Legal Services (Scotland) Act 2010 Explanatory Notes

1. Introduction

2. The Act

3. Overview of the Structure of the Act

4. Commentary on Sections

   1. Part 1 – the Regulatory Objectives Etc.

      1. Section 1 – Regulatory objectives

         Section 2 – Professional principles

      2. Section 3 – Legal services

      3. Section 4 – Ministerial oversight

      4. Section 5 – Consultation by Ministers

   2. Part 2 – Regulation of Licensed Legal Services

      1. Chapter 1 – Approved Regulators

         1. Approved regulators

            1. Section 6 – Approved regulators

            2. Section 7 – Approval of regulators

            3. Section 8 – Pre-approval consideration

            4. Section 9 – Lord President’s agreement

            5. Section 10 – Authorisation to act

            6. Section 11 – Request for authorisation

         2. Regulatory schemes

            1. Section 12 – Regulatory schemes

            2. Section 13 – Reconciling different rules

         3. Licensing rules

            1. Section 14 – Licensing rules: general

               Section 15 – Initial considerations

            2. Section 16 – Other licensing rules

            3. Section 17 – Licensing appeals

         4. Practice rules

            1. Section 18 – Practice rules: general

               Section 19 – Financial sanctions

               Section 20 – Enforcement of duties

            2. Section 21 – Performance report

            3. Section 22 – Accounting and auditing

            4. Section 23 – Professional indemnity

         5. Compensation arrangements

            1. Section 24 – Choice of arrangements

            2. Section 25 – Compensation rules: general

            3. Section 26 – More about compensation arrangements

         6. Internal governance

            1. Section 27 – Internal governance arrangements

            2. Section 28 – Communicating outside

            3. Section 29 – More about governance

         7. Regulatory functions etc.

            1. Section 30 – Regulatory and representative functions

            2. Section 31 – Assessment of licensed providers

         8. Relationship with other bodies

            1. Section 32 – Giving information to SLAB

            2. Section 33 – Reporting to Law Society

            3. Section 34 – Steps open to Society

            4. Section 35 – Financial inspection by Society

         9. Performance and measures

            1. Section 36 – Review of own performance

            2. Section 37 – Monitoring by Ministers

            3. Section 38 – Measures open to Ministers

            4. Schedule 1 – Performance targets

            5. Schedule 2 – Directions

            6. Schedule 3 – Censure

            7. Schedule 4 – Financial penalties

            8. Schedule 5 – Amendment of authorisation

            9. Schedule 6 – Rescission of authorisation

         10. Ceasing to regulate

             1. Section 39 – Surrender of authorisation

             2. Section 40 – Cessation directions

             3. Section 41 – Transfer arrangements

                Section 42 – Extra arrangements

         11. Change of regulator

             1. Section 43 – Change of approved regulator

             2. Section 44 – Step-in by Ministers

         12. Additional functions etc.

             1. Section 45 – Additional powers and duties

             2. Section 46 – Guidance on functions

      2. Chapter 2 – Licensed Legal Services Providers

         1. Licensed providers

            1. Section 47 – Licensed providers

            2. Section 48 – Eligibility criteria

               Section 49 – Majority ownership

         2. Key duties and positions

            1. Section 50 – Key duties

            2. Section 51 – Head of Legal Services

            3. Section 52 – Head of Practice

            4. Section 53 – Practice Committee

         3. Appointment to position etc.

            1. Section 54 – Notice of appointment

            2. Section 55 – Challenge to appointment

            3. Section 56 – Disqualification from position

               Section 58 – Conditions for disqualification

            4. Section 57 – Effect of disqualification

         4. Designated persons

            1. Section 59 – Designated persons

               Section 61 – Listing and information

            2. Section 60 – Working context

         5. Non-solicitor investors

            1. Section 62 – Fitness for involvement

            2. Section 63 – Exemption from fitness test

            3. Section 64 – Factors as to fitness

            4. Section 65 – Ban for improper behaviour

            5. Section 66 – Behaving properly

            6. Section 67 – More about investors

         6. Discontinuance of services

            1. Section 68 – Duty to warn

            2. Section 69 – Inability to operate

            3. Section 70 – Safeguarding clients

            4. Section 71 – Distribution of client account

         7. Professional practice etc.

            1. Section 72 – Employing disqualified lawyer

