Regulation of Legal Services (Scotland) Act 2025

Prospective

Part 3 S Complaints

50 Receipt of complaints: preliminary steps S

(1) The 2007 Act is amended as follows.

(2) The italic heading before section 2 becomes “Conduct, services and regulatory complaints”.

(3) In section 2 (receipt of complaints: preliminary steps)—

(a) in subsection (1), for paragraph (b) substitute—

“(b) suggesting that—

(i) professional services were inadequate where they were provided by a practitioner in connection with any matter in which the practitioner has been instructed by a client, or

(ii) legal services were inadequate where they were provided by a person other than a practitioner to the public for fee, gain or reward,

(a complaint suggesting any such matter being referred to in this Part as a “services complaint”),

(c) suggesting that an authorised legal business is failing (or has failed) to comply with—

(i) the practice rules forming part of the rules for authorising and regulating the legal business made by the relevant professional organisation under (or for the purposes of) section 41(1)(a) of the 2025 Act, or

(ii) the terms on which its authorisation is granted by the relevant professional organisation including any conditions or restrictions imposed in relation to the authorisation,

(a complaint suggesting any such matter being referred to in this Part as a “regulatory complaint”).”,

(b) after subsection (1) insert—

“(1ZA) A complaint as mentioned in subsection (1)(b)(ii) suggesting that legal services provided by a person other than a practitioner were inadequate—

(a) may include a complaint suggesting that the manner in which legal services were provided by the person was inadequate,

(b) but is not an eligible services complaint for the purposes of this Part where the Commission considers, in accordance with any provision in rules made under section 32(1), that the legal services provided by the person were merely incidental to other services (not being legal services) provided by the person.

(1ZB) Where a services complaint is made in relation to a practitioner who is an individual and the Commission considers that the complaint should also be made against the practitioner’s firm or (as the case may be) where the practitioner is an employee of another practitioner that other practitioner (referred to in this Part as the “employing practitioner”), the Commission may decide to treat the complaint as—

(a) also having been made against the practitioner’s firm or the employing practitioner (as the case may be), or

(b) having been made against the practitioner’s firm or the employing practitioner (as the case may be) instead of the practitioner.”,

(c) for subsection (1A) substitute—

“(1A) The Commission must, subject to any provision in rules made under section 32(1) as to eligibility for making complaints, determine whether the complaint constitutes (to any extent)—

(a) a conduct complaint,

(b) a services complaint,

(c) a regulatory complaint, or

(d) any combination of more than one of the categories of complaint mentioned in paragraphs (a) to (c).

(1B) For the purpose of subsection (1A), the Commission may determine—

(a) where the complaint includes more than one element, that—

(i) an element constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and

(ii) another element constitutes a separate complaint falling within another of those categories,

(b) that any element of the complaint—

(i) constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and

(ii) additionally constitutes a complaint falling within another of those categories,

(for example, a single element of the complaint may constitute both a conduct complaint and a services complaint).”,

(d) in subsection (2), in paragraph (a), after “complaint” insert “or a regulatory complaint”,

(e) the following subsections are repealed—

(i) subsection (2A),

(ii) subsection (2B),

(iii) subsection (2C),

(iv) subsection (4).

Commencement Information

I1 S. 50 not in force at Royal Assent, see s. 103(3)

51 Complaints initiated by, or continued by, the Commission S

(1) The 2007 Act is amended as follows.

(2) After section 2, insert—

“2A Complaints initiated by the Commission

(1) In addition to receiving a conduct complaint or a regulatory complaint mentioned in section 2(1), the Commission may itself initiate a complaint against a practitioner which, had it been received from a person mentioned in section 2(2), would be a conduct complaint or a regulatory complaint.

(2) Section 2(1A) applies to a complaint under subsection (1) as it applies to a complaint referred to in section 2(1).

(3) References in this Part (other than in this section) and in sections 47 to 52A to a conduct complaint or a regulatory complaint include references to a conduct complaint or a regulatory complaint that is initiated by the Commission under subsection (1).

(4) The Commission may not initiate a complaint under subsection (1) if it would not be an eligible complaint in accordance with any provision in rules made under section 32(1).”.

Commencement Information

I2 S. 51 not in force at Royal Assent, see s. 103(3)

52 Ineligible or premature complaints S

(1) Section 4 (complaint not made timeously or made prematurely) of the 2007 Act is amended as follows.

(2) The section title becomes “Complaint not eligible or made prematurely”.

