SCHEDULE 3 The Council for Licensed Conveyancers: Supplementary Provisions
Section 12.
Status
1 The Council shall be a body corporate.
Constitution
2 (1) The Council shall consist of—
(a) not more than ten persons who are—
(i) licensed conveyancers; ...
(ia) licensed CLC practitioners; or
(ii) other persons practising as authorised persons in the course of a business which is carried on either by a recognised body or by a licensed body which holds a licence granted by the Council ; and
(b) not more than eleven persons who are lay persons,
being persons appointed as members of the Council in accordance with a scheme under paragraph 4.
(2) The Council shall in accordance with any such scheme appoint one of its members to be chairman of the Council.
(3) In sub-paragraph (1)—
“authorised person” has the meaning given by section 32A;
“lay person” has the same meaning as in Schedule 1 to the Legal Services Act 2007 (see paragraph 2 of that Schedule).
“licensed body” has the same meaning as in the Legal Services Act 2007 (see section 71).
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4 (1) The Council shall prepare a scheme making provision as to—
(a) the appointment of persons for the purposes of paragraphs (a) and (b) of paragraph 2(1);
(b) the appointment of a person as chairman under paragraph 2(2); and
(c) the tenure and vacation of office of persons appointed as aforesaid, and the eligibility of persons for appointment.
(2) A scheme under this paragraph shall secure that (except during any casual vacancy) the total number of persons appointed for the purposes of paragraph (b) of paragraph 2(1) exceeds ... the total number of persons appointed for the purposes of paragraph (a) of that provision.
(3) A scheme under this paragraph shall not come into force until it has been approved by the Legal Services Board.
(4) The Legal Services Board may approve a scheme under this paragraph either as submitted to it or subject to such modifications as it thinks fit; but where the Legal Services Board proposes to approve a scheme subject to modifications it shall notify the modifications to the Council and consider any observations of the Council on them.
(5) A scheme under this paragraph may be varied or revoked by any subsequent such scheme.
Remuneration of members
5 The Council shall have power to pay to the members of the Council or any of its committees such fees for attendance and such travelling, subsistence or other allowances as the Council may determine.
Incidental powers
6 The Council shall have power to do anything which in its opinion is calculated to facilitate the proper discharge of its functions, including the borrowing of money.
Officers and staff
7 (1) The Council shall have power to appoint such officers and servants as it may determine.
(2) The Council shall pay to its officers and servants such remuneration as it may determine.
(3) The Council shall, as regards any officers or servants in whose case it may determine to do so, pay to or in respect of them such pensions, allowances or gratuities, or provide and maintain for them such schemes (whether contributory or not) for the payment to or in respect of them of such pensions, allowances or gratuities, as it may determine.
Committees of the Council
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceedings
9 (1) The powers of the Council and of any of its committees may be exercised notwithstanding any vacancy, and no proceedings of the Council or of any of its committees shall be invalidated by any defect in the appointment of a member.
(2) The Council may make standing orders for regulating the proceedings (including quorum) of the Council and of any of its committees other than the Discipline and Appeals Committee established under section 25.
Expenses of Council
10 (1) The expenses incurred by the Council in the discharge of its functions shall be defrayed out of sums received by it in respect of fees and out of any sums received by it by virtue of sub-paragraph (2).
(2) The Lord Chancellor may make grants to the Council towards meeting the expenses incurred, or to be incurred, by it in the discharge of its functions.
(3) Any sums required by the Lord Chancellor for making grants under sub-paragraph (2) shall be paid out of money provided by Parliament.
Accounts
11 (1) The Council shall keep proper accounts of all sums received or paid by it and proper records in relation to those accounts.
(2) The Council shall appoint auditors to the Council, each of whom shall be eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.
(3) The Council shall cause their accounts to be audited annually by the auditors to the Council; and, as soon as is practicable after the accounts for any period have been audited, the Council shall cause them to be published and shall send a copy of them to the Lord Chancellor together with a copy of any report of the auditors thereon.
SCHEDULE 4 The Discipline and Appeals Committee: Supplementary Provisions
Section 30.
Rules of procedure
1 (1) The Council shall make rules about the procedure and practice to be followed in relation to proceedings before the Discipline and Appeals Committee under this Part.
(2) As respects proceedings before the Committee under section 26, rules under this paragraph shall in particular make provision—
(a) for securing that, where proceedings are to be brought against any person, notice that the proceedings are to be brought shall be given to that person at such time and in such manner as may be specified in the rules;
(b) for securing that any party to the proceedings shall, if he so requires, be entitled to be heard by the Committee;
(c) for enabling any party to the proceedings to be represented by counsel or solicitor, or (if the rules so provide and the party so elects) by a person of such other description as may be specified in the rules;
(d) for requiring proceedings before the Committee to be held in public so far as may be provided by the rules.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In this paragraph and paragraph 2“party”, in relation to any proceedings, means—
(a) the person against whom the proceedings are brought;
(b) a person on whose complaint the proceedings are brought; or
(c) a person appointed by the Council to represent the Council at the proceedings.