            2. Section 73 – Concealing disqualification

            3. Section 74 – Pretending to be licensed

            4. Section 75 – Professional privilege

      3. Chapter 3 – Further Provision

         1. Achieving regulatory aims

            1. Section 76 – Input by the OFT

            2. Section 77 – Role of approved regulators

               Section 78 – Policy statement

         2. Complaints

            1. Section 79 – Complaints about regulators

            2. Section 80 – Levy payable by regulators

            3. Section 81 – Complaints about providers

         3. Registers and lists

            1. Section 82 – Register of approved regulators

               Section 83 – Registers of licensed providers

            2. Section 84 – Lists of disqualified persons

         4. Miscellaneous

            1. Section 85 – Privileged material

            2. Section 86 – Immunity from damages

            3. Section 87 – Appeal procedure

            4. Section 88 – Corporate offences

            5. Section 89 – Effect of professional or other rules

   3. Part 3 – Confirmation and Will Writing Services

      1. Chapter 1 – Confirmation Services

         1. Regulation of confirmation agents

            1. Section 90 – Confirmation agents and services

            2. Section 91 – Approving bodies

               Section 92 – Certification of bodies

            3. Section 93 – Regulatory schemes

            4. Section 94 – Financial sanctions

            5. Section 95 – Review of own performance

            6. Section 96 – Pretending to be authorised

         2. Other regulatory matters

            1. Section 97 – Revocation of certification

            2. Section 98 – Surrender of certification

            3. Section 99 – Register and list

         3. Ministerial functions

            1. Section 100 – Ministerial intervention

      2. Chapter 2 – Will Writing Services

         1. Regulation of will writers

            1. Section 101 – Will writers and services

            2. Section 102 – Approving bodies

               Section 103 – Certification of bodies

            3. Section 104 – Regulatory schemes

            4. Section 105 – Financial sanctions

            5. Section 106 – Review of own performance

            6. Section 107 – Pretending to be authorised

         2. Other regulatory matters

            1. Section 108 – Revocation of certification

            2. Section 109 – Surrender of certification

            3. Section 110 – Register and list

         3. Ministerial functions

            1. Section 111 – Ministerial intervention

            2. Section 112 – Step-in by Ministers

      3. Chapter 3 – Further Provision

         1. Section 113 – Regard to OFT input

         2. Section 114 – Complaints about services

         3. Section 115 – Privilege and immunity

         4. Section 116 – Appeals procedure

         5. Section 117 – Corporate offences

         6. Section 118 – Consequential modification

   4. Part 4 – the Legal Profession

      1. Chapter 1 – Applying the Regulatory Objectives

         1. Section 119 – Application by the profession

      2. Chapter 2 – Faculty of Advocates

         1. Section 120 – Regulation of the Faculty

         2. Section 121 – Professional rules

         3. Section 122 – Particular rules

      3. Chapter 3 – Solicitors and Other Representatives

         1. Removal of practising restrictions

            1. Section 123 – Licensed providers as qualified persons

            2. Section 124 – Practice rules for licensed providers

            3. Section 125 – Citizens advice bodies

         2. Lay representation

            1. Section 126 – Court of Session Rules

            2. Section 127 – Sheriff court rules

         3. Guarantee Fund

            1. Section 128 – Use of Guarantee Fund

            2. Section 129 – Contributions to the Fund

            3. Section 130 – Cap on individual claims

         4. The Law Society

            1. Section 131 – Acting as an approved regulator

            2. Section 132 – Council membership

            3. Section 133 – Regulatory committee

         5. The 1980 Act: further modification

            1. Section 134 – Keeping the solicitors roll etc.

            2. Section 135 – Removal from the roll etc.

            3. Section 136 – Restoration to the roll

            4. Section 137 – Suspension from practice

            5. Section 138 – Accounts rules fee

            6. Section 139 – Powers of Tribunal

      4. Chapter 4 – Other Bodies

         1. Scottish Legal Aid Board

            1. Section 140 – Exclusion from giving legal assistance

            2. Section 141 – Availability of legal services

            3. Section 142 – Information about legal services

         2. Scottish Legal Complaints Commission

            1. Section 143 – Relevant practitioners

            2. Section 144 – Minor amendments

            3. Section 145 – The 2007 Act: Further provision

   5. Part 5 – General

      1. Section 147 – Further modification

5. Parliamentary History