(3) For subsection (1), substitute—

“(1) Where the Commission considers that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1), the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required under such rules).”.

(4) For subsection (2), substitute—

“(2) Where a complaint referred to in section 2(1) is made prematurely, the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required by rules made under section 32(1)).”.

(5) The following subsections are repealed—

(a) subsection (3),

(b) subsection (5),

(c) subsection (6).

(6) In subsection (4)—

(a) in the opening words, the words “or section 9A(2)” are repealed,

(b) in paragraph (a), for the words from “where” to ““employing practitioner”)” substitute “the employing practitioner”,

(c) paragraph (b) is repealed.

Commencement Information

I3 S. 52 not in force at Royal Assent, see s. 103(3)

53 Commission process relating to complaints S

(1) The 2007 Act is amended as follows.

(2) In section 6 (complaint determined to be conduct complaint)—

(a) for subsection (1), substitute—

“(1) This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is—

(a) wholly a conduct complaint, or

(b) includes one or more elements constituting a conduct complaint.”,

(b) in subsection (2)—

(i) in paragraph (a), after “complaint” where it first occurs insert “(or the part of the complaint constituting a conduct complaint)”,

(ii) paragraph (b) is repealed,

(c) after subsection (2), insert—

“(3) It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a conduct complaint (to any extent).”.

(3) Section 7 (services complaint: notice) is repealed.

(4) In section 8 (services complaint: local resolution or mediation)—

(a) for subsection (1), substitute—

“(1) Subsection (2) applies where the Commission determines that a complaint referred to in section 2(1) that is made by or on behalf of a person referred to in section 2(2)(b)(i)—

(a) constitutes (in whole or in part) a services complaint, and

(b) either—

(i) the complaint has been made prematurely (within the meaning of section 4(4)), or

(ii) the practitioner, the practitioner’s firm or the employing practitioner has made no attempt, or an insufficient attempt, to achieve a negotiated settlement with the complainer.”,

(b) in subsection (2)—

(i) the words from “Where” to the end of paragraph (b) are repealed, and

(ii) for “such a settlement” substitute “a negotiated settlement with the complainer”.

(5) In section 9 (services complaint: Commission’s duty to investigate and determine), in subsection (2), for “must” substitute “may”.

(6) Section 9A (services complaint: further provision) is repealed.

(7) Section 12 (services complaint: notice where not upheld or upheld) is repealed.

(8) Section 13 (services complaint: reports) is repealed.

(9) Section 15 (complaint appears during mediation or investigation to fall within different category) is repealed.

(10) Section 45 (giving of notices etc. under Part 1) is repealed.

Commencement Information

I4 S. 53 not in force at Royal Assent, see s. 103(3)

54 Commission’s duty to investigate and determine services complaints S

(1) The 2007 Act is amended as follows.

(2) In section 9 (services complaint: Commission’s duty to investigate and determine), after subsection (4) insert—

“(5) Where the practitioner (and, where subsection (3) applies, the employing practitioner) accepts a settlement proposed by the Commission under subsection (2) as respects the complaint but the complainer does not accept the settlement, the Commission may discontinue the investigation of the complaint and not determine it under subsection (1).

(6) If subsection (7) applies, the Commission may decide—

(a) not to initiate the investigation of a services complaint and determine it under subsection (1), or

(b) to discontinue the investigation of a services complaint and not to determine it under subsection (1).

(7) This subsection applies if—

(a) the Commission considers that the practitioner, the practitioner’s firm or the employing practitioner has offered the complainer a settlement as respects the complaint (“the proposed settlement”) which the Commission considers is fair and reasonable in the circumstances,

(b) the complainer has not accepted the proposed settlement, and

(c) the Commission is satisfied that the proposed settlement will remain available for acceptance by the complainer for a period of up to 28 days after the complainer receives notice of the Commission’s decision under subsection (6).”.

Commencement Information

I5 S. 54 not in force at Royal Assent, see s. 103(3)

55 Regulatory complaints against authorised legal businesses S

(1) The 2007 Act is amended as follows.

(2) After section 7, insert—

“7A Complaint determined to be a regulatory complaint

(1) This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is—

(a) wholly a regulatory complaint, or

(b) includes one or more elements constituting a regulatory complaint.

(2) The Commission must remit the complaint (or the part of the complaint constituting a regulatory complaint) to the relevant professional organisation to deal with (and give to the organisation any material which accompanies the regulatory complaint).

