Part 2

Regulation of legal businesses

Regulation of authorised legal businesses

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an appeal is made under subsection (7), no part of the penalty requires to be paid before the appeal is determined or withdrawn.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.
S. 45 not in force at Royal Assent, see s. 103(3)