a time before the determination of the appeal under this section, it may require the payment of interest on the penalty, or portion, from that time at such rate as it considers just and equitable.

Except as provided by this section, the validity of a penalty is not to be questioned by any legal proceedings whatever.

In this section “the court” means the High Court.

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 the rate for the time being specified in section 17 of the Judgments Act 1838 (c. 110).

If an appeal is made under section 39 in relation to a penalty, the penalty is not required to be paid until the appeal has been determined or withdrawn.

If the Board grants an application under subsection (6) of section 38 in relation to a penalty but any portion of the penalty is not paid by the time specified in relation to it by the Board under that subsection, the Board may where it considers it appropriate require so much of the penalty as has not already been paid to be paid immediately.

The Board may not determine that it is appropriate to give an intervention direction unless it is satisfied that the matter cannot be adequately addressed by the Board exercising the powers available to it under sections 31 to 40.

Part 1 of Schedule 8 makes provision about the procedure which must be complied with before an intervention direction is given and the manner in which such a direction is to be given.

The Board must make rules as to the persons it may nominate for the purposes of subsection (2)(a).

This section applies where an intervention direction has effect in respect of a function of an approved regulator (“the relevant function”).

The approved regulator must give the specified person all such assistance, in connection with the proposed exercise of the relevant function by the specified person in pursuance of the direction, as the approved regulator is reasonably able to give.

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 records found on a search carried out by virtue of the warrant.

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 the relevant function.

Regulations under subsection (6)(b) must in particular make provision as to the circumstances in which written or electronic records of which a person has taken possession by virtue of a warrant issued under subsection (3) may be copied or must be returned.

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.

The Board must make rules as to the persons a specified person may appoint for the purposes of subsection (3).

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 intervention direction or section 42(2), the Board may make an application to the High Court under this section.

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 may order the approved regulator to take such steps as the High Court directs for securing that the obligation is complied with.

This section is without prejudice to any other powers conferred on the Board by this Part.

An intervention direction has effect until such time as it is revoked by the Board (whether on the application of the approved regulator or otherwise).

Part 2 of Schedule 8 makes provision about the procedure which must be complied with before an intervention direction is revoked and the manner in which notice of the revocation is to be given.

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).

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.

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 the matter cannot be adequately addressed by the Board exercising the powers available to it under sections 31 to 43.

Schedule 9 makes further provision about the making of recommendations under subsection (5).

If the Lord Chancellor decides not to make an order in response to a recommendation made under subsection (3) or (5), the Lord Chancellor must give the Board notice of the decision and the reasons for it.

The Lord Chancellor must publish a notice given under subsection (8).

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 legal activity at any time when, by virtue of Part 2 of Schedule 5 (protection of rights during a transitional period), any person is being treated as authorised by the body to carry on that activity.

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 under section 45.

The Lord Chancellor may, by order, make transfer arrangements.

Subsection (5)(a) is subject to any transitional provision which may be made by the transfer arrangements, including provision modifying the regulatory arrangements of the new regulator as they apply to persons to whom the transfer arrangements apply.

In this section “practising fee”, in relation to an approved regulator, means a fee payable by a person under the approved regulator’s regulatory arrangements in circumstances where the payment of the fee is a condition which must be satisfied for that person to be authorised by the approved regulator to carry on one or more activities which are reserved legal activities.

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.

The Board may recommend to the Lord Chancellor that the Lord Chancellor make an order under section 46 in the form of a draft order prepared by the Board and annexed to the recommendation.

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.

Before making the recommendation, the Board must have regard to any representations duly made.

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 the draft order along with a statement detailing the changes made and the reasons for those changes.

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 under section 45.

The Board may request the former regulator to provide assistance to the new regulator and the Board, for the purpose of continuing regulation.

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 virtue of the warrant.

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.

Regulations under subsection (6)(b) must in particular make provision as to circumstances in which written or electronic records of which a person has taken possession by virtue of a warrant issued under subsection (3) may be copied or must be returned.

The Board must make rules as to the persons it may appoint for the purposes of subsection (3).

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 authorised and regulated in relation to the protected activity.

The Board may prepare and issue a statement of policy with respect to any other matter.

In preparing a statement of policy, the Board must have regard to the principle that its principal role is the oversight of approved regulators.

