Regulation of Legal Services (Scotland) Act 2025

1. Introduction

2. The Act

   1. Overview

   2. Index of expressions used in these notes

3. Background

   1. The existing regulators

   2. Part 1 – Regulatory Framework

      1. Chapter 1 – Objectives, principles and key expressions

         1. Overview of Part

            1. Section 1 – Overview of the regulatory framework

         2. Regulatory objectives

            1. Sections 2 and 3 – The regulatory objectives and their application

         3. Professional principles

            1. Section 4 – Professional principles

         4. Meaning of key expressions

            1. Section 5 – Meaning of “legal services” and “legal services provider”

            2. Section 6 – Meaning of regulatory functions

      2. Chapter 2 – Regulators

         1. Regulatory categories

            1. Section 7 – Regulatory categories

         2. Requirements of category 1 regulators

            1. Section 8 – Exercise of regulatory functions

            2. Section 9 – Regulatory committee: composition and membership

            3. Section 10 – Regulatory committee: lay and legal members

            4. Section 11 – Regulatory committee: convener, sub-committees and minutes

            5. Section 12 – Annual reports of category 1 regulators

            6. Section 13 – Compensation funds

         3. Requirements of category 2 regulators

            1. Section 14 – Exercise of regulatory functions

            2. Section 15 – Annual reports of category 2 regulator

         4. Requirements of both category 1 and category 2 regulators

            1. Section 16 – Register of regulated legal services providers

            2. Section 17 – Professional indemnity insurance

         5. Powers of the Lord President in relation to regulators

            1. Section 18 – Review of regulatory performance by the Lord President

            2. Section 19 – Measures open to the Lord President

         6. Special rule changes

            1. Section 20 – Power to direct special rule changes

            2. Section 21 – Powers to amend or revoke directions

            3. Section 22 – Register of directions

      3. Chapter 3 – New regulators of legal services

         1. Applications

            1. Section 23 – Right to provide legal services

            2. Section 24 – Regulatory scheme

            3.  Section 25 – Regulatory scheme – additional matters to be included: further provision

            4. Section 26 – Publication of draft regulatory scheme and representations

         2. Consideration and grant

            1. Section 27 – Consideration of applications

            2. Section 28 – Approval of application and giving effect to the regulatory scheme

         3. Exercise of the acquired rights

            1. Section 29 – Exercise of rights to provide legal services

            2. Section 30 – Surrender of rights

            3. Section 31 – Offence of pretending to have acquired rights

         4. Review of regulatory scheme

            1. Sections 32 – Review of regulatory scheme on initiative of accredited regulator

            2. Section 33 – Review of regulatory schemes

            3. Section 34 – Revocation of acquired rights

         5. Miscellaneous

            1. Section 35 – Replacement regulatory arrangements for authorised providers

            2. Section 36 – Consequential amendments and repeals

            3. Section 37 – Transitional and saving provision for regulators approved under the 1990 Act

   3. Part 2 – Regulation of Legal Businesses

      1. Introductory

         1. Section 38 – Overview of Part

      2. Requirement to be authorised to provide legal services

         1. Section 39 – Requirement for legal businesses to be authorised to provide legal services

         2. Section 40 – Offence of pretending to be an authorised legal business

      3. Regulation of authorised legal businesses

         1. Section 41 – Rules for authorised legal business

         2. Section 42 – Authorisation rules

         3. Section 43 – Appeals in relation to authorisation decisions

         4. Section 44 – Practice rules

         5. Section 45 – Financial sanctions

         6. Section 46 – Reconciling different rules

         7. Section 47 – Monitoring of performance of authorised legal businesses

      4. Miscellaneous

         1. Section 48 – Law Society of Scotland

         2. Section 49 – Entities changing regulatory regime

   4. Part 3 - Complaints

      1. Section 50 – Receipt of complaints: preliminary steps

      2. Section 51 – Complaints initiated by, or continued by, the Commission

      3. Section 52 – Ineligible or premature complaints

      4. Section 53 – Commission process relating to complaints

      5. Section 54 – Commission’s duty to investigate and determine services complaints

      6. Section 55 – Regulatory complaints against authorised legal businesses

      7. Section 56 – Services complaint: sanctions

      8. Section 57 – Commission decision making and delegation

      9. Section 58 – Commission review committee

      10. Section 59 – Disclosure of information by practitioners etc. to the Commission and relevant professional organisations

      11. Section 60 – Power of Commission to request practitioner’s details in connection with complaints

      12. Section 61 – Services complaints: special provision for complaints against unregulated persons

      13. Section 62 – Handling complaints

      14.  Section 63 – Annual general levy and complaints levy

      15. Section 64 – Unregulated providers of legal services: register, annual contributions and complaints contributions

      16. Section 65 – Commission rules as to practice and procedure

      17. Section 66 – Conduct or regulatory complaint raised by relevant professional organisation

      18. Section 67 – Conduct or regulatory complaint appears to relevant professional organisation during investigation to be services complaint