Evidence etc.
2 (1) For the purposes of any proceedings before the Discipline and Appeals Committee under section 26—
(a) the Committee may administer oaths; and
(b) any party to the proceedings may sue out writs of subpoena ad testificandum and of subpoena duces tecum;
but no person shall be compelled under any such writ to produce any document which he could not be compelled to produce on the trial of an action.
(2) Section 36 of the Senior Courts Act 1981(subpoena issued by High Court to run through United Kingdom) shall apply in relation to any such proceedings before the Committee as it applies in relation to causes or matters in the High Court.
(3) Paragraph 1(5) applies for the purposes of this paragraph.
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Filing of orders of Committee
4 (1) Every order of the Discipline and Appeals Committee under this Part shall be filed with the Council, together with a statement of the Committee’s findings signed by the chairman or by some other member of the Committee authorised by him for the purpose.
(2) Any file kept by the Council under this paragraph may be inspected during office hours without payment.
(3) An order which has been filed shall be treated, for the purpose of enforcement, as if it had been made by the High Court.
SCHEDULE 5 Intervention in Licensed Conveyancer’s Practice
Section 31.
Part I Circumstances in which Council may Intervene
1 (1) Subject to sub-paragraph (2), the powers conferred by Part II of this Schedule shall be exercisable where—
(a) the Council has reason to suspect dishonesty on the part of—
(i) a licensed conveyancer, or
(ii) an employee or associate of a licensed conveyancer, or
(iii) the personal representatives of a deceased licensed conveyancer,
in connection with that licensed conveyancer’s practice or former practice or in connection with any trust of which that licensed conveyancer is or was a trustee;
(aa) the Council has reason to suspect dishonesty on the part of a licensed conveyancer (“L”) in connection 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, or
(ii) any business which is or was carried on by L as a sole trader;
(b) following the death of a licensed conveyancer who, immediately before his death was practising as a sole practitioner, the Council considers that there has been undue delay on the part of the personal representatives of that person in connection with his practice or in connection with any trust;
(c) the Council is satisfied that a licensed conveyancer has failed to comply with any rules made by virtue of section 20, 21(3)(c), 22 or 23;
(d) a licensed conveyancer has made a composition or arrangement with his creditors;
(e) a licensed conveyancer has been committed to prison in any civil or criminal proceedings;
(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 conditions subject to which his licence has effect;
(f) the Council is satisfied that a licensed conveyancer practising as a sole practitioner is incapacitated by illness , injury or accident to such an extent as to be unable to attend to his practice;
(g) a licensed conveyancer lacks capacity (within the meaning of the Mental Capacity Act 2005) to act as a licensed conveyancer and powers under section 15 to 20 or section 48 of that Act are exercisable in relation to the licensed conveyancer;
(h) the licence held by any person—
(i) has been suspended or has terminated in accordance with section 18; or
(ii) has been revoked or suspended by an order of the Discipline and Appeals Committee under section 26; or
(iii) has expired and no further licence has been issued to him under this Part of this Act.
(i) the Council is satisfied that it is necessary to exercise the powers conferred by Part 2 of this Schedule (or any of them) in relation to a licensed conveyancer to protect—
(i) the interests of clients (or former or potential clients) of the licensed conveyancer or his firm, or
(ii) the interests of the beneficiaries of any trust of which the licensed conveyancer is or was a trustee.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) For the purposes of the following provisions of this Schedule any person in relation to whom the powers conferred by Part II are exercisable by virtue of sub-paragraph (1)(h) shall be deemed to be a licensed conveyancer.
2 On the death of a licensed conveyancer who immediately before his death was practising as a sole practitioner paragraphs 6 to 8 shall apply to the client accounts of his practice.
3 The powers conferred by Part II of this Schedule shall also be exercisable, subject to paragraphs 5(4) and 10(9), where—
(a) the Council is satisfied that there has been undue delay on the part of a licensed conveyancer in connection with any matter in which he or his firm is or was acting on behalf of a client or in connection with any trust; and
(b) the Council by notice in writing invites the conveyancer to give an explanation within such period following the giving of the notice as may be specified in it, being a period of not less than eight days; and
(c) the conveyancer fails within that period to give an explanation which the Council regards as satisfactory; and
(d) the Council gives notice of the failure to the conveyancer and (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable in his case.
4 (1) Where the powers conferred by Part II of this Schedule are exercisable in relation to a licensed conveyancer, they shall continue to be exercisable after his death or after his licence has been revoked or suspended or has otherwise ceased to be in force under this Part of this Act.
(2) The references to the licensed conveyancer or his firm in paragraphs 5(1), 6(2) and (3) , 6A, 8, 9(1) , (5) and (6) and 10(2) and (7) include, in any case where the licensed conveyancer has died, references to his personal representatives.