The Board may at any time alter or replace any statement issued under this section.

If a statement is altered or replaced, the Board must issue the altered or replacement statement.

In exercising or deciding whether to exercise any of its functions, the Board must have regard to any relevant policy statement published under this section.

The Board must publish a statement issued under this section.

The Board may make a reasonable charge for providing a person with a copy of a statement.

Before issuing a statement under section 49, the Board must publish a draft of the proposed statement.

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.

Before issuing the statement, the Board must have regard to any representations duly made.

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 details of the differences.

The Board may make a reasonable charge for providing a person with a copy of a draft published under subsection (1).

In this section “practising fee”, in relation to an approved regulator, means a fee payable by a person under the approved regulator’s regulatory arrangements in circumstances where the payment of the fee is a condition which must be satisfied for that person to be authorised by the approved regulator to carry on one or more activities which are reserved legal activities.

An approved regulator may only apply amounts raised by practising fees for one or more of the permitted purposes.

The Board must make rules specifying the permitted purposes.

A practising fee is payable under the regulatory arrangements of an approved regulator only if the Board has approved the level of the fee.

In this section “relevant authorised persons”, in relation to an approved regulator, means persons who are authorised by the approved regulator to carry on activities which are reserved legal activities.

The regulatory arrangements of an approved regulator must make such provision as is reasonably practicable to prevent regulatory conflicts.

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.

An approved regulator (“the applicant regulator”) may make an application under this section if it considers that the regulatory arrangements of another approved regulator (“the conflicting regulator”) do not make appropriate provision to prevent a regulatory conflict with the applicant regulator.

The Board must decide whether or not to give a warning notice in response to the application.

The Board must make that decision before the end of the period of 6 months beginning with the day on which the application is received by it.

The Board must give notice of its decision, and the reasons for it, to the applicant regulator and the conflicting regulator.

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).

For this purpose “external regulatory body” means a person (other than an approved regulator) who exercises regulatory functions in relation to a particular description of persons with a view to ensuring compliance with rules (whether statutory or non-statutory) by those persons.

Regulatory arrangements made for the purposes of subsection (1)(b) may, with the consent of the Board, provide for the Board to exercise functions in connection with the resolution of conflicts.

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 an explanation of any information provided or document produced under this section.

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).

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.

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 the reasons why it cannot comply.

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 order requiring the approved regulator to comply with the notice or with such directions for the like purpose as may be contained in the order.

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 notice is given under section 55(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 within the market for reserved legal services to any significant extent, or are likely to do so, the OFT may prepare a report to that effect.

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 a particular individual the publication of which, in the opinion of the OFT, would or might seriously and prejudicially affect the interests of that individual.

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 of assisting it in exercising its functions under this section.

For the purposes of the law of defamation, absolute privilege attaches to any report of the OFT under this section.

This section applies where a report is made by the OFT under section 57 in respect of an approved regulator.

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 regulator under section 57, or such longer period as the Board may specify in a particular case, to make representations to the Board about the OFT’s report.

The Consumer Panel may give the Board such advice as the Consumer Panel thinks fit regarding the OFT’s report.

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.

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 an approved regulator, under section 57.

The OFT may give a copy of its report to the Lord Chancellor.

The OFT must notify the Board and the approved regulator if it gives a copy of its report to the Lord Chancellor.

Where the Lord Chancellor seeks the advice of the Competition Commission under section 59, the Commission must investigate the matter.

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 purpose would be served by a report.

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 which resulted in that decision.

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 report under section 59(4)(a).

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 to have the effect of preventing, restricting or distorting competition within the market for reserved legal services to a significant extent.

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.

The Lord Chancellor may direct the Board to take such action as the Lord Chancellor considers appropriate in connection with any matter raised in a report made by the OFT under section 57.

Before giving a direction under subsection (1), the Lord Chancellor must consider any report from the Competition Commission under section 60 on that matter.

The Lord Chancellor must publish a direction given under this section.

In discharging its functions as an approved regulator the Board must take such steps as are necessary to ensure an appropriate financial and organisational separation between the activities of the Board that relate to the carrying out of those functions and the other activities of the Board.

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.

This section applies in relation to an order under section 62(1)(a) (an order designating the Board as an approved regulator).

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 reserved legal activity in question with effect from the occurrence of the event.

