Part 1

Regulatory framework
Chapter 1

Objectives, principles and key definitions

Overview of Part

Overview of the regulatory framework
1
1
Chapter 1 makes provision in respect of—
a
the objectives of regulating legal services and how they are to be applied (see sections 2 and 3),
b
the professional principles (see section 4),
c
defining key expressions for the purposes of this Act (see sections 5 and 6).
2
Chapter 2 makes provision in respect of regulators of legal services, which includes—
a
establishing two categories of regulator and assigning the existing regulators to one of those categories (see section 7),
b
setting the requirements for a category 1 regulator, which include—
i
having an independent regulatory committee (where necessary) which is responsible for exercising its regulatory functions (see sections 8 to 11),
ii
preparing an annual report (see section 12),
iii
having a compensation fund (see section 13),
c
setting the requirements for a category 2 regulator, which include—
i
exercising its regulatory functions independently of any other functions it has and properly in all respects (see section 14),
ii
preparing an annual report (see section 15),
d
requiring both category 1 and category 2 regulators to—
i
maintain a publicly available register of the legal services providers that it regulates (see section 16), and
ii
have rules in respect of professional indemnity insurance (see section 17),
e
setting out the role and powers of the Lord President in respect of regulators and the regulatory framework (see sections 18 and 19 and schedule 2),
f
conferring power on regulators to make special rule changes in relation to a particular legal services provider where it is appropriate to do so (see sections 20 to 22).
3
Paragraph 40 of schedule 3 provides for category 1 regulators to be subject to the Freedom of Information (Scotland) Act 2002 in respect of the exercise of their regulatory functions.
4
Chapter 3 makes provision about the process for a body to become accredited to authorise persons and acquire and exercise rights to provide legal services, which includes—
a
applications and the application process (see sections 23 and 26),
b
requiring the applicant to produce a draft regulatory scheme, which must meet certain requirements (see section 24),
c
the manner in which applications are to be considered and approved (see sections 27 and 28),
d
how any rights acquired by persons authorised by the accredited regulator are to be exercised (see section 29),
e
how the rights may be surrendered or revoked (and what happens to the providers affected) (see sections 30, 34 and 35),
f
the review of regulatory schemes (see sections 32 and 33).
5
Part 1 of schedule 1 makes amendments to enactments relating to the Law Society in consequence of the Society being a category 1 regulator and Part 1 of schedule 3 makes other consequential amendments relating to the Society.

Regulatory objectives

Regulatory objectives
2
1
The objectives of regulating legal services are—
a
to support the constitutional principles of the rule of law and the interests of justice,
b
to protect and promote the interests of consumers and the wider public interest,
c
to promote—
i
access to justice,
ii
an independent, strong and diverse legal profession,
iii
quality, innovation and competition in the provision of legal services,
iv
effective communication between regulators and legal services providers, and
v
effective communication between regulators and bodies that represent the interests of consumers, and
d
for those regulating legal services to—
i
use and promote best practice in relation to assessing and improving the quality of regulation and compliance with applicable legislation and rules,
ii
adhere to the regulatory principles described in section 3(4), and
iii
promote and maintain adherence to the professional principles.
2
In this Act, the “regulatory objectives” are the objectives described in subsection (1).

Application of the regulatory objectives
3
1
A regulatory authority must so far as practicable exercise its regulatory functions (see section 6) in a manner which—
a
is compatible with the regulatory objectives, and
b
it considers most appropriate to meet those objectives.
2
For the purpose of section 2(1)(b) and (c), a regulatory authority must take into account the principles that—
a
a consumer should have access to a range of legal services that are affordable and suited to the consumer’s needs,
b
a consumer should receive sufficient information about the consumer’s rights and the services that are available,
c
a consumer should be treated fairly at all times,
d
a consumer should be able to access a means of redress when services are not of a suitable standard, and
e
the views of consumers should be understood and taken into account.
3
Without limit to the generality of section 2(1)(c)(ii), a regulatory authority must encourage equal opportunities (as defined in Section L2 of Part 2 of schedule 5 of the Scotland Act 1998).
4
For the purpose of section 2(1)(d)(ii), the regulatory principles are—
a
that regulatory functions should be—
i
exercised in a way that is transparent, accountable, proportionate and consistent, and
ii
targeted only at cases in which action is needed, and
b
that regulatory functions should be exercised in a way that contributes to achieving sustainable economic growth, except to the extent that it would be inconsistent with the regulatory objectives to do so.
5
For the purpose of this section, the regulatory authorities are—
a
the Court of Session,
b
the Lord President,
c
the Commission,
d
the Scottish Solicitors’ Discipline Tribunal,
e
each category 1 and category 2 regulator, and
f
each approved regulator of licensed providers.

Professional principles

Professional principles
4
1
A person providing legal services should—
a
support the proper administration of justice,
b
act with independence (in the interests of justice),
c
act with integrity,
d
act in the best interests of the person’s clients (and keep clients’ affairs confidential),
e
maintain good standards of work,
f
where—
i
exercising a right of audience before any court, or
ii
conducting litigation in relation to proceedings in any court,
comply with such duties as are normally owed to the court by such persons,
g
meet the person’s obligations under any relevant professional rules,
h
act in conformity with professional ethics.
2
In this Act, the “professional principles” are the principles described in subsection (1).

Meaning of key expressions

Meaning of “legal services” and “legal services provider”
5
1
For the purposes of this Act, legal services are services which consist of (at least one of)—
a
the provision of legal advice or assistance in connection with—
i
any contract, deed, writ, will or other legal document,
ii
the application of the law, or
iii
any form of resolution of legal disputes,
b
the provision of legal representation in connection with—
i
the application of the law, or
ii
any form of resolution of legal disputes.
2
But, for those purposes, legal services do not include—
a
judicial activities,
b
any other activity of a judicial nature,
c
any activity of a quasi-judicial nature, or
d
any activity which involves acting as a third party decision-maker or facilitator in a type of alternative dispute resolution.
3
In subsection (1)(a)(iii) and (b)(ii), “legal disputes” includes disputes as to any matter of fact the resolution of which is relevant to determining the nature of any person’s legal rights or obligations.
4
In this Act, “legal services provider” means a person or body that provides legal services (whether or not directly to the public and whether or not the person’s provision of such legal services is regulated).

Meaning of regulatory functions
6
For the purposes of this Act, a reference to the regulatory functions of a regulatory authority is a reference to its functions of regulating legal services providers in relation to any matter of professional practice, conduct or discipline including, as appropriate—
a
setting standards for admission or authorisation and the ongoing training of its providers,
b
handling complaints about its providers,
c
making regulatory rules under any relevant enactment, and
d
complying with the requirements imposed on the regulatory authority under this Act (for example, in relation to keeping a register of its providers) and, if applicable, Part 2 of the 2010 Act.
Chapter 2

regulators

Regulatory categories

Regulatory categories
7
1
For the purposes of this Act, a regulator of legal services providers is subject to different requirements according to whether it is—
a
assigned as—
i
a category 1 regulator,
ii
a category 2 regulator, or
b
in relation to licensed legal services providers, an approved regulator of such providers (for which, see Part 2 of the 2010 Act).
2
The Law Society of Scotland is assigned as a category 1 regulator.
3
The Faculty of Advocates (acting on behalf of the Court of Session) and the Association of Construction Attorneys are assigned as category 2 regulators.
4
A body that has been approved under section 28 as an accredited regulator is, until such time as the Scottish Ministers make regulations under subsection (6) of that section, deemed to be assigned as a category 2 regulator.
5
The Scottish Ministers may by regulations amend this section to—
a
reassign a body that is for the time being mentioned in this section to a different regulatory category, but only if the body is—
i
an accredited regulator, or
ii
a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act,
b
add a body which is approved under section 28 as an accredited regulator and assign its regulatory category,
c
remove a body that has ceased to be a regulator,
d
update the name or description of a regulator.
6
When considering whether a regulator should be assigned (or reassigned) as a category 1 or a category 2 regulator, the Scottish Ministers must have regard to—
a
the type and range of legal services that are (or are to be) regulated,
b
whether the legal services are (or are to be) provided directly to members of the public, and
c
the number of legal services providers that the regulator regulates (or is likely to regulate).
7
Regulations under subsection (5) are subject to the affirmative procedure.
8
But the Scottish Ministers may exercise the power to make regulations under subsection (5)(a) only following, and in accordance with, a request to exercise the power received from the Lord President.
9
Before making a request referred to in subsection (8), the Lord President—
a
must consult—
i
the body whose category the Lord President is proposing to be reassigned,
ii
the independent advisory panel of the Commission,
iii
the other category 1 and category 2 regulators, and
iv
each approved regulator of licensed providers (if not otherwise consulted), and
b
may consult—
i
the Scottish Ministers, and
ii
such other person or body as the Lord President considers appropriate.
10
A request under subsection (8) must include—
a
a document setting out the reasons for the request, and
b
copies of any written representations received in response to the consultation under subsection (9).
11
As soon as reasonably practicable after making a request under subsection (8), the Lord President must publish the documents included with the request in such manner as the Lord President considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
12
For the purposes of subsection (1), “regulator” means—
a
the Law Society,
b
the Faculty of Advocates,
c
an approved regulator of licensed providers,
d
an accredited regulator, or
e
a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act.

Requirements of category 1 regulators

Exercise of regulatory functions
8
1
A category 1 regulator must exercise its regulatory functions—
a
independently of its other functions or activities (if any),
b
properly in all respects (in particular, with a view to achieving public confidence).
2
Where a category 1 regulator has functions other than regulatory functions, it must—
a
establish and maintain a regulatory committee to discharge its regulatory functions,
b
ensure that the governing body of the regulator does not interfere with the committee’s discharge of those functions,
c
when consulted on a matter relating to its regulatory functions, delegate responsibility for responding to the committee (in so far as the matter relates to those functions).
3
A category 1 regulator must—
a
consult its regulatory committee before making decisions affecting the committee’s funding and resources, and
b
ensure that the committee is adequately funded and resourced to be able to discharge its functions.
4
A regulatory committee—
a
must (in accordance with this Act or any other enactment) determine its composition, governance arrangements and priorities,
b
may arrange for the exercise of its functions by a sub-committee or an individual (which may be a member of staff of the regulator).
5
But, an arrangement under subsection (4)(b)—
a
may not delegate—
i
the regulatory committee’s function of making regulatory rules under this Act or any other enactment,
ii
to an individual, the committee’s function of determining what action it proposes to take in respect of a conduct or regulatory complaint remitted under section 6 or 7A of the 2007 Act or, as the case may be, initiated in accordance with section 33A or 33B of that Act, and
b
does not affect or limit the regulatory committee’s—
i
responsibility for the exercise of the delegated functions, or
ii
ability to exercise those functions.
6
A regulatory committee must maintain and publish a document setting out its—
a
composition, membership and governance arrangements,
b
regulatory functions (including powers and duties) and procedures,
c
arrangements (if any) for the delegation of functions.
7
A regulatory committee of a category 1 regulator must consult the governing body of the regulator before making any material change to its governance arrangements.
8
Except where provided for in an enactment, the governing body and regulatory committee of a category 1 regulator are to agree arrangements for resolving any disputes that may arise between them.
9
In this Part, a reference to the governing body of a category 1 regulator is a reference to the group of persons (however described) who are responsible for the direction, management and control of the regulator and the exercise of its statutory functions.

Regulatory committee: composition and membership
9
1
It is for the regulatory committee of a category 1 regulator to appoint its members.
2
But a category 1 regulator may appoint members to its regulatory committee if, at the time of appointment, the regulatory committee is unable to do so (for example, if it is appointing the members of the first regulatory committee).
3
A member of a regulatory committee—
a
may be a person regulated by the regulator as a legal services provider, but
b
must not be, or have been for at least two years, involved in the governing body of the regulator or the exercise of the regulator’s non-regulatory functions.
4
A person may not be a member of the regulatory committee if the person—
a
has had a right to practise (in law or otherwise) removed as a result of a finding of misconduct by a professional or disciplinary body,
b
is suspended from practising (in law or otherwise) by a professional or disciplinary body,
c
is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)), or
d
has been convicted of an offence involving dishonesty.
5
The regulatory committee may determine that a person may not be a member of the regulatory committee if the person has been convicted of an offence other than one referred to in subsection (4)(d).
6
At least 50% of the members of a regulatory committee (and any sub-committee of it) of a category 1 regulator are to be lay members (see section 10).
7
The regulatory committee may co-opt persons who are not members of the regulatory committee (subject to subsections (3)(b) and (4)).
8
The validity of any proceedings of a regulatory committee (or any subcommittee of it) is not affected by a vacancy in membership.
9
For the purpose of subsection (4), a professional or disciplinary body is a body which, in the opinion of the category 1 regulator, regulates the provision of professional services (such as law or accountancy) by means of requiring persons who wish to provide those services to meet certain standards and criteria and adhere to rules governing acceptable practice and conduct.
10
A category 1 regulator must publish guidance in respect of how it applies subsection (4) in such a manner as to bring it to the attention of persons who are likely to be interested in the membership of its regulatory committee.

Regulatory committee: lay and legal members
10
1
To be appointable as a lay member of a regulatory committee, a person must meet the criteria in subsections (2) and (3).
2
The person must appear to the regulatory committee (or, in a case where the committee is unable to do so, the category 1 regulator) to be—
a
qualified to represent the interests of the public in relation to the provision of legal services in Scotland, or
b
having regard to the regulator’s regulatory functions, suitable in other respects.
3
The person must not be, and must not have been for at least 10 years, eligible for appointment as a legal member.
4
A person may be appointed as a legal member of a regulatory committee only if the person is (any of)—
a
a solicitor or a person training to become a solicitor in accordance with regulations made under section 5 of the 1980 Act,
b
an advocate or a person who has matriculated as an intrant with a view to becoming an advocate,
c
a conveyancing or executry practitioner as defined in section 23 of the 1990 Act,
d
a person who has acquired a right to provide legal services by virtue of Chapter 3 (or under section 27 of the 1990 Act),
e
regulated or represented by—
i
a regulatory body authorised by the Legal Services Board established under section 2 of the Legal Services Act 2007 with the exception of those authorised to regulate chartered accountants,
ii
the Law Society of Northern Ireland,
iii
the Bar of Northern Ireland.

Regulatory committee: convener, sub-committees and minutes
11
1
The regulatory committee of a category 1 regulator is to appoint one of its lay members as its convener.
2
If the convener is not present at a meeting of the committee, another of its lay members is to chair the meeting.
3
A sub-committee of the regulatory committee may—
a
be chaired by a person other than a lay member,
b
co-opt persons who are not members of the regulatory committee (subject to section 9(3)(b) and (4)),
c
with the approval of the regulatory committee, arrange for the exercise of any function, other than the function described in section 8(5)(a)(ii), by an individual (which may be a member of staff of the regulator).
4
On the request of any person for a copy of the minutes of a meeting of the regulatory committee of a category 1 regulator, the committee must, if the request is reasonable, give the person a copy of those minutes within the period of 28 days beginning with the day of the request.
5
Where a request for a copy of minutes is made under subsection (4), the regulatory committee—
a
may withhold information contained in the minutes, and
b
if it does so, must inform the person requesting a copy of the minutes of its reasons for doing so.

Annual reports of category 1 regulators
12
1
A category 1 regulator or, where section 8(2) applies, its regulatory committee, must prepare a report on the exercise of its regulatory functions as soon as practicable after the end of each reporting year.
2
The report must include—
a
information demonstrating how the category 1 regulator or, where section 8(2) applies, its regulatory committee, is complying with the regulatory objectives,
b
information as to how the regulator or, where section 8(2) applies, its regulatory committee, is carrying out its regulatory functions,
c
a statement on the strategic priorities of the regulator or, where section 8(2) applies, its regulatory committee, for the next reporting year in relation to its regulatory functions,
d
a copy of the regulator’s or, where section 8(2) applies, its regulatory committee, annual accounts (in so far as they are relevant to the carrying out of regulatory functions),
e
a summary of decisions to pay out from the compensation fund, including details on—
i
how decisions on claims are made,
ii
the criteria for making decisions,
iii
the average length of time it has taken to make a payment following the making of a claim,
iv
the proportion of claims that have been paid out, whether in part or in full, compared to the number of claims made,
f
information, in relation to legal services providers that the regulator regulates, about—
i
the number of conduct complaints remitted (or treated as having been remitted) to it under the 2007 Act, and the number of those complaints that are determined, discontinued or reinstated by it or, where section 8(2) applies, its regulatory committee,
ii
the number of regulatory complaints remitted (or treated as having been remitted) to it under the 2007 Act, and the number of those complaints that are determined, discontinued or reinstated by it or, where section 8(2) applies, its regulatory committee,
g
information on any measures taken or financial penalties imposed by the regulator on legal services providers that it regulates as a result of complaints remitted (or treated as having been remitted) to it under the 2007 Act (including information as to compliance with the measures and the actions taken to enforce them),
h
information about directions (if any) given under section 20, including—
i
the number of directions given in pursuance of each of the purposes in section 20(3),
ii
a summary of which types of rules are being disapplied or modified (and how frequently they are being disapplied or modified),
iii
any trends in the kinds of directions that were applied for, rejected or granted,
iv
the changes in such trends (if any) from the previous report,
i
where the Commission has given a direction in relation to the handling of complaints, details of how the regulator or, where section 8(2) applies, its regulatory committee, has complied with it,
j
where the Commission has given a direction in relation to the compensation fund, details of how the regulator or, where section 8(2) applies, its regulatory committee, has complied with it,
k
details of steps taken by the regulator or, where section 8(2) applies, its regulatory committee, to ensure compliance with any measures taken under section 19 by the Lord President,
l
except in the case where the regulator is the Law Society, a statement indicating whether the regulator or, where section 8(2) applies, its regulatory committee, considers the category which it has been assigned is appropriate for the purposes of section 7 (having regard to section 7(6)).
3
Where section 8(2) applies—
a
the category 1 regulator must make available to its regulatory committee such information as the committee may require to prepare an annual report under this section,
b
the report must include such information as the committee considers relevant about—
i
the committee’s internal governance arrangements, and
ii
the relationship between the committee and the regulator’s governing body, and
c
the regulatory committee must involve the governing body of the regulator in the preparation of the report.
4
When preparing an annual report, a category 1 regulator, or where section 8(2) applies, its regulatory committee must consult the independent advisory panel of the Commission.
5
A category 1 regulator, or where section 8(2) applies, its regulatory committee, must—
a
publish its annual report by such electronic means as the regulator (or regulatory committee) considers appropriate, and
b
send a copy of its annual report to the Lord President,
as soon as practicable after the end of the reporting year to which the annual report relates.
6
In this section—
- “conduct complaint” is to be construed in accordance with Part 1 of the 2007 Act,
- “regulatory complaint” is to be construed in accordance with Part 1 of the 2007 Act,
- “reporting year” means, in relation to a category 1 regulator, a 12 month period that coincides with the regulator’s financial year.

Compensation funds
13
1
A category 1 regulator must establish and maintain a fund for the purpose of making grants to compensate persons who suffer financial loss by reason of dishonesty by a legal services provider regulated by the regulator (or a provider it regulated at the time the dishonesty occurred).
2
Where section 8(2) applies, the fund must be under the management and control of the regulatory committee.
3
It is for the category 1 regulator or, where section 8(2) applies, its regulatory committee, to determine whether to make payments from the fund.
4
A category 1 regulator or, where section 8(2) applies, its regulatory committee must have rules in relation to the fund which—
a
state the minimum monetary amount to be contained in the fund,
b
describe the way in which the fund is administered,
c
specify the criteria for a grant being made from the fund, which may include—
i
limiting the claims that may be made by a person in respect of an act of dishonesty by a legal services provider,
ii
making payments from the fund to other persons (such as judicial factors) in connection with mitigating risks to the clients of a provider arising through the actions of the provider,
d
provide the procedures for making and determining a claim,
e
require the making of contributions to that fund by the legal services providers it regulates,
f
make provision for the destination or distribution of the fund in the event that the regulator ceases to operate.
5
The rules for the fund may also include such further provision as the category 1 regulator or, where section 8(2) applies, its regulatory committee considers necessary or expedient for the operation of the fund.
6
Before making or amending rules in pursuance of subsection (4), the category 1 regulator, or where section 8(2) applies, its regulatory committee must consult the independent advisory panel of the Commission.
7
Where section 8(2) applies, when making or amending rules in pursuance of subsection (4), the regulatory committee of a category 1 regulator must have regard to the views of the governing body of the regulator.
8
The Scottish Ministers may by regulations make further provision in connection with funds established under this section and the rules a category 1 regulator or, where section 8(2) applies, its regulatory committee, must have for such funds.
9
The Scottish Ministers may exercise the power to make regulations under subsection (8) only if they have received a request to exercise the power from—
a
the Lord President,
b
the regulatory committee of a category 1 regulator,
c
a category 1 regulator that has no functions other than regulatory functions, or
d
the independent advisory panel of the Commission.
10
Before making a request under subsection (9), the person making the request (“the requester”) must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions,
iii
the independent advisory panel of the Commission, and
iv
such other person or body as the requester considers appropriate, and
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
11
But a body mentioned in subsection (10)(a)(i) to (iii) does not need to be consulted if the body is the requester.
12
For the purpose of seeking the Lord President’s agreement under subsection (10)(b), the requester must provide to the Lord President—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change, and
b
copies of any written representations received in response to the consultation under subsection (10)(a).
13
A request under subsection (9) must include—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (10)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
14
As soon as reasonably practicable after making a request under subsection (9), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
15
Regulations under subsection (8) are subject to the affirmative procedure.

