Legal Services Bill [HL]

moved Amendment No. 628: 628: Clause 196, page 108, line 22, at end insert— ““( ) paragraph A2 of Schedule 22 (transitory power to modify functions of designated regulators etc).”” The noble Baroness said: My Lords, I shall also speak to Amendments Nos. 636, 648, 651A, 654A and 654B. The amendments in this group share the common objective of ensuring that the transition to the new regulatory framework is not hindered by undue delay. As noble Lords will know, it will be some time before the board is fully established and the entire regime in place. That should not prevent us making progress in the mean time. Amendment No. 648 creates a provision which enables changes to be made to the statutory functions of designated regulators; that is, bodies which will become approved regulators when the provisions come into force. This will cover the period before the board comes into existence and is able to recommend orders under Clause 68 for this purpose. I am introducing this amendment in response to an amendment tabled in Committee by the noble Lord, Lord Kingsland. That amendment was not moved due to lack of time, but as I indicated in letters to your Lordships on 22 March 2007, I was prepared to consider it. Having given this further thought, I am persuaded that the noble Lord’s proposals in this regard are valid. I hope that these government amendments achieve the outcome that the noble Lord was seeking. As noble Lords will know, one of the key aims of the Government has been to ensure that any changes needed to enable approved regulators to operate efficiently and effectively under the new regulatory arrangements are not unduly delayed by inflexible arrangements. Against that backdrop, I can well conceive that statutory bodies will need to adapt certain aspects of their regulatory framework at some point before the board comes into being. This power will allow this, placing them as far as possible on an equal footing with non-statutory bodies such as the Bar Council during the transitional period. The proposed new clause is modelled in principle on Clause 68. It will enable the Lord Chancellor to make an order to modify the functions of designated regulators during a transitional period, provided that the change in question is for one of the stated purposes, which are effectively the same as those in Clause 68. The Lord Chancellor may act only in accordance with a request from a designated regulator. He must publish the proposed changes and consult the Lord Chief Justice and the Office of Fair Trading. He may also consult the Legal Services Consultative Panel and any other persons as appropriate, and must have regard to advice and representations. As with Clause 68, the final order will be subject to Parliament under the affirmative procedure. The purpose of the second set of amendments in this group is to ensure smooth transition by enabling the LSB to carry out its initial functions without waiting until the chief executive is in place. It is particularly important for the Office of Legal Complaints to be appointed at the earliest opportunity so that it can begin the work necessary for implementation, including the production of its scheme rules. Should the LSB have to wait until it has appointed its chief executive before it can proceed to appoint the OLC, it could delay the implementation up to nine months. This would be of real detriment. Similarly, it is important that the LSB is able to issue supervisory directions to the interim chief executive of the OLC at the earliest opportunity. The LSB chairing board should be able to oversee the work of the interim chief executive, be aware and kept informed of the activities taking place, and issue directions accordingly. I beg to move.