Part II Powers Exercisable on Intervention
Money
5 (1) The High Court, on the application of the Council, may order that no payment shall be made without the leave of the court by any person (whether or not named in the order) of any money held by him (in whatever manner and whether it was received before or after the making of the order) on behalf of the licensed conveyancer or his firm.
(2) No order under this paragraph shall take effect in relation to any person to whom it applies unless the Council has served a copy of the order on him (whether or not he is named in it) and, in the case of a bank or other financial institution, has indicated at which of its branches the Council believes that the money to which the order relates is held.
(3) A person shall not be treated as having disobeyed an order under this paragraph by making a payment of money if he satisfies the court that he exercised due diligence to ascertain whether it was money to which the order related but nevertheless failed to ascertain that the order related to it.
(4) This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.
6 (1) Without prejudice to paragraph 5, if the Council passes a resolution to the effect that any sums of money to which this paragraph applies, and the right to recover or receive them, shall vest in the Council, all such sums shall vest accordingly (whether they were received by the person holding them before or after the Council’s resolution) and shall be held by the Council on trust to exercise in relation to them the powers conferred by this Part of this Schedule and subject thereto and to rules under paragraph 6B upon trust for the persons beneficially entitled to them.
(2) This paragraph applies—
(a) where the powers conferred by this paragraph are exercisable by virtue of paragraph 1, to all sums of money held by or on behalf of the licensed conveyancer or his firm in connection with his practice or former practice or with any trust of which he is or was a trustee,
(b) where they are exercisable by virtue of paragraph 2, to all sums of money in any client account; and
(c) where they are exercisable by virtue of paragraph 3, to all sums of money held by or on behalf of the licensed conveyancer or his firm in connection with the matter to which the complaint relates.
(3) The Council shall serve on the licensed conveyancer or his firm and on any other person having possession of sums of money to which this paragraph applies a certified copy of the Council’s resolution and a notice prohibiting the payment out of any such sums of money.
(4) Within eight days of the service of a notice under sub-paragraph (3), the person on whom it was served, on giving not less than 48 hours’ notice in writing to the Council and (if the notice gives the name of the solicitor instructed by the Council) to that solicitor, may apply to the High court for an order directing the Council to withdraw the notice.
(5) If the court makes such an order, it shall have power also to make such other order with respect to the matter as it may think fit.
(6) If any person on whom a notice has been served under sub-paragraph (3) pays out sums of money at a time when such payment is prohibited by the notice, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding the third level on the standard scale.
6A (1) Without prejudice to paragraph 5, if the Council passes a resolution to the effect that any rights to which this paragraph applies shall vest in the Council, those rights shall vest accordingly.
(2) This paragraph applies to any right to recover or receive debts due to the licensed conveyancer or his firm in connection with his practice 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 Council and shall be held by it on trust to exercise in relation to them the powers 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.
(4) The Council shall serve on the licensed conveyancer or his firm, and any person who owes a debt to which the order applies a certified 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 are reasonable in all the circumstances of the case, is unable to trace the person or persons beneficially entitled to any sum vested in the Council under paragraph 6 or 6A(3) (including provision which requires amounts to be paid into or out of a fund maintained under section 21).
7 (1) If the Council takes possession of any sum of money to which paragraph 6 applies, the Council shall pay it into a special account in the name of the Council or of a person nominated on behalf of the Council; and any such person shall hold that sum on trust to permit the Council to exercise in relation to it the powers conferred by this Part of this Schedule and subject thereto and to rules under paragraph 6B, on trust for the persons beneficially entitled to it.
(2) A bank or other financial institution at which a special account is kept shall be under no obligation to ascertain whether it is being dealt with properly.
8 Without prejudice to paragraphs 5 to 7, if the High Court is satisfied, on an application by the Council, that there is reason to suspect that any person
(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 or his 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.
Documents
9 (1) The Council may give notice to the licensed conveyancer or his firm requiring the production or delivery to any person appointed by the Council at a time and place to be fixed by the Council—
(a) where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 1, of all documents in the possession or under the control of the licensed conveyancer or his firm in connection with his practice or former practice or with any trust of which the licensed conveyancer is or was a trustee; and
(b) where they are exercisable by virtue of paragraph 3, of all documents in the possession or under the control of the licensed conveyancer or his firm in connection with the matters of which the Council is satisfied(whether or not they relate also to other matters).
(2) The person appointed by the Council may take possession of any such documents on behalf of the Council.
(3) Except in a case where an application has been made to the High Court under sub-paragraph (4), if any person having possession or control of any such documents refuses, neglects or otherwise fails to comply with a requirement under sub-paragraph (1), he shall be guilty of an offence and liable on summary conviction to a fine not exceeding the third level on the standard scale.
(4) The High Court, on the application of the Council, may order a person required to produce or deliver documents under sub-paragraph (1) to produce or deliver them to any person appointed by the Council at such time and place as may be specified in the order, and authorise him to take possession of them on behalf of the Council.