Requirements of category 2 regulators

Exercise of regulatory functions
14
1
A category 2 regulator must exercise its regulatory functions—
a
independently of its other functions or activities (if any),
b
properly in all respects (in particular, with a view to achieving public confidence).
2
The internal governance arrangements of a category 2 regulator must incorporate such provision as is necessary with a view to ensuring that the regulator—
a
always exercises its regulatory functions in accordance with subsection (1),
b
allocates sufficient resources (financial and otherwise) to the exercise of its regulatory functions,
c
regularly reviews how effectively it is exercising its regulatory functions (in particular, by reviewing the effectiveness of its regulatory scheme).

Annual reports of category 2 regulators
15
1
A category 2 regulator must prepare a report on the exercise of its regulatory functions as soon as practicable after the end of each reporting year.
2
The report must include—
a
information demonstrating how the regulator is complying with the regulatory objectives,
b
information as to how the regulator is carrying out its regulatory functions,
c
a statement on the regulator’s strategic priorities for the next reporting year in relation to its regulatory functions,
d
a summary of the costs incurred by the regulator in carrying out its regulatory functions,
e
information, in relation to legal services providers that the regulator regulates, about the number of conduct complaints remitted (or treated as having been remitted) to it under the 2007 Act, and the number of those complaints that are determined, discontinued or reinstated by it,
f
information on any measures taken or financial penalties imposed by the regulator on the legal services providers that it regulates as a result of complaints remitted (or treated as having been remitted) to it under the 2007 Act (including information as to compliance with the measures and the actions taken to enforce them),
g
information about directions (if any) given under section 20, including—
i
the number of directions given in pursuance of each of the purposes in section 20(3),
ii
a summary of which types of rules are being disapplied or modified (and how frequently they are being disapplied or modified),
iii
any trends in the kinds of directions that were applied for, rejected or granted,
iv
any changes in such trends (if any) from the previous report,
h
where the Commission has given a direction in relation to the handling of complaints, details of how the regulator has complied with it,
i
details of steps taken by the regulator to ensure compliance with any measures taken under section 19 by the Lord President,
j
except in the case where the regulator is the Faculty of Advocates, a statement indicating whether the regulator considers the category to which it has been assigned is appropriate for the purposes of section 7 (having regard to section 7(6)).
3
When preparing an annual report, a category 2 regulator must consult the independent advisory panel of the Commission.
4
A category 2 regulator must—
a
publish its annual report by such electronic means as the regulator considers appropriate, and
b
send a copy of its annual report to the Lord President,
as soon as practicable after the end of the reporting year to which the annual report relates.
5
In this section—
- “conduct complaint” is to be construed in accordance with Part 1 of the 2007 Act,
- “reporting year” means, in relation to a category 2 regulator, a 12 month period that coincides with the regulator’s financial year.

Requirements of both category 1 and category 2 regulators

Register of regulated legal services providers
16
1
Each category 1 and category 2 regulator must establish and maintain a register of the legal services providers that it regulates which are authorised to provide legal services.
2
The register must contain—
a
in relation to each legal services provider that is an individual—
i
the name of the individual,
ii
the address of the place of business (or primary place of business) of the individual as most recently notified to the regulator by or on behalf of the legal services provider,
iii
the length of time that the individual has been regulated by the regulator in connection with providing legal services,
iv
details of any sanction resulting from disciplinary action taken against the individual, for the period of 3 years beginning with the date of its imposition,
b
in relation to each legal services provider that is not an individual—
i
the name of the body and what type of body it is (for example, a partnership),
ii
the address of its principal place of business as most recently notified to the regulator by or on behalf of the legal services provider,
iii
the length of time that the body has been regulated by the regulator in connection with providing legal services,
iv
details of any sanction resulting from disciplinary action taken against the body, for the period of 3 years beginning with the date of its imposition.
3
The register must also contain the details of any person or body that it regulates who or which—
a
is not authorised to provide legal services but is entitled to be so authorised, and
b
wishes to continue to appear in the register.
4
An entry for a legal services provider that appears in the register by virtue of subsection (3) must state that the provider is not providing legal services at that time.
5
The register may contain such other information relating to any person or body it regulates as the regulator considers appropriate.
6
During any period where a legal services provider’s authorisation to provide legal services is suspended, the entry for that provider must be removed from the register (and, if such suspension is removed, the entry must be restored).
7
The register must be accessible to, and searchable by, the public, free of charge, by such electronic means as the regulator considers appropriate.
8
In this section, a reference to a legal services provider being authorised includes a reference to—
a
a solicitor who has in force a practising certificate (within the meaning of section 4 of the 1980 Act),
b
a practising advocate (who is not suspended),
c
a legal business that is authorised to provide legal services by a category 1 regulator.

Professional indemnity insurance
17
1
Each category 1 and category 2 regulator must have rules concerning indemnity for the legal services providers it regulates against any kind of professional liability.
2
In particular, the rules may—
a
require the regulator to establish and maintain a fund or funds for the purpose of such indemnity,
b
require the regulator to take out and maintain insurance with an authorised insurer,
c
require legal services providers or any specified type or description of such providers to take out and maintain insurance with an authorised insurer.
3
Failure to comply with rules made under this section may be treated as professional misconduct or unsatisfactory professional conduct.
4
Before making or amending rules in pursuance of subsection (1), the regulator (or, where section 8(2) applies, its regulatory committee) must—
a
consult—
i
in the case where the rules are being made or amended by a regulatory committee, the governing body of the regulator, and
ii
the independent advisory panel of the Commission, and
b
obtain the agreement of the Lord President to the making of the rules or, as the case may be, the amendments.
5
In this section, an “authorised insurer” is—
a
a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of general liability insurance,
b
a person who has permission under Part 4A of that Act to effect or carry out contracts of insurance relating to accident, sickness, credit, suretyship, miscellaneous financial loss and legal expenses.
6
The definition of “authorised insurer” must be read with—
a
section 22 of the Financial Services and Markets Act 2000,
b
any relevant order under that section, and
c
schedule 2 of that Act.
7
In this section, “professional liability” means any civil liability incurred by a legal services provider (or former legal services provider) in connection with the provision of legal services or other services (in addition to legal services) that form part of the professional practice of the solicitors or qualifying individuals within the legal business (within the meaning of section 39(2)) that provides the legal services.

Powers of the Lord President in relation to regulators

Review of regulatory performance by the Lord President
18
1
If the condition in subsection (2) is met, the Lord President may review the performance of a category 1 or category 2 regulator’s regulatory functions—
a
on the Lord President’s own initiative, or
b
if the Lord President is requested to do so by—
i
the Scottish Parliament following a resolution of the Parliament that the request should be made (whether or not following consideration of the regulator’s annual report),
ii
the independent advisory panel of the Commission, or
iii
Consumer Scotland.
2
The condition is that the Lord President is concerned that the regulator is failing or is likely to fail—
a
to exercise its regulatory functions in a manner that is compatible with the regulatory objectives, or
b
to comply with the requirements imposed on the regulator under this Act or any other enactment.
3
A request for a review may be made under subsection (1)(b) by a requesting body only where the requesting body—
a
is concerned that the regulator may be failing, or may be likely to fail—
i
to exercise its regulatory functions in a manner that is compatible with the regulatory objectives, or
ii
to comply with the requirements imposed on the regulator under this Act or any other enactment, and
b
has—
i
given notice to the regulator of its reasons for proposing to make the request based on its concerns, and
ii
given the regulator a reasonable opportunity (which must be no fewer than 28 days from the date of the notice) to respond to the notice and address the requesting body’s concerns (or commit to addressing those concerns).
4
A request for a review made under subsection (1)(b)—
a
must specify each regulatory function or other function of the regulator to which the request relates, and
b
must be accompanied by—
i
a copy of the requesting body’s notice sent to the regulator under subsection (3), and
ii
either—
A
a copy of any written response (or a written summary of any verbal response) by the regulator to the notice given under subsection (3) which the requesting body considers to be insufficient to address its reasons for proposing to make a request for a review, or
B
written confirmation from the requesting body that the regulator has failed to respond to its notice given under subsection (3) within the required period for a response.
5
Reviewing the performance of a category 1 or category 2 regulator includes (in particular) doing so by reference to—
a
its compliance with the regulatory objectives,
b
the exercise of its regulatory functions,
c
its compliance with the requirements imposed on it under this Act or any other enactment,
d
the operation of its regulatory committee (if any) or other internal governance arrangements,
e
its compliance with—
i
any direction to it by the Commission under the 2007 Act, or
ii
any measures applying to it by virtue of section 19(4).
6
A category 1 or 2 regulator must—
a
provide such information about its performance of its regulatory functions as the Lord President may reasonably request (whether in connection with a review under subsection (1) or a decision as to whether to conduct such a review), and
b
do so within the period of 28 days beginning with the date of the request (or such longer period as the Lord President may allow).
7
Subsection (8) applies if—
a
the Lord President requests information from a category 1 or category 2 regulator in connection with an existing review under subsection (1) relating to the regulator, and
b
the regulator fails, without a reasonable excuse, to provide some or all of the requested information within the 28 day period mentioned in subsection (6) (or within such longer period allowed by the Lord President to respond).
8
The Lord President may add the failure to the matter (or matters) being considered as part of the existing review but, before doing so, the Lord President must notify the regulator in writing of the proposal and give the regulator an opportunity to respond within the period specified in the notice (which must be no fewer than 14 days from the date of the notice) to—
a
provide all of the information requested under subsection (6), or
b
provide a reasonable excuse for the failure to provide all of the requested information within the period specified in that subsection (or within such longer period allowed by the Lord President to respond to the notice under that subsection).
9
If the Lord President considers that any person other than a category 1 or category 2 regulator may hold information relating to the performance of a category 1 or category 2 regulator’s regulatory functions—
a
the Lord President may ask the person to confirm whether they hold such information as the Lord President may specify in the request, and
b
the person must respond to the request as soon as practicable and the response must include—
i
confirmation of whether or not the person holds the information specified in the request, and
ii
if any such information is held by the person, details of the nature of the information that is held.
10
Any person other than a category 1 or category 2 regulator who holds information relating to the performance of a category 1 or category 2 regulator’s regulatory functions must—
a
provide such of that information as the Lord President may reasonably request, and
b
do so within the period of 28 days beginning with the date of the request (or such longer period as the Lord President may allow).
11
In conducting a review under subsection (1), the Lord President must consult such persons or bodies as the Lord President considers appropriate.
12
Following a review under subsection (1), the Lord President must—
a
prepare a report detailing the Lord President’s findings and any measures the Lord President intends to take under section 19,
b
publish the report in such manner as the Lord President considers appropriate (having regard to the desirability of it being accessible to those likely to have an interest in the report), and
c
send a copy of the report to—
i
the regulator to which the review relates, and
ii
if the review was conducted following a request under subsection (1)(b), the requesting body.
13
If a request for a review is made under subsection (1)(b) and the Lord President decides not to conduct a review under subsection (1), the Lord President must inform the requesting body in writing of the reasons for the Lord President’s decision.

Measures open to the Lord President
19
1
The Lord President may, in relation to a category 1 or category 2 regulator, take one or more of the measures mentioned in subsection (4) if the Lord President considers that to be necessary following a review under section 18(1).
2
When considering whether it is necessary to take any of those measures, or a combination of them, the Lord President must take account of the effect that it may have on the regulator’s observance of the regulatory objectives.
3
Schedule 2 (to which subsection (1) is subject) makes provision concerning the measures mentioned in subsection (4) and the procedure to be followed in taking them.
4
The measures are—
a
setting performance targets,
b
directing that action be taken,
c
publishing a statement of censure,
d
making changes to the regulatory functions exercised by the regulator,
e
making changes to the way in which any of the regulatory functions of the regulator are to be exercised by it,
f
removing all of the regulatory functions exercised by—
i
an accredited regulator, or
ii
a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act.
5
The Scottish Ministers may by regulations—
a
specify other measures that may be taken by the Lord President in relation to category 1 and category 2 regulators,
b
make further provision about the measures that the Lord President may take (including for the procedures to be followed).
6
But the Scottish Ministers may exercise the power to make regulations under subsection (5) only following, and in accordance with, a request to exercise the power received from the Lord President.
7
Before making a request mentioned in subsection (6), the Lord President must consult—
a
each category 1 and category 2 regulator,
b
the independent advisory panel of the Commission, and
c
such other person or body as the Lord President considers appropriate.
8
A request under subsection (6) must include—
a
a document setting out the reasons for the request, and
b
copies of any written representations received in response to the consultation under subsection (7).
9
As soon as reasonably practicable after making a request under subsection (6), the Lord President must publish the documents included with the request in such manner as the Lord President considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
10
Regulations under subsection (5) are subject to the affirmative procedure.

Special rule changes

Power to direct special rule changes
20
1
A regulator may, on the application of a legal services provider that it regulates, direct that any rule of the regulator—
a
does not apply to the provider, or
b
applies to the provider with such modifications as may be specified in the direction.
2
A regulator may give a direction only if it is satisfied the direction is compatible with the regulatory objectives.
3
A direction may be given where the regulator considers it—
a
desirable for the purpose of enabling a new or alternative way of providing or regulating legal services to be piloted,
b
reasonable and proportionate for the purpose of—
i
avoiding a regulatory conflict,
ii
removing an unnecessary rule, or
iii
making a rule less onerous, or
c
necessary or appropriate in the circumstances.
4
A direction may not disapply or modify a requirement under this Act or any other enactment.
5
Where a regulator considers that giving a direction for the purpose described in subsection (3)(a) could have the effect of restricting, distorting or preventing competition to any significant extent, it must, before giving the direction, consult the Competition and Markets Authority on the effect of the direction.
6
A copy of a direction must be given to—
a
the legal services provider to whom the direction relates, and
b
if the direction falls within subsection (7), the Lord President.
7
A direction falls within this subsection if—
a
it disapplies or modifies such rules or types of rules as the Lord President may specify for the purpose of this section, and
b
the Lord President has notified the regulator that copies of directions relating to such rules (or types of rules) are to be given.
8
A direction—
a
must specify—
i
the day on which it comes into force, and
ii
the day on which it ceases to have effect or whether it is to have effect for an indefinite period,
b
may be subject to conditions, and
c
may make different provision for different purposes.
9
A legal services provider to whom a direction relates must inform the regulator of any change of circumstances relevant to the direction.
10
A direction ceases to have effect on whichever day is the earlier of—
a
if the direction specifies that it ceases to have effect on a particular day, that day,
b
if the direction is revoked under section 21, the day on which the revocation comes into force.
11
An application under this section must be made in such manner as the regulator may direct.
12
In this section—
- “direction” means, in relation to a regulator, a direction given (or to be given) by the regulator under subsection (1) (including as it may be amended under section 21),
- “regulator” means a category 1 or category 2 regulator or an approved regulator of licensed providers,
- “rule” means, in relation to a regulator, a rule (including a rule in a scheme) made in the exercise of the regulator’s regulatory functions.
13
A function conferred on a regulator by this section or section 21 is a regulatory function of the regulator (see also sections 3 and 6).

Powers to amend or revoke directions
21
1
A regulator may—
a
amend a direction on the application of the legal services provider to whom it relates, or
b
revoke a direction.
2
The Lord President may revoke a direction given for the purpose described in section 20(3)(a) at any time by giving notice to—
a
the regulator that gave the direction, and
b
the legal services provider to whom the direction relates.
3
Section 20(3) to (11) applies to an amendment under subsection (1) as it applies to a direction.
4
Section 20(6) and (8)(a) applies to a revocation under subsection (1) as it applies to a direction.
5
Section 20(8)(a) applies to a revocation under subsection (2) as it applies to a direction.
6
In this section, “direction” and “regulator” have the meanings given in section 20(12).

Register of directions
22
1
A regulator must establish and maintain a register of relevant directions.
2
The register must for each direction—
a
contain a copy of—
i
the direction, and
ii
any amendments to the direction, and
b
specify—
i
the day on which the direction will cease to have effect (if not revoked earlier), or
ii
whether the direction is to have effect for an indefinite period.
3
A regulator—
a
must withhold information in a document mentioned in subsection (2) if satisfied that its disclosure would or would be likely to breach the data protection legislation,
b
may withhold information in such a document if satisfied that its disclosure would or would be likely to—
i
prejudice substantially the commercial interests of any person, or
ii
breach an obligation of confidence owed by any person.
4
The register must be accessible to, and searchable by, the public, free of charge, by such electronic means as the regulator considers appropriate.
5
In this section—
- “the data protection legislation” has the meaning given by section 3(9) of the Data Protection Act 2018,
- “regulator” has the meaning given by section 20(12),
- “relevant direction” means, in relation to a regulator, a direction given by the regulator under section 20(1) for the purpose described in section 20(3)(a) that is still in force.
Chapter 3

New regulators of legal services

Applications

Right to provide legal services
23
1
A body may apply to the Lord President for the purpose of the body being accredited to—
a
authorise persons to exercise (any or all of) the rights listed in subsection (2), and
b
regulate those persons’ exercise of the acquired rights.
2
The rights are—
a
the right to conduct litigation on behalf of members of the public,
b
rights of audience,
c
the right to provide other types of legal services.
3
Only natural persons may be authorised to exercise the rights listed in paragraphs (a) and (b) of subsection (2).
4
An application for accreditation under this section must include—
a
a draft regulatory scheme,
b
a statement that the body will comply with the requirements of section 26, and
c
confirmation that the body has consulted its members in relation to the application and copies of any written representations received in response to the consultation.

Regulatory scheme
24
1
The draft regulatory scheme to accompany an application for accreditation under section 23(4) must—
a
specify the rights that it is proposed persons authorised by the body may acquire,
b
contain the body’s proposed—
i
authorisation rules,
ii
practice rules, and
iii
if applicable, its ALB rules for the purposes of Part 2,
c
set out—
i
how the body will exercise its regulatory functions compatibly with the regulatory objectives,
ii
the regulatory category to which the body thinks it should be assigned,
d
deal with such other regulatory matters as the Scottish Ministers may by regulations specify (and in such manner as the regulations may specify).
2
For the purpose of subsection (1)(a), an application to acquire (either or both of) the rights listed in paragraph (a) or (b) of section 23(2) must specify—
a
the courts in which authorised providers are to be able to practise, and
b
the categories of proceedings authorised providers are to be able to undertake.
3
The authorisation rules are rules about—
a
the procedure for a person to become an authorised provider of the body, including—
i
the making of applications for authorisation,
ii
the criteria to be met by applicants,
iii
the determination of applications,
iv
the grant of authorisation to exercise acquired rights,
b
the terms of the authorisation including, in particular, the imposition of conditions or restrictions,
c
circumstances in which the authorisation may be suspended or withdrawn,
d
fees that the body intends to charge in connection with the authorisation,
e
how the body will review any decision—
i
refusing an application for authorisation,
ii
granting an application subject to conditions or restrictions,
iii
suspending or withdrawing the authorisation.
4
The authorisation rules must provide—
a
that only persons that the body considers to be fit and proper may be authorised,
b
for the suspension or withdrawal of authorisation where an authorised provider is breaching (or has breached) the regulatory scheme or other rules of professional practice that apply to it.
5
The practice rules are rules about—
a
the standards to be met by authorised providers in the exercise of acquired rights,
b
accounting and auditing,
c
professional indemnity (in respect of which, see section 17),
d
the making and handling of complaints and, in particular, how the body will deal with complaints remitted (or treated as having been remitted) to it under the 2007 Act in relation to its authorised providers,
e
the measures the body may take, in relation to its authorised providers, if—
i
there is a breach of the regulatory scheme, or
ii
a complaint referred to in paragraph (d) is upheld.
6
The practice rules must include provision enabling the body to comply with the provisions of section 29(4).
7
For the purpose of subsection (5)(d), the practice rules must—
a
include rules relating to reviews of final decisions of the body made in relation to complaints remitted (or treated as having been remitted) to the body under the 2007 Act in relation to its authorised providers,
b
require publication of a final decision relating to a conduct complaint suggesting professional misconduct of an authorised provider of the body that is remitted to the body by the Commission (or is treated as having been so remitted by virtue of section 33A(2) of the 2007 Act),
c
require such a decision to include—
i
detail of any facts established,
ii
a statement of reasons for the making of the decision, and
iii
where the complaint is upheld, information about any penalty imposed,
d
where such a complaint is upheld, allow the body to omit any information from the published decision which it considers would be likely to damage the interests of persons other than—
i
the authorised provider against whom the complaint is made, and
ii
where the authorised provider is a natural person, the partner or family of that person,
(but subject to the body publishing its reasons for any such omission),
e
where such a complaint is not upheld, allow the body to omit the name of the authorised provider against whom the complaint is made from the published decision where it considers that to be appropriate.
8
In relation to draft regulatory schemes which seek a right of audience, the practice rules must also include provision—
a
stating general criteria to which authorised providers should have regard in determining whether to accept instructions to represent a person or provide legal services in particular circumstances,
b
stating the order of precedence of courts,
c
securing that, where reasonably practicable, any person wishing to be represented before any court by one of its providers holding an appropriate right of audience is so represented.
9
For the purposes of the rules required under subsection (8), the Inner and Outer Houses of the Court of Session and the High Court of Justiciary exercising its appellate jurisdiction may be treated as separate courts.
10
Regulations under subsection (1) are subject to the affirmative procedure.