The order must ensure that the Board, acting as an approved regulator, may make regulatory arrangements or modify its regulatory arrangements only with the approval of the Board (acting otherwise than in its capacity as an approved regulator or as a licensing authority under Part 5).

This section applies in relation to an order under section 62(1)(b) (an order modifying the functions of the Board).

In this section—

“authorised insurer” means a person 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 out contracts 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, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) 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 a relevant class in a member State other than the United Kingdom;

“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 or more activities which are reserved legal activities.

This section applies in relation to an order under section 62(1)(c) (cancellation of Board’s designation as an approved regulator).

Where such an order is made, section 46 (other than subsection (4)(b)) and section 47 (transfer arrangements etc on cancellation of approved regulator’s designation) apply in relation to the Board and relevant authorised persons as they apply to an approved regulator whose designation is cancelled under section 45 and persons authorised by that approved regulator to carry on activities which are reserved legal activities.

In this section “relevant authorised persons” has the same meaning as in section 64.

The Board may recommend to the Lord Chancellor that the Lord Chancellor make an order under section 62 in the form of a draft order prepared by the Board and annexed to the recommendation.

The Board must publish a notice given under subsection (2).

Before making the recommendation, the Board must have regard to any representations duly made (whether by persons within subsection (3) or otherwise).

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 and the reasons for those changes.

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 Board in its capacity as an approved regulator.

In section 53 references to an approved regulator do not include the Board in its capacity as an approved regulator.

Sections 57 to 61 (reports by OFT etc) do not apply in relation to the Board in its capacity as an approved regulator.

An affected person in relation to an approved regulator may request the approved regulator to exercise its powers under subsection (1).

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 arrangements to prevent a regulatory conflict with the conflicting regulator.

The request is a request to the approved regulator that it reconsider the provision made by its regulatory arrangements to prevent a regulatory conflict with the Board.

The Board (in its capacity as an approved regulator) and any other approved regulator must consider any request made to it under this section.

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, and

b

in a case within subsection (3) or (5), the approved regulator whose regulatory arrangements are considered to conflict with those of the Board.

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 the Board).

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 order under section 62(1)(b) in relation to the Board.

An order under this section 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.

The powers to make an order conferred by this section are without prejudice to any powers (statutory or non-statutory) which an approved regulator or other body may have apart from this section.

A recommendation may be made under section 69 only with the consent of the approved regulator or other body to which the recommendation relates.

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.

Before making the recommendation, the Board must have regard to any representations duly made.

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 the Board, material, the Board must, before making the recommendation, publish the draft order along with a statement detailing the changes made and the reasons for those changes.

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.

In this Act “licensed body” means a body which holds a licence in force under this Part.

A body may be licensable by virtue of both subsection (1) and subsection (2).

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 the non-authorised person is entitled to exercise, or control the exercise of, voting rights in A.

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’s designation as a licensing authority in relation to the activity is also cancelled.

The cancellation takes effect at the same time as cancellation of the body’s designation as an approved regulator.

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).

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.

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 or activities unless it is satisfied that the matter cannot be adequately addressed by the Board exercising the powers available to it under sections 31 to 43.

Part 2 of Schedule 10 makes further provision about the making of recommendations under subsection (5).

If the Lord Chancellor decides not to make an order in response to a recommendation made under subsection (3) or (5), the Lord Chancellor must give the Board notice of the decision and the reasons for it.

The Lord Chancellor must publish a notice given under subsection (8).

The Lord Chancellor may, by order, make transfer arrangements.

“Transfer arrangements” are arrangements in accordance with which each consenting licensed body is, from the time the cancellation takes effect, treated as being authorised to carry on each protected activity by virtue of a licence issued under this Part by a licensing authority, in relation to the protected activity, which consents to the transfer arrangements.

“Consenting licensed body” means a licensed body authorised by the former authority which consents to the transfer arrangements.

Subsection (6)(a) is subject to any transitional provision which may be made by the transfer arrangements, including provision modifying the licensing rules of the new authority as they apply to the bodies to whom the transfer arrangements apply.

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 in accordance with paragraph 21 of Schedule 11.

The Board may recommend to the Lord Chancellor that the Lord Chancellor make an order under section 77 in the form of a draft order prepared by the Board and annexed to the recommendation.