(5) If on an application by the Council the High Court is satisfied that there is reason to suspect that documents in relation to which the powers conferred by sub-paragraph (1) are exercisable have come into the possession or are under the control of some person other than the licensed conveyancer or his firm, the court may order that person to produce or deliver the documents to any person appointed by the Council at such time and place as may be specified in the order and authorise him to take possession of them on behalf of the Council.
(5A) In the case of a document which consists of information which is stored in electronic form, the requirement imposed by a notice under sub-paragraph (1) or an order under sub-paragraph (4) or (5), is a requirement to produce or deliver the information in a form in which it is legible or from which it can readily be produced in a legible form.
(6) On making an order under this paragraph, or at any later time, the court, on the application of the Council, may authorise a person appointed by the Council to enter any premises (using such force as is reasonably necessary) to search for and take possession of
(a) any documents to which the order relates.
(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 under the control of such a person and has come into the possession or under the control of the person in respect of whom the order is made,
which the Council reasonably requires for the purpose of accessing information contained in such documents,
and to use property obtained under paragraph (b) for that purpose.
(7) The Council, on taking possession of any documents or other property under this paragraph, shall serve upon the licensed conveyancer or personal representatives and upon any other person from whom they were received on the Council’s behalf or from whose premises they were taken a notice that possession has been taken on the date specified in the notice.
(8) Subject to sub-paragraph (9) a person upon whom a notice under sub-paragraph (7) is served, on giving not less than 48 hours’ notice to the Council and (if the notice gives the name of the solicitor instructed by the Council) to that solicitor, may apply to the High Court for an order directing the Council to deliver the documents or other property to such person as the applicant may require.
(9) A notice under sub-paragraph (8) must be given within eight days of the service of the Council’s notice under sub-paragraph (7).
(10) Without prejudice to the foregoing provisions of this Schedule, the Council may apply to the High Court for an order as to the disposal or destruction of any documents or other property in its possession by virtue of this paragraph or paragraph 10.
(11) On an application under sub-paragraph (8) or (10), the court may make such order as it thinks fit.
(12) Except so far as its right to do so may be restricted by an order on an application under sub-paragraph (8) or (10), the Council may take copies of or extracts from any documents in its possession by virtue of this paragraph or paragraph 10 and require any person to whom it is proposed that such documents shall be delivered, as a condition precedent to delivery, to give a reasonable undertaking to supply copies or extracts to the Council.
Redirection of communications
10 (1) The High Court, on the application 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 be directed, in accordance with the order, to the Council, or any person appointed by the Council.
(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 Council or the person appointed by the Council may take possession or receipt of the communications redirected in accordance with the order.
(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 the addressee had permanently ceased to occupy or use the premises or other destination of the communications and had applied to the 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 Council, authorise the Council, or a person appointed by it, to take such steps as may be specified in the order in relation to any website purporting to be or have been maintained by or on behalf of the licensed conveyancer or his firm if the High Court is satisfied that the taking of those steps is necessary to protect the public interest or the interests of clients (or potential 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 27 of the Postal Services Act 2011 .
(9) This paragraph does not apply where the powers conferred by this Part of this Schedule are exercisable by virtue of paragraph 3.
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 an order 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 an appointment under section 41 of that Act.
General
11 The powers in relation to sums of money , documents and other property conferred by this Part of this Schedule shall be exercisable notwithstanding any lien on them or right to their possession.
12 Subject to any order for the payment of costs that may be made on an application to the court under this Schedule, any costs incurred by the Council for the purposes of this Schedule, including, without prejudice to the generality of this paragraph, the costs of any person exercising powers under this Part of this Schedule on behalf of the Council, shall be paid by the licensed conveyancer or his personal representatives and shall be recoverable from him or them as a debt owing to the Council.
12A (1) The High Court, on the application of the Council, may order a former partner of the licensed conveyancer to pay a specified proportion 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) by reason of which the powers conferred by this Part were exercisable in relation to the licensed conveyancer was conduct carried on with the consent or 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.
SCHEDULE 6 Bodies Recognised under s.32: Supplementary Provisions
Section 32.
Construction of references to recognised bodies
1 (1) Subject to sub-paragraph (2), references in this Schedule to a recognised body are references to a body . . . for the time being recognised under section 32.
(2) In relation to any such allegation . . . as is mentioned in paragraph 3(1)(a)(ii) . . . of this Schedule references in this Schedule to a recognised body include references to a body . . . that was recognised under section 32 at the time when the conduct to which the allegation . . . relates took place.
Disciplinary control of recognised bodies
2 In addition to the functions conferred on them by sections 24 , 24A and 25 the Investigating Committee and the Discipline and Appeals Committee shall have the functions conferred on them by the following provisions of this Schedule.
3 (1) The Investigating Committee shall carry out a preliminary investigation of any case in which—
(a) it is alleged that a recognised body—
(i) has (while a recognised body) been convicted . . . of a criminal offence which renders it unsuitable to be recognised under section 32; or
(ii) has failed to comply with any rules applicable to it by virtue of that section; ...