Regulatory scheme - additional matters to be included: further provision
25
1
The Scottish Ministers may exercise the power to make regulations under section 24(1) only if they have received a request to exercise the power from—
a
the Lord President,
b
an accredited regulator, or
c
the independent advisory panel of the Commission.
2
Before making a request under subsection (1), the person making the request (“the requester”) must—
a
consult—
i
each accredited regulator (or each other accredited regulator if the requester is an accredited regulator),
ii
the independent advisory panel of the Commission unless the panel is the requester,
iii
the Competition and Markets Authority, and
iv
such other person or body as the requester considers appropriate, and
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
3
For the purpose of seeking the Lord President’s agreement under subsection (2)(b), the requester must provide to the Lord President—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (2)(a).
4
A request under subsection (1) must include—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (2)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
5
As soon as reasonably practicable after making a request under subsection (1), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

Publication of draft regulatory scheme and representations
26
1
A body making an application under section 23 must—
a
make a copy of its draft regulatory scheme available electronically for the duration of the relevant period,
b
send a copy of its draft regulatory scheme to the following persons (and inform them that they may make written representations concerning the draft scheme in accordance with subsection (4))—
i
the Competition and Markets Authority,
ii
the Commission, and
iii
the independent advisory panel of the Commission,
c
at the time of making the application, place an advertisement containing the information described in subsection (2) in the Edinburgh Gazette and in a daily newspaper circulating throughout Scotland.
2
An advertisement required under subsection (1)(c) must state that—
a
a copy of the draft regulatory scheme is available electronically during the relevant period,
b
written representations concerning the draft scheme may be made to the Lord President, and
c
for such representations to be considered, they must meet the requirements described in subsection (4).
3
Any person may make written representations concerning a draft regulatory scheme during the relevant period.
4
Representations under subsection (3) must—
a
be made to the Lord President, and
b
be received by the Lord President before the expiry of the relevant period.
5
In this section—
- “draft regulatory scheme” in relation to an application made under section 23, means the draft regulatory scheme required to accompany the application under section 23(4),
- “relevant period” in relation to an application under section 23, means the period of six weeks beginning with the date on which the application is made.

Consideration and grant

Consideration of applications
27
1
The Lord President is to consider an application submitted under section 23(1) and must consider any written representations made to the Lord President in accordance with section 26(3) and (4).
2
The Lord President may not consider the application if the Lord President is not satisfied that the requirements of section 26 have been complied with.
3
The Lord President may make preliminary observations to the body in relation to the draft regulatory scheme accompanying the application.
4
In the event that the body makes adjustments to the draft regulatory scheme in response to preliminary observations made under subsection (3), the Lord President is to consider the draft scheme as so adjusted.
5
The Lord President, when considering a draft regulatory scheme, is—
a
to have regard to whether the provisions of the scheme would be sufficient to achieve, and to ensure the maintenance of, appropriate standards of conduct and practice by persons who may acquire the rights sought, and
b
to consult—
i
the Scottish Ministers,
ii
the Competition and Markets Authority,
iii
the independent advisory panel of the Commission, and
iv
such other persons as the Lord President considers appropriate.
6
In considering the proposed practice rules, the Lord President is to have regard to the desirability of there being common principles applying in relation to the exercising of rights to conduct litigation and rights of audience by all practitioners in relation to the court or, as the case may be, the courts, mentioned in the application.

Approval of application and giving effect to the regulatory scheme
28
1
This section applies where the Lord President has considered an application in accordance with section 27.
2
If the Lord President—
a
is satisfied with the draft regulatory scheme, the Lord President is to approve the application and inform the body,
b
is not satisfied with the draft scheme, the Lord President is to refuse the application and inform the body, giving written reasons for the refusal.
3
As soon as reasonably practicable after notifying the body under subsection (2) of the decision to approve or refuse the application, the Lord President must publish notification of the decision.
4
Notification under subsection (3) must—
a
include a summary of the Lord President’s reasons for the decision, and
b
be published in such manner as the Lord President considers appropriate (having regard to the desirability of the document being accessible to those likely to have an interest in it).
5
The Lord President must send a copy of a letter approving or refusing an application under this section to any person who has made representations in relation to the draft regulatory scheme under section 26(3).
6
Where the application has been approved, the Scottish Ministers must, as soon as reasonably practicable, lay before the Scottish Parliament draft regulations under section 7(5) to assign the body as a category 1 or category 2 regulator.
7
If a body’s application is approved under this section, as soon as reasonably practicable after receiving notice of the Lord President’s approval under subsection (2), the body must—
a
give effect to the draft regulatory scheme and apply it as its regulatory scheme in relation to its authorised providers and persons applying to it for authorisation, and
b
publish its regulatory scheme in a manner that is accessible to the public, free of charge, by such electronic means as the body considers appropriate.
8
For the purposes of this Part, a body which has its application approved under this section is referred to as an accredited regulator.

Exercise of the acquired rights

Exercise of rights to provide legal services
29
1
This section applies when an accredited regulator has given effect to a draft regulatory scheme and applied it as its regulatory scheme under section 28(7), and the regulator is assigned as a category 1 or category 2 regulator.
2
A legal services provider that is authorised by the accredited regulator may exercise an acquired right (or rights).
3
Nothing in subsection (2) (or the authorisation rules of the regulatory scheme) affects the power of any court in relation to any proceedings—
a
to hear a person who would not otherwise have a right of audience before that court in relation to those proceedings, or
b
to refuse to hear a person (for reasons which apply to the person as an individual) who would otherwise have a right of audience before that court in relation to those proceedings, and where a court so refuses it must give its reasons to the person for that decision.
4
Where a conduct complaint is made in relation to the exercise of an acquired right, the accredited regulator of the legal services provider that is the subject of the complaint may, or if so requested by the Lord President must, suspend the provider from exercising the acquired right pending determination of the complaint by the regulator.
5
Where an authorised provider who is authorised to exercise a right of audience in a court is instructed to appear in that court, those instructions are to take precedence before any other professional or business obligation.
6
An authorised provider exercising a right of audience has the same immunity from liability for negligence in respect of the provider’s acts or omissions as if the provider were an advocate.
7
An act or omission on the part of an authorised provider does not give rise to an action for breach of contract in relation to the exercise of a right of audience by the provider.
8
For the purposes of this Chapter—
- “acquired right” means the right or rights to provide legal services specified and described in a regulatory scheme given effect to under section 28,
- “conduct complaint” is to be construed in accordance with Part 1 of the 2007 Act,
- “right of audience” includes, in relation to any court, any such right exercisable by an advocate,
- “right to conduct litigation” means the right to exercise on behalf of a client all or any of the functions, other than any right of audience, which may be exercised by a solicitor in relation to litigation.

Surrender of rights
30
1
An accredited regulator may apply to the Lord President to surrender some or all of the acquired rights.
2
Before submitting an application under subsection (1), the accredited regulator must consult its authorised providers in relation to the proposed application.
3
An application under subsection (1) must include copies of any representations received in response to the consultation under subsection (2).
4
As soon as practicable after receipt of such an application, the Lord President must—
a
send a copy of the application to such person or body (other than an authorised provider of the accredited regulator) as the Lord President considers appropriate, and
b
consult them accordingly.
5
Where an application under subsection (1) is for the surrender of all of the regulator’s acquired rights, consultation under subsection (2) with the body’s authorised providers must, in particular, seek their views about whether a majority of the providers would like—
a
another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights (if that other regulator is content to so authorise and regulate them), or
b
to form a body and submit an application under section 23 seeking accreditation of the body to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights.
6
A consultee under subsection (2) has a period of 6 weeks beginning with the day on which the consultee receives notification from the accredited regulator of the opportunity to make representations (or, if the regulator considers it appropriate and the Lord President consents, such shorter period as may be specified in the notice) to make representations to the regulator about the proposed surrender.
7
The consultees under subsection (4) have a period of 6 weeks beginning with the day on which a copy of the application is sent (or, if the Lord President considers it appropriate, such shorter period as may be specified when sending a copy to the consultees) to make representations to the Lord President about the proposed surrender.
8
The Lord President may give directions (at any time) as to the requirements with which a body wishing to surrender all or some of its authorised providers’ acquired rights will have to comply.
9
Directions under subsection (8) may—
a
in particular—
i
require arrangements to be made for the completion of any work outstanding at the time the application is made, and
ii
relate to the circumstances of a particular body,
b
be varied or revoked by the Lord President.
10
Where the Lord President grants the application in respect of some or all of the acquired rights of the accredited regulator, the Lord President is to—
a
give notice to the regulator specifying the date (or dates) on which it is to take effect, and
b
publish the notice in such manner as the Lord President considers appropriate (having regard to the desirability of it being accessible to those likely to have an interest in it).
11
From the date specified in the notice, a person authorised by the body to provide legal services ceases to be authorised and may not exercise the acquired rights or, if applicable, such of them as has been surrendered.
12
Subsection (13) applies where—
a
an application under subsection (1) is for the surrender of all of the regulator’s acquired rights, and
b
the majority of the providers consulted under subsection (2) have expressed a preference for an outcome mentioned in paragraph (a) or (b) of subsection (5).
13
Notice given by the Lord President under subsection (10) may (instead of specifying the date on which the notice is to take effect) specify that the notice is to take effect on the date on which one of the following events occurs—
a
the providers consulted under subsection (2) are authorised to exercise their acquired rights (and are regulated in their exercise of the acquired rights) by another category 1 or category 2 regulator,
b
an application submitted under section 23(1) by a body formed by those providers is approved or refused by the Lord President under section 28.
14
Where a notice under subsection (10) specifies that the notice is to take effect on the occurrence of an event mentioned in subsection (13), subsection (11) has effect as if the reference to “the date specified in the notice” were a reference to “the date of the occurrence of the event mentioned in subsection (13) that is specified in the notice”.

Offence of pretending to have acquired rights
31
1
A person commits an offence if the person without reasonable excuse—
a
takes or uses any name, title, addition or description implying that the person is authorised to exercise an acquired right,
b
otherwise pretends to be authorised to exercise an acquired right.
2
A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Review of regulatory scheme

Review of regulatory scheme on initiative of accredited regulator
32
1
This section applies where an accredited regulator has carried out a review of its regulatory scheme on its own initiative and proposes such revision to its scheme as it considers appropriate in light of the review.
2
The accredited regulator must send a report to the Lord President detailing the proposed revision to the scheme.
3
Following receipt of a report under subsection (2), the Lord President may—
a
approve the proposed revision to the scheme,
b
not approve the proposed revision to the scheme,
c
direct the accredited regulator to make such revision to its scheme as the Lord President considers should be made.
4
Following revision of its scheme pursuant to paragraph (a) or (c) of subsection (3), the accredited regulator must publish the revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.
5
The Lord President may vary or revoke a direction given under subsection (3)(c).

Review of regulatory schemes
33
1
The Lord President may direct an accredited regulator to carry out a review of its regulatory scheme.
2
Following a review, the accredited regulator must give the Lord President a report on the review containing any revisions it proposes to make to its regulatory scheme (if any).
3
Where the Lord President considers that the terms of any proposed revision to the regulatory scheme are satisfactory, the Lord President is to approve the revised scheme and direct the accredited regulator to apply the revised scheme.
4
Subsection (5) applies where the Lord President considers that—
a
the proposed revisions to the scheme are not satisfactory, or
b
revisions should have been proposed (but have not been).
5
Where this subsection applies—
a
the Lord President may direct the accredited regulator to apply the revisions that the Lord President considers should be made to the regulatory scheme from such date as may be specified in the direction, or
b
the Lord President may—
i
provide comments in relation to the proposed revisions to the regulatory scheme, and
ii
direct the accredited regulator to take account of the comments in reviewing the proposed revisions before giving the Lord President a revised report containing any proposed revision to the scheme.
6
Subsections (3) to (5) apply in relation to a revised report given to the Lord President under subsection (5)(b) as they apply in relation to a report given to the Lord President under subsection (2).
7
Following the revision of its regulatory scheme under this section, the accredited regulator must publish its revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.
8
The Lord President may vary or revoke a direction given under this section.

Revocation of acquired rights
34
1
Where it appears to the Lord President that an accredited regulator has failed to comply with a direction under section 32(3)(c) or 33(5), the Lord President may revoke the approval of the application under section 28.
2
The Lord President must—
a
give notice of the Lord President’s decision to revoke approval of the application under section 28 (a “decision notice”) to the regulator, and
b
publish the decision notice in such manner as the Lord President considers most appropriate for bringing it to the attention of any relevant person or body.
3
Before issuing a decision notice, the Lord President must consult each person who is authorised by the accredited regulator to provide legal services (“the authorised providers”) in relation to the proposed decision and, in particular, with a view to determining whether, in consequence of the revocation of the accredited regulator’s approval, a majority of the authorised providers would like—
a
another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights if that other regulator is content to so authorise and regulate them, or
b
to form a body and submit an application under section 23 seeking accreditation of the body to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights.
4
Where a majority of the providers consulted under subsection (3) have expressed a preference for an outcome mentioned in paragraph (a) or (b) of that subsection, the Lord President may decide not to issue a decision notice for such period as the Lord President considers appropriate to enable—
a
another category 1 or category 2 regulator to authorise and regulate the providers, or (as the case may be)
b
the providers to form a body and submit an application under section 23 in respect of that body.
5
From such date as may be specified in a decision notice, a person authorised by the accredited regulator ceases to be so authorised and may not exercise the rights acquired by virtue of that authorisation.

Miscellaneous

Replacement regulatory arrangements for authorised providers
35
1
Where an accredited regulator is a discontinuing regulator as mentioned in paragraph (d) of the definition of that term as set out in subsection (6), the Lord President must consult each authorised provider to determine in particular whether a majority of the authorised providers would like another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights (if that other regulator is content to so authorise and regulate them).
2
Subsection (3) applies where the Lord President is satisfied that—
a
following consultation under subsection (1), section 30(4) or 34(3) or paragraph 18(2) of schedule 2 (as the case may be), a majority of the authorised providers of a discontinuing regulator would like another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights, and
b
the other category 1 or category 2 regulator (“the receiving regulator”) is willing to authorise and regulate the authorised providers of the discontinuing regulator.
3
The Lord President may—
a
in a case where the receiving regulator falls within subsection (4), amend the regulatory functions of the receiving regulator to enable it to regulate the authorised providers of the discontinuing regulator,
b
in any other case, request that the Scottish Ministers make regulations under subsection (5) to amend the functions of the receiving regulator.
4
A regulator falls within this subsection if it is an accredited regulator or a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act.
5
Following a request of the Lord President under subsection (3)(b), the Scottish Ministers may lay a draft of a Scottish statutory instrument containing regulations before the Scottish Parliament to amend the regulatory functions of the receiving regulator.
6
In this section—
- “authorised provider” means a legal services provider that is authorised by a discontinuing regulator to provide legal services,
- “discontinuing regulator” means an accredited regulator that—
  1. is the subject of a potential measure as mentioned in section 19(4)(f) to remove all of its regulatory functions,
  2. has made an application under section 30,
  3. is the subject of regulations to revoke its approval under section 34, or
  4. has ceased operating otherwise than in accordance with any of the ways mentioned in paragraph (a), (b) or (c),
- “regulatory complaint” is to be construed in accordance with Part 1 of the 2007 Act,
- “services complaint” is to be construed in accordance with Part 1 of the 2007 Act.
7
Regulations under subsection (5)—
a
may modify any enactment,
b
are subject to the affirmative procedure.

Consequential amendments and repeals
36
1
Sections 25 to 29 and schedule 2 of the 1990 Act are repealed.
2
Section 40 of the 1990 Act (advisory and supervisory functions of the CMA) is amended as follows.
3
In subsection (1), for paragraph (c) substitute—
c
considering—
i
any provisions of a draft regulatory scheme under section 27 of the Regulation of Legal Services (Scotland) Act 2025, or
ii
any provision which is proposed as a revision to a regulatory scheme under section 33 of that Act,
.
4
Section 42 of the 1990 Act (review of rules approved by the Scottish Ministers) is amended as follows.
5
In subsection (1)—
a
paragraph (b) and the word “or” immediately preceding that paragraph are repealed,
b
in the closing words—
i
the words “and, where the Lord President, in the case of a draft scheme such as is mentioned in paragraph (b), so requests shall” are repealed,
ii
the words “or, as the case may be, the scheme” are repealed.
6
In subsection (2)—
a
in the opening words—
i
the words “or, as the case may be, a scheme,” are repealed,
ii
the words “or scheme” in both places they appear, are repealed,
b
paragraph (b) and the word “or” immediately preceding that paragraph are repealed.
7
Subsections (4) to (6) are repealed.
8
In subsection (7)—
a
the words “and schemes” where they first appear are repealed,
b
the words “and schemes submitted under section 25(1) of this Act” are repealed.

Transitional and saving provision for regulators approved under the 1990 Act
37
Sections 30, 32, 33, 34 and 35 apply to a professional or other body whose application under section 25 of the 1990 Act was approved under section 26 of that Act as they apply to a body whose application for accreditation under section 23 of this Act was approved under section 28 of this Act.
Part 2

Regulation of legal businesses

Introductory

Overview of Part
38
1
This Part makes provision for category 1 regulators to authorise legal businesses to provide legal services.
2
Section 39—
a
defines what constitutes a legal business (and associated expressions) for the purpose of this Part, and
b
makes it an offence for a legal business to provide legal services without being authorised by the appropriate regulator of that business.
3
Section 40 makes it an offence to pretend, without reasonable excuse, to be an authorised legal business.
4
Sections 41 to 46 require category 1 regulators to prepare and operate rules to authorise and regulate legal businesses.
5
Section 47 deals with how a category 1 regulator is to monitor and investigate the performance of authorised legal businesses.
6
Section 48 and Part 2 of schedule 1 (which amends the 1980 Act)—
a
enable the Law Society to authorise (and regulate) legal businesses,
b
reflect that incorporated practices (within the meaning of section 34 of the 1980 Act) are to be authorised as a type of legal business.
7
Section 49 makes provision for where a body must change its regulatory regime by virtue of changing the manner in which it is owned.

Requirement to be authorised to provide legal services

Requirement for legal businesses to be authorised to provide legal services
39
1
A legal business may provide legal services to the public for fee, gain or reward only if it is authorised to do so by the category 1 regulator that is responsible for the regulation of the owners of the legal business.
2
For the purposes of this Part, a legal business is a business which provides (or offers to provide) legal services to the public for fee, gain or reward that—
a
consists of—
i
a solicitor, or
ii
a qualifying individual, or
b
is wholly owned by—
i
a solicitor or solicitors,
ii
a qualifying individual or individuals, or
iii
a solicitor (or solicitors) and a qualifying individual (or individuals).
3
For the purpose of subsection (2)(b), a business may be wholly owned—
a
directly or through one or more other bodies,
b
partly directly and partly through one or more other bodies.
4
A category 1 regulator is responsible for the regulation of the owner of a legal business if the owner is a member of the regulator or is otherwise subject to its regulation in respect of the legal services the owner provides.
5
It is an offence for a person to own or operate a legal business which provides legal services to the public for fee, gain or reward without that business being authorised in accordance with this Part.
6
A person who commits an offence under this section is liable on summary conviction to a fine not exceeding £20,000.
7
The Scottish Ministers may by regulations amend subsection (6) to substitute a different amount of fine for the one for the time being specified there.
8
Before making regulations under subsection (7), the Scottish Ministers must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions, and
iii
such other person or body as the Scottish Ministers consider appropriate, and
b
publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
9
Regulations under subsection (7) are subject to the negative procedure.
10
For the purpose of this section, a “qualifying individual” means an individual, other than a solicitor, whose provision of legal services is regulated by a category 1 regulator.
11
Subsection (12) applies to a legal business—
a
that intends to provide (or offer to provide) legal services to the public for fee gain or reward, and
b
which was immediately before the coming into force of this section—
i
a sole solicitor within the meaning given by section 45(5) of the 1980 Act,
ii
a firm of solicitors within the meaning of that Act,
iii
an incorporated practice within the meaning given by section 34(1A)(c) of that Act, or
iv
a multi-national practice within the meaning given by section 65(1) of that Act.
12
On the coming into force of this section, a legal business to which this subsection applies is to be treated as authorised in accordance with this Part by the Law Society to provide legal services to the public for fee, gain or reward.
13
But the effect of subsection (12) is subject to any alternative provision made by rules approved under section 41.
14
In this Part—
a
a reference to an authorised legal business of a category 1 regulator is a reference to a legal business that is authorised to provide legal services by the relevant regulator,
b
a reference to the relevant category 1 regulator, in relation to an authorised legal business, is a reference to the category 1 regulator which authorises the legal business.

Offence of pretending to be an authorised legal business
40
1
A person commits an offence if the person without reasonable excuse—
a
takes or uses any name, title, addition or description implying that the person is an authorised legal business,
b
otherwise pretends to be an authorised legal business.
2
A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding £20,000.
3
The Scottish Ministers may by regulations amend subsection (2) to substitute a different amount of fine for the one for the time being specified there.
4
Before making regulations under subsection (3), the Scottish Ministers must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions, and
iii
such other person or body as the Scottish Ministers consider appropriate, and
b
publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
5
Regulations under subsection (3) are subject to the negative procedure.

Regulation of authorised legal businesses

Rules for authorised legal businesses
41
1
A category 1 regulator must—
a
make rules for authorising and regulating legal businesses (“ALB rules”),
b
apply its ALB rules in relation to the legal businesses for which it is responsible, and
c
publish its ALB rules in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.
2
ALB rules are to—
a
contain—
i
authorisation rules,
ii
practice rules,
b
include provision for reconciling different sets of regulatory rules, and
c
deal with such other regulatory matters as the Scottish Ministers may by regulations specify (and in such manner as the regulations may specify).
3
ALB rules may—
a
relate to—
i
one or more types of legal business,
ii
some or all legal services,
iii
other services (in addition to legal services) that form part of the professional practice of solicitors, or qualifying individuals, within a legal business,
b
make different provision for different cases or types of case.
4
A category 1 regulator may not amend its ALB rules (or any of them) without the prior approval of the Lord President.
5
In making any material amendment of its ALB rules, a category 1 regulator must consult—
a
its members,
b
the Competition and Markets Authority,
c
the Commission,
d
the independent advisory panel of the Commission,
e
Consumer Scotland, and
f
such other persons or bodies it considers appropriate.
6
A category 1 regulator, in submitting an amendment of its ALB rules for approval under subsection (4), must submit copies of any written representations received in response to the consultation under subsection (5).
7
The Scottish Ministers may exercise the power to make regulations under subsection (2)(c) only if they have received a request to exercise the power from—
a
the Lord President,
b
the regulatory committee of a category 1 regulator,
c
a category 1 regulator that has no functions other than regulatory functions, or
d
the independent advisory panel of the Commission.
8
Before making a request under subsection (7), the person making the request (“the requester”) must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions,
iii
the independent advisory panel of the Commission, and
iv
such other person or body as the requester considers appropriate, and
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
9
But a body mentioned in subsection (8)(a)(i) to (iii) does not need to be consulted if the body is the requester.
10
For the purpose of seeking the Lord President’s agreement under subsection (8)(b), the requester must provide to the Lord President—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (8)(a).
11
A request under subsection (7) must include—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (8)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
12
As soon as reasonably practicable after making a request under subsection (7), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
13
In subsection (3)(a), a “qualifying individual” has the meaning given in section 39(10).
14
Regulations under subsection (2)(c) are subject to the affirmative procedure.

