Part 2

Regulation of licensed legal services
Chapter 1

Approved regulators

Practice rules

Practice rules: general
18
1
For the purposes of this Part, the practice rules are rules about—
a
the—
i
operation and administration of licensed providers,
ii
standards to be met by licensed providers,
b
the operational positions within licensed providers,
c
accounting and auditing (see section 22),
d
professional indemnity (see section 23),
e
the making and handling of any complaint about—
i
a licensed provider,
ii
a designated or other person within a licensed provider,
f
the measures that may be taken by the approved regulator, in relation to a licensed provider, if—
i
there is a breach of the regulatory scheme, or
ii
a complaint referred to in paragraph (e) is upheld.
2
Rules made in pursuance of subsection (1)(f) must allow a licensed provider to make representations to the approved regulator before it takes any of the measures available to it under the rules.
3
Practice rules may include such further arrangements as to the professional practice, conduct or discipline of licensed providers for which provision is (in the approved regulator's opinion) necessary or expedient.
4
See also sections 55(6)(a), 57(5) and 65(4) (as well as sections 19 to 23).

Financial sanctions
19
1
Practice rules made in pursuance of section 18(1)(f) may provide for the imposition of a financial penalty.
2
A financial penalty provided for by virtue of subsection (1) must not exceed the maximum amount permitted by the Scottish Ministers when giving their approval under section 7.
3
A financial penalty imposed by virtue of this section is payable to the Scottish Ministers (but the approved regulator may collect it on their behalf).
4
A licensed provider may appeal against a financial penalty (or the amount of a financial penalty) imposed on it by virtue of this section—
a
to the sheriff,
b
within the period of 3 months beginning with the date on which the penalty is intimated to it.
5
Where an appeal is made under subsection (4), no part of the penalty requires to be paid before the appeal is determined or withdrawn.

Enforcement of duties
20
1
Practice rules must include provision that it is a breach of the regulatory scheme for a licensed provider to—
a
fail to comply with section 50, or
b
fail to comply with its—
i
other duties under this Part, or
ii
duties under any other enactment specified in the scheme.
2
Practice rules must require a licensed provider to—
a
review and report on its performance (see section 21), and
b
have its performance and that report assessed by the approved regulator.

Performance report
21
1
Practice rules made by reference to section 20(2)(a) are (in particular) to give the Head of Practice of a licensed provider the functions of—
a
carrying out an annual review, and
b
sending a report (in a specified form) on the review to the approved regulator.
2
The review must include an examination of—
a
the licensed provider's compliance with section 50(1), and
b
the involvement of any non-solicitor investors in the licensed provider.
3
Practice rules made by reference to section 20(2)(b) may describe the approved regulator's functions under section 31.

Accounting and auditing
22
Practice rules must—
a
require licensed providers to keep in place proper accounting and auditing procedures,
b
include provision corresponding to that applying under sections 35 to 37 (accounts rules) of the 1980 Act in relation to an incorporated practice.

Professional indemnity
23
Practice rules must—
a
require licensed providers to keep in place sufficient arrangements for professional indemnity,
b
include provision corresponding to that applying under section 44 (professional indemnity) of the 1980 Act in relation to an incorporated practice.
S. 18 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.
S. 19 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.
S. 20 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.
S. 21 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.
S. 22 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.
S. 23 in force at 1.4.2011 by S.S.I. 2011/180, art. 3, Sch.