(3) It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a regulatory complaint (to any extent).”.

(3) After section 52, insert—

“52A Regulatory complaints: duty of regulator to investigate etc.

(1) Where a regulatory complaint is remitted to the relevant professional organisation under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)), the relevant professional organisation must investigate it and, subject to subsection (2), determine the complaint.

(2) The relevant professional organisation may decide—

(a) to discontinue an investigation of a regulatory complaint,

(b) to reinstate the investigation of a discontinued regulatory complaint,

but only if the organisation considers that this is in the public interest.

(3) As soon as practicable after making a decision under subsection (2), the relevant professional organisation must give notice in writing of its decision to the complainer, the practitioner and the Commission by—

(a) sending them a copy of the decision, and

(b) specifying the reason for the decision.

(4) In addition, notice under subsection (3) given to the complainer or the practitioner, must also give them information about any—

(a) right of appeal, and

(b) ability to make a handling complaint to the Commission.

(5) After determining the regulatory complaint, the relevant professional organisation must make a written report to the complainer, the practitioner and the Commission of—

(a) any facts of the matter as found by the relevant professional organisation,

(b) the relevant professional organisation’s determination and the reasons for that determination,

(c) what action (if any) the relevant professional organisation proposes to take, or has taken, in the matter in accordance with the rules for authorising and regulating legal businesses made by the relevant professional organisation under (or for the purposes of) section 41(1)(a) of the 2025 Act, and

(d) if the relevant professional organisation does not propose to take, or has not taken, any action in the matter, an explanation of why this is the case.

(6) When making a written report under subsection (5), the relevant professional organisation must also give notice in writing to the complainer and the practitioner of any right of appeal or ability to make a handling complaint by virtue of section 23.

(7) The relevant professional organisation must, in considering what action (if any) to take as mentioned in subsection (5)(c), take into account any decision taken by the Commission in respect of a services complaint against the practitioner where the services complaint arises from the same matter to which the regulatory complaint relates.

(8) Each relevant professional organisation must ensure that its procedures for dealing with regulatory complaints do not conflict with the duty imposed on it by section 24(4) in relation to any report sent to it under that section or any direction by the Commission under section 24(6).”.

Commencement Information

I6 S. 55 not in force at Royal Assent, see s. 103(3)

56 Services complaint: sanctions S

(1) The 2007 Act is amended as follows.

(2) In section 10 (Commission upholds services complaint)—

(a) after subsection (3), insert—

“(3A) Where the practitioner was, at the time when the services were provided, a partner of a firm, a direction under subsection (2)(c) may be given to the practitioner’s firm instead of the practitioner.

(3B) In the case where a direction under subsection (2)(c) is made to the employing practitioner or the practitioner’s firm, the direction may relate to systems operated by the employing practitioner or the practitioner’s firm that affect the provision of professional services generally by the employing practitioner or the practitioner’s firm where that is relevant to the complaint.”,

(b) in subsection (4)—

(i) paragraph (c) is repealed,

(ii) after paragraph (c) (and before the closing words), insert—

“(d) decision taken by a relevant professional organisation in respect of a conduct complaint, or a regulatory complaint, against the practitioner where the conduct complaint, or the regulatory complaint, arises from the same matter to which the services complaint relates,”.

(3) After section 12, insert—

“12A Services complaint upheld: failure to refund fees and outlays

(1) This section applies where—

(a) under section 10(2)(a), the Commission directs the practitioner or the employing practitioner (as the case may be) to refund an amount in respect of fees or outlays of the practitioner already paid by or on behalf of the client to whom the professional services were provided by the practitioner (such amount being referred to in this section as “the fee refund”),

(b) any proportion of the fee refund has not been paid by the expiry of the period of 90 days commencing on the day on which notice of the direction was given to the practitioner or the employing practitioner in accordance with rules made under section 32(1), and

(c) the failure to pay any proportion of the fee refund within that period is—

(i) where the direction was given to the practitioner, as a result of the death, insolvency or involuntary cessation of trade of the practitioner,

(ii) where the direction was given to the employing practitioner, as a result of the insolvency or involuntary cessation of trade of the employing practitioner.

(2) The proportion of the fee refund that has not been paid is to be treated for the purposes of the practitioner’s or the employing practitioner’s (as the case may be) professional indemnity insurance as if it were an amount of compensation that the Commission had directed under section 10(2)(d) the practitioner or employing practitioner to pay to the complainer.