(aa) it is alleged that a manager or employee of a recognised body who is not a licensed conveyancer has failed to comply with any rules applicable to him by virtue of section 32;
(aaa) it is alleged that a manager or employee of a recognised body who is not a licensed CLC practitioner has failed to comply with any rules applicable to him by virtue of section 32; or
(ab) it is alleged that a recognised body (while a recognised body) has failed to comply with a condition subject to which its recognition has effect.
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
(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 that Committee under paragraph 4.
(1B) The Council shall make rules as to the cases in which the Investigating Committee may hear and determine an allegation, and the cases in which they must refer an allegation to the Discipline and Appeals Committee.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 mentioned in sub-paragraph (ii) of that paragraph, or
(b) in a case within paragraph 3(1)(aa) or (aaa) , that a manager or employee has failed to comply with any such rules as are mentioned in paragraph 3(1)(aa) or (aaa) (as the case may be) , 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 forfeited to Her Majesty.
(2) In relation to proceedings before the Investigating Committee by virtue of paragraph 3(1A)(a), the Committee may make such order as 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, that person.
(3) In sub-paragraph (2), for the purposes of paragraph (a) or (b) of that sub-paragraph, the reference to costs includes costs incurred in connection with a preliminary investigation of the allegation under paragraph 3.
(4) The amount of any penalty required to be paid under sub-paragraph (1) may not exceed such amount as is prescribed by rules 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 have effect in relation to proceedings before the Discipline and Appeals Committee under section 26, and
(b) orders of the Investigating Committee, as they have effect in relation to orders of the Discipline and Appeals Committee.
(6) A person against whom an order is made by the Investigating Committee by virtue of sub-paragraph (1) may appeal to the Discipline and Appeals Committee, and on any such appeal the Discipline and Appeals Committee may make such order as they think 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 that sub-paragraph may appeal to the Discipline and Appeals Committee, and on any such appeal 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-paragraph (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 First-tier Tribunal .
(9) On an appeal under sub-paragraph (8) the First-tier Tribunal may make such order as it thinks fit.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 (1) Where on the hearing of any allegation within paragraph 3(1)(a) or (ab) the Discipline and Appeals Committee are satisfied that a recognised body—
(a) has been convicted as mentioned in sub-paragraph (i) of paragraph (3)(1)(a); or
(b) has failed to comply with any such rules as are mentioned in sub-paragraph (ii) of that paragraph,
, or
(c) has failed to comply with any such condition as is mentioned in paragraph 3(1)(ab),
the Committee may, if they think fit, make one or more of the orders referred to in sub-paragraph (2).
(2) Those orders are—
(a) an order revoking the recognition under section 32 of the body to which the allegation relates;
(b) an order directing the payment by that body of a penalty not exceeding such amount as may be prescribed by rules made by the Council for the purposes of this sub-paragraph, to be forfeited to Her Majesty;
(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 conditions as may be specified in the order;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) Where on the hearing of any allegation within paragraph 3(1)(aa) or (aaa) the Discipline and Appeals Committee are satisfied that a manager or employee has failed to comply with any such rules as are mentioned in paragraph 3(1)(aa) or (aaa) (as the case may be) , 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 amount as may be prescribed by rules made by the Council for the purposes of this sub-paragraph;
(b) an order requiring the Council to consider taking such steps as the Committee may specify in relation to the manager or employee;
(c) an order requiring the Council to refer to an appropriate regulator any matter relating to the conduct 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—
(a) if the person is an authorised person in relation to a reserved legal activity for the purposes of the Legal Services Act 2007, any relevant approved regulator (within the meaning of that Act) in relation to that person, and
(b) if the person carries on activities which are not reserved legal activities, any person who exercises regulatory functions in relation to the carrying on of such activities by the person.
(2D) In relation to proceedings under this paragraph, the Committee may make such order as they consider fit as to the 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 a representative) by the Committee in the course of the proceedings, that person.
(2E) In sub-paragraph (2D), for the purposes of paragraph (a) or (b) of that sub-paragraph, the reference to costs includes costs incurred in connection with a preliminary investigation of the allegation under paragraph 3.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 (1) Where—
(a) any order is made by the Discipline and Appeals Committee under section 26 or paragraph 4 in the case of a manager of a recognised body; or
(b) any such order is made in the case of a person employed by a recognised body and the act or omission constituting the ground on which the order was made was instigated or connived at by a manager of the recognised body, or, if the act or omission was a continuing act or omission, a manager of the body had or reasonably ought to have had knowledge of its continuance,
the Discipline and Appeals Committee may, if they think fit, by order revoke the recognition of that body under section 32.
(2) The Committee shall not take a case into consideration during any period within which proceedings by way of appeal may be brought which may result in sub-paragraph (1) being rendered inapplicable in that case, or while any such proceedings are pending.
(3) The reference to a manager of a recognised body in paragraph (a) or (b) of sub-paragraph (1) includes a reference to a person who was a manager of the body at the time of the conduct leading to the making of the order referred to in that paragraph.