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.

Before making the recommendation, the Board must have regard to any representations duly made.

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 the Board, material, the Board must, before making the recommendation, publish the draft order along with a statement detailing the changes made and the reasons for those changes.

This section applies where an approved regulator (“the former authority”) has its designation in relation to one or more reserved legal activities cancelled by by virtue of section 75 or an order under section 76.

The Board may request the former authority to provide assistance to the new authority and the Board, for the purpose of continuing regulation.

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 virtue of the warrant.

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.

Regulations under subsection (6)(b) must in particular make provision as to circumstances in which written or electronic records of which a person has taken possession by virtue of a warrant issued under subsection (3) may be copied or must be returned.

The Board must make rules as to the persons it may appoint for the purposes of subsection (3).

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 authorised and regulated in relation to the protected activity.

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 an order under Part 1 of Schedule 10 as a licensing authority in relation to one or more reserved legal activities.

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 from this section.

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.

Before making any recommendation, the Board must have regard to any representations duly made.

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 the Board, material, the Board must, before making the recommendation, publish the draft order along with a statement detailing the changes made and the reasons for those changes.

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 the requirements of section 28 (or, in the case of the Board, section 3) (duties to promote regulatory objectives etc).

A licensing authority may issue a statement under subsection (1) only with the approval of the Board (acting otherwise than in its capacity as a licensing authority or as an approved regulator).

A licensing authority may, with the approval of the Board (acting otherwise than in its capacity as a licensing authority or as an approved regulator), alter or replace a statement issued under this section.

If it does so, it must issue the altered or replacement statement.

In exercising its functions under this Part, a licensing authority must have regard to the statement issued by it under this section.

A licensing authority must publish a statement issued by it under this section.

In subsection (1)(a), “suitable licensing rules” means licensing rules which constitute suitable regulatory arrangements (within the meaning of Schedule 12) in respect of licensable bodies entitled by virtue of a decision under that Schedule to make an application to the Board for a licence.

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).

Without prejudice to the generality of subsection (4), licensing rules of a licensing authority may contain any provision authorised by this Act.

Schedule 11 makes further provision as to the contents of licensing rules.

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 of an order under that section.

A licensing authority other than the Board must determine any application for a licence which is made to it.

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 to make the application by virtue of a decision of the Board (acting otherwise than in its capacity as a licensing authority) under Schedule 12.

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 its licensing rules.

If the licensing authority grants an application for a licence, it must issue the licence as soon as reasonably practicable.

The licence has effect from the date on which it is issued.

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.

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 legal activities only if the licensing authority is designated in relation to the reserved legal activities in question.

The persons mentioned in subsection (4) are the managers and employees of a licensed body, and non-authorised persons having an interest or an indirect interest, or holding a material interest, in the licensed body (in their capacity as such).

A licence may be granted subject to such other conditions as the licensing authority considers appropriate.

Those conditions may include conditions as to the non-reserved activities which the licensed body may or may not carry on.

In this Part references to the terms of the licence are to the matters listed in subsections (1) and (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.

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 modifications have effect from the time the licensing authority gives the licensed body the notice or such later time as may be specified in the notice.

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 the licensing authority.

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 that body.

A licensing authority must provide facilities for making the information contained in the entries in its register available for inspection by any person during office hours and without payment.

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.

A certificate signed by an officer of a licensing authority appointed for the purpose and stating one of the matters within subsection (2) is, unless the contrary is proved, evidence of the facts stated in the certificate.

The matters are that any person does or does not, or did or did not at any time, hold a licence granted by the licensing authority under this Part.

A certificate purporting to be so signed is to be taken to have been so signed unless the contrary is proved.

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).

The Head of Finance and Administration of a licensed body must take all reasonable steps to ensure compliance with licensing rules made under paragraph 20 of Schedule 11 (accounts).

The Head of Finance and Administration must report any breach of those rules to the licensing authority as soon as reasonably practicable.

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 in the notice to provide an explanation of any information provided or document produced under this section.

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 to a notice under subsection (1).

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.

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 effect stating the reasons why the person cannot comply.

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 the person to comply with the notice or with such directions for the like purpose as may be contained in the order.

A licensing authority may, in accordance with its licensing rules, impose on a licensed body, or a manager or employee of a licensed body, a penalty of such amount as it considers appropriate.

