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Legal Services Act 2007

Section 66: The Board’s power to recommend orders made under section 62

168.This group of sections make provision for the Board to be able to act as an approved regulator in relation to any one or more of the reserved legal activities. Section 62 provides that the Lord Chancellor may, by order:

  • designate the Board as an approved regulator in relation to one or more reserved legal activities;

  • modify the functions of the Board, with a view to enabling the Board to discharge its functions as an approved regulator effectively and efficiently; and

  • cancel the Board’s designation as an approved regulator in relation to one or more reserved legal activity.

169.Such an order may also modify other legislation as appears necessary or expedient to the Lord Chancellor (see section 62(5)). If the Board is designated by such an order, it must take the necessary action to ensure an appropriate financial and organisational separation between its functions as approved regulator and its other activities.

170.The Lord Chancellor’s power to make such an order is exercisable only if the Board has made a recommendation for such an order; and it may not be used so as make an order which differs materially from that recommended (section 62(2)). Section 66 makes provision about the Board’s recommendations for orders under section 62. The Lord Chancellor is not bound to accept a recommendation, but must provide the Board with a notice stating reasons for refusal and must publish that notice (section 62(3)).

171.Section 63 provides that the Board may be designated as an approved regulator only in instances where an approved regulator’s designation has been cancelled, or where the activity in question is a new reserved legal activity. By virtue of section 63(3), the Board may be designated as an approved regulator in advance of either of these eventualities. The order designating the Board must also ensure that the Board acting as approved regulator is separate from the Board acting in its “general” capacity so that the Board as approved regulator may only make or modify its regulatory arrangements with the approval of the Board in its general capacity.

172.Section 64 specifies some of the powers that may be conferred on the Board by an order made under section 62(1)(b) modifying the Board’s functions in order to enable it to fulfil its role as an approved regulator more effectively.

173.Section 65 makes provision regarding the cancellation of the Board’s designation as an approved regulator. In such cases, sections 46 and 47 which provide for “transfer arrangements”) will apply in relation to the Board and persons authorised by it as they apply to an approved regulator whose designation is cancelled under section 45, and to persons authorised by that regulator.

174.Section 66 sets out the procedure that the Board must follow before making a recommendation for an order under section 62.

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