(4) In relation to proceedings for the revocation of a recognition under sub-paragraph (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 body to whose recognition the proceedings relate.
Appeals against orders of the Committee
6 (1) Where the Committee make an order by virtue of paragraph 4(1) or (2A) or 5(1)—
(a) the person as regards whom the order is made, or
(b) the Council,
may appeal to the First-tier Tribunal, and on any such appeal the First-tier Tribunal may make such order as it thinks fit.
(1A) Where an order is made by the Committee under paragraph 4(2D) or 5(4) a person listed in that paragraph may appeal to the First-tier Tribunal , and on any such appeal the First-tier Tribunal may make such order as it thinks fit.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revocation of recognition on grounds of fraud or error
7 (1) Where the Discipline and Appeals Committee are satisfied that the recognition of a body . . . under section 32 was granted as a result of any error, or as a result of fraud on the part of that body, the Committee may, if they think fit, by order revoke that body’s recognition.
(2) A body . . . may be granted recognition under that section notwithstanding that any recognition previously granted to it has been revoked under this paragraph; but if any such recognition was so revoked on the ground of fraud that body shall not be granted recognition under that section except on an application made in that behalf to the Committee.
(3) In relation to proceedings for the revocation of a recognition under sub-paragraph (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 body to whose recognition the proceedings relate.
(4) In relation to proceedings on an application under sub-paragraph (2), the Discipline and Appeals Committee may make such order as they consider fit as to the payment of costs by—
(a) the Council;
(b) the applicant.
Appeal against decision of Council in relation to grant of recognition
8 (1) Where, in the case of any body . . . , the Council—
(a) refuses an application by that body for recognition under section 32; or
(b) decides to grant recognition of that body under that section subject to any conditions, 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),
that body may appeal to the Discipline and Appeals Committee against that refusal or decision within one month of being notified of it.
(2) On an appeal under sub-paragraph (1)(a) or (b) the Discipline and Appeals Committee may—
(a) by order direct the Council to grant recognition of the body in question under section 32, either without conditions or subject to such conditions as may be specified by the Committee in the direction; or
(b) affirm the refusal or 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 they think fit.
(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 by the 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 they think fit.
(2B) On an appeal under sub-paragraph (1)(d), the Discipline and Appeals Committee may—
(a) direct the Council to grant the application, or
(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 they think fit.
(3) Rules made by the Council may make provision, as respects any application for recognition that is neither granted nor refused by the Council within such period as may be specified in the rules, for enabling an appeal to be brought under this paragraph in relation to the application as if it had been refused by the Council.
Rules of procedure, etc.
9 (1) Paragraphs 1(2) and 2 of Schedule 4 shall have effect in relation to proceedings under paragraph 3A, 4 or 5 of this Schedule as they have effect in relation to proceedings under section 26.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intervention by Council
10 (1) Subject to sub-paragraph (2), where—
(a) the Council is satisfied that a recognised body or a manager of such a body has failed to comply with any rules applicable to it by virtue of section 32; or
(aa) the Council is satisfied that a recognised body has been carrying on business in breach of any condition subject to which the body's recognition under section 32 of this Act has effect; or
(b) a person has been appointed receiver or manager of property of a recognised body ; or
(c) a relevant insolvency event occurs in relation to a recognised body; or
(d) the Council has reason to suspect dishonesty on the part of any manager or employee of a recognised body in connection with
(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 capacity as such a manager or employee, 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;
or
(e) the Council is satisfied that it is necessary to exercise the powers conferred by Part 2 of Schedule 5 (or any of them) in relation to a recognised body to 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 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 recognised body is or was a trustee in that person's capacity as such a manager or employee,
the powers conferred by Part II of Schedule 5 shall be exercisable in relation to the recognised body and its business in like manner as they are exercisable in relation to a licensed conveyancer and his practice.
(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 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 winding up becomes a creditors’ voluntary winding up under section 96 of that Act (conversion to creditors’ voluntary winding up);
(e) an order for the winding up of the body is made.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 The powers conferred by Part II of Schedule 5 shall also be exercisable as mentioned in paragraph 10(1) of this Schedule where—
(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 with any 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 of which he is or was a trustee in his capacity as such a manager or employee; and
(b) the Council by notice in writing invites the body to give an explanation within such period following the giving of the notice as may be specified in it, being a period of not less than eight days; and
(c) the body fails within that period to give an explanation which the Council regards as satisfactory; and
(d) the Council gives notice of the failure to the body and (at the same or any later time) notice that the powers conferred by Part II of Schedule 5 are accordingly exercisable in its case by virtue of this paragraph.
12 (1) Where the recognition of a body . . . under section 32—
(a) has been revoked by an order of the Discipline and Appeals Committee under this Schedule; or
(b) has expired and no further recognition of that body has been granted under that section,
the powers conferred by Part II of Schedule 5 shall be exercisable in relation to the body . . . and its former business as a recognised body as they are exercisable in relation to a licensed conveyancer and his practice.