Authorisation rules
42
1
For the purposes of this Part, the authorisation rules are rules about—
a
the procedure for becoming an authorised legal business, including (in particular)—
i
the making of applications,
ii
the criteria to be met by applicants,
iii
the determination of applications,
iv
the grant of authorisation,
b
the terms on which authorisation is granted including, in particular, the imposition of conditions or restrictions,
c
the circumstances in which conditions or restrictions may be imposed, varied or revoked in relation to the existing authorisation of a legal business,
d
the—
i
circumstances in which a legal business’s authorisation may or must be reviewed, suspended or withdrawn,
ii
circumstances in which an authorised legal business may surrender its authorisation,
e
the fees that are (or may be) chargeable by the regulator in connection with authorisation.
2
Rules made in pursuance of subsection (1)(a) to (d) must allow for review by the category 1 regulator of any decision made by it under the rules that materially affects an applicant for authorisation or (as the case may be) an authorised legal business.
3
Authorisation rules must—
a
state that an application for authorisation may be refused on the ground that the applicant appears to be incapable (for any reason) of complying with the regulatory scheme of the regulator,
b
provide for how a licensed provider may become an authorised legal business,
c
provide for grounds for suspension or withdrawal of authorisation where the legal business is breaching (or has breached) the regulatory scheme of the regulator or other rules of professional practice that apply to it,
d
set out how the fees that are chargeable in connection with authorisation are determined (which may be by reference to the financial performance of an authorised legal business or such other criteria as may be specified in the rules).
4
Authorisation rules may make provision about the effect on an authorisation (including a deemed authorisation under section 39(12) issued to a legal business which is a partnership or other unincorporated body of any change in the membership of the legal business.
5
Provision which may be made under subsection (4) includes provision for the authorisation of the legal business to be transferred where the legal business ceases to exist and another legal business succeeds to the whole or substantially the whole of its business.
6
Authorisation rules may include such further rules or arrangements as to authorising legal businesses for which provision is (in the category 1 regulator’s opinion) necessary or expedient.

Appeals in relation to authorisation decisions
43
1
An appeal against a relevant authorisation decision may be made to the sheriff by—
a
an applicant for authorisation under rules made in pursuance of section 42, or
b
an authorised legal business.
2
An appeal under subsection (1) must be made within the period of 3 months beginning with the later of—
a
the day on which the relevant authorisation decision is intimated to the applicant or, as the case may be, authorised legal business, or
b
where the relevant authorisation decision has been the subject of an internal appeal process of the category 1 regulator, the day on which the decision of the internal appeal is intimated to the applicant or, as the case may be, the authorised legal business.
3
A relevant authorisation decision is a decision taken under authorisation rules made in pursuance of this Part to—
a
refuse an application for authorisation of a legal business,
b
impose, vary or revoke conditions or restrictions in relation to its authorisation, or
c
suspend or withdraw its authorisation.
4
In the appeal, the sheriff may—
a
uphold, vary or quash the decision,
b
make such further order (including for the expenses of the parties) as is necessary in the interests of justice.
5
The sheriff’s determination in the appeal is final.

Practice rules
44
1
For the purposes of this Part, the practice rules are rules about—
a
the—
i
operation and administration of authorised legal businesses,
ii
standards to be met by authorised legal businesses,
b
the operational positions within authorised legal businesses,
c
accounting and auditing,
d
professional indemnity,
e
the making and handling of any complaint about an authorised legal business,
f
the measures that may be taken by the regulator, in relation to an authorised legal business, if—
i
there is a breach of the regulatory scheme of the regulator, or
ii
a complaint referred to in paragraph (e) is upheld.
2
Without limit to the generality of subsection (1), practice rules must—
a
require authorised legal businesses to—
i
comply with the regulator’s ALB rules and the terms on which authorisation is granted including, in particular, any conditions or restrictions which have been imposed in relation to the authorisation,
ii
adhere to the professional principles,
iii
have proper accounting and auditing procedures,
iv
have sufficient arrangements for professional indemnity, and
v
co-operate with reviews of, and investigations into, their performance,
b
include provision that it is a breach of the ALB rules for an authorised legal business to fail to comply with—
i
its duties under this Part, and
ii
duties under any other enactment specified in the scheme, and
c
allow an authorised legal business to make representations to the regulator before the regulator 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 authorised legal businesses for which provision is (in the regulator’s opinion) necessary or expedient.

Financial sanctions
45
1
Practice rules made in pursuance of section 44(1)(f) may provide for—
a
the imposition of a financial penalty,
b
the withdrawal of the imposition of a financial penalty if the regulator considers that it would not be reasonable to seek (or to continue to seek) payment of the financial penalty.
2
The Scottish Ministers may by regulations specify the maximum amount of a financial penalty that may be imposed by virtue of subsection (1).
3
A financial penalty imposed by virtue of this section is payable to the Scottish Ministers (but the regulator may collect it on their behalf).
4
Where a regulator collects a financial penalty imposed on an authorised legal business under subsection (3), the regulator may—
a
retain a sum to be deducted from the amount payable to the Scottish Ministers under subsection (3) in respect of any expenditure reasonably incurred by the regulator in collecting the penalty, or
b
recover from the authorised legal business any expenditure reasonably incurred by the regulator in collecting the penalty.
5
At any time a regulator may discontinue collection of a financial penalty imposed by virtue of this section where the regulator considers it would not be reasonable in the circumstances for the regulator to attempt or continue to attempt collection.
6
Subsection (5) does not prevent the regulator from, in circumstances where it has discontinued attempts to collect a financial penalty, resuming such attempts where the regulator considers it is reasonable in the circumstances to do so.
7
An authorised legal business 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.
8
Where an appeal is made under subsection (7), no part of the penalty requires to be paid before the appeal is determined or withdrawn.
9
In the appeal, the sheriff may—
a
uphold, vary or quash the decision,
b
make such further order (including for the expenses of the parties) as is necessary in the interests of justice.
10
The sheriff’s determination in the appeal is final.
11
Before making regulations under subsection (2), the Scottish Ministers must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions, and
iii
such other person or body as the Scottish Ministers consider appropriate, and
b
publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
12
Regulations under subsection (2)—
a
are subject to the negative procedure, and
b
may not be made without the agreement of the Lord President.

Reconciling different rules
46
1
The provision required by section 41(2)(b) to be in the ALB rules is such provision as is reasonably practicable (and appropriate in the circumstances) for—
a
preventing or resolving regulatory conflicts, and
b
avoiding unnecessary duplication of regulatory rules (for example, by applying existing regulatory rules in so far as possible).
2
For the purposes of this section, a regulatory conflict is a conflict between (any of)—
a
the ALB rules of a category 1 regulator,
b
any other professional or regulatory rules made by the regulator in respect of the persons who provide legal services that it regulates, and
c
any professional or regulatory rules made by any other body which regulates the provision of legal or other services by the persons regulated by the category 1 regulator.
3
The Scottish Ministers may by regulations make further provision about regulatory conflicts (such as may involve a category 1 regulator).
4
The Scottish Ministers may exercise the power to make regulations under subsection (3) only if they have received a request from—
a
the Lord President,
b
the regulatory committee of a category 1 regulator,
c
a category 1 regulator that has no functions other than regulatory functions, or
d
the independent advisory panel of the Commission.
5
Before making a request under subsection (4), the person making the request (“the requester”) must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions,
iii
the independent advisory panel of the Commission, and
iv
such other person or body as the requester considers appropriate, and
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
6
But a body mentioned in subsection (5)(a)(i) to (iii) does not need to be consulted if the body is the requester.
7
For the purpose of seeking the Lord President’s agreement under subsection (5)(b), the requester must provide to the Lord President—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (5)(a).
8
A request under subsection (4) must include—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (5)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
9
As soon as reasonably practicable after making a request under subsection (4), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
10
Regulations under subsection (3) are subject to the negative procedure.

Monitoring of performance of authorised legal businesses
47
1
A category 1 regulator is to carry out a review of the performance of an authorised legal business—
a
at such time or in such circumstances as the regulator considers appropriate, or
b
when requested to do so by the Lord President.
2
A review under this section may (in particular) examine—
a
the authorised legal business’s compliance with—
i
its duties under this Act and any other enactment,
ii
the terms on which its authorisation is granted including any conditions or restrictions imposed in relation to the authorisation,
b
the financial sustainability of the business,
c
such other matters as the regulator considers appropriate.
3
A request for the review of an authorised legal business under subsection (1)(b) must—
a
set out, by reference to the matters that may be reviewed, why the Lord President considers a review appropriate, and
b
be copied to the authorised legal business which is to be reviewed.
4
When conducting a review of an authorised legal business, a category 1 regulator may—
a
require the business to produce any relevant document or other information (either at the business’s premises or otherwise),
b
interview any person who owns, is employed by, or is otherwise involved with the business.
5
Following a review, the category 1 regulator must—
a
prepare a report on its review, and
b
send a copy of its report to—
i
the authorised legal business, and
ii
if the review was requested under subsection (1)(b), the Lord President.
6
Before finalising the report, the category 1 regulator must—
a
send a draft of the report to the authorised legal business, and
b
give it a reasonable opportunity to make representations about—
i
the findings of the report, and
ii
any action the business may be required to take or steps that may be taken by the regulator as a result of the review.

Miscellaneous

Law Society of Scotland
48
1
The Law Society must prepare its ALB rules in accordance with section 41 within such period (not exceeding 3 years from the date on which this section comes into force) as it may agree with the Lord President.
2
But the Law Society’s ALB rules are invalid unless they have the prior approval of the Lord President.
3
The Law Society may use its powers to make rules under the 1980 Act to make the rules necessary to comply with its duties as a category 1 regulator under this Part.
4
Part 2 of schedule 1 contains provision amending the 1980 Act in respect of the Law Society’s functions of authorising and regulating legal businesses.

Entities changing regulatory regime
49
1
Subsection (2) applies where a licensed provider becomes an authorised legal business.
2
The licensed provider is deemed, by virtue of this subsection, to continue to be so licensed from that time until the earliest of the following events—
a
the end of the period of 90 days beginning with the day on which that time falls,
b
the time from which the relevant category 1 regulator determines this subsection is to cease to apply to the provider, or
c
the time when the provider ceases to be an authorised legal business.
3
Subsection (4) applies where an authorised legal business becomes a licensed provider.
4
The authorised legal business is deemed, by virtue of this subsection, to continue to be so authorised from that time until the earliest of the following events—
a
the end of the period of 90 days beginning with the day on which that time falls,
b
the time from which the approved regulator that regulates (or regulated) the licensed provider determines this subsection is to cease to apply to the authorised legal business, or
c
the time when the authorised legal business ceases to be a licensed provider.
Part 3

Complaints

Receipt of complaints: preliminary steps
50
1
The 2007 Act is amended as follows.
2
The italic heading before section 2 becomes “Conduct, services and regulatory complaints”.
3
In section 2 (receipt of complaints: preliminary steps)—
a
in subsection (1), for paragraph (b) substitute—
b
suggesting that—
i
professional services were inadequate where they were provided by a practitioner in connection with any matter in which the practitioner has been instructed by a client, or
ii
legal services were inadequate where they were provided by a person other than a practitioner to the public for fee, gain or reward,
(a complaint suggesting any such matter being referred to in this Part as a “services complaint”),
c
suggesting that an authorised legal business is failing (or has failed) to comply with—
i
the practice rules forming part of the rules for authorising and regulating the legal business made by the relevant professional organisation under (or for the purposes of) section 41(1)(a) of the 2025 Act, or
ii
the terms on which its authorisation is granted by the relevant professional organisation including any conditions or restrictions imposed in relation to the authorisation,
(a complaint suggesting any such matter being referred to in this Part as a “regulatory complaint”).
,
b
after subsection (1) insert—
1ZA
A complaint as mentioned in subsection (1)(b)(ii) suggesting that legal services provided by a person other than a practitioner were inadequate—
a
may include a complaint suggesting that the manner in which legal services were provided by the person was inadequate,
b
but is not an eligible services complaint for the purposes of this Part where the Commission considers, in accordance with any provision in rules made under section 32(1), that the legal services provided by the person were merely incidental to other services (not being legal services) provided by the person.
1ZB
Where a services complaint is made in relation to a practitioner who is an individual and the Commission considers that the complaint should also be made against the practitioner’s firm or (as the case may be) where the practitioner is an employee of another practitioner that other practitioner (referred to in this Part as the “employing practitioner”), the Commission may decide to treat the complaint as—
a
also having been made against the practitioner’s firm or the employing practitioner (as the case may be), or
b
having been made against the practitioner’s firm or the employing practitioner (as the case may be) instead of the practitioner.
,
c
for subsection (1A) substitute—
1A
The Commission must, subject to any provision in rules made under section 32(1) as to eligibility for making complaints, determine whether the complaint constitutes (to any extent)—
a
a conduct complaint,
b
a services complaint,
c
a regulatory complaint, or
d
any combination of more than one of the categories of complaint mentioned in paragraphs (a) to (c).
1B
For the purpose of subsection (1A), the Commission may determine—
a
where the complaint includes more than one element, that—
i
an element constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and
ii
another element constitutes a separate complaint falling within another of those categories,
b
that any element of the complaint—
i
constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and
ii
additionally constitutes a complaint falling within another of those categories,
(for example, a single element of the complaint may constitute both a conduct complaint and a services complaint).
,
d
in subsection (2), in paragraph (a), after “complaint” insert “or a regulatory complaint”,
e
the following subsections are repealed—
i
subsection (2A),
ii
subsection (2B),
iii
subsection (2C),
iv
subsection (4).

Complaints initiated by, or continued by, the Commission
51
1
The 2007 Act is amended as follows.
2
After section 2, insert—

Complaints initiated by the Commission
2A
1
In addition to receiving a conduct complaint or a regulatory complaint mentioned in section 2(1), the Commission may itself initiate a complaint against a practitioner which, had it been received from a person mentioned in section 2(2), would be a conduct complaint or a regulatory complaint.
2
Section 2(1A) applies to a complaint under subsection (1) as it applies to a complaint referred to in section 2(1).
3
References in this Part (other than in this section) and in sections 47 to 52A to a conduct complaint or a regulatory complaint include references to a conduct complaint or a regulatory complaint that is initiated by the Commission under subsection (1).
4
The Commission may not initiate a complaint under subsection (1) if it would not be an eligible complaint in accordance with any provision in rules made under section 32(1).
.

Ineligible or premature complaints
52
1
Section 4 (complaint not made timeously or made prematurely) of the 2007 Act is amended as follows.
2
The section title becomes “Complaint not eligible or made prematurely”.
3
For subsection (1), substitute—
1
Where the Commission considers that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1), the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required under such rules).
.
4
For subsection (2), substitute—
2
Where a complaint referred to in section 2(1) is made prematurely, the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required by rules made under section 32(1)).
.
5
The following subsections are repealed—
a
subsection (3),
b
subsection (5),
c
subsection (6).
6
In subsection (4)—
a
in the opening words, the words “or section 9A(2)” are repealed,
b
in paragraph (a), for the words from “where” to ““employing practitioner”)” substitute “the employing practitioner”,
c
paragraph (b) is repealed.

Commission process relating to complaints
53
1
The 2007 Act is amended as follows.
2
In section 6 (complaint determined to be conduct complaint)—
a
for subsection (1), substitute—
1
This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is—
a
wholly a conduct complaint, or
b
includes one or more elements constituting a conduct complaint.
,
b
in subsection (2)—
i
in paragraph (a), after “complaint” where it first occurs insert “(or the part of the complaint constituting a conduct complaint)”,
ii
paragraph (b) is repealed,
c
after subsection (2), insert—
3
It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a conduct complaint (to any extent).
.
3
Section 7 (services complaint: notice) is repealed.
4
In section 8 (services complaint: local resolution or mediation)—
a
for subsection (1), substitute—
1
Subsection (2) applies where the Commission determines that a complaint referred to in section 2(1) that is made by or on behalf of a person referred to in section 2(2)(b)(i)—
a
constitutes (in whole or in part) a services complaint, and
b
either—
i
the complaint has been made prematurely (within the meaning of section 4(4)), or
ii
the practitioner, the practitioner’s firm or the employing practitioner has made no attempt, or an insufficient attempt, to achieve a negotiated settlement with the complainer.
,
b
in subsection (2)—
i
the words from “Where” to the end of paragraph (b) are repealed, and
ii
for “such a settlement” substitute “a negotiated settlement with the complainer”.
5
In section 9 (services complaint: Commission’s duty to investigate and determine), in subsection (2), for “must” substitute “may”.
6
Section 9A (services complaint: further provision) is repealed.
7
Section 12 (services complaint: notice where not upheld or upheld) is repealed.
8
Section 13 (services complaint: reports) is repealed.
9
Section 15 (complaint appears during mediation or investigation to fall within different category) is repealed.
10
Section 45 (giving of notices etc. under Part 1) is repealed.

Commission’s duty to investigate and determine services complaints
54
1
The 2007 Act is amended as follows.
2
In section 9 (services complaint: Commission’s duty to investigate and determine), after subsection (4) insert—
5
Where the practitioner (and, where subsection (3) applies, the employing practitioner) accepts a settlement proposed by the Commission under subsection (2) as respects the complaint but the complainer does not accept the settlement, the Commission may discontinue the investigation of the complaint and not determine it under subsection (1).
6
If subsection (7) applies, the Commission may decide—
a
not to initiate the investigation of a services complaint and determine it under subsection (1), or
b
to discontinue the investigation of a services complaint and not to determine it under subsection (1).
7
This subsection applies if—
a
the Commission considers that the practitioner, the practitioner’s firm or the employing practitioner has offered the complainer a settlement as respects the complaint (“the proposed settlement”) which the Commission considers is fair and reasonable in the circumstances,
b
the complainer has not accepted the proposed settlement, and
c
the Commission is satisfied that the proposed settlement will remain available for acceptance by the complainer for a period of up to 28 days after the complainer receives notice of the Commission’s decision under subsection (6).
.

Regulatory complaints against authorised legal businesses
55
1
The 2007 Act is amended as follows.
2
After section 7, insert—

Complaint determined to be a regulatory complaint
7A
1
This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is—
a
wholly a regulatory complaint, or
b
includes one or more elements constituting a regulatory complaint.
2
The Commission must remit the complaint (or the part of the complaint constituting a regulatory complaint) to the relevant professional organisation to deal with (and give to the organisation any material which accompanies the regulatory complaint).
3
It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a regulatory complaint (to any extent).
.
3
After section 52, insert—

Regulatory complaints: duty of regulator to investigate etc.
52A
1
Where a regulatory complaint is remitted to the relevant professional organisation under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)), the relevant professional organisation must investigate it and, subject to subsection (2), determine the complaint.
2
The relevant professional organisation may decide—
a
to discontinue an investigation of a regulatory complaint,
b
to reinstate the investigation of a discontinued regulatory complaint,
but only if the organisation considers that this is in the public interest.
3
As soon as practicable after making a decision under subsection (2), the relevant professional organisation must give notice in writing of its decision to the complainer, the practitioner and the Commission by—
a
sending them a copy of the decision, and
b
specifying the reason for the decision.
4
In addition, notice under subsection (3) given to the complainer or the practitioner, must also give them information about any—
a
right of appeal, and
b
ability to make a handling complaint to the Commission.
5
After determining the regulatory complaint, the relevant professional organisation must make a written report to the complainer, the practitioner and the Commission of—
a
any facts of the matter as found by the relevant professional organisation,
b
the relevant professional organisation’s determination and the reasons for that determination,
c
what action (if any) the relevant professional organisation proposes to take, or has taken, in the matter in accordance with the rules for authorising and regulating legal businesses made by the relevant professional organisation under (or for the purposes of) section 41(1)(a) of the 2025 Act, and
d
if the relevant professional organisation does not propose to take, or has not taken, any action in the matter, an explanation of why this is the case.
6
When making a written report under subsection (5), the relevant professional organisation must also give notice in writing to the complainer and the practitioner of any right of appeal or ability to make a handling complaint by virtue of section 23.
7
The relevant professional organisation must, in considering what action (if any) to take as mentioned in subsection (5)(c), take into account any decision taken by the Commission in respect of a services complaint against the practitioner where the services complaint arises from the same matter to which the regulatory complaint relates.
8
Each relevant professional organisation must ensure that its procedures for dealing with regulatory complaints do not conflict with the duty imposed on it by section 24(4) in relation to any report sent to it under that section or any direction by the Commission under section 24(6).
.