The amount must not exceed the maximum amount prescribed under subsection (3).

The Board must make rules prescribing the maximum amount of a penalty which may be imposed under this section.

Rules may be made under subsection (3) only with the consent of the Lord Chancellor.

A penalty under this section is payable to the licensing authority.

In sections 96 and 97 references to a “penalty” are to a penalty under this section.

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 the relevant appellate body on one or more of the appeal grounds.

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.

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 the appeal under this section it may require the payment of interest on the penalty, or portion, from that time at such rate as it considers just and equitable.

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 permission of the High Court.

The High Court may make such order as it thinks fit.

Except as provided by this section, the validity of a penalty is not to be questioned by any legal proceedings whatever.

If the whole or any part of a penalty is not paid by the time by which, in 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 in section 17 of the Judgments Act 1838 (c. 110).

A licensing authority must pay into the Consolidated Fund any sum received by it as a penalty (or as interest on a penalty).

The licensing authority may also refer any matter relating to the conduct of such a person to the Board.

The disqualification ceases to be in force if the appropriate licensing authority so determines, on a review or otherwise, in accordance with licensing rules made under paragraph 23 of Schedule 11.

The Board must publish the lists kept by it under subsection (1).

A licensing authority may, in accordance with its licensing rules, suspend or revoke any licence granted by it under this Part.

A licence is to be treated as not being in force at any time while it is suspended under this section.

Sections 52 and 54 (regulatory conflict between approved regulators and between approved regulators and other regulators) apply in relation to the Board 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 capacity as approved regulator) and its regulatory arrangements.

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 approved regulator and its regulatory arrangements.

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 sections 32 to 34 of the Solicitors Act 1974 (c. 47).

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 made under sections 22 and 23 of the Administration of Justice Act 1985 (c. 61).

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 which is an independent trade union.

Schedule 13 (ownership) does not apply in relation to an applicant for a licence, or a licensed body, which is an independent trade union.

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 an order under this section.

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 in relation to that body in accordance with that order.

This section applies where a licensing authority has made an order under section 106 in relation to a body to which that section applies.

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 body to which that section applies.

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).

A body (“B”) is a low risk body if the management condition and the ownership condition are satisfied in relation to it.

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.

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 that Act).

The Board’s annual report must deal with how, in the Board’s opinion, the activities of licensing authorities and licensed bodies have affected the regulatory objectives.

This section does not apply to an annual report for a financial year before the first financial year in which a licence is issued under this Part.

In this section “annual report” and “financial year” have the same meaning as in section 6.

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 hear appeals from those decisions (whether by virtue of an order under section 80 or otherwise).

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 on a permanent basis in a Member State other than that in which the qualification was obtained.

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 of that subsection.

In this section—

“relevant authorised person”, in relation to an approved regulator, means a person in relation to whom the approved regulator is a relevant approved 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.

The Board must publish any requirements specified by it for the purposes of subsection (2).

This section applies in relation to the licensing rules of the Board as it applies in relation to the regulatory arrangements of an approved regulator except that subsection (3) has effect as if for the definition of “relevant authorised person” there were substituted—

Section 157 prevents provision relating to redress being included in the regulatory arrangements of an approved regulator, or licensing rules made by the Board in its capacity as a licensing authority.

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.

“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 in relation to an activity which is a reserved legal activity.

There is to be a body corporate called the Office for Legal Complaints (in this Act referred to as “the OLC”).

Schedule 15 is about the OLC.

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.

In this Part “scheme rules” means rules made by the OLC.

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 “the ombudsman scheme”.

In discharging its functions the OLC must comply with the requirements of this section.

The OLC must have regard to any principles appearing to it to represent the best practice of those who administer ombudsman schemes.

The OLC must prepare a report (“the annual report”) for each financial year.

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.

As soon as reasonably practicable after the end of each financial year, the OLC must give the Board a copy of the annual report prepared for that year.

The Board must give a copy of the annual report to the Lord Chancellor.

The Lord Chancellor must lay a copy of the annual report before Parliament.

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 the functions of the OLC.

In subsection (1) “specified” means specified in the requirement.

The Board must publish any report given to it under this section.

A direction under subsection (1)(b) may impose conditions with which the performance targets must conform.