(2) Where the powers conferred by Part II of Schedule 5 are exercisable in relation to a recognised body in accordance with paragraph 10 or 11 of this Schedule they shall continue to be exercisable after that body’s recognition under section 32 has been revoked or has otherwise ceased to be in force.
13 In connection with the application of Part II of Schedule 5 for the purposes of this Schedule, in that Part of that Schedule—
(a) any reference to the licensed conveyancer or to his practice shall be construed as including a reference to the body . . . in relation to which the powers conferred by that Part of that Schedule are exercisable by virtue of paragraph 10, 11 or 12(1) of this Schedule or to its business (or former business) as a recognised body;
(b) any reference to paragraph 1 of that Schedule shall be construed as including a reference to paragraph 10 or 12(1) of this Schedule; . . .
(c) any reference to paragraph 3 of that Schedule shall be construed as including a reference to paragraph 11 of this Schedule.
(d) paragraph 6(2)(a) of that Schedule is to be construed as including a reference to sums of money held by or on behalf of the recognised body in connection with any trust of which a person who is or was manager or employee of that body is or was a trustee in his capacity as such a manager or employee;
(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 the control of the recognised body in connection with any trust of which a person who is or was a manager or employee of that body is or was a trustee in his capacity as such a manager or employee, and
(ii) as applying to a person who is or was a manager or employee of the recognised body and documents and property in his possession or under his control in connection with such a trust as it applies to a recognised body and documents and 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 to apply to the High Court for an order for the appointment of a new trustee to a trust in substitution for a person who is a trustee in his capacity as a manager or employee of the recognised body; and
(g) paragraph 12A of that Schedule is to be read as if the references to a former partner were references—
(i) in the case of a recognised body which is a partnership, to a former partner in the partnership, and
(ii) in any other case to a manager or former manager of the recognised body.
Examination of files
14 (1) Where the Investigating Committee are satisfied that it is necessary to do so for the purpose of investigating any such allegation as is mentioned in paragraph 3(1)(a)(ii), (aa) , (aaa) or (ab), the Committee may give an information notice to a relevant person.
(1A) An information notice is a notice requiring the production or delivery to any person appointed by the Committee, at a time and a place to be fixed by the Committee, of all documents in the possession or under the control of the relevant person in connection with the matters to which the allegation relates (whether or not they relate also to other matters).
(1B) In this section “relevant person” means—
(a) in the case of an allegation against a recognised body, the recognised body or any of its managers or employees, and
(b) in the case of an allegation against a manager or employee of a recognised body, the manager or employee, the recognised body or any other manager or employee of the recognised body.
(2) Sub-paragraphs (2) to (12) of paragraph 9 of Schedule 5, together with paragraphs 11 to 12A of that Schedule, shall apply in relation to the powers conferred on the Investigating Committee by sub-paragraphs (1) and (1A) of this paragraph as they apply in relation to the powers conferred on the Council by sub-paragraph (1) of paragraph 9, and accordingly in those provisions—
(a) any reference to the Council shall be construed as including a reference to the Committee;
(b) any reference to the licensed conveyancer shall be construed as including a reference to the body , manager or employee with respect to which the powers are exercisable by virtue of sub-paragraphs (1) and (1A) of this paragraph;
(c) any reference to a person appointed, or to a requirement, under paragraph 9(1) shall be construed as including a reference to a person appointed, or to a requirement, under sub-paragraphs (1) and (1A) of this paragraph; and
(d) any reference to any such documents as are mentioned in paragraph 9(1) shall be construed as including a reference to any such documents as are mentioned in sub-paragraph (1A) of this paragraph.
Application of rules relating to accounts and interest on client’s money
15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 (1) Where rules made under section 22(2) and containing any such provision as is referred to in section 23(1) are applied to recognised bodies or managers or employees of such bodies, in accordance with section 32(3), then, except as provided by the rules and subject to sub-paragraph (2), a recognised body , manager or employee which in pursuance of the rules maintains an account in which it or he keeps money received or held for or on account of clients of the recognised body generally shall not be liable to account to any person for interest received by it or him on money in that account.
(2) Nothing in any such rules or in sub-paragraph (1) shall affect any arrangement in writing between a recognised body , or any manager or employee of such a body, and any of the clients of the recognised body as to the application of the client’s money or the payment of interest on it.
Section 67(1).
Legal Aid Act 1974 (c.4)
1—3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Solicitors Act 1974 (c.47)
5 In section 48(2) (orders of Tribunal), for “section 47(2)” substitute “subsection (2) of section 47, or was made under subsection (2B) of that section . . .,”.
County Courts Act 1984 (c.28)
7 In section 33 (effect of order of judge in probate proceedings)—
(a) omit “a judge of”; and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 In section 58(1) (persons who may take affidavits for use in county courts)—
(a) for “any person” substitute “a commissioner for oaths or any other person”; and
(b) omit the words from “or a solicitor” onwards.
Section 67(2).