(3) But subsection (2) applies only to the extent that the amount of the fee refund that has not been repaid, taken together with any amount of compensation that the Commission directed the practitioner or the employing practitioner to pay to the complainer under section 10(2)(d), does not exceed £35,000.

(4) The Scottish Ministers may by regulations amend subsection (3) to substitute a different amount for the one for the time being specified there.

(5) Before making regulations under subsection (4), the Scottish Ministers must consult—

(a) the relevant professional organisations, and

(b) such groups of persons representing consumer interests as they consider appropriate.”.

Commencement Information

I7 S. 56 not in force at Royal Assent, see s. 103(3)

57 Commission decision making and delegation S

(1) The 2007 Act is amended as follows.

(2) In schedule 1, in paragraph 13(2) (delegation of functions)—

(a) paragraph (a) is repealed,

(b) after paragraph (a) insert—

“(aa) a decision under section 2A(1) to initiate a complaint to be taken only by—

(i) any of its committees, or

(ii) one of the Commission’s members,”,

(c) paragraph (b)(ii) is repealed,

(d) after paragraph (c), insert—

“(ca) the making of any decision on the disclosure of information under section 41A to be exercised only by one of the Commission’s members,”,

(e) after paragraph (d), insert—

“(e) the function of making a decision under section 23(2) to be exercised only by any of its committees,

(f) the function of making a direction under section 24(6) to be exercised only by any of its committees.”.

Commencement Information

I8 S. 57 not in force at Royal Assent, see s. 103(3)

58 Commission review committee S

(1) The 2007 Act is amended as follows.

(2) After section 20, insert—

“Reviews S

20A Applications to review committee

(1) A person mentioned in subsection (2) may make an application for a review of a decision by the Commission in relation to a complaint that is mentioned in subsection (3).

(2) The persons are—

(a) the complainer,

(b) the practitioner to whom the complaint relates,

(c) the practitioner’s firm,

(d) the employing practitioner,

(e) the relevant professional organisation.

(3) The decisions are—

(a) a decision by the Commission that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1),

(b) a decision to discontinue the investigation of a services complaint in accordance with section 9(1A)(a),

(c) a decision to reinstate the investigation of a services complaint in accordance with section 9(1A)(b),

(d) a determination under section 9(1) to uphold a services complaint,

(e) a determination under section 9(1) to not uphold a services complaint,

(f) a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(5),

(g) a decision not to initiate the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(a),

(h) a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(b),

(i) a decision to take any of the steps mentioned in section 10(2) other than—

(i) a direction to the practitioner or the employing practitioner (as the case may be) to pay compensation to the complainer, or

(ii) a decision as to the amount of such compensation to be paid under the direction.

(4) Subject to subsection (5), an application for review must be made before the expiry of the period of 28 days beginning with the day on which notice of the decision was given to the complainer and the practitioner.

(5) The review committee may decide that it may consider an application for a review of a decision under subsection (1) that is made after the expiry of the period referred to in subsection (4) if it considers that to be appropriate.

(6) Following a review, the review committee may make such decision as it considers appropriate (including a decision that substitutes its own decision for the decision to which the application for review relates).

(7) Where a decision of the review committee upholds a services complaint or confirms a determination under section 9(1) to uphold a services complaint, the review committee may direct that such of the steps mentioned in section 10(2) as it considers fair and reasonable in the circumstances be taken.

(8) A decision of the review committee under this section is final.”.

(3) The following provisions are repealed—

(a) section 21 (appeal against Commission decisions) (and the italic heading before it),

(b) section 22 (appeal: supplementary provision).

(4) In schedule 1 (the Scottish Legal Complaints Commission)—

(a) in paragraph 10 (procedure), in sub-paragraph (2), for “determination” substitute “review”,

(b) in paragraph 11 (committees)—

(i) in sub-paragraph (1)(a), for “determination”, in both places where it occurs, substitute “review”,

(ii) in sub-paragraph (3), for “determination” substitute “review”,

(c) in paragraph 13 (delegation of functions), for sub-paragraph (2)(d), substitute—

“(d) the function of considering an application for review of a decision of the Commission under section 20A(1) to be exercised only by the review committee, but a review in respect of any of the following decisions may be taken by a single member of the review committee—

(i) a decision by the Commission that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1),

(ii) a decision to reinstate the investigation of a services complaint in accordance with section 9(1A)(b).”.

Commencement Information

I9 S. 58 not in force at Royal Assent, see s. 103(3)

59 Disclosure of information by practitioners etc. to the Commission and relevant professional organisations S

(1) The 2007 Act is amended as follows.