Services complaint: sanctions
56
1
The 2007 Act is amended as follows.
2
In section 10 (Commission upholds services complaint)—
a
after subsection (3), insert—
3A
Where the practitioner was, at the time when the services were provided, a partner of a firm, a direction under subsection (2)(c) may be given to the practitioner’s firm instead of the practitioner.
3B
In the case where a direction under subsection (2)(c) is made to the employing practitioner or the practitioner’s firm, the direction may relate to systems operated by the employing practitioner or the practitioner’s firm that affect the provision of professional services generally by the employing practitioner or the practitioner’s firm where that is relevant to the complaint.
,
b
in subsection (4)—
i
paragraph (c) is repealed,
ii
after paragraph (c) (and before the closing words), insert—
d
decision taken by a relevant professional organisation in respect of a conduct complaint, or a regulatory complaint, against the practitioner where the conduct complaint, or the regulatory complaint, arises from the same matter to which the services complaint relates,
.
3
After section 12, insert—

Services complaint upheld: failure to refund fees and outlays
12A
1
This section applies where—
a
under section 10(2)(a), the Commission directs the practitioner or the employing practitioner (as the case may be) to refund an amount in respect of fees or outlays of the practitioner already paid by or on behalf of the client to whom the professional services were provided by the practitioner (such amount being referred to in this section as “the fee refund”),
b
any proportion of the fee refund has not been paid by the expiry of the period of 90 days commencing on the day on which notice of the direction was given to the practitioner or the employing practitioner in accordance with rules made under section 32(1), and
c
the failure to pay any proportion of the fee refund within that period is—
i
where the direction was given to the practitioner, as a result of the death, insolvency or involuntary cessation of trade of the practitioner,
ii
where the direction was given to the employing practitioner, as a result of the insolvency or involuntary cessation of trade of the employing practitioner.
2
The proportion of the fee refund that has not been paid is to be treated for the purposes of the practitioner’s or the employing practitioner’s (as the case may be) professional indemnity insurance as if it were an amount of compensation that the Commission had directed under section 10(2)(d) the practitioner or employing practitioner to pay to the complainer.
3
But subsection (2) applies only to the extent that the amount of the fee refund that has not been repaid, taken together with any amount of compensation that the Commission directed the practitioner or the employing practitioner to pay to the complainer under section 10(2)(d), does not exceed £35,000.
4
The Scottish Ministers may by regulations amend subsection (3) to substitute a different amount for the one for the time being specified there.
5
Before making regulations under subsection (4), the Scottish Ministers must consult—
a
the relevant professional organisations, and
b
such groups of persons representing consumer interests as they consider appropriate.
.

Commission decision making and delegation
57
1
The 2007 Act is amended as follows.
2
In schedule 1, in paragraph 13(2) (delegation of functions)—
a
paragraph (a) is repealed,
b
after paragraph (a) insert—
aa
a decision under section 2A(1) to initiate a complaint to be taken only by—
i
any of its committees, or
ii
one of the Commission’s members,
,
c
paragraph (b)(ii) is repealed,
d
after paragraph (c), insert—
ca
the making of any decision on the disclosure of information under section 41A to be exercised only by one of the Commission’s members,
,
e
after paragraph (d), insert—
e
the function of making a decision under section 23(2) to be exercised only by any of its committees,
f
the function of making a direction under section 24(6) to be exercised only by any of its committees.
.

Commission review committee
58
1
The 2007 Act is amended as follows.
2
After section 20, insert—

Reviews

Applications to review committee
20A
1
A person mentioned in subsection (2) may make an application for a review of a decision by the Commission in relation to a complaint that is mentioned in subsection (3).
2
The persons are—
a
the complainer,
b
the practitioner to whom the complaint relates,
c
the practitioner’s firm,
d
the employing practitioner,
e
the relevant professional organisation.
3
The decisions are—
a
a decision by the Commission that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1),
b
a decision to discontinue the investigation of a services complaint in accordance with section 9(1A)(a),
c
a decision to reinstate the investigation of a services complaint in accordance with section 9(1A)(b),
d
a determination under section 9(1) to uphold a services complaint,
e
a determination under section 9(1) to not uphold a services complaint,
f
a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(5),
g
a decision not to initiate the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(a),
h
a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(b),
i
a decision to take any of the steps mentioned in section 10(2) other than—
i
a direction to the practitioner or the employing practitioner (as the case may be) to pay compensation to the complainer, or
ii
a decision as to the amount of such compensation to be paid under the direction.
4
Subject to subsection (5), an application for review must be made before the expiry of the period of 28 days beginning with the day on which notice of the decision was given to the complainer and the practitioner.
5
The review committee may decide that it may consider an application for a review of a decision under subsection (1) that is made after the expiry of the period referred to in subsection (4) if it considers that to be appropriate.
6
Following a review, the review committee may make such decision as it considers appropriate (including a decision that substitutes its own decision for the decision to which the application for review relates).
7
Where a decision of the review committee upholds a services complaint or confirms a determination under section 9(1) to uphold a services complaint, the review committee may direct that such of the steps mentioned in section 10(2) as it considers fair and reasonable in the circumstances be taken.
8
A decision of the review committee under this section is final.
.
3
The following provisions are repealed—
a
section 21 (appeal against Commission decisions) (and the italic heading before it),
b
section 22 (appeal: supplementary provision).
4
In schedule 1 (the Scottish Legal Complaints Commission)—
a
in paragraph 10 (procedure), in sub-paragraph (2), for “determination” substitute “review”,
b
in paragraph 11 (committees)—
i
in sub-paragraph (1)(a), for “determination”, in both places where it occurs, substitute “review”,
ii
in sub-paragraph (3), for “determination” substitute “review”,
c
in paragraph 13 (delegation of functions), for sub-paragraph (2)(d), substitute—
d
the function of considering an application for review of a decision of the Commission under section 20A(1) to be exercised only by the review committee, but a review in respect of any of the following decisions may be taken by a single member of the review committee—
i
a decision by the Commission that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1),
ii
a decision to reinstate the investigation of a services complaint in accordance with section 9(1A)(b).
.

Disclosure of information by practitioners etc. to the Commission and relevant professional organisations
59
1
The 2007 Act is amended as follows.
2
In section 17 (power to examine documents and demand explanations in connection with conduct or services complaints)—
a
the title of the section becomes “Power to examine documents and demand explanations in connection with complaints”,
b
after subsection (3), insert—
3A
Nothing in a notice under subsection (1) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.
3B
But subsection (3A) does not prevent the disclosure of—
a
a document or information if consent to the disclosure is given by the client of (as the case may be)—
i
the practitioner,
ii
the practitioner’s firm, or
iii
the employing practitioner, or
b
a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).
3C
For the purpose of subsection (3A), a document or information is subject to legal privilege if it constitutes a communication—
a
between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or
b
made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,
which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.
,
c
after subsection (6) insert—
6A
For the purpose of subsection (3) or (6), references to other documents include references to anything in which information is recorded in any form.
,
d
after subsection (6A) (inserted by subsection (2)(c)) insert—
6B
Subsection (6C) applies where—
a
the Commission gave notice under subsection (1) in connection with its investigation and determination of a services complaint under section 9 to the practitioner, the practitioner’s firm or the employing practitioner (“the recipient”),
b
the recipient failed to provide some or all of the documents or information sought in the notice within the time specified in it, and
c
the Commission is satisfied that the recipient does not have a reasonable excuse for the failure.
6C
The Commission may proceed to determine the complaint based on the information before it despite the recipient’s failure.
6D
Before proceeding as mentioned in subsection (6C), the Commission must notify the recipient of the proposal and give the recipient an opportunity to respond within the period specified in the notice (which must be no fewer than 14 days from the date of the notice) to—
a
provide all of the documents or information sought in the notice given under subsection (1), or
b
provide a reasonable excuse for the failure to provide some or all of the documents or information sought in that notice within the time specified in that notice.
6E
Where subsection (6C) applies, in determining the complaint, the Commission may draw such inference from the recipient’s failure as it considers appropriate.
.
3
In section 37 (obtaining of information from relevant professional organisations), after subsection (2) insert—
2A
Subsection (1) does not require the provision of a document or information to the Commission that is subject to legal privilege.
2B
But subsection (2A) does not prevent the disclosure of—
a
a document or information if consent to the disclosure is given by the client of (as the case may be)—
i
the practitioner,
ii
the practitioner’s firm, or
iii
the employing practitioner, or
b
a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).
2C
For the purpose of subsection (2A), a document or information is subject to legal privilege if it constitutes a communication—
a
between the practitioner and the practitioner’s client, or
b
made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,
which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.
.
4
In section 48 (conduct complaints and reviews: power of relevant professional organisations to examine documents and demand explanations)—
a
after subsection (1) insert—
1A
Where a relevant professional organisation gives notice under subsection (1)(a) to a practitioner and the practitioner is an employee of another practitioner, the organisation must give a copy of the notice to the employing practitioner.
,
b
after subsection (2) insert—
2A
Nothing in a notice under subsection (1) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.
2B
But subsection (2A) does not prevent the disclosure of—
a
a document or information if consent to the disclosure is given by the client of (as the case may be)—
i
the practitioner,
ii
the practitioner’s firm, or
iii
the employing practitioner, or
b
a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).
2C
For the purpose of subsection (2A) a document or information is subject to legal privilege if it constitutes a communication—
a
between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or
b
made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,
which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.
,
c
after subsection (5) insert—
5A
For the purpose of subsection (3) or (5), references to other documents include references to anything in which information is recorded in any form.
,
d
after subsection (5A) (inserted by this section) insert—
5B
Subsection (5C) applies where—
a
a relevant professional organisation gave notice under subsection (1)(a) to the practitioner, the practitioner’s firm or the employing practitioner (“the recipient”) for the purposes of an investigation into a conduct complaint under section 47 or a regulatory complaint under section 52A,
b
the recipient failed to provide some or all of the documents or information sought in the notice within the time specified in it, and
c
the relevant professional organisation is satisfied that the recipient does not have a reasonable excuse for the failure.
5C
The relevant professional organisation may proceed to determine the complaint based on the information before it despite the recipient’s failure.
5D
Before proceeding as mentioned in subsection (5C), the relevant professional organisation must notify the recipient in writing of the proposal and give the recipient an opportunity to respond within the period specified in the notice (which must be no fewer than 14 days from the date of the notice) to—
a
provide all of the documents or information sought in the notice given under subsection (1), or
b
provide a reasonable excuse for the failure to provide some or all of the documents or information sought in that notice within the time specified in that notice.
5E
Where subsection (5C) applies, in determining the complaint, the relevant professional organisation may draw such inference from the recipient’s failure as it considers appropriate.
.
5
After section 48 insert—

Conduct complaints, regulatory complaints and services complaints: power of relevant professional organisations to examine documents and demand explanation before initiating complaint
48A
1
This section applies where a relevant professional organisation is considering—
a
making a conduct complaint, services complaint or regulatory complaint referred to in section 2(1) to the Commission against a practitioner,
b
treating a matter under section 33A(2) as if it were a conduct complaint remitted to it by the Commission under section 6(2), or
c
treating a matter under section 33B(2) as if it were a regulatory complaint remitted to it by the Commission under section 7A(2).
2
The relevant professional organisation may give notice in writing in accordance with subsection (5) to—
a
the practitioner,
b
the practitioner’s firm, or
c
the employing practitioner.
3
Notice under subsection (2) may not be given to, or in relation to, a practitioner who is Crown Counsel or a procurator fiscal (within the meaning of section 307 of the Criminal Procedure (Scotland) Act 1995).
4
Where a relevant professional organisation gives notice under subsection (2) to a practitioner and the practitioner is an employee of another practitioner, the organisation must give a copy of the notice to the employing practitioner.
5
A notice under subsection (2) may require—
a
the production or delivery to any person appointed by the relevant professional organisation, at a time and place specified in the notice, of all documents mentioned in subsection (9) which are in the possession or control of the practitioner, the firm or, as the case may be, the employing practitioner, and which relate to the matters under consideration by the relevant professional organisation in relation to the potential complaint (whether or not they relate also to other matters),
b
an explanation, within such period being not less than 21 days as the notice specifies, from the practitioner, the firm or, as the case may be, the employing practitioner, regarding the matters under consideration by the relevant professional organisation in relation to the potential complaint.
6
Nothing in a notice under subsection (2) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.
7
But subsection (6) does not prevent the disclosure of—
a
a document or information if consent to the disclosure is given by the client of (as the case may be)—
i
the practitioner,
ii
the practitioner’s firm, or
iii
the employing practitioner, or
b
a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).
8
For the purpose of subsection (6), a document or information is subject to legal privilege if it constitutes a communication—
a
between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or
b
made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,
which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.
9
The documents are—
a
all books, accounts, deeds, securities, papers and other documents in the possession or control of the practitioner, the firm or, as the case may be, the employing practitioner,
b
all books, accounts, deeds, securities, papers and other documents relating to any trust of which the practitioner is the sole trustee or a co-trustee only with one or more of the practitioner’s partners or employees or, as the case may be, where the practitioner is an incorporated practice of which the practice or one of its employees is a sole trustee or it is a co-trustee only with one or more of its employees.
10
For the purpose of subsection (9), references to other documents include references to anything in which information is recorded in any form.
11
Schedule 4 makes further provision about the powers of a relevant professional organisation under this section.
.

Power of Commission to request practitioner’s details in connection with complaints
60
1
The 2007 Act is amended as follows.
2
After section 17, insert—

Power of Commission to request practitioner’s details in connection with complaints
17A
1
Where the Commission is satisfied that it is necessary to do so in relation to a complaint referred to in section 2(1), 2A(1) or 23(1A) made against a practitioner for a purpose mentioned in subsection (3), the Commission may request that the relevant professional organisation provide any contact details held by the relevant professional organisation relating to—
a
the practitioner,
b
the practitioner’s firm,
c
the employing practitioner,
d
the person (or persons) holding a specified role (or exercising a specified function) in the practitioner’s firm or the employing practitioner.
2
The relevant professional organisation must provide any details that are requested under subsection (1) that are held by the relevant professional organisation to the Commission without delay.
3
The purpose referred to in subsection (1) is for the purpose of—
a
section 2, 2A, 4, 8, 9, 10, 16, 23 or 24, or
b
any provision in rules made under section 32(1) but only in so far as the provision in the rules relates to—
i
the categorisation of complaints, or
ii
assessment of the eligibility of complaints.
4
It does not matter for the purpose of a relevant professional organisation’s response under subsection (2) whether, at the time of the response, the practitioner, practitioner’s firm or employing practitioner (as the case may be) continues to be authorised by the organisation to provide legal services.
.

Services complaints: special provision for complaints against unregulated persons
61
1
The 2007 Act is amended as follows.
2
After section 22, insert—

Services complaints: special provision for complaints against unregulated persons

Services complaints: special provision for complaints against unregulated persons
22A
1
Subject to subsection (2), the following provisions apply in relation to a services complaint against a person who was not a practitioner at the time when the legal services complained of were provided but who was providing legal services to the public for fee, gain or reward (an “unregulated provider”) as the provisions apply in relation to a services complaint against a practitioner—
a
section 2,
b
section 3,
c
section 4,
d
section 8,
e
section 9,
f
section 10,
g
section 11,
h
section 12A,
i
section 14,
j
section 16,
k
section 17,
l
section 18,
m
section 19,
n
section 20,
o
section 20A,
p
section 35,
q
section 40, and
r
schedule 2.
2
The provisions referred to in subsection (1) apply in relation to an unregulated provider against whom a services complaint is made subject to the following modifications—
a
references to “inadequate professional services” are to be read as if they were references to “inadequate legal services” (meaning, in relation to an unregulated provider, legal services that are in any respect not of the quality which could reasonably be expected of a competent unregulated provider),
b
references to the practitioner against whom a complaint is made are to be read as including references to the unregulated provider against whom a complaint is made,
c
references to a “practitioner’s firm” are to be read as if they were omitted,
d
references to an “employing practitioner”, in relation to a practitioner, are to be read as if they were references to the employer (if any) of the unregulated provider against whom a complaint is made,
e
references to a “relevant professional organisation” are to be read as if they were omitted,
f
where the unregulated provider against whom a complaint is made is in the employment of another person, references in section 10 to “employee practitioner” are to be read as if they were references to the unregulated provider,
g
section 10(2) is to be read as if paragraph (e) were omitted.
.

Handling complaints
62
1
The 2007 Act is amended as follows.
2
In section 23 (handling by relevant professional organisations of conduct complaints: investigation by Commission)—
a
the title of the section becomes “Handling by relevant professional organisations of conduct or regulatory complaints: investigation by Commission”,
b
for subsection (1A) substitute—
1A
In this Act, a “handling complaint” means—
a
a complaint which—
i
relates to the manner in which a conduct complaint has been dealt with by a relevant professional organisation to which it has been remitted under section 6(2) (or is treated under section 33A(2) as if it were remitted under section 6(2)), and
ii
is made—
A
by or on behalf of the person by whom or on whose behalf the conduct complaint was made, or
B
by the practitioner concerned in the conduct complaint, or
b
a complaint which—
i
relates to the manner in which a regulatory complaint has been dealt with by the relevant professional organisation to which it has been remitted under section 7A(2) (or is treated under section 33B(2) as if it were remitted under section 7A(2)), and
ii
is made—
A
by or on behalf of the person by whom or on whose behalf the regulatory complaint was made, or
B
by the authorised legal business concerned in the regulatory complaint.
,
c
subsections (3) and (6) are repealed,
d
in subsection (4), in paragraph (a), after “conduct complaint” insert “or regulatory complaint”,
e
after subsection (4) insert—
4A
But paragraph (b) of subsection (4) does not apply where the Commission considers that there are exceptional circumstances justifying its investigation of a handling complaint that is made after the expiry of the 6 month period referred to in that paragraph.
,
f
subsections (8) and (10) are repealed.
3
In section 24 (investigation under section 23: final report and recommendations)—
a
in subsection (1)(b)(ia), after “conduct complaint” insert “or regulatory complaint”,
b
in subsection (2)—
i
in paragraph (a), after “conduct complaint” insert “or regulatory complaint”,
ii
in paragraph (b), after “conduct complaint” insert “or regulatory complaint”,
iii
in paragraph (c), after “conduct complaint” insert “or regulatory complaint”,
iv
in paragraph (e), after “conduct complaint” insert “or regulatory complaint”,
v
in paragraph (f), before “cost”, in both places where it occurs, insert “administrative”,
c
in subsection (5)—
i
after “conduct complaint” insert “or regulatory complaint”,
ii
for the words from “of—” to the end of the subsection, substitute “whether it will comply with the recommendation within 3 months and, if not, the reason why not.”,
d
in subsection (6)—
i
in paragraph (a)—
A
for “has decided not to” substitute “will not”,
B
the word “wholly” is repealed,
ii
in paragraph (b)—
A
the word “wholly” is repealed,
B
for “before the end of the period of” substitute “within”,
C
the words from “beginning” to the end of paragraph (b) are repealed,
iii
in the closing words, for “if the Commission thinks fit” substitute “within such period as it may specify in the direction”,
e
in subsection (6A)—
i
for “considers” substitute “notifies the Commission”,
ii
the word “wholly” is repealed,
f
in subsection (6B)(b), after “conduct complaint” insert “or regulatory complaint”,
g
after subsection (8) insert—
9
In this section, “within 3 months”, in relation to a recommendation included in a report sent to a relevant professional organisation under this section, means before the end of the period of 3 months beginning with the day on which the report was sent to the organisation.
10
In this section and schedule 3, “the other party to the conduct complaint or regulatory complaint to which the handling complaint relates” is in the case of a handling complaint made in accordance with—
a
paragraph (a)(ii)(A) of section 23(1A), the practitioner concerned in the conduct complaint to which the handling complaint relates,
b
paragraph (b)(ii)(A) of section 23(1A), the authorised legal business concerned in the regulatory complaint to which the handling complaint relates,
c
paragraph (a)(ii)(B) or (b)(ii)(B) of section 23(1A), the complainer in the conduct complaint or regulatory complaint to which the handling complaint relates.
.

Annual general levy and complaints levy
63
1
The 2007 Act is amended as follows.
2
In section 27 (annual general levy)—
a
in subsection (1)—
i
for paragraph (c) substitute—
c
person who has acquired a right to provide legal services by virtue of Chapter 3 of Part 1 the 2025 Act (or section 27 of the 1990 Act),
,
ii
after paragraph (d), insert—
e
authorised legal business,
,
b
in subsection (2)(a), for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,
c
in subsection (4), in the opening words, for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,
d
for subsection (5) substitute—
5
If any person who is liable under subsection (1) to pay the annual general levy (“the liable person”) fails to pay any amount of the levy, or pays any such amount late—
a
where the liable person is an individual, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the liable person,
b
where the liable person is not an individual and where the failure to pay or late payment involves the connivance or consent of (or is attributable to the neglect of) a responsible official of a liable person, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.
6
In subsection (5), a “responsible official” of a liable person is—
a
where the liable person is a company, a director, secretary, manager or other similar officer,
b
where the liable person is a limited liability partnership, a member,
c
where the liable person is an ordinary partnership, a partner,
d
where the liable person is another body or association, a person who is concerned in the management or control of its affairs,
but in each case also extends to a person purporting to act in such a capacity.
.
3
In section 28 (complaints levy)—
a
in subsection (1), for “mentioned in subsection (2)” substitute “specified in rules made under section 32(1)”,
b
subsection (2) is repealed,
c
for subsection (4) substitute—
4
If any practitioner who is liable under subsection (1) to pay the complaints levy fails to pay any amount of the levy, or pays any such amount late—
a
where the practitioner is an individual, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the practitioner,
b
where the practitioner is not an individual and where the failure or late payment involves the connivance or consent of, or is attributable to the neglect of, a responsible official of the practitioner, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.
5
In subsection (4), a “responsible official” of a practitioner is—
a
where the practitioner is a company, a director, secretary, manager or other similar officer,
b
where the practitioner is a limited liability partnership, a member,
c
where the practitioner is an ordinary partnership, a partner,
d
where the practitioner is another body or association, a person who is concerned in the management or control of its affairs,
but in each case also extends to a person purporting to act in such a capacity.
.
4
In section 29 (amount of levies and consultation)—
a
in subsection (1), after paragraph (b) (but before the closing words), insert—
c
annual contribution,
d
complaints contribution,
,
b
in subsection (2), for the words from “must” to the end of the subsection substitute
may be—
a
of different amounts for different persons (or persons of different descriptions) who are liable under section 27(1) to pay it, including different amounts for persons who are individuals and persons who are not,
b
of different amounts (including nil) in different circumstances based on such criteria (such as the size and income of a person who is not an individual who is liable under section 27(1) to pay the annual general levy) as rules made under section 32(1) may specify.
,
c
after subsection (2) insert—
2A
Rules under section 32(1) may provide for circumstances in which the Commission may waive a portion of the amount of annual general levy which would otherwise require to be paid.
,
d
in subsection (5)(a), in sub-paragraph (ii), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”,
e
for subsection (6) insert—
6
For the purpose mentioned in subsection (6A)—
a
each relevant professional organisation must provide the Commission with an estimate of the number of persons as respects whom it is the relevant professional organisation and who it anticipates should be liable under section 27(1) to pay the annual general levy for the financial year concerned, and
b
each relevant professional organisation that is a category 1 regulator must assist the Commission with its enquiries in relation to the size and income of each authorised legal business that is authorised by the organisation to provide legal services.
6A
The purpose referred to in subsection (6) is the purpose of informing the Commission in relation to—
a
the inclusion in the Commission’s proposed budget for each financial year of the proposed amount of the annual general levy,
b
the Commission’s determination under subsection (1) of the amount of the annual general levy in respect of each financial year.
,
f
in subsection (7), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”.