Part I Repeal Coming into Force on Royal Assent
Chapter | Short title | Extent of repeal
12 & 13 Vict. c. 16. | Justices Protection (Ireland) Act 1849. | The whole Act so far as unrepealed.
Part II Repeals Coming into Force Two Months After Royal Assent
Chapter | Short title | Extent of repeal
1978 c. 23. | Judicature (Northern Ireland) Act 1978. | In section 70(2)(a), the words “and is in practice as such”.
1981 c. 54. | Senior Courts Act 1981. | In section 40A(4), the word “and”.
1982 c. 53. | Administration of Justice Act 1982. | Section 71.
1984 c. 28. | County Courts Act 1984. | In section 58(1), the words from “or a solicitor” onwards.
In section 109(4), the word “and”.
Section 113(a)(i).
Part III Repeals Coming into Force on an Appointed Day
Chapter | Short title | Extent of repeal
1974 c. 4. | Legal Aid Act 1974. | Section 12(3) to (5).
Section 38(2) to (6).
1974 c. 47. | Solicitors Act 1974. | In sections 7 and 8(2), the words “not exceeding £15”.
Section 43(6).
In Schedule 2, in paragraph 2(1)(b) the words “not exceeding £50”.
1981 c. 54. | Senior Courts Act 1981. | Section 106(2) to (4).
1984 c. 28. | county Courts Act 1984. | In section 33, the words “a judge of”.
In section 138(5), the words “Subject to subsection (6),”.
Section 69(5).
Imposition of disciplinary sanctions by Council of Law Society
1 Section 1 applies in relation to services provided by a solicitor whether they were provided before or after the commencement of that section.
Examination of solicitors’ files in connection with complaints
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powers of lay observers and Tribunal in relation to inadequate professional services
3 In section 3—
(a) subsection (1) applies in relation to a complaint whether it was made before or after the commencement of that section; and
(b) subsection (2) applies in relation to services provided by a solicitor whether they were provided before or after that commencement.
Practising certificates
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restriction on preparation of contracts of sale etc.
5 In section 6—
(a) subsection (3) applies to acts done before or after the commencement of that section; but
(b) subsection (4) does not apply to acts done before that commencement.
Restriction on preparation of papers for probate etc.
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Orders modifying provisions so as to apply to incorporated practices
7 Any provision made by an order under subsection (7) of section 9 after the commencement of that section may be made with retrospective effect as from that commencement or any later date.
Legal aid complaints
8 The repeal by this Act of the provisions referred to in subsection (3) of section 40 shall not affect—
(a) the hearing and determination by any tribunal established pursuant to any of those provisions of any complaint or other matter where a reference or application was made to the tribunal in respect of the complaint or matter before the commencement of that subsection; or
(b) any appeal against the decision of such a tribunal with respect to any such complaint or matter.
9 Each of sections 41 to 44 applies in relation to conduct of a barrister or solicitor (as the case may be) whether it occurred before or after the commencement of that section.
Substitution or removal of personal representatives
10 Subsection (6) of section 50 applies to an application under section 1 of the Judicial Trustees Act 1896 whether it was made before or after the commencement of section 50.
Administrative and clerical expenses of garnishees
11 (1) Any order of the Lord Chancellor made, or having effect as if made, under section 40A of the Senior Courts Act 1981 or section 109 of the County Courts Act 1984 which is in force immediately before the commencement of section 52 of this Act shall have effect as if made under and for the purposes of that section as amended by section 52, and any reference in any such order to the sum which may be deducted by any deposit-taking institution shall be construed as a reference to the maximum sum which may be so deducted.
(2) The provisions of section 52 shall not apply in relation to any order of the kind mentioned in subsection (1) of either of the said sections 40A and 109 which was made before the commencement of section 52.
Register of county court judgments
12 (1) Where immediately before the commencement of section 54 there is in force any entry in the register relating to—
(a) any judgment of a county court, not being a judgment falling within section 73(1) of the County Courts Act 1984 as substituted by subsection (2) of section 54; or
(b) any order of a county court,
nothing in subsection (2) of section 54 shall affect the continuation in force of that entry; but regulations under the said section 73 may make provision as to the cancellation of any such entry.
(2) In sub-paragraph (1) “the register” means the register kept under the said section 73.
Relief from forfeiture in county court
13 The provisions inserted by subsections (4) and (5) of section 55 shall not have effect in connection with any recovery of possession of land by a lessor which occurred before the commencement of that section.
Time limits for actions for libel or slander
14 Nothing in section 57 shall apply in relation to an action if the cause of action accrued before the commencement of that section.
Appointment of arbitrator by court
15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Limitation of damages against resident magistrates etc. in Northern Ireland
16 Nothing in section 63 shall apply in relation to an action if the sentence or order in respect of which the action is brought was passed or made before the passing of this Act.
Increase of penalties under Solicitors Act 1974
17 Nothing in paragraph 6 or 7 of Schedule 1 shall affect the punishment for an offence committed before the commencement of that paragraph.