Regulation of Legal Services (Scotland) Act 2025

Chapter 3 New regulators of legal services

Applications

23 Right to provide legal services

(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.

24 Regulatory scheme

(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.

25 Regulatory scheme - additional matters to be included: further provision

(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).

26 Publication of draft regulatory scheme and representations

(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

27 Consideration of applications

(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.

28 Approval of application and giving effect to the regulatory scheme

(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

29 Exercise of rights to provide legal services

(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.

30 Surrender of rights

(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”.

31 Offence of pretending to have acquired rights

(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

32 Review of regulatory scheme on initiative of accredited regulator

(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).

33 Review of regulatory schemes

(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.

34 Revocation of acquired rights

(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

35 Replacement regulatory arrangements for authorised providers

(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—

  (a)

  is the subject of a potential measure as mentioned in section 19(4)(f) to remove all of its regulatory functions,

  (b)

  has made an application under section 30,

  (c)

  is the subject of regulations to revoke its approval under section 34, or

  (d)

  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.

36 Consequential amendments and repeals

(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.

37 Transitional and saving provision for regulators approved under the 1990 Act

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.