Unregulated providers of legal services: register, annual contributions and complaints contributions
64
1
The 2007 Act is amended as follows.
2
After section 28, insert—

Unregulated providers of legal services: register and annual contribution
28A
1
The Commission must establish and maintain a register of unregulated providers of legal services.
2
The Commission is to determine, in accordance with its rules under section 32(1), the information to be included in a register established under subsection (1).
3
An unregulated provider of legal services that is specified in (or is of such type or description as may be specified in) regulations made by the Scottish Ministers must make a request to be entered in a register established under subsection (1).
4
Any other unregulated provider of legal services may make a request to be entered in a register established under subsection (1).
5
An unregulated provider of legal services who is entered in a register established under subsection (1) must pay to the Commission a contribution (referred to in this Part as “the annual contribution”).
6
The amount of the annual contribution may be—
a
different for unregulated providers of legal services who are individuals and unregulated providers of legal services who are not,
b
of different amounts (including nil) in different circumstances.
7
The Commission must make the register accessible by members of the public in such form and manner as it considers appropriate.
8
The Commission must ensure that the amount of resources allocated for its use is reasonably sufficient to enable it to—
a
establish and maintain the register, and
b
investigate, determine and review services complaints against unregulated providers of legal services.
9
In this section, a reference to an unregulated provider of legal services is to a person who provides legal services to the public for fee, gain or reward but who is not a practitioner.

Regulations under section 28A(3): requirements
28B
1
The Scottish Ministers may lay a draft of a Scottish statutory instrument containing regulations under section 28A(3) only if—
a
they have received a request to exercise the power from—
i
the Lord President,
ii
the regulatory committee of a category 1 regulator,
iii
a category 1 regulator that has no functions other than regulatory functions,
iv
an approved regulator,
v
the Commission, or
vi
the independent advisory panel established by the Commission under paragraph 11A of schedule 1, and
b
they have secured the Lord President’s agreement to the laying of the draft.
2
Before making a request under subsection (1)(a), the person making the request (“the requester”) must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions,
iii
each approved regulator,
iv
the Commission,
v
the panel mentioned in subsection (1)(a)(vi), and
vi
such other person as the requester considers appropriate, and
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
3
But a person mentioned in subsection (2)(a)(i) to (v) does not need to be consulted if the person is the requester.
4
For the purpose of seeking the Lord President’s agreement under subsection (2)(b), the requester must provide to the Lord President—
a
a document setting out why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3), and
b
copies of any written representations received in response to the consultation under subsection (2)(a).
5
A request under subsection (1)(a) must include—
a
a document setting out why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3),
b
copies of any written representations received in response to the consultation under subsection (2)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
6
As soon as reasonably practicable after making a request under subsection (1)(a), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
7
In this section—
- “approved regulator” has the meaning given by Part 2 of the Legal Services (Scotland) Act 2010,
- “regulatory functions” in relation to a category 1 regulator, has the meaning given by section 6 of the 2025 Act.

Unregulated providers of legal services: upheld services complaints and complaints contribution
28C
1
An unregulated provider of legal services against whom a services complaint is made must pay to the Commission, in the circumstances specified in rules made under section 32(1), a contribution in relation to the complaint (referred to in this Part as “the complaints contribution”).
2
The amount of the complaints contribution may be—
a
of different amounts for different unregulated providers of legal services according to the amount of annual contributions (if any) paid by an unregulated provider of legal services,
b
of different amounts (including nil) in different circumstances.
3
In this section, a reference to an unregulated provider of legal services has the same meaning as in section 28A(9).
.

Commission rules as to practice and procedure
65
1
The 2007 Act is amended as follows.
2
In section 32 (duty of Commission to make rules as to practice and procedure), in subsection (5)—
a
in paragraph (d), for “such” substitute “the independent advisory panel established under paragraph 11A of schedule 1 and such other”,
b
after paragraph (d), insert—
e
such groups of persons representing the interests of the legal profession as it considers appropriate,
.
3
In schedule 3 (rules as to Commission’s practice and procedure)—
a
for paragraph 1 (provision which must be included), substitute—
1
The rules as to the Commission’s practice and procedure made under section 32(1) must include provision about—
a
the criteria to be met for a complaint to be considered eligible, including—
i
the time limit within which a complaint must be made,
ii
circumstances in which time limits may be extended,
iii
requiring a complaint that is determined to be frivolous, vexatious or totally without merit to be considered ineligible,
b
how a complaint is to be assessed with reference to eligibility criteria,
c
the requirement for the complainer, for the purposes of Parts 1 and 2 of this Act, to waive any right of confidentiality in relation to the matters to which the complaint relates and, without which, the Commission is not to—
i
remit a conduct complaint to a relevant professional organisation under section 6(2),
ii
remit a regulatory complaint to a relevant professional organisation under section 7A(2),
iii
investigate a services complaint by virtue of section 9,
iv
investigate a handling complaint by virtue of section 23,
d
matters to be considered by the Commission in assessing whether or not legal services provided by a person mentioned in section 2(1)(b)(ii) are merely incidental to the provision of other services (in determining whether a services complaint against such a person is an eligible complaint),
e
how a complaint is to be categorised as a services complaint, a conduct complaint or a regulatory complaint (or any combination of the same and to any extent),
f
assessing whether to initiate a complaint against a practitioner under section 2A(1) which, had it been received by a person mentioned in section 2(2), would be a conduct complaint or a regulatory complaint,
g
the circumstances in which the Commission may decide—
i
to discontinue the investigation of a services complaint under section 9(1A)(a),
ii
to discontinue the investigation of a handling complaint under section 23(2)(b),
h
the circumstances in which the Commission may decide—
i
to reinstate the investigation of a discontinued services complaint under section 9(1A)(b),
ii
to reinstate the investigation of a discontinued handling complaint under section 23(2)(c),
i
the manner in which a services complaint is to be investigated by the Commission (and by whom),
j
hearings to be held by the Commission in relation to a services complaint or a handling complaint being dealt with by it under Part 1 which must require the Commission—
i
to hold a hearing in relation to such a complaint where it considers it appropriate, and
ii
require the Commission to decide whether such a hearing should be public or private,
k
evidence, including—
i
the evidence that may be required or admitted,
ii
the extent to which it may be oral or written,
iii
the consequences of a person’s failure to produce any information or document which the person has been required to produce,
l
the manner in which a services complaint is to be determined by the Commission (and by whom),
m
the manner in which a handling complaint is to be investigated and determined by the Commission,
n
the timing and the manner in which the Commission is to notify, in relation to a complaint other than a handling complaint, the complainer, practitioner and the practitioner’s employer (if any) and, where appropriate, the relevant professional organisation of its decisions including a decision—
i
that a complaint referred to in section 2(1) is not an eligible complaint,
ii
to initiate a conduct complaint or a regulatory complaint under section 2A(1),
iii
that a complaint referred to in section 2(1) is eligible and whether it is being (or is to be) investigated by the Commission, the relevant professional organisation or both,
iv
that the investigation of a complaint referred to in section 2(1) or 2A(1) has been (or is to be) discontinued or reinstated,
v
whether or not a services complaint has been upheld by the Commission under section 9(1) and, if it has, any determination, direction or report by the Commission under section 10(2),
vi
relating to an application for review under section 20A,
o
the timing and the manner in which the Commission is to notify, in relation to a handling complaint, the following persons of its decisions—
i
the person who made the handling complaint (and, if made on behalf of another person, that other person),
ii
the other party to the conduct complaint or regulatory complaint to which the handling complaint relates (see section 24(10)), and
iii
the relevant professional organisation,
p
the membership of a review committee, including in particular provision requiring—
i
that such a committee has at least 3 members, of which the majority are non-lawyer members of the Commission,
ii
that such a committee is chaired by a lawyer member of the Commission,
q
the procedure to be followed in connection with reviews under section 20A including—
i
grounds on which an application for review will be considered eligible, including whether it has a reasonable prospect of success,
ii
notice to be given of applications and decisions,
iii
the manner in which reviews are to be conducted,
r
the determination of the annual general levy, and the arrangements for payment of the levy, including—
i
the matters to be taken account of by the Commission in determining the amount of the annual general levy relating to practitioners who are not individuals which may be different in different circumstances such as the size and income of the practitioner,
ii
arrangements to be made with a view to ensuring that the annual general levy is not payable more than once by or in relation to an individual practitioner within an authorised legal business,
s
the circumstances in which the complaints levy is payable under section 28(1) by a practitioner against whom a services complaint is made,
t
the circumstances in which the complaints contribution is payable under section 28C(1) by a person against whom a services complaint is made,
u
the charging of interest at such rate as may be specified by the Scottish Ministers by order under section 27(3)(b) on any amount of the annual general levy due to be paid to the Commission by a relevant professional organisation under section 27(2)(b) from the date the amount is due under the rules until it is paid,
v
the charging of interest at such rate as may be specified by the Scottish Ministers by order under section 28(3)(b) on any amount of the complaints levy due to the Commission from the date the amount is due under the rules until it is paid.
1A
Rules under paragraph 1(n)(v) must in particular provide that where a complaint referred to in section 2(1) constituted a services complaint and additionally constituted a conduct complaint or a regulatory complaint that has been remitted to a relevant professional organisation under section 6(2) or 7A(2) (as the case may be), the Commission must inform the organisation—
a
of the outcome under section 9 of—
i
any decision by the Commission relating to the investigation of the services complaint, or
ii
any determination by the Commission of the services complaint, and
b
if the Commission makes a determination under that section upholding the services complaint, of any determination, direction or report by the Commission under section 10(2).
1B
Rules under paragraph 1(q)(iii) must in particular provide that any member of the review committee considering a complaint must not have been involved in—
a
any aspect of the investigation of the complaint (including considering the eligibility of the complaint),
b
the steps to be taken by the Commission where, in the course of considering a services complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a conduct complaint or regulatory complaint,
c
determining the complaint under section 9(1),
d
making a determination under section 10(2) in relation to the complaint.
,
b
for paragraph 2 (provision which may in particular be included) substitute—
2
The rules as to the Commission’s practice and procedure made under section 32(1) may in particular include provision about—
a
the steps to be taken by the Commission where, in the course of considering a services complaint, it becomes aware of new information which causes it to decide that the complaint is not an eligible complaint,
b
the steps to be taken by the Commission where, in the course of considering a services complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a conduct complaint or regulatory complaint,
c
the steps to be taken by a relevant professional organisation where, in the course of considering a conduct or regulatory complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a services complaint,
d
the circumstances in which the Commission is not prevented from considering a complaint which would otherwise be considered to have been made prematurely in accordance with the rules.
.

Conduct or regulatory complaint raised by relevant professional organisation
66
1
The 2007 Act is amended as follows.
2
In section 33 (duty of relevant professional organisations to forward complaints to Commission)—
a
the existing provision becomes subsection (1),
b
after paragraph (b) of that subsection (and before the closing words) insert—
c
the compliance by any authorised legal business that is authorised by the organisation to provide legal services with—
i
the organisation’s practice rules forming part of the rules for authorising and regulating the authorised legal business made under (or for the purposes of) section 41(1)(a) of the 2025 Act), or
ii
the terms on which the authorisation of the authorised legal business is granted by the organisation including any conditions or restrictions imposed in relation to the authorisation,
,
c
after that subsection insert—
2
Subsection (1)(a) is subject to section 33A(2) (conduct complaint identified by a relevant professional organisation).
3
Subsection (1)(c) is subject to section 33B(2) (regulatory complaint identified by relevant professional organisation).
.
3
After section 33 insert—

Conduct complaint identified by relevant professional organisation
33A
1
This section applies where, in the course of exercising any of its functions conferred by or under this Act or the 2025 Act other than those relating to a handling complaint, a relevant professional organisation—
a
identifies a matter of concern regarding the conduct of a practitioner who is regulated by it, and
b
is satisfied that the matter, if it were to be referred to the Commission as mentioned in section 2(1)(a), would be considered by the Commission to be an eligible conduct complaint in accordance with any provision in rules made under section 32(1).
2
Despite subsection (1)(a) of section 33, the relevant professional organisation need not refer the matter (or any material relating to it) to the Commission under that subsection and may instead treat the matter as if it were a conduct complaint remitted to it under section 6(2) (and the conduct complaint is to be treated for the purposes of this Part as having been made by the relevant professional organisation).
3
Where the relevant professional organisation treats the matter as mentioned in subsection (2), the relevant professional organisation must—
a
have regard to the interests of any clients (or former clients) of the practitioner to whom the complaint relates (or clients or former clients of the practitioner’s firm or the employing practitioner) who may have been affected by the conduct of the practitioner, and
b
as soon as practicable send details of the matter and any material relating to it to the Commission.
4
For the purposes of subsection (3)(a), where the relevant professional organisation upholds the conduct complaint against the practitioner, the organisation must notify any client (or former client) of the practitioner (or the practitioner’s firm or the employing practitioner) whom it considers was directly affected by the conduct of the practitioner of the outcome of the complaint.
5
Where the Commission receives details about a matter (and any material relating to it) under subsection (3)(b) from the relevant professional organisation, the Commission must consider the details (and any related material) provided to it to consider whether the matter constitutes a services complaint (to any extent).

Regulatory complaint identified by relevant professional organisation
33B
1
This section applies where, in the course of exercising any of its functions conferred by or under this Act or the 2025 Act other than those relating to a handling complaint, a relevant professional organisation—
a
identifies a matter of concern suggesting that an authorised legal business that is authorised by it to provide legal services is failing (or has failed) to comply with a matter mentioned in section 2(1)(c)(i) or (ii), and
b
is satisfied that the matter, if it were to be referred to the Commission as mentioned in section 2(1)(c), would be considered by the Commission to be an eligible regulatory complaint in accordance with any provision in rules made under section 32(1).
2
Despite subsection (1)(c) of section 33, the relevant professional organisation need not refer the matter (or any material relating to it) to the Commission and may treat the matter as if it were a regulatory complaint remitted to it by the Commission under section 7A(2) (and the regulatory complaint is to be treated for the purposes of this Part as having been made by the relevant professional organisation).
3
Where the relevant professional organisation treats the matter as mentioned in subsection (2), the organisation must as soon as practicable send details of the matter (and any material relating to it) to the Commission.
4
Where the Commission receives details about a matter (and any material relating to it) under subsection (3) from the relevant professional organisation, the Commission must consider the details (and any related material) provided to it to consider whether the matter constitutes a services complaint (to any extent).

Recategorisation of conduct or regulatory complaint by relevant professional organisation
33C
1
Subsection (2) applies where a relevant professional organisation—
a
at any time during its investigation in relation to a conduct complaint remitted to it under section 6(2) (or treated as such by virtue of section 33A(2)), considers that the complaint (or any element of it) instead constitutes a regulatory complaint, or
b
at any time during its investigation in relation to a regulatory complaint remitted to it under section 7A(2) (or treated as such by virtue of section 33B(2)), considers that the complaint (or any element of it) instead constitutes a conduct complaint.
2
The relevant professional organisation must as soon as practicable send details to the Commission of the organisation’s recategorisation of the complaint (or any element of it) as mentioned in paragraph (a) or (b) of subsection (1).
3
For the purpose of subsection (1)(a), the relevant professional organisation may consider that the conduct complaint (or an element of it) is a regulatory complaint if the organisation is satisfied that the complaint (or the element of it), if it were to be referred to the Commission as mentioned in section 2(1)(c), would be considered by the Commission to be an eligible regulatory complaint in accordance with any provision in rules made under section 32(1).
4
For the purpose of subsection (1)(b), the relevant professional organisation may consider that the regulatory complaint (or an element of it) is a conduct complaint if the organisation is satisfied that the complaint (or the element of it), if it were to be referred to the Commission as mentioned in section 2(1)(a), would be considered by the Commission to be an eligible conduct complaint in accordance with any provision in rules made under section 32(1).
.

Conduct or regulatory complaint appears to relevant professional organisation during investigation to be services complaint
67
1
The 2007 Act is amended as follows.
2
In section 33 (duty of relevant professional organisations to forward complaints to Commission), after subsection (3) insert—
4
Subsection (5) applies where a relevant professional organisation at any time during its investigation in relation to—
a
a conduct complaint remitted to it under section 6(2) (or treated as such by virtue of section 33A(2)), or
b
a regulatory complaint remitted to it under section 7A(2) (or treated as such by virtue of section 33B(2)),
considers that it is reasonably likely that the complaint (or any element of it) may instead constitute a services complaint.
5
The relevant professional organisation must—
a
suspend the investigation,
b
consult, co-operate and liaise with the Commission as respects the matter,
c
send the complaint and any material which relates to it and which is in the organisation's possession to the Commission, and
d
give notice in writing to the complainer and the practitioner that it considers the complaint (or an element of it) to be a services complaint and that it is sending the complaint to the Commission.
.

Conduct complaints: consideration by relevant professional organisations
68
1
The 2007 Act is amended as follows.
2
In section 47 (conduct complaints: duty of relevant professional organisations to investigate etc.)—
a
after subsection (1) insert—
1A
The relevant professional organisation may decide—
a
to discontinue the investigation of a conduct complaint,
b
to reinstate the investigation of a discontinued conduct complaint,
but only if the organisation considers that this is in the public interest.
1B
As soon as practicable after making a decision under subsection (1A), the relevant professional organisation must give notice in writing of its decision to the complainer, the practitioner and the Commission by—
a
sending them a copy of the decision, and
b
specifying the reason for the decision.
1C
In addition, notice under subsection (1B) given to the complainer or the practitioner, must also give them information about any—
a
right of appeal, and
b
ability to make a handling complaint to the Commission.
,
b
in subsection (2)—
i
in the opening words, for “and the practitioner” substitute “, the practitioner and the Commission”,
ii
in paragraph (a), for “the facts” substitute “any facts”,
iii
in paragraph (b), after “action” insert “(if any)”,
iv
after paragraph (b), insert—
c
if the organisation does not propose to take, or has not taken, any action in the matter, an explanation of why this is the case.
,
c
after subsection (2), insert—
2A
The relevant professional organisation must, in considering what action (if any) to take as mentioned in subsection (2)(b), take into account any decision taken by the Commission in respect of a services complaint against the practitioner where the services complaint arises from the same matter to which the conduct complaint relates.
2B
A relevant professional organisation may proceed to investigate and make a written report in relation to a conduct complaint remitted to it as mentioned in subsection (1) even if the complainer withdraws the complaint (and in such case the conduct complaint is to be treated for the purposes of Part 1 and this Part as having been made by the relevant professional organisation).
.

