Legal Services Bill [HL]

moved Amendment No. 150ZA: 150ZA: Schedule 16, page 238, line 17, leave out paragraph (a) and insert— ““(a) for sub-paragraph (1)(a) substitute— ““(a) the Society has reason to suspect dishonesty on the part of a solicitor;””, (aa) after that sub-paragraph insert— ““(aa) the Society has reason to suspect dishonesty on the part of— (i) an employee of a solicitor, or (ii) the personal representatives of a deceased solicitor, in connection with that solicitor’s practice or in connection with any trust of which that solicitor is or formerly was a trustee;””,”” The noble Lord said: This is yet another group of amendments that relate to the Law Society's regulatory powers under Schedule 16. Amendments Nos. 150ZA, 150K, 150L, 150N and 150P relate to the power of intervention. The Law Society's power to intervene in the practice of a solicitor on suspicion of his or her dishonesty is one of its most important regulatory powers. However, it is limited to a suspicion of dishonesty in connection with a practice. The intervention power in respect of a solicitor’s practice does not arise if there is evidence that a solicitor has been dishonest in connection with a non-legal business. This is an unduly limited and out-of-date power in an environment where solicitors are increasingly involved in non-legal business. The amendments would remove this restriction as regards solicitors, the managers of recognised bodies and registered foreign lawyers, but leave the restriction in place in respect of their employees. Amendments Nos. 150ZB, 150ZC and 150Q introduce two changes to the grounds on which the Law Society may intervene in a solicitor’s practice or multinational practice under the Solicitors Act. First, it widens the existing ground of abandonment of practice by a sole practitioner to cover abandonment by any solicitor. I understand that, although rare, there have been instances where practices of two or more solicitors have been abandoned by them, and so the existing ground is potentially prohibitively narrow. Secondly, it creates a new intervention ground of failing properly to attend to a practice. Again, there is a regulatory need for such a ground. Finally, Amendments Nos. 150ZD and 150ZE have been tabled to make it explicit that any obligation that the Law Society may have to trace the beneficiaries of sums that vest with it on interventions is an obligation to take reasonable and proportionate steps to trace them. I beg to move.