      19. Section 68 – Conduct complaints: consideration by relevant professional organisations

      20. Section 69 – Complaints: monitoring and setting of minimum standards by the Commission

      21. Section 70 – Compensation funds: setting of minimum standards by the Commission

      22. Section 71 – Enforcement of minimum standards

      23. Section 72 – obtaining information from practitioners

      24. Section 73 – Power to disclose information about complaints: Commission

      25. Section 74 – Restriction on disclosure of information: Commission

      26. Section 75 – Power to disclose information about complaints: relevant professional organisations

      27. Section 76 – Restriction on disclosure of information: relevant professional organisations

      28. Section 77 – Conduct complaints: power to impose unlimited fine and removal of power to award compensation

      29. Section 78 – Faculty of Advocates: complaint of professional misconduct and publication of decision

      30. Section 79 – Commission membership

      31. Section 80 – Role of the independent advisory panel

      32. Section 81 – Commission reports

      33. Section 82 – Minor and consequential amendments

   5. Part 4 – Miscellaneous

      1. Financial sanctions

         1. Section 83 – Financial sanctions

      2. Licensed legal services providers

         1. Section 84 – Licensing rules: fees

         2. Section 85 – Removal of requirement to act for fee, gain or reward

         3. Section 86 – Eligibility criteria: law centres

         4. Section 87 – Majority ownership

         5. Section 88 – Non-solicitor investors: factors as to fitness

      3. Removal of certain practising restrictions

         1. Section 89 – Removal of practising restrictions: law centres, citizens advice bodies and charities

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

         1. Section 90 – Offence of taking or using the title of lawyer

         2. Section 91 – Offence of pretending to be a regulated legal services provider

         3. Section 92 – Offence of pretending to be a member of Faculty of Advocates

         4. Section 93 – Time limit for prosecution of offences

      5. Power of the Scottish Ministers to adjust restricted legal services

         1. Section 94 – Power of the Scottish Ministers to adjust restricted legal services

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

         1. Section 95 – Lord President’s functions under Parts 1 and 2: rule-making making power

         2. Section 96 – Modification of other enactments

         3. Section 97 – Review of Act

   6. Part 5 – General

      1. Section 98 – Individual culpability for offending by an organisation

      2. Section 99 – Civil enforcement in relation to offences

      3. Section 100 – Regulations

      4. Section 101 – Ancillary provision

      5. Section 102 – Interpretation

      6. Section 103 – Commencement

      7. Section 104 – Short title

   7. Schedule 1 – Law Society of Scotland

      1. Part 1 – Category 1 regulator

         1. Exercise of regulatory functions

         2. Client Protection Fund

      2. Part 2 – Regulation of legal businesses

         1. Regulatory functions

         2. Suspension of authorisation

         3. Consultants

         4. Offence of disqualified solicitors dishonestly seeking employment

         5. Rules as to professional practice, conduct and discipline

         6. Rules as to accounts etc.

         7. Powers where excessive fees etc. charged

         8. Powers where failure to comply with rules

         9. Judicial factors

         10. Distribution of sums in client bank account

         11. Client Protection Fund

         12. Professional indemnity

         13. Safeguarding interests of clients

         14. Recovery of expenses of intervention

         15. Restrictions on employing a struck off or suspended solicitor

         16. Complaints

         17. Protection of banks

         18. Recovery of Council’s expenses

         19. Service of notices

         20. Interpretation

         21. Revenue powers in respect of authorised legal businesses

   8. Schedule 2 — Further Provision about Measures Open to the Scottish Ministers

      1. Part 1 – Performance targets

      2. Part 2 – Directions

      3. Part 3 – Censure

      4. Part 4 – Making changes to regulatory functions

      5. Part 5 – Procedure for imposing a measure

   9. Schedule 3 — Minor and Consequential Modifications of Enactments

      1. Part 1 – Regulatory framework

         1. Regulatory objectives and professional principles

         2. New regulators

      2. Part 2 – Modification of the 1980 Act in relation to complaints

         1. Conduct complaints suggesting unsatisfactory professional conduct

         2. Regulatory complaints

         3. Procedure relating to complaints

         4. Publication of decisions

         5. Other modifications

      3. Part 3 – Modification of other enactments in relation to complaints

         1. Legal Aid (Scotland) Act 1986

         2. Law Reform (Miscellaneous Provisions) (Scotland) Act 1990

         3. Legal Profession and Legal Aid (Scotland) Act 2007

         4. Legal Services (Scotland) Act 2010

      4. Part 4 – Miscellaneous modifications of the 1980 Act etc.

         1. The roll and other registers

         2. Restoration of name to roll and registers: appeals

         3. Restoration of name to roll and registers: expenses

         4. Practising certificates and registration certificates

         5. Powers where excessive fees etc. charged

         6. Powers where failure to comply with rules

         7. Previous findings of record

         8. The Client Protection Fund

         9. Investment business certificates

         10. Appeal from decisions of Tribunal

         11. Constitution of Tribunal

         12. Procedure of Tribunal

         13. Communicating and giving effect to Tribunal decisions

         14. Appeal against decision of Tribunal to dismiss before enquiry

         15. Finality of decisions

         16. Other modifications

      5. Part 5 – Miscellaneous modifications of other enactments

         Freedom of information

         1. Removal of special provision for confirmation agents and will writers etc.

         2. Civil enforcement of certain offences

         3. Disclosure requirements in connection with new offences

4. Parliamentary History