(2) In section 17 (power to examine documents and demand explanations in connection with conduct or services complaints)—

(a) the title of the section becomes “Power to examine documents and demand explanations in connection with complaints”,

(b) after subsection (3), insert—

“(3A) Nothing in a notice under subsection (1) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.

(3B) But subsection (3A) does not prevent the disclosure of—

(a) a document or information if consent to the disclosure is given by the client of (as the case may be)—

(i) the practitioner,

(ii) the practitioner’s firm, or

(iii) the employing practitioner, or

(b) a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).

(3C) For the purpose of subsection (3A), a document or information is subject to legal privilege if it constitutes a communication—

(a) between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,

which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.”,

(c) after subsection (6) insert—

“(6A) For the purpose of subsection (3) or (6), references to other documents include references to anything in which information is recorded in any form.”,

(d) after subsection (6A) (inserted by subsection (2)(c)) insert—

“(6B) Subsection (6C) applies where—

(a) the Commission gave notice under subsection (1) in connection with its investigation and determination of a services complaint under section 9 to the practitioner, the practitioner’s firm or the employing practitioner (“the recipient”),

(b) the recipient failed to provide some or all of the documents or information sought in the notice within the time specified in it, and

(c) the Commission is satisfied that the recipient does not have a reasonable excuse for the failure.

(6C) The Commission may proceed to determine the complaint based on the information before it despite the recipient’s failure.

(6D) Before proceeding as mentioned in subsection (6C), the Commission must notify the recipient of the proposal and give the recipient an opportunity to respond within the period specified in the notice (which must be no fewer than 14 days from the date of the notice) to—

(a) provide all of the documents or information sought in the notice given under subsection (1), or

(b) provide a reasonable excuse for the failure to provide some or all of the documents or information sought in that notice within the time specified in that notice.

(6E) Where subsection (6C) applies, in determining the complaint, the Commission may draw such inference from the recipient’s failure as it considers appropriate.”.

(3) In section 37 (obtaining of information from relevant professional organisations), after subsection (2) insert—

“(2A) Subsection (1) does not require the provision of a document or information to the Commission that is subject to legal privilege.

(2B) But subsection (2A) does not prevent the disclosure of—

(a) a document or information if consent to the disclosure is given by the client of (as the case may be)—

(i) the practitioner,

(ii) the practitioner’s firm, or

(iii) the employing practitioner, or

(b) a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).

(2C) For the purpose of subsection (2A), a document or information is subject to legal privilege if it constitutes a communication—

(a) between the practitioner and the practitioner’s client, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,

which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.”.

(4) In section 48 (conduct complaints and reviews: power of relevant professional organisations to examine documents and demand explanations)—

(a) after subsection (1) insert—

“(1A) Where a relevant professional organisation gives notice under subsection (1)(a) to a practitioner and the practitioner is an employee of another practitioner, the organisation must give a copy of the notice to the employing practitioner.”,

(b) after subsection (2) insert—

“(2A) Nothing in a notice under subsection (1) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.

(2B) But subsection (2A) does not prevent the disclosure of—

(a) a document or information if consent to the disclosure is given by the client of (as the case may be)—

(i) the practitioner,

(ii) the practitioner’s firm, or

(iii) the employing practitioner, or

(b) a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).

(2C) For the purpose of subsection (2A) a document or information is subject to legal privilege if it constitutes a communication—

(a) between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,

which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.”,

(c) after subsection (5) insert—

“(5A) For the purpose of subsection (3) or (5), references to other documents include references to anything in which information is recorded in any form.”,

(d) after subsection (5A) (inserted by this section) insert—

“(5B) Subsection (5C) applies where—

(a) a relevant professional organisation gave notice under subsection (1)(a) to the practitioner, the practitioner’s firm or the employing practitioner (“the recipient”) for the purposes of an investigation into a conduct complaint under section 47 or a regulatory complaint under section 52A,

(b) the recipient failed to provide some or all of the documents or information sought in the notice within the time specified in it, and

(c) the relevant professional organisation is satisfied that the recipient does not have a reasonable excuse for the failure.

(5C) The relevant professional organisation may proceed to determine the complaint based on the information before it despite the recipient’s failure.

