Legal Services Bill [HL]

moved Amendments Nos. 446A to 467: 446A: Schedule 16, page 226, line 21, at end insert ““or other financial institutions”” 447: Schedule 16, page 227, line 4, at end insert— ““( ) In subsection (2), omit from ““and the rules”” to the end.”” 448: Schedule 16, page 227, line 9, leave out from ““of”” to end of line 10 and insert ““— (a) the solicitor’s clients, other persons or trusts, generally, or (b) that client, person or trust, separately.”””” 448A: Schedule 16, page 227, line 41, after first ““solicitor”” insert ““, or an account of another person,”” 448B: Schedule 16, page 228, line 4, at end insert ““or an account of another person”” 448C: Schedule 16, page 228, line 10, leave out paragraph 33 and insert— ““ For section 36 (compensation fund) substitute— ““36 Compensation grants (1) The Society may make rules concerning the grant of compensation by the Society in respect of loss that a person has suffered, or is likely to suffer, as a result of— (a) an act or omission of a solicitor or former solicitor; (b) an act or omission of an employee or former employee of a solicitor or former solicitor; (c) the exercise by the Society of any of its powers under Part 2 of Schedule 1. (2) The rules may (among other things) make provision— (a) as to the circumstances in which such grants may and may not be made; (b) as to the form and manner in which a compensation claim is to be made; (c) as to the procedure for determining compensation claims; (d) for the making of grants in respect of a compensation claim before it is finally determined; (e) for a grant to be made by way of loan in such circumstances and on such terms as may be prescribed in, or determined in accordance with, the rules; (f) for a grant to be made by way of making good a deficiency in monies held in trust by the Society under paragraph 6 or 6A of Schedule 1; (g) as to the minimum and maximum grants payable in respect of a compensation claim (or a claim of a prescribed description); (h) for the Society to be subrogated, to such extent as may be prescribed, to any rights and remedies of a person to whom a grant is made in relation to the loss in respect of which the grant is made. (3) The circumstances which may be prescribed by virtue of subsection (2)(a) include in particular— (a) the nature of the loss; (b) in a case within subsection (1)(a) or (b), the nature of the act or omission. (4) For the purposes of subsection (2)(f), there is a deficiency if the monies mentioned in that subsection are insufficient to satisfy the claims of all persons with a beneficial interest in the monies. (5) The Society may prepare and publish guidance as to the criteria it will apply in deciding whether to make a grant in respect of a compensation claim, or any part of a compensation claim. (6) Where the Society decides— (a) not to make a grant in respect of a compensation claim or any part of a compensation claim, or (b) to make a grant of less than the amount claimed, it must give reasons for its decision. (7) Rules under subsection (1) which are not regulatory arrangements within the meaning of the Legal Services Act 2007 are to be treated as such arrangements for the purposes of that Act. (8) In this section— ““compensation claim”” means a claim for the Society to make a grant of the kind mentioned in subsection (1); ““prescribed”” means prescribed in rules under subsection (1). 36A Compensation funds (1) Compensation rules may require or authorise the Society to establish or maintain a fund or funds (““compensation funds””) for the purpose of making grants in respect of compensation claims. (2) Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules. (3) Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society. (4) Subsection (2) does not apply to a solicitor who is a Crown Prosecutor. (5) The Society may invest any money which forms part of a compensation fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act). (6) The Society may insure with authorised insurers, in relation to compensation funds, for such purposes and on such terms as it considers appropriate. (7) The Society may, in such circumstances and subject to such conditions as may be prescribed in or determined in accordance with compensation rules— (a) borrow for the purposes of a compensation fund; (b) charge investments which form part of a compensation fund as security for borrowing by the Society for the purposes of that fund. (8) A compensation fund may be applied by the Society for the purposes mentioned in subsection (9) (in addition to the making of grants in respect of compensation claims). (9) The purposes are— (a) payment of premiums on insurance policies effected under subsection (6); (b) repayment of money borrowed by the Society for the purposes of the fund and payment of interest on any money so borrowed; (c) payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting administering or applying the fund; (d) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Part 2 of Schedule 1; (e) payment of any costs or damages incurred by the Society, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers. (10) In this section— ““compensation claim”” has the same meaning as insection 36; ““compensation fund”” has the meaning given bysubsection (1); ““compensation rules”” means rules under section 36(1).”””” 