27(1)In section 62A of the 1980 Act (Council’s power to recover expenses incurred under section 45 or 46)—
(a)in subsection (1)—
(i)the words “Without prejudice to the Society’s entitlement under section 46(4) to recover expenses” are repealed,
(ii)after the word “solicitor” insert “(or from the estate of a solicitor who has died)”,
(iii)for “45, or 46”, substitute “45A or 46A (including, but not limited to, giving directions under section 45A(4) or 46A(4)”,
(b)subsection (2) is repealed,
(c)after subsection (2) insert—
“(3)The Court, on the application of the Council, may order a current or former partner, owner, director or member (as the case may be) of a solicitor or an authorised legal business in respect of whom the Council has taken any action under sections 45A or 46A (including, but not limited to, making directions under section 45A(4) or 46A(4)) to pay a specified proportion of the expenditure mentioned in subsection (1).
(4)The Court may make an order under subsection (3) only if it is satisfied that the conduct (or any part of the conduct) by reason of which the powers conferred by sections 45A or 46A were exercisable in relation to the solicitor or authorised legal business was conduct carried on with the consent or connivance of, or was attributable to any neglect on the part of, the current or former partner, owner, director or member.
(5)In subsection (3), “specified” means specified in the order made by the Court.”.
(2)In section 70 of the 2010 Act (safeguarding clients)—
(a)after subsection (2) insert—
“(2A)The right to operate on or otherwise deal with any client account in the name of the licensed provider vests in the approved regulator (notwithstanding any enactment or rule of law to the contrary) to the exclusion of any other person and is exercisable from the date of suspension or revocation of the licensed provider’s licence (as applicable).
(2B)Any sum of money held by, or in the name of, the licensed provider on behalf of, or in relation to the clients of the licensed provider, or any trust of the kind mentioned in subsection (4)(a)(ii), vests in the approved regulator (notwithstanding any enactment or rule of law to the contrary) to the exclusion of any other person with effect from the date of the suspension or revocation of the licensed provider’s licence (as applicable).”.
(b)in subsection (4)—
(i)in paragraph (a)(ii), after the words “within it” insert “or any entity owned by the licensed provider or any of its investors or directors formed for the purposes of being a trustee”,
(ii)paragraph (b) is repealed,
(c)in subsection (6), after paragraph (c) insert—
“(d)providing otherwise as it may see fit.”,
(d)in subsection (7), in paragraph (a), at the beginning insert “except where the Court considers it an appropriate course of action in all the circumstances of the case to dispense with this requirement,”,
(e)after subsection (8) insert—
“(8A)The Court, on the application of the approved regulator, may order a responsible official of a licensed provider in respect of whom it has taken any action under this section to pay a specified proportion of the expenditure mentioned in subsection (8).
(8B)The Court may make an order under subsection (8A) only if it is satisfied that the conduct (or any part of the conduct) by reason of which the powers conferred by this section are exercisable in relation to the licensed provider was conduct carried on with the consent or connivance of, or was attributable to any neglect on the part of, the responsible official.
(8C)In subsections (8A) and (8B)—
“a responsible official” is—
a current or former investor in the licensed provider,
in the case of a licensed provider that is a company, a current or former director or other similar officer,
in the case of a licensed provider that is a limited liability partnership, a current or former member,
in the case of a licensed provider that is a partnership, a current or former partner,
in the case of a licensed provider that is another body or association, a person who is or was 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,
“specified” means specified in the order made by the Court.”.