(5D) Before proceeding as mentioned in subsection (5C), the relevant professional organisation must notify the recipient in writing of the proposal and give the recipient an opportunity to respond within the period specified in the notice (which must be no fewer than 14 days from the date of the notice) to—

(a) provide all of the documents or information sought in the notice given under subsection (1), or

(b) provide a reasonable excuse for the failure to provide some or all of the documents or information sought in that notice within the time specified in that notice.

(5E) Where subsection (5C) applies, in determining the complaint, the relevant professional organisation may draw such inference from the recipient’s failure as it considers appropriate.”.

(5) After section 48 insert—

“48A Conduct complaints, regulatory complaints and services complaints: power of relevant professional organisations to examine documents and demand explanation before initiating complaint

(1) This section applies where a relevant professional organisation is considering—

(a) making a conduct complaint, services complaint or regulatory complaint referred to in section 2(1) to the Commission against a practitioner,

(b) treating a matter under section 33A(2) as if it were a conduct complaint remitted to it by the Commission under section 6(2), or

(c) treating a matter under section 33B(2) as if it were a regulatory complaint remitted to it by the Commission under section 7A(2).

(2) The relevant professional organisation may give notice in writing in accordance with subsection (5) to—

(a) the practitioner,

(b) the practitioner’s firm, or

(c) the employing practitioner.

(3) Notice under subsection (2) may not be given to, or in relation to, a practitioner who is Crown Counsel or a procurator fiscal (within the meaning of section 307 of the Criminal Procedure (Scotland) Act 1995).

(4) Where a relevant professional organisation gives notice under subsection (2) to a practitioner and the practitioner is an employee of another practitioner, the organisation must give a copy of the notice to the employing practitioner.

(5) A notice under subsection (2) may require—

(a) the production or delivery to any person appointed by the relevant professional organisation, at a time and place specified in the notice, of all documents mentioned in subsection (9) which are in the possession or control of the practitioner, the firm or, as the case may be, the employing practitioner, and which relate to the matters under consideration by the relevant professional organisation in relation to the potential complaint (whether or not they relate also to other matters),

(b) an explanation, within such period being not less than 21 days as the notice specifies, from the practitioner, the firm or, as the case may be, the employing practitioner, regarding the matters under consideration by the relevant professional organisation in relation to the potential complaint.

(6) Nothing in a notice under subsection (2) requires a practitioner, a practitioner’s firm or an employing practitioner to provide a document or information that is subject to legal privilege.

(7) But subsection (6) does not prevent the disclosure of—

(a) a document or information if consent to the disclosure is given by the client of (as the case may be)—

(i) the practitioner,

(ii) the practitioner’s firm, or

(iii) the employing practitioner, or

(b) a document or information that is the subject of another right of confidentiality (regardless of whether or not the client of the practitioner, practitioner’s firm or employing practitioner consents to the disclosure).

(8) For the purpose of subsection (6), a document or information is subject to legal privilege if it constitutes a communication—

(a) between the practitioner, the practitioner’s firm or the employing practitioner and the client of the practitioner, practitioner’s firm or employing practitioner, or

(b) made in connection with, or in contemplation of, legal proceedings and for the purpose of those proceedings,

which would, in legal proceedings, be protected from disclosure by virtue of any rule of law relating to confidentiality of communications.

(9) The documents are—

(a) all books, accounts, deeds, securities, papers and other documents in the possession or control of the practitioner, the firm or, as the case may be, the employing practitioner,

(b) all books, accounts, deeds, securities, papers and other documents relating to any trust of which the practitioner is the sole trustee or a co-trustee only with one or more of the practitioner’s partners or employees or, as the case may be, where the practitioner is an incorporated practice of which the practice or one of its employees is a sole trustee or it is a co-trustee only with one or more of its employees.

(10) For the purpose of subsection (9), references to other documents include references to anything in which information is recorded in any form.

(11) Schedule 4 makes further provision about the powers of a relevant professional organisation under this section.”.

Commencement Information

I10 S. 59 not in force at Royal Assent, see s. 103(3)

60 Power of Commission to request practitioner’s details in connection with complaints S

(1) The 2007 Act is amended as follows.

(2) After section 17, insert—

“17A Power of Commission to request practitioner’s details in connection with complaints

(1) Where the Commission is satisfied that it is necessary to do so in relation to a complaint referred to in section 2(1), 2A(1) or 23(1A) made against a practitioner for a purpose mentioned in subsection (3), the Commission may request that the relevant professional organisation provide any contact details held by the relevant professional organisation relating to—

(a) the practitioner,

(b) the practitioner’s firm,

(c) the employing practitioner,

(d) the person (or persons) holding a specified role (or exercising a specified function) in the practitioner’s firm or the employing practitioner.