Complaints: monitoring and setting of minimum standards by the Commission
69
1
The 2007 Act is amended as follows.
2
In section 35 (services complaints: monitoring, reports, protocols and information sharing)—
a
in subsection (3)(a), for sub-paragraphs (i) to (vi), substitute “the Commission’s functions relating to services complaints dealt with by it,”,
b
after subsection (4) insert—
5
If, in the course of exercising its functions under this Act, the Commission identifies a matter of concern relating to one or more practitioners (or practitioners’ firms or employing practitioners), the Commission may notify the relevant professional organisation of the concern and give the organisation any information it holds relating to the concern.
.
3
In section 36 (conduct complaints: monitoring, reports, guidance and recommendations)—
a
the title of the section becomes “Conduct and regulatory complaints: monitoring and reports”,
b
in subsection (1)—
i
for paragraph (a), substitute—
a
practitioners have dealt with matters that result in—
i
conduct complaints being remitted to the relevant professional organisations under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),
ii
regulatory complaints being remitted to the relevant professional organisations under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)),
,
ii
in paragraph (b), after “complaints” insert “or regulatory complaints”,
c
subsections (3) and (4) are repealed,
d
in subsection (5), for “conduct complaints remitted to them under section 6(2)(a) or 15(5)(a)” substitute
—
a
conduct complaints remitted to them under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),
b
regulatory complaints remitted to them under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).
.
4
After section 36, insert—

Conduct and regulatory complaints: setting of minimum standards by the Commission
36A
1
The Commission may issue guidance to relevant professional organisations relating to how they are to investigate and determine the following complaints—
a
conduct complaints that are remitted to them by the Commission under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),
b
regulatory complaints that are remitted to them by the Commission under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).
2
Guidance under subsection (1) may in particular—
a
set minimum standards for relevant professional organisations in relation to the matters mentioned in that subsection,
b
include guidance as to the timescales within which relevant professional organisations should aim to complete their investigation of, or determine, complaints.
3
Guidance under subsection (1)—
a
may make different provision for—
i
different types of complaint,
ii
different acts or omissions (or series of acts or omissions) to which complaints may relate,
iii
different types of practitioner against whom complaints may be made,
b
may be issued to—
i
each relevant professional organisation,
ii
a particular relevant professional organisation,
iii
relevant professional organisations of a particular description.
4
Before issuing guidance under subsection (1) that sets minimum standards, the Commission must consult—
a
the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—
i
the Lord President,
ii
each relevant professional organisation concerned,
iii
the practitioners regulated by each organisation, and
iv
any other person the Commission considers appropriate,
b
the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—
i
each relevant professional organisation concerned, and
ii
any other person the Commission considers appropriate.
5
For the purpose of subsection (4)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.
6
The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (4) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.
7
The Commission must—
a
publish any guidance issued under subsection (1) in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance, and
b
if the guidance sets minimum standards, at the time of publishing any such guidance, publish a document summarising—
i
the consultation carried out under subsection (4),
ii
any representations received in response to the consultation,
iii
any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and
iv
the Commission’s reasons for including the minimum standards in the guidance.
.
5
In section 40 (how practitioners deal with complaints: best practice notes)—
a
the existing text becomes subsection (1),
b
in paragraph (a) of that subsection, for “or the professional services provided by them” substitute “, the professional services provided by them or regulatory matters”,
c
after that subsection insert—
2
The Commission may issue guidance (which may set minimum standards) to relevant professional organisations—
a
relating to their role overseeing how practitioners deal with complaints to them made about the matters mentioned in subsection (1)(a) or (b),
b
relating to standards that must be set by the organisations for practitioners that they regulate in relation to how complaints made to practitioners about the matters mentioned in paragraph (a) or (b) of subsection (1) are dealt with by practitioners,
c
in respect of any practice (and any trends in practice) identified by the Commission in the way in which the practitioners that are regulated by the organisations deal with matters which the Commission considers contributes significantly to—
i
services complaints being dealt with by the Commission under sections 8 to 12,
ii
conduct complaints being remitted to the relevant professional organisations under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),
iii
regulatory complaints being remitted to the relevant professional organisations under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).
3
Guidance under subsection (1) or (2) or may make different provision for—
a
different types of complaint,
b
different acts or omissions (or series of acts or omissions) to which complaints may relate,
c
different types of practitioner against whom complaints may be made.
4
Guidance under subsection (1) or (2) may be issued to—
a
each relevant professional organisation,
b
a particular relevant professional organisation,
c
relevant professional organisations of a particular description.
5
In subsection (1), “regulatory matters” means, in relation to an authorised legal business, failure by the authorised legal business to comply with either of the matters mentioned in section 2(1)(c)(i) or (ii).
6
Where the Commission issues guidance to a relevant professional organisation under subsection (1) or (2), the relevant professional organisation must notify the practitioners that it regulates of the guidance.
7
Before issuing guidance under subsection (2) that sets minimum standards, the Commission must consult—
a
the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—
i
the Lord President,
ii
each relevant professional organisation concerned,
iii
the practitioners regulated by each organisation, and
iv
any other person the Commission considers appropriate,
b
the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—
i
each relevant professional organisation concerned, and
ii
any other person the Commission considers appropriate.
8
For the purpose of subsection (7)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.
9
The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (7) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.
10
The Commission must publish any guidance issued under this section in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance.
11
In the case of guidance issued under subsection (2) that sets minimum standards, the Commission must, at the time of publishing the guidance, publish a document summarising—
a
the consultation carried out under subsection (7),
b
any representations received in response to the consultation,
c
any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and
d
the Commission’s reasons for including the minimum standards in the guidance.
.

Compensation funds: setting of minimum standards by the Commission
70
1
Section 39 of the 2007 Act (monitoring effectiveness of guarantee funds etc.) is amended as follows.
2
After subsection (1), insert—
1A
The Commission may issue guidance (which may set minimum standards) to relevant professional organisations relating to the operation and effectiveness of the Client Protection Fund and any fund maintained by a relevant professional organisation which are for purposes analogous to those of the Client Protection Fund.
.
3
In subsection (2)—
a
the words “the Guarantee Fund,” are repealed,
b
the words “funds or” are repealed.
4
In subsection (3), after “subsections (1)” insert “, (1A)”.
5
After subsection (4), insert—
5
Guidance under subsection (1A) may be issued to—
a
each relevant professional organisation,
b
a particular relevant professional organisation,
c
relevant professional organisations of a particular description.
6
Before issuing guidance under subsection (1A) that sets minimum standards, the Commission must consult—
a
the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—
i
the Lord President,
ii
each relevant professional organisation concerned,
iii
the practitioners regulated by each organisation, and
iv
any other person the Commission considers appropriate,
b
the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—
i
each relevant professional organisation concerned, and
ii
any other person the Commission considers appropriate.
7
For the purpose of subsection (6)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.
8
The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (6) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.
9
The Commission must—
a
publish any guidance issued under subsection (1A) in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance, and
b
if the guidance sets minimum standards, at the time of publishing the guidance, publish a document summarising—
i
the consultation carried out under subsection (6),
ii
any representations received in response to the consultation,
iii
any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and
iv
the Commission’s reasons for including the minimum standards in the guidance.
.

Enforcement of minimum standards
71
1
The 2007 Act is amended as follows.
2
After section 40, insert—

Enforcement of minimum standards in relation to relevant professional organisations
40A
1
A relevant professional organisation must meet any minimum standards set by the Commission that apply to it.
2
For the purpose of considering whether a relevant professional organisation is meeting any minimum standards that apply to it, the Commission may require from the relevant professional organisation—
a
the production of information as to how it is meeting the minimum standards, and
b
if the Commission is of the view that the relevant professional organisation is not (or has not been) meeting the minimum standards, an explanation of why the minimum standards are not being (or have not been) met.
3
Subsection (4) applies where the Commission considers that a relevant professional organisation, without reasonable excuse, is failing (or has failed) to meet the minimum standards in respect of which information was sought under subsection (2).
4
The relevant professional organisation and the Commission (“the parties”) must decide whether they are content for the dispute relating to the alleged failure to meet the minimum standards to be submitted to arbitration for resolution that is final and binding on the parties.
5
If both parties agree that the dispute is to be submitted to an arbitrator, the arbitrator is to be appointed—
a
jointly by the parties, or
b
in the absence of agreement for joint appointment, by the Lord President on a request made by either (or both) of the parties.
6
If the dispute is not submitted to arbitration, the Commission may direct the relevant professional organisation to take such steps as it considers appropriate within such period of time as may be specified in the direction.
7
The period of time specified in a direction under subsection (6) for the taking of such steps by the relevant professional organisation as the Commission considers appropriate may be extended by agreement between the parties.
8
The relevant professional organisation must, as soon as practicable following the expiry of the period of time referred to in subsection (6) (or such extended period of time referred to in subsection (7)), notify the Commission in writing of—
a
the steps taken by or on behalf of the relevant professional organisation to comply with the direction, or
b
if no such steps have been taken, or if not all steps necessary to comply with the direction have been taken, an explanation of the reason (or reasons) for the failure to comply with the direction.
9
If the Commission considers that a relevant professional organisation has failed to comply with a direction under subsection (6), the Commission may apply to the court for the relevant professional organisation to be dealt with in accordance with subsection (10).
10
Where such an application is made, the court may inquire into the matter and after hearing—
a
any witnesses who may be produced against or on behalf of the relevant professional organisation, and
b
any statement that may be offered in defence,
may order the relevant professional organisation to comply with the direction or part of the direction (see subsection (12)).
11
Subsection (12) applies if the court, having considered an application under subsection (9)—
a
is proposing to make an order under subsection (10) requiring a relevant professional organisation to comply with the direction, and
b
considers that the taking of one or more steps specified in the order would have a detrimental effect on the ability of the relevant professional organisation to comply with its duty under section 3(1) or (3) of the 2025 Act.
12
In making an order under subsection (10), the court may provide that the relevant professional organisation is not required to take a step referred to in subsection (11)(b).
13
In this section, “minimum standards” means minimum standards that are set out in any guidance issued under—
a
section 36A
(1)
,
b
section 39(1A),
c
section 40(2).
.

Obtaining information from practitioners
72
1
The 2007 Act is amended as follows.
2
After section 40A (inserted by section 71), insert—

Obtaining information from practitioners
40B
1
For the purpose of any its functions mentioned in subsection (2), the Commission may request information from a practitioner about complaints received by the practitioner during the relevant period.
2
The functions are—
a
monitoring practice and identifying any trends in practice under section 35(1) or 36(1),
b
the issuing of guidance under section 40(1) or (2).
3
The information that may be sought under subsection (1) in relation to each complaint received by the practitioner during the relevant period includes—
a
the date on which the complaint was received,
b
a description of the substance of the complaint,
c
the category of personnel in respect of whom the complaint was made,
d
the type of services in respect of which the complaint was made,
e
any action taken by the practitioner, the practitioner’s firm or the employing practitioner (as the case may be) in relation to the complaint,
f
the date on which the practitioner’s consideration of the complaint concluded,
g
an explanation of whether the complaint was resolved,
h
any changes in the working practices of, or processes or systems used by, the practitioner, the practitioner’s firm or the employing practitioner (as the case may be) arising from the complaint.
4
In subsection (1), the “relevant period”, in relation to a request under that subsection, means the period of 3 years before the day on which the request is made.
.

Power to disclose information about complaints: Commission
73
1
The 2007 Act is amended as follows.
2
After section 41, insert—

Power to disclose information about complaints: Commission
41A
1
The Commission may, if it considers it to be in the public interest, disclose information about any conduct complaint, regulatory complaint, services complaint or handling complaint, including—
a
information that identifies or is likely to identity any person to whom the complaint relates,
b
information about the investigation or resolution of the complaint,
c
information about any outcomes resulting from the complaint.
2
But information that, in the opinion of the Commission, identifies or is likely to identify the complainer may not be disclosed under subsection (1) unless the complainer consents to its disclosure.
.

Restriction on disclosure of information: Commission
74
1
The 2007 Act is amended as follows.
2
In section 43 (restriction upon disclosure of information: Commission)—
a
in subsection (3)(a), at end insert “(including the disclosure of information under section 41A(1))”,
b
after subsection (3)(a) insert—
aa
for the purpose of enabling or assisting a regulatory body to exercise any of the body’s functions,
,
c
after subsection (4) insert—
4A
In subsection (3)(aa), “regulatory body” means any regulatory body as the Scottish Ministers may by regulations specify.
4B
Regulations under subsection (4A) may—
a
include transitional, transitory or saving provision,
b
make different provision for different purposes.
4C
Before making regulations under subsection (4A), the Scottish Ministers must—
a
consult—
i
any regulatory body that is proposed to be specified by the regulations,
ii
the Lord President,
iii
the Commission,
iv
the independent advisory panel established under paragraph 11A of schedule 1,
v
each category 1 and category 2 regulator,
vi
each approved regulator within the meaning of Part 2 of the Legal Services (Scotland) Act 2010,
b
publish a report describing—
i
the consultation carried out,
ii
any representations received in response to the consultation, and
iii
the changes (if any) to the proposals as a result of the representations, and
c
confirm that the Lord President agrees with the proposal to make the regulations.
.

Power to disclose information about complaints: relevant professional organisations
75
1
The 2007 Act is amended as follows.
2
After section 51, insert—

Power to disclose information about complaints: relevant professional organisations
51A
1
A relevant professional organisation may, if it considers it to be in the public interest, disclose information about any relevant conduct or regulatory complaint including—
a
information that identifies or is likely to identity a person to whom the complaint relates,
b
information about the investigation or resolution of the complaint,
c
information about any outcomes resulting from the complaint.
2
But information that, in the opinion of the relevant professional organisation, identifies or is likely to identify the complainer may not be disclosed under subsection (1) unless the complainer consents to its disclosure.
3
In subsection (1), “relevant conduct or regulatory complaint” means—
a
a conduct complaint that has been remitted to the relevant professional organisation under section 6(2)(a) (or that is treated as having been remitted to it under that section by virtue of section 33A(2)),
b
a regulatory complaint that has been remitted to the relevant professional organisation under section 7A(2) (or that is treated as having been remitted to it under that section by virtue of section 33B(2)).
.

Restriction on disclosure of information: relevant professional organisations
76
1
The 2007 Act is amended as follows.
2
In section 52 (restriction upon disclosure of information: relevant professional organisations)—
a
in subsection (3)(a), at end insert “(including the disclosure of information under section 51A(1))”,
b
after subsection (3)(a) insert—
aa
for the purpose of enabling or assisting a regulatory body to exercise any of the body’s functions,
,
c
after subsection (4) insert—
4A
In subsection (3)(aa), “regulatory body” means any regulatory body as the Scottish Ministers may by regulations specify.
4B
Regulations under subsection (4A) may—
a
include transitional, transitory or saving provision,
b
make different provision for different purposes.
4C
Before making regulations under subsection (4A), the Scottish Ministers must—
a
consult—
i
any regulatory body that is proposed to be specified by the regulations,
ii
the Lord President,
iii
the Commission,
iv
the independent advisory panel established under paragraph 11A of schedule 1,
v
each category 1 and category 2 regulator,
vi
each approved regulator within the meaning of Part 2 of the Legal Services (Scotland) Act 2010,
b
publish a report describing—
i
the consultation carried out,
ii
any representations received in response to the consultation, and
iii
the changes (if any) to the proposals as a result of the representations, and
c
confirm that the Lord President agrees with the proposal to make the regulations.
.

Conduct complaints: power to impose unlimited fine and removal of power to award compensation
77
1
The 1980 Act is amended as follows.
2
In section 42ZA (unsatisfactory professional conduct: Council’s powers)—
a
in subsection (4), paragraph (c) is repealed,
b
subsection (11) is repealed,
c
subsection (12) is repealed,
d
in subsection (13), paragraph (b) is repealed,
e
in subsection (14), paragraph (b) is repealed.
3
In section 42ZB (unsatisfactory professional conduct: Council’s powers to monitor compliance), in subsection (2), the words “or (12)” are repealed.
4
In section 52 (procedure on complaints and appeals to Tribunal), in subsection (2), in paragraph (aa), the words “(11) or (12),” are repealed.
5
In section 53 (powers of tribunal)—
a
in subsection (1)—
i
in paragraph (b)—
A
the words “(other than a conviction for an economic crime offence)” are repealed, and
B
the words “(other than in relation to a conviction for an economic crime offence)” are repealed,
ii
paragraph (ba) is repealed,
iii
paragraph (ca) is repealed,
b
in subsection (2)—
i
paragraph (bb) is repealed,
ii
paragraph (bc) is repealed,
iii
in paragraph (c)—
A
the words “subject to subsection (3ZA),” are repealed,
B
for “not exceeding £10,000” substitute “of any amount”,
iv
paragraph (ca) is repealed,
c
subsection (2A) is repealed,
d
subsection (2B) is repealed,
e
after subsection (2B) insert—
2C
Where the solicitor has been convicted of a criminal offence in relation to the subject matter of the Tribunal’s inquiry, the Tribunal must, when deciding whether to exercise a power under subsection (2), have regard to the conviction.
,
f
subsection (3ZA) is repealed,
g
in subsection (3A)—
i
in the opening words, for “subsection (2)(bb)” substitute “subsection (2)(c)”,
ii
in paragraph (a), for “, (b) or (ba)” substitute “or (b)”,
iii
in paragraph (b), “, (ca)” is repealed,
h
subsection (7C) is repealed,
i
subsection (7D) is repealed,
j
in subsection (8), paragraph (a) is repealed,
k
subsection (9) is repealed,
l
subsection (9A) is repealed.
6
In section 53ZB (powers of Tribunal on appeal: unsatisfactory professional conduct)—
a
in subsection (1), paragraph (f) is repealed,
b
in subsection (2), paragraph (b) is repealed,
c
subsection (3) is repealed,
d
subsection (4) is repealed,
e
in subsection (8), paragraph (b) is repealed,
f
in subsection (9), paragraph (b) is repealed.
7
In section 54 (appeals from decisions of Tribunal)—
a
subsection (1D) is repealed,
b
subsection (1E) is repealed,
c
in subsection (1F), for “(1E)” substitute “(1C)”,
d
in subsection (1G), the words “, (1D), (1E)” are repealed,
e
subsection (2A) is repealed.
8
In section 55 (powers of Court)—
a
in subsection (1)—
i
paragraph (bc) is repealed,
ii
for paragraph (c), substitute—
c
impose on the solicitor a fine of any amount,
,
b
subsection (5) is repealed,
c
in subsection (6), paragraph (a) is repealed,
d
subsection (7) is repealed.
9
In section 55A (power of Court: unsatisfactory professional conduct)—
a
in subsection (1), paragraph (b) is repealed,
b
in subsection (3), paragraph (b) is repealed,
c
subsection (5) is repealed.
10
In schedule 4, paragraph 23, for “, (10), (11) or (12),” substitute “or (10),”.

Faculty of Advocates: complaint of professional misconduct and publication of decision
78
1
The 2010 Act is amended as follows.
2
In section 122 (Faculty of Advocates: particular rules), after subsection (4) insert—
5
Rules regulating the discipline of advocates must—
a
require publication of a decision relating to a conduct complaint suggesting professional misconduct of an advocate that is remitted by the Scottish Legal Complaints Commission to the Faculty (or is treated as having been so remitted by virtue of section 33A(2) of the 2007 Act),
b
require such a decision to include—
i
detail of the facts established,
ii
a statement of reasons for the making of the decision, and
iii
where the complaint is upheld, information about any penalty imposed,
c
where such a complaint is upheld, allow the Faculty to omit any information from the published decision which the Faculty considers would be likely to damage the interests of persons other than—
i
the advocate against whom the complaint is made, or
ii
the advocate’s partner or family,
but subject to the Faculty publishing its reasons for any such omission,
d
where such a complaint is not upheld, allow the Faculty to omit the name of the advocate against whom the complaint is made from the published decision where it considers that to be appropriate.
.

Commission membership
79
1
Schedule 1 (the Scottish Legal Complaints Commission) of the 2007 Act is amended as follows.
2
In paragraph 2 (membership of the Commission)—
a
in sub-paragraph (1)(b), for “8” substitute “at least 8 but no more than 20”,
b
in sub-paragraph (3), for “5” substitute “at least 4”,
c
in sub-paragraph (4), after “be” insert “at least”,
d
sub-paragraphs (5), (7) and (9) are repealed,
e
in sub-paragraph (8), after “of lawyer members” insert “, but the number of non-lawyer members must not exceed the number of lawyer members by more than three”.
3
In paragraph 3 (terms of appointment etc.)—
a
in sub-paragraph (1), for “5” substitute “not less than 5 years and not exceeding 8”,
b
sub-paragraph (5) is repealed.

Role of the independent advisory panel
80
1
The 2007 Act is amended as follows.
2
In section 41 (power by regulations to amend duties and powers of Commission), after subsection (1)(a) insert—
aa
the independent advisory panel established under paragraph 11A of schedule 1,
.
3
In schedule 1, in paragraph 11A—
a
in sub-paragraph (2)—
i
in sub-sub-paragraph (c), for “Commission directs” substitute “panel considers appropriate”,
ii
after sub-sub-paragraph (c), insert—
d
to make recommendations to the Commission in relation to any of the Commission’s functions as the panel considers appropriate,
e
to make recommendations to the Lord President relating to any of the Lord President’s functions conferred under or by virtue of the 2025 Act,
f
to make recommendations to relevant professional organisations relating to any of their functions conferred under or by virtue of the 2025 Act,
g
such other functions as may be conferred on the panel by or under an enactment.
,
b
after sub-paragraph (3) insert—
4
The Commission must ensure that the panel is adequately funded and resourced to be able to discharge its functions.
.

Commission reports
81
1
Schedule 1 of the 2007 Act is amended as follows.
2
In paragraph 16 (reports), after sub-paragraph (1) insert—
1A
The report must, in particular—
a
explain how the Commission has discharged its functions during the year in a manner which, in accordance with section 3(1) of the 2025 Act—
i
is compatible with the regulatory objectives (to be construed in accordance with sections 2 and 3 of the 2025 Act), and
ii
it considers is most appropriate to meet those objectives,
b
provide a list of any directions given during the year to—
i
a relevant professional organisation under section 24(6),
ii
a relevant professional organisation under section 40A(6),
c
include—
i
information about compensation awarded during the year to complainers following services complaints, and
ii
so far as it is known to the Commission, information about whether compensation awarded during the year has been paid,
d
provide information about—
i
the work of each review committee established by the Commission under paragraph 11(1)(a), including the number of applications for review that each review committee dealt with during the year,
ii
the steps taken by the Commission to ensure that each review committee is able to act independently of the Commission when considering and determining each application for review.
1B
Before preparing the report, the Commission must consult—
a
the Lord President,
b
the independent advisory panel of the Commission,
c
each category 1 and category 2 regulator.
.

Minor and consequential amendments
82
Parts 2 and 3 of schedule 3 contain minor amendments and amendments consequential on the provisions of this Part.
Part 4

Miscellaneous

Financial sanctions

Financial sanctions
83
In section 19 (financial sanctions) of the 2010 Act, after subsection (3), insert—
3A
Where an approved regulator collects a financial penalty imposed on a licensed provider by virtue of this section, then that approved regulator may—
a
retain a sum to be deducted from the amount payable to the Scottish Ministers under subsection (3) in respect of any expenditure reasonably incurred by the approved regulator in collecting the penalty, or
b
recover from the licensed provider any expenditure reasonably incurred by it in doing so.
3B
At any time an approved regulator may discontinue collection of a financial penalty imposed by virtue of this section where the approved regulator considers it would not be reasonable in the circumstances for the approved regulator to attempt or continue to attempt collection.
3C
Subsection (3B) does not prevent the approved regulator, in circumstances where it has discontinued attempts to collect a financial penalty, from resuming such attempts where the approved regulator considers it is reasonable in the circumstances to do so.
.

