Part 2

Regulation of legal businesses

Regulation of authorised legal businesses

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circumstances in which a legal business’s authorisation may or must be reviewed, suspended or withdrawn,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.
S. 42 not in force at Royal Assent, see s. 103(3)