449: Schedule 16, page 229, line 18, after ““(4A)”” insert— ““In relation to an appeal under subsection (3) the High Court may make such order as it thinks fit as to payment of costs. (4B) ”” 450: Schedule 16, page 229, line 25, leave out ““or a registered European lawyer”” 451: Schedule 16, page 229, line 31, leave out ““or registered European lawyer”” 452: Schedule 16, page 229, leave out lines 44 and 45 453: Schedule 16, page 229, line 47, leave out ““or registered European lawyer”” 454: Schedule 16, page 230, leave out lines 6 to 13 455: Schedule 16, page 230, line 17, leave out ““or registered European lawyer”” 456: Schedule 16, page 230, line 19, leave out ““or registered European lawyer”” 457: Schedule 16, page 230, line 27, after ““body”” insert ““or manager or employee of such a body”” 458: Schedule 16, page 230, line 35, at end insert— ““(2A) The Society may make regulations prescribing charges to be paid to the Society by persons who are the subject of an investigation by the Society as to whether there are grounds for the Society— (a) to make an order under subsection (2), or (b) to make an application to the Tribunal for it to make such an order. (2B) Regulations under subsection (2A) may— (a) make different provision for different cases or purposes; (b) provide for the whole or part of a charge payable under the regulations to be repaid in such circumstances as may be prescribed by the regulations. (2C) Any charge which a person is required to pay under regulations under subsection (2A) is recoverable by the Society as a debt due to the Society from the person.”””” 459: Schedule 16, page 230, line 41, leave out from ““body”” to end of line 48 and insert ““has the same meaning as it has in relation to a body in the Legal Services Act 2007 (see section 197 of that Act);”” 460: Schedule 16, page 231, leave out lines 3 to 6 461: Schedule 16, page 231, line 13, leave out ““paragraph”” and insert ““section”” 462: Schedule 16, page 231, line 14, leave out ““section 71 of the Legal Services Act 2007”” and insert ““Part 5 of the Legal Services Act 2007 (see sections 71 and 107 of that Act)”” 463: Schedule 16, page 231, line 16, leave out paragraph (a) and insert— ““(a) for subsection (1) substitute— ““(1) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(a)— (a) to seek or accept any employment or remuneration from a solicitor in connection with the practice carried on by that solicitor, without previously informing the solicitor of the order; (b) to seek or accept any employment or remuneration from a recognised body, or a manager or employee of a recognised body, in connection with that body’s business, without previously informing the body, or manager or employee, of the order. (1A) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(b) to seek or accept a position as a manager of a recognised body, without previously informing that body of the order. (1B) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(c) to seek or accept an interest in a recognised body from any person, without previously informing that person and (if different) the recognised body of the order. (1C) A person guilty of an offence under subsection (1), (1A) or (1B) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.””,”” 464: Schedule 16, page 231, line 28, leave out from ““section”” to end of line 29 and insert ““— ““manager”” has the same meaning as in section 43; ““recognised body”” means a body recognised under section 9 of the Administration of Justice Act 1985; and for the purposes of subsection (1B) a person seeks or accepts an interest in a recognised body if the person seeks or accepts an interest which if it were obtained by the person would result in the person having an interest in shares in that body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 71 and 107 of that Act).”””” 465: Schedule 16, page 231, line 33, at end insert ““, and (d) after ““possession”” insert ““or under the control””.”” 466: Schedule 16, page 232, line 1, leave out ““fee”” and insert ““charge”” 467: Schedule 16, page 232, line 4, leave out ““fee”” and insert ““charge”” On Question, amendments agreed to. [Amendment No. 467A not moved.]