Licensed legal services providers

Licensing rules: fees
84
In section 14 (licensing rules: general) of the 2010 Act, after subsection (2) insert—
2A
Rules made in pursuance of subsection (1)(e) may provide for the approved regulator to charge different fees in relation to different applications for the issue of a licence, or for the renewal of a licence, according to—
a
the category of licensed provider—
i
the applicant seeks to become, or (as the case may be)
ii
the licensed provider seeks to remain,
b
the category of licence to which the application relates,
c
the category of legal services (or any other services prescribed in regulations under section 12(5)) which the applicant seeks to provide (or to continue to provide) under licence.
.

Removal of requirement to act for fee, gain or reward
85
In section 47 (licensed providers) of the 2010 Act, in subsection (1), the following provisions are repealed—
a
sub-paragraph (ii) of paragraph (a), and
b
the “and” immediately following that sub-paragraph.

Eligibility criteria: law centres
86
In section 48 (eligibility criteria) of the 2010 Act, in subsection (4)—
a
after paragraph (a) insert “or”,
b
the “or” immediately following paragraph (b) is repealed,
c
paragraph (c) is repealed.

Majority ownership
87
Section 49 (majority ownership) of the 2010 Act is repealed.

Non-solicitor investors: factors as to fitness
88
In section 64 (factors as to fitness) of the 2010 Act—
a
in subsection (4)—
i
in the opening words, the words “(to any extent)” are repealed,
ii
in paragraph (a), before “ownership” insert “significant”,
b
after subsection (4) insert—
4A
For the purpose of subsection (4)(a), whether a person has significant ownership or control of the body is to be determined by the approved regulator.
.

Removal of certain practising restrictions

Removal of practising restrictions: law centres, citizens advice bodies and charities
89
1
The 1980 Act is amended as follows.
2
In section 26(2) (offence for solicitors to act as agents for unqualified persons), for “or a citizens advice body” substitute “, a citizens advice body or a charity”.
3
In section 32 (offence for unqualified persons to prepare certain documents), in subsection (2B) (as substituted by paragraph 39(10) of schedule 3), after paragraph (b) insert—
c
a law centre, a citizens advice body or a charity.
.
4
After section 33B, insert—

Privilege of law centres, citizens advice bodies and charities from disclosure etc.
33BA
1
Any communication made to or by a law centre, a citizens advice body or a charity in the course of its providing legal services to a client will in any legal proceedings be privileged from disclosure in like manner as if the law centre, citizens advice body or charity (as the case may be) had at all material times been a solicitor providing legal services to a client.
2
Any enactment or instrument making special provision in relation to a solicitor or other legal representative as to the disclosure of information, or as to the production, seizure or removal of documents, with respect to which a claim to professional privilege could be maintained, will, with any necessary modifications, have effect in relation to a law centre, a citizens advice body or a charity in the course of its providing legal services to a client as it has effect in relation to a solicitor.
3
This section is without prejudice to any other enactment or rule of law concerning professional or other privilege from disclosure (in particular, as applicable in relation to a solicitor).
.
5
After section 33C, insert—

Practice rules relating to law centres, citizens advice bodies and charities
33D
1
Subsection (2) applies to any rule made under section 34 that prohibits or unduly restricts the—
a
involvement of solicitors in or with, or employment of solicitors by, law centres, citizens advice bodies or charities, or
b
provision of legal services by law centres, citizens advice bodies or charities.
2
The rule is of no effect in so far as it does so (and for this purpose it is immaterial when the rule was made).
3
The reference in subsection (1)(a) to solicitors does not include a solicitor who is disqualified from practice by reason of having been—
a
struck off (or removed from) the roll, or
b
suspended from practice.
.
6
In section 65(1) (interpretation), at the appropriate place, insert—
- “charity” means a body entered in the Scottish Charity Register,
.

Offences relating to pretending to be a regulated provider of legal services

Offence of taking or using the title of lawyer
90
1
A person who is not entered in a register maintained under section 16 or, is not a licensed provider, commits an offence if the person—
a
takes or uses the title of lawyer, and
b
does so in connection with providing (or offering to provide) legal services to the public for fee, gain or reward.
2
Subsection (1) does not apply to a person who—
a
takes or uses the title of lawyer in connection with providing (or offering to provide) legal services in relation to a religious law, and
b
when doing so makes it clear that the person’s taking or using of the title of lawyer relates to the provision of legal services in relation to the religious law and not to the provision of legal services more generally.
3
In subsection (2), “religious law” means the law, rules, beliefs or practices of a religion.
4
A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Offence of pretending to be a regulated legal services provider
91
1
A person who is not entered in the register maintained by a category 1 or category 2 regulator under section 16 commits an offence if the person—
a
takes or uses a name, title, addition or description implying that the person is regulated by the category 1 or category 2 regulator, and
b
does so in connection with providing (or offering to provide) legal services to the public for fee, gain or reward.
2
In subsection (1), “title” does not include the title of lawyer.
3
A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Offence of pretending to be a member of Faculty of Advocates
92
1
A person who is not a member of the Faculty of Advocates commits an offence if the person without reasonable excuse—
a
takes or uses a name, title, addition or description implying that the person is a member of the Faculty of Advocates,
b
otherwise pretends to be a member of the Faculty of Advocates.
2
For the purpose of subsection (1), a person is a member of the Faculty of Advocates if the person is entered in the register maintained by the Faculty of Advocates under section 16.
3
A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Time limit for prosecution of offences
93
1
Proceedings for an offence under section 31(1), 40(1), 90(1), 91(1) or 92(1) may be commenced within the period of 6 months beginning with the day on which relevant evidence came to the prosecutor’s knowledge.
2
But no such proceedings may be commenced more than 2 years—
a
after the commission of the offence, or
b
in the case of a continuous contravention, after the last day on which the offence was committed.
3
In the case of a continuous contravention, the complaint may specify the entire period during which the offence was committed.
4
A certificate signed by or on behalf of a prosecutor stating the day on which relevant evidence came to the prosecutor’s knowledge is conclusive as to that fact (and such a certificate purporting to be so signed is to be regarded as being so signed unless the contrary is proved).
5
Section 136(3) of the Criminal Procedure (Scotland) Act 1995 applies for the purposes of this section as it applies for the purposes of that section.
6
In subsections (1) and (4), “relevant evidence” means evidence that the prosecutor believes is sufficient to justify the proceedings in question.

Power of the Scottish Ministers to adjust restricted legal services

Power of the Scottish Ministers to adjust restricted legal services
94
1
After section 32 of the 1980 Act (offence for unqualified person to prepare certain documents), insert—

Power to adjust what constitutes restricted legal services
32A
1
The Scottish Ministers may by regulations amend section 32 to make provision for or in connection with it being an offence for an unqualified person to—
a
draw or prepare certain documents, or
b
provide certain other legal services.
2
In particular, regulations under this section may—
a
add, amend or remove a description of—
i
a type of document that may not be drawn or prepared by an unqualified person without that person committing an offence,
ii
a type of legal service that may not be provided by an unqualified person without that person committing an offence,
b
add, amend or remove exemptions to the offence (including descriptions of persons to whom the offence does not apply) in relation to some or all of the documents or services that may not be drawn, prepared or, as the case may be, provided.
3
The Scottish Ministers may exercise the power to make regulations under subsection (1) only if they have received a request to exercise the power from—
a
the Lord President,
b
the regulatory committee of a category 1 regulator,
c
a category 1 regulator that has no functions other than regulatory functions,
d
an approved regulator within the meaning of Part 2 of the 2010 Act, or
e
the independent advisory panel established by the Commission under paragraph 11A of schedule 1 of the 2007 Act.
4
Before making a request under subsection (3), the person making the request (“the requester”) must—
a
consult—
i
the regulatory committee (if any) of each category 1 regulator,
ii
each category 1 regulator that has no functions other than regulatory functions,
iii
each approved regulator within the meaning of Part 2 of the 2010 Act,
iv
the panel mentioned in subsection (3)(e),
v
such other person or body as the requester considers appropriate,
b
except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.
5
But a body mentioned in subsection (4)(a)(i) to (iv) does not need to be consulted if the body is the requester.
6
For the purpose of seeking the Lord President’s agreement under subsection (4)(b), the requester must provide to the Lord President—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (4)(a).
7
A request under subsection (3) must include—
a
a document setting out—
i
an explanation of the change sought by the proposed exercise of the power, and
ii
the reasons for seeking the change,
b
copies of any written representations received in response to the consultation under subsection (4)(a), and
c
except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.
8
As soon as reasonably practicable after making a request under subsection (3), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).
9
Regulations made under this section are subject to the affirmative procedure (see section 29 of the Interpretation and Legislative Reform (Scotland) Act 2010).
.
2
The section title of section 32 becomes “Offence for unqualified person to provide certain legal services”.

Lord President’s functions under Parts 1 and 2: rule-making power

Lord President’s functions under Parts 1 and 2: rule-making making power
95
1
The Lord President may make rules in connection with the exercise of the Lord President’s functions under Part 1 or 2 of this Act.
2
Before making rules under subsection (1), the Lord President must consult—
a
the independent advisory panel of the Commission, and
b
each category 1 and category 2 regulator.
3
Rules under subsection (1) may in particular require each category 1 and category 2 regulator to maintain a list of—
a
its regulatory functions, and
b
the requirements imposed on it under this Act or any other enactment.
4
Rules under subsection (1)—
a
may make different provision for different purposes,
b
are to be published in such manner as the Lord President may determine.

Minor and consequential modifications

Modification of other enactments
96
Parts 4 and 5 of schedule 3 contain minor and consequential modifications of enactments.

Review of Act

Review of Act
97
1
The Scottish Ministers must, as soon as reasonably practicable after the end of the review period—
a
undertake a review of the principal changes to the regulation of legal services arising from the Act, and
b
prepare a report on that review.
2
The Scottish Ministers may delegate their functions under subsection (1) to such person as they consider appropriate.
3
When undertaking a review under subsection (1)(a), the Scottish Ministers (or, if applicable, the person to whom the function is delegated under subsection (2)) must consult—
a
regulators of legal services,
b
consumers of legal services,
c
the Commission, and
d
such other persons as are considered appropriate.
4
The Scottish Ministers must, as soon as reasonably practicable after the report is prepared—
a
publish the report, and
b
lay it before the Scottish Parliament.
5
In this section, “the review period” means the period of 10 years beginning with the day on which sections 7, 39, 50 and 85 come into force or, if they come into force on different days, the latest of those days.
Part 5

General

Individual culpability for offending by an organisation
98
1
Subsection (2) applies where—
a
an offence under this Act is committed by a relevant organisation, and
b
the commission of the offence involves the connivance or consent of, or is attributable to the neglect of—
i
a responsible official of the organisation, or
ii
an individual purporting to act in the capacity of a responsible official.
2
The responsible official (or, as the case may be, the individual purporting to act in that capacity), as well as the organisation, commits the offence.
3
“Relevant organisation” means—
a
a company,
b
a partnership (including a limited liability partnership),
c
another body or association.
4
“Responsible official” means—
a
in the case of a company—
i
a director, secretary, manager or similar officer, or
ii
where the affairs of the company are managed by its members, a member,
b
in the case of a limited liability partnership, a member,
c
in the case of a partnership other than a limited liability partnership, a partner,
d
in the case of another body or association, a person who is concerned in the management or control of its affairs.

Civil enforcement in relation to offences
99
1
This section applies if a category 1 or category 2 regulator considers that a person has committed an offence under any of the following provisions—
a
section 31(1) (offence of pretending to have acquired rights),
b
section 39(5) (offence of owning or operating a legal business without authorisation),
c
section 40(1) (offence of pretending to be an authorised legal business),
d
section 90(1) (offence of taking or using the title of lawyer),
e
section 91(1) (offence of pretending to be a regulated legal services provider),
f
section 92(1) (offence of pretending to be a member of the Faculty of Advocates).
2
The regulator may apply to the sheriff or the Court of Session for interdict (including interim interdict) against the person to seek to prevent the person from doing anything that constitutes or would constitute the offence.
3
Following an application under subsection (2), the sheriff or the Court of Session may grant such interdict (or interim interdict) on such terms as it considers appropriate for the purpose of preventing the person from doing anything that constitutes or would constitute the offence.
4
This section does not restrict a category 1 or category 2 regulator from seeking any other court order against a person mentioned in this section.

Regulations
100
1
Any power of the Scottish Ministers to make regulations under this Act includes power to make—
a
different provision for different purposes,
b
incidental, supplementary, consequential, transitional, transitory or saving provision.
2
This section does not apply to section 103(3).

Ancillary provision
101
1
The Scottish Ministers may by regulations make any incidental, supplementary, consequential, transitional, transitory or saving provision they consider appropriate for the purposes of, in connection with or for giving full effect to this Act or any provision made under it.
2
Regulations under this section may modify any enactment (including this Act).
3
Regulations under subsection (1)—
a
are subject to the affirmative procedure if they add to, replace or omit any part of the text of an Act, but
b
otherwise, are subject to the negative procedure.

Interpretation
102
1
In this Act—
- “1980 Act” means the Solicitors (Scotland) Act 1980,
- “1990 Act” means the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990,
- “2007 Act” means the Legal Profession and Legal Aid (Scotland) Act 2007,
- “2010 Act” means the Legal Services (Scotland) Act 2010.
2
In this Act, unless the context otherwise requires—
- “accredited regulator” has the meaning given in section 28(8),
- “advocate” means a practising member of the Faculty of Advocates,
- “ALB rules” is to be construed in accordance with section 41(1),
- “approved regulator of licensed providers” is to be construed in accordance with Part 2 of the 2010 Act,
- “Association of Construction Attorneys” means the private limited company, company number SC344543, that has acquired rights of audience for its members by virtue of having an application under section 25 of the 1990 Act granted under section 26 of that Act,
- “authorised legal business” is to be construed in accordance with section 39(14)(a),
- “category 1 regulator” (and cognate expressions) means a body that regulates the provision of legal services and which has been assigned as a category 1 regulator in or under section 7,
- “category 2 regulator” (and cognate expressions) means a body that regulates the provision of legal services and which has been assigned as or deemed a category 2 regulator in or under section 7,
- “the Commission” means the Scottish Legal Complaints Commission,
- “the independent advisory panel of the Commission” is the independent advisory panel established by the Commission under paragraph 11A of schedule 1 of the 2007 Act,
- “Law Society” means the Law Society of Scotland,
- “legal services provider” has the meaning given in section 5(4),
- “licensed legal services provider” (and “licensed provider”) is to be construed in accordance with Part 2 of the 2010 Act,
- “Lord President” means the Lord President of the Court of Session,
- “regulatory functions” in relation to a regulator, means its functions as a regulatory authority described in section 6,
- “solicitor” is to be construed in accordance with section 65(1) of the 1980 Act.

Commencement
103
1
This section and section 104 come into force on the day of Royal Assent.
2
Sections 100 to 102 come into force on the day after Royal Assent.
3
The other provisions of this Act come into force on such day as the Scottish Ministers may by regulations appoint.
4
Regulations under this section may—
a
include transitional, transitory or saving provision,
b
make different provision for different purposes.

Short title
104
The short title of this Act is the Regulation of Legal Services (Scotland) Act 2025.
S. 1 not in force at Royal Assent, see s. 103(3)
S. 2 not in force at Royal Assent, see s. 103(3)
S. 3 not in force at Royal Assent, see s. 103(3)
S. 4 not in force at Royal Assent, see s. 103(3)
S. 5 not in force at Royal Assent, see s. 103(3)
S. 6 not in force at Royal Assent, see s. 103(3)
S. 7 not in force at Royal Assent, see s. 103(3)
S. 8 not in force at Royal Assent, see s. 103(3)
S. 9 not in force at Royal Assent, see s. 103(3)
S. 10 not in force at Royal Assent, see s. 103(3)
S. 11 not in force at Royal Assent, see s. 103(3)
S. 12 not in force at Royal Assent, see s. 103(3)
S. 13 not in force at Royal Assent, see s. 103(3)
S. 14 not in force at Royal Assent, see s. 103(3)
S. 15 not in force at Royal Assent, see s. 103(3)
S. 16 not in force at Royal Assent, see s. 103(3)
S. 17 not in force at Royal Assent, see s. 103(3)
S. 18 not in force at Royal Assent, see s. 103(3)
S. 19 not in force at Royal Assent, see s. 103(3)
S. 20 not in force at Royal Assent, see s. 103(3)
S. 21 not in force at Royal Assent, see s. 103(3)
S. 22 not in force at Royal Assent, see s. 103(3)
S. 23 not in force at Royal Assent, see s. 103(3)
S. 24 not in force at Royal Assent, see s. 103(3)
S. 25 not in force at Royal Assent, see s. 103(3)
S. 26 not in force at Royal Assent, see s. 103(3)
S. 27 not in force at Royal Assent, see s. 103(3)
S. 28 not in force at Royal Assent, see s. 103(3)
S. 29 not in force at Royal Assent, see s. 103(3)
S. 30 not in force at Royal Assent, see s. 103(3)
S. 31 not in force at Royal Assent, see s. 103(3)
S. 32 not in force at Royal Assent, see s. 103(3)
S. 33 not in force at Royal Assent, see s. 103(3)
S. 34 not in force at Royal Assent, see s. 103(3)
S. 35 not in force at Royal Assent, see s. 103(3)
S. 36 not in force at Royal Assent, see s. 103(3)
S. 37 not in force at Royal Assent, see s. 103(3)
S. 38 not in force at Royal Assent, see s. 103(3)
S. 39 not in force at Royal Assent, see s. 103(3)
S. 40 not in force at Royal Assent, see s. 103(3)
S. 41 not in force at Royal Assent, see s. 103(3)
S. 42 not in force at Royal Assent, see s. 103(3)
S. 43 not in force at Royal Assent, see s. 103(3)
S. 44 not in force at Royal Assent, see s. 103(3)
S. 45 not in force at Royal Assent, see s. 103(3)
S. 46 not in force at Royal Assent, see s. 103(3)
S. 47 not in force at Royal Assent, see s. 103(3)
S. 48 not in force at Royal Assent, see s. 103(3)
S. 49 not in force at Royal Assent, see s. 103(3)
S. 50 not in force at Royal Assent, see s. 103(3)
S. 51 not in force at Royal Assent, see s. 103(3)
S. 52 not in force at Royal Assent, see s. 103(3)
S. 53 not in force at Royal Assent, see s. 103(3)
S. 54 not in force at Royal Assent, see s. 103(3)
S. 55 not in force at Royal Assent, see s. 103(3)
S. 56 not in force at Royal Assent, see s. 103(3)
S. 57 not in force at Royal Assent, see s. 103(3)
S. 58 not in force at Royal Assent, see s. 103(3)
S. 59 not in force at Royal Assent, see s. 103(3)
S. 60 not in force at Royal Assent, see s. 103(3)
S. 61 not in force at Royal Assent, see s. 103(3)
S. 62 not in force at Royal Assent, see s. 103(3)
S. 63 not in force at Royal Assent, see s. 103(3)
S. 64 not in force at Royal Assent, see s. 103(3)
S. 65 not in force at Royal Assent, see s. 103(3)
S. 66 not in force at Royal Assent, see s. 103(3)
S. 67 not in force at Royal Assent, see s. 103(3)
S. 68 not in force at Royal Assent, see s. 103(3)
S. 69 not in force at Royal Assent, see s. 103(3)
S. 70 not in force at Royal Assent, see s. 103(3)
S. 71 not in force at Royal Assent, see s. 103(3)
S. 72 not in force at Royal Assent, see s. 103(3)
S. 73 not in force at Royal Assent, see s. 103(3)
S. 74 not in force at Royal Assent, see s. 103(3)
S. 75 not in force at Royal Assent, see s. 103(3)
S. 76 not in force at Royal Assent, see s. 103(3)
S. 77 not in force at Royal Assent, see s. 103(3)
S. 78 not in force at Royal Assent, see s. 103(3)
S. 79 not in force at Royal Assent, see s. 103(3)
S. 80 not in force at Royal Assent, see s. 103(3)
S. 81 not in force at Royal Assent, see s. 103(3)
S. 82 not in force at Royal Assent, see s. 103(3)
S. 83 not in force at Royal Assent, see s. 103(3)
S. 84 not in force at Royal Assent, see s. 103(3)
S. 85 not in force at Royal Assent, see s. 103(3)
S. 86 not in force at Royal Assent, see s. 103(3)
S. 87 not in force at Royal Assent, see s. 103(3)
S. 88 not in force at Royal Assent, see s. 103(3)
S. 89 not in force at Royal Assent, see s. 103(3)
S. 90 not in force at Royal Assent, see s. 103(3)
S. 91 not in force at Royal Assent, see s. 103(3)
S. 92 not in force at Royal Assent, see s. 103(3)
S. 93 not in force at Royal Assent, see s. 103(3)
S. 94 not in force at Royal Assent, see s. 103(3)
S. 95 not in force at Royal Assent, see s. 103(3)
S. 96 not in force at Royal Assent, see s. 103(3)
S. 97 not in force at Royal Assent, see s. 103(3)
S. 98 not in force at Royal Assent, see s. 103(3)
S. 99 not in force at Royal Assent, see s. 103(3)
S. 100 in force at 28.6.2025, see s. 103(2)
S. 101 in force at 28.6.2025, see s. 103(2)
S. 102 in force at 28.6.2025, see s. 103(2)
S. 103 in force at Royal Assent, see s. 103(1)
S. 104 in force at Royal Assent, see s. 103(1)