Legal Services Bill [HL]

Perhaps I could say something about the amendment. As my noble friend rightly says, Part 5 applies only to England and Wales, but it is inconceivable that it will not have an effect on other jurisdictions, most notably and immediately Scotland. As he says, the amendments are designed to explore the impact of the ABS on other jurisdictions. Amendment No. 108D would compel the licensing rules for alternative business structures to include a provision relevant for those cases where the new business structure is intent on conducting business outside England and Wales. The amendment is probing what steps the Government will take to oblige licensed bodies to comply with the law, professional rules and other provisions in the jurisdiction where the body intends to conduct business. There are very many statutory or common law provisions that could apply to licensed bodies if they extend their reach outside England and Wales, as it is likely that many of them will seek to do, whether to explore a commercial opportunity, or because, for example, a former solicitor’s firm has existing ties outside the jurisdiction. This provision will enunciate the licensed bodies’ obligations under the law as it applies in other jurisdictions. Amendments Nos. 108E and 108F involve the duties of non-authorised persons. Clause 88 provides that a non-authorised person who is an employee or manager of an ABS must not cause or substantially contribute to a breach of duties by either a licensed body or an authorised person who is an employee or manager of that body. This pair of amendments would extend that provision. In some circumstances, a non-authorised person may have authority over an employee who is subject to the professional regulation of either the Law Society of Scotland or that of Northern Ireland, or alternatively the Faculty of Advocates or the General Council of the Bar of Northern Ireland. It would be important that the non-authorised person does not act in such a way as to cause professional difficulty for such employees, who will be subject to their own conduct rules. Amendment No. 108G is necessary because in some circumstances non-English lawyers may be able to form ABS firms with English lawyers. Clause 107 is an extra-territorial clause and should be amended accordingly to read ““outside England and Wales””. The amendment would allow the Secretary of State to modify Part 5 to take account of where non-English lawyers come from, no matter what regime they are subject to, including Scotland and Northern Ireland.