The Board must publish any target set or direction given by it under this section.

The OLC must publish any target set by it pursuant to a direction under subsection (1)(b).

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 has been, met.

The person appointed under subsection (1)(a) must be a lay person.

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 a reserved legal activity for or in expectation of any fee, gain or reward.

Each person appointed under subsection (1)(a) or (b) must be a person appearing to the OLC to have appropriate qualifications and experience to act as an ombudsman for the purposes of the ombudsman scheme.

In this Act a reference to an “ombudsman” (except in the expressions “ombudsman scheme”, “Chief Ombudsman” and “assistant ombudsman”) is a reference to the Chief Ombudsman or an assistant ombudsman.

A person’s appointment as Chief Ombudsman ceases if that person ceases to be a lay person.

The terms and conditions on which a person is appointed as an assistant ombudsman must specify the consequences of a breach of the condition imposed by subsection (3).

Appointment as an ombudsman does not confer the status of Crown servant.

In this section “lay person” has the same meaning as in Schedule 15.

The Chief Ombudsman must prepare a report for each financial year on the discharge of the functions of the ombudsmen.

A report under this section must comply with any requirements specified by the OLC.

The OLC must publish any requirements specified for the purposes of subsection (2).

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 this section for the year.

In this section “financial year” has the meaning given by section 118(7).

The OLC may require the Chief Ombudsman to prepare and give the OLC, within a specified period, a report in respect of any specified matter relating to the functions of the ombudsmen.

In subsection (1) “specified” means specified in the requirement.

In subsection (1) references to an act or omission include an act or omission which occurs before the coming into force of this section.

The right of a person to make a complaint under the ombudsman scheme, and the jurisdiction of an ombudsman to investigate, consider and determine a complaint, may not be limited or excluded by any contract term or by notice.

A complaint is excluded from the jurisdiction of the ombudsman scheme if the complainant has not first used the respondent’s complaints procedures in relation to the complaint.

The respondent’s complaints procedures are the procedures established by the respondent, or which the respondent participates in or is subject to, in accordance with regulatory arrangements (or licensing rules of the Board) made in accordance with section 112.

Scheme rules may provide that subsection (1) does not apply in specified circumstances.

Scheme rules may make provision excluding complaints of a description specified in the rules from the jurisdiction of the ombudsman scheme.

But they may not make provision excluding a complaint from the jurisdiction of the ombudsman scheme on the ground that it relates to a matter which has been or could be dealt with under the disciplinary arrangements of the respondent’s relevant authorising body.

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 legal activity (whether or not the act or omission relates to a reserved legal activity).

In subsection (4)(b) “authorised person” means an authorised person in relation to any activity which is a reserved legal activity.

In this section—

“public body” means any government department, local authority or other body constituted for purposes of the public services, local government 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.

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 meaning given by paragraph 14(7) of that Schedule;

“trade mark attorney body” has the meaning given by paragraph 16(7) of that Schedule.

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).

An interested body must, if requested to do so by the Lord Chancellor, consider whether or not it is appropriate to make a recommendation under subsection (1).

Where the Lord Chancellor receives a recommendation under subsection (1), the Lord Chancellor must consider whether to follow the recommendation.

If the Lord Chancellor decides not to follow the recommendation, the Lord Chancellor must publish a notice to that effect which includes the Lord Chancellor’s reasons for the decision.

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 an act or omission by the person’s employer, whether or not it was done with the employer’s knowledge or approval.

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 act or omission by the partnership.

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 the time of the act or omission, that the partner had no such authority.

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 the membership of the partnership or body.

Scheme rules must make provision determining 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 whole or substantially the whole of the business of A, to be treated as an act or omission of B.

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 treatment of complaints under the ombudsman scheme which are outstanding against A at the time A ceases to exist.

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 died or is otherwise unable to act; and for that purpose may modify references to the complainant in this Part and in scheme rules.

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 amount payable under the award bears interest, from a time specified in or determined in accordance with the order, at a rate specified in or determined in accordance with the rules.

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 due to that person.

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.

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 the rules.

The respondent’s complaints procedures are the procedures established by the respondent, or which the respondent participates in or is subject to, in accordance with regulatory arrangements (or licensing rules of the Board) made in accordance with section 112.

Any charge which is owed to the OLC by virtue of rules made under this section may be recovered as a debt due to the OLC.