(2) The relevant professional organisation must provide any details that are requested under subsection (1) that are held by the relevant professional organisation to the Commission without delay.

(3) The purpose referred to in subsection (1) is for the purpose of—

(a) section 2, 2A, 4, 8, 9, 10, 16, 23 or 24, or

(b) any provision in rules made under section 32(1) but only in so far as the provision in the rules relates to—

(i) the categorisation of complaints, or

(ii) assessment of the eligibility of complaints.

(4) It does not matter for the purpose of a relevant professional organisation’s response under subsection (2) whether, at the time of the response, the practitioner, practitioner’s firm or employing practitioner (as the case may be) continues to be authorised by the organisation to provide legal services.”.

Commencement Information

I11 S. 60 not in force at Royal Assent, see s. 103(3)

61 Services complaints: special provision for complaints against unregulated persons S

(1) The 2007 Act is amended as follows.

(2) After section 22, insert—

“Services complaints: special provision for complaints against unregulated persons S

22A Services complaints: special provision for complaints against unregulated persons

(1) Subject to subsection (2), the following provisions apply in relation to a services complaint against a person who was not a practitioner at the time when the legal services complained of were provided but who was providing legal services to the public for fee, gain or reward (an “unregulated provider”) as the provisions apply in relation to a services complaint against a practitioner—

(a) section 2,

(b) section 3,

(c) section 4,

(d) section 8,

(e) section 9,

(f) section 10,

(g) section 11,

(h) section 12A,

(i) section 14,

(j) section 16,

(k) section 17,

(l) section 18,

(m) section 19,

(n) section 20,

(o) section 20A,

(p) section 35,

(q) section 40, and

(r) schedule 2.

(2) The provisions referred to in subsection (1) apply in relation to an unregulated provider against whom a services complaint is made subject to the following modifications—

(a) references to “inadequate professional services” are to be read as if they were references to “inadequate legal services” (meaning, in relation to an unregulated provider, legal services that are in any respect not of the quality which could reasonably be expected of a competent unregulated provider),

(b) references to the practitioner against whom a complaint is made are to be read as including references to the unregulated provider against whom a complaint is made,

(c) references to a “practitioner’s firm” are to be read as if they were omitted,

(d) references to an “employing practitioner”, in relation to a practitioner, are to be read as if they were references to the employer (if any) of the unregulated provider against whom a complaint is made,

(e) references to a “relevant professional organisation” are to be read as if they were omitted,

(f) where the unregulated provider against whom a complaint is made is in the employment of another person, references in section 10 to “employee practitioner” are to be read as if they were references to the unregulated provider,

(g) section 10(2) is to be read as if paragraph (e) were omitted.”.

Commencement Information

I12 S. 61 not in force at Royal Assent, see s. 103(3)

62 Handling complaints S

(1) The 2007 Act is amended as follows.

(2) In section 23 (handling by relevant professional organisations of conduct complaints: investigation by Commission)—

(a) the title of the section becomes “Handling by relevant professional organisations of conduct or regulatory complaints: investigation by Commission”,

(b) for subsection (1A) substitute—

“(1A) In this Act, a “handling complaint” means—

(a) a complaint which—

(i) relates to the manner in which a conduct complaint has been dealt with by a relevant professional organisation to which it has been remitted under section 6(2) (or is treated under section 33A(2) as if it were remitted under section 6(2)), and

(ii) is made—

(A) by or on behalf of the person by whom or on whose behalf the conduct complaint was made, or

(B) by the practitioner concerned in the conduct complaint, or

(b) a complaint which—

(i) relates to the manner in which a regulatory complaint has been dealt with by the relevant professional organisation to which it has been remitted under section 7A(2) (or is treated under section 33B(2) as if it were remitted under section 7A(2)), and

(ii) is made—

(A) by or on behalf of the person by whom or on whose behalf the regulatory complaint was made, or

(B) by the authorised legal business concerned in the regulatory complaint.”,

(c) subsections (3) and (6) are repealed,

(d) in subsection (4), in paragraph (a), after “conduct complaint” insert “or regulatory complaint”,

(e) after subsection (4) insert—

“(4A) But paragraph (b) of subsection (4) does not apply where the Commission considers that there are exceptional circumstances justifying its investigation of a handling complaint that is made after the expiry of the 6 month period referred to in that paragraph.”,

(f) subsections (8) and (10) are repealed.