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.

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 the respondent for negligence.

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) contained in the determination must not exceed £30,000.

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 to be ignored.

The Lord Chancellor may by order amend section 138(1) in accordance with a recommendation made by an interested body under subsection (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 in the recommendation for the amount for the time being specified in that provision.

An interested body must, if requested to do so by the Lord Chancellor, consider whether or not it is appropriate to make a recommendation under subsection (2).

Where the Lord Chancellor receives a recommendation under subsection (2), the Lord Chancellor must consider whether to follow the recommendation.

If the Lord Chancellor decides not to follow the recommendation, the Lord Chancellor must publish a notice to that effect which includes the Lord Chancellor’s reasons for the decision.

When an ombudsman has determined a complaint the ombudsman must prepare a written statement of the determination.

If the complainant notifies the ombudsman that the determination is accepted by the complainant, it is binding on the respondent and the complainant and is final.

If, by the specified time, the complainant has not notified the ombudsman of the complainant’s acceptance or rejection of the determination, the complainant is to be treated as having rejected it.

Where a determination is rejected by virtue of subsection (5), that notice must contain a general description of the effect of subsection (6).

A copy of the determination on which appears a certificate signed by an ombudsman is evidence that the determination was made under the scheme.

Such a certificate purporting to be signed by an ombudsman is to be taken to have been duly signed unless the contrary is shown.

Neither the complainant nor the respondent, in relation to a complaint, may institute or continue legal proceedings in respect of a matter which was the subject of a complaint, after the time when a determination by an ombudsman of the complaint becomes binding and final in accordance with this section.

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.

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 respondent to take such steps as the court directs for securing that the direction is complied with.

An ombudsman may make an application under subsection (2) or (3) only in such circumstances as may be specified in scheme rules, and with the complainant’s consent.

If the court makes an order under subsection (2) on the application of an ombudsman, the ombudsman may in such circumstances as may be specified in scheme rules and with the complainant’s consent recover the amount mentioned in that subsection on behalf of the complainant.

In this section “court” means the High Court or a county court.

Where a court makes an order under section 141, it must give the OLC notice to that effect.

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 make arrangements to ensure that an ombudsman gives to each relevant authorising body, in relation to that person, a report which states that the order has been made.

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 in response to the report under subsection (2) and the reasons for that action being taken.

The ombudsman must give the complainant a notice stating that a report under subsection (2) has been given to the relevant authorising body.

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 in response to the report and the reasons for that action being taken.

The duty imposed by subsection (2) is not affected by the withdrawal or abandonment of the complaint.

Scheme rules must make provision requiring persons within subsection (3) to disclose to an approved regulator information of such description as may be specified in the rules, in such circumstances as may be so specified.

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, in such circumstances as may be so specified.

Provision made under subsection (1) or (2) must satisfy such requirements as the Board may, from time to time, specify.

The Board must publish any requirements specified by it under subsection (4).

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 and its 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’s functions under its licensing rules.

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 of that subsection.

The Board must publish any requirements specified by it under subsection (2).

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 the ombudsman, in connection with the investigation, consideration or determination of a complaint under the ombudsman scheme, as that person is reasonably able to give.

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 in response to the report under that subsection and the reasons for that action being taken.

The duty imposed by subsection (2) is not affected by the withdrawal or abandonment of the complaint.

In this section “authorised person” means an authorised person in relation to any activity which is a reserved legal activity.

This section applies only to information and documents the provision or production of which the ombudsman considers necessary for the determination of the complaint.

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 that person’s knowledge and belief, where the document is.

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).

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 in response to the report under that subsection and the reasons for that action being taken.

The duty imposed by subsection (2) is not affected by the withdrawal or abandonment of the complaint in relation to which the requirement was imposed under section 147(1).

In this section “authorised person” means an authorised person in relation to any activity which is a reserved legal activity.

This section applies where an ombudsman is of the opinion that a person (“the defaulter”) has failed to comply with a requirement imposed under section 147(1).

The ombudsman may certify the defaulter’s failure to comply with the requirement to the court.

Where an ombudsman certifies a failure to the court under subsection (2), the court may enquire into the case.

Subsection (6) applies in a case where the defaulter is an authorised person in relation to any activity which is a reserved legal activity.