(3) In section 24 (investigation under section 23: final report and recommendations)—

(a) in subsection (1)(b)(ia), after “conduct complaint” insert “or regulatory complaint”,

(b) in subsection (2)—

(i) in paragraph (a), after “conduct complaint” insert “or regulatory complaint”,

(ii) in paragraph (b), after “conduct complaint” insert “or regulatory complaint”,

(iii) in paragraph (c), after “conduct complaint” insert “or regulatory complaint”,

(iv) in paragraph (e), after “conduct complaint” insert “or regulatory complaint”,

(v) in paragraph (f), before “cost”, in both places where it occurs, insert “administrative”,

(c) in subsection (5)—

(i) after “conduct complaint” insert “or regulatory complaint”,

(ii) for the words from “of—” to the end of the subsection, substitute “whether it will comply with the recommendation within 3 months and, if not, the reason why not.”,

(d) in subsection (6)—

(i) in paragraph (a)—

(A) for “has decided not to” substitute “will not”,

(B) the word “wholly” is repealed,

(ii) in paragraph (b)—

(A) the word “wholly” is repealed,

(B) for “before the end of the period of” substitute “within”,

(C) the words from “beginning” to the end of paragraph (b) are repealed,

(iii) in the closing words, for “if the Commission thinks fit” substitute “within such period as it may specify in the direction”,

(e) in subsection (6A)—

(i) for “considers” substitute “notifies the Commission”,

(ii) the word “wholly” is repealed,

(f) in subsection (6B)(b), after “conduct complaint” insert “or regulatory complaint”,

(g) after subsection (8) insert—

“(9) In this section, “within 3 months”, in relation to a recommendation included in a report sent to a relevant professional organisation under this section, means before the end of the period of 3 months beginning with the day on which the report was sent to the organisation.

(10) In this section and schedule 3, “the other party to the conduct complaint or regulatory complaint to which the handling complaint relates” is in the case of a handling complaint made in accordance with—

(a) paragraph (a)(ii)(A) of section 23(1A), the practitioner concerned in the conduct complaint to which the handling complaint relates,

(b) paragraph (b)(ii)(A) of section 23(1A), the authorised legal business concerned in the regulatory complaint to which the handling complaint relates,

(c) paragraph (a)(ii)(B) or (b)(ii)(B) of section 23(1A), the complainer in the conduct complaint or regulatory complaint to which the handling complaint relates.”.

Commencement Information

I13 S. 62 not in force at Royal Assent, see s. 103(3)

63 Annual general levy and complaints levy S

(1) The 2007 Act is amended as follows.

(2) In section 27 (annual general levy)—

(a) in subsection (1)—

(i) for paragraph (c) substitute—

“(c) person who has acquired a right to provide legal services by virtue of Chapter 3 of Part 1 the 2025 Act (or section 27 of the 1990 Act),”,

(ii) after paragraph (d), insert—

“(e) authorised legal business,”,

(b) in subsection (2)(a), for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,

(c) in subsection (4), in the opening words, for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,

(d) for subsection (5) substitute—

“(5) If any person who is liable under subsection (1) to pay the annual general levy (“the liable person”) fails to pay any amount of the levy, or pays any such amount late—

(a) where the liable person is an individual, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the liable person,

(b) where the liable person is not an individual and where the failure to pay or late payment involves the connivance or consent of (or is attributable to the neglect of) a responsible official of a liable person, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.

(6) In subsection (5), a “responsible official” of a liable person is—

(a) where the liable person is a company, a director, secretary, manager or other similar officer,

(b) where the liable person is a limited liability partnership, a member,

(c) where the liable person is an ordinary partnership, a partner,

(d) where the liable person is another body or association, a person who is 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.”.

(3) In section 28 (complaints levy)—

(a) in subsection (1), for “mentioned in subsection (2)” substitute “specified in rules made under section 32(1)”,

(b) subsection (2) is repealed,

(c) for subsection (4) substitute—

“(4) If any practitioner who is liable under subsection (1) to pay the complaints levy fails to pay any amount of the levy, or pays any such amount late—

(a) where the practitioner is an individual, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the practitioner,

(b) where the practitioner is not an individual and where the failure or late payment involves the connivance or consent of, or is attributable to the neglect of, a responsible official of the practitioner, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.

(5) In subsection (4), a “responsible official” of a practitioner is—

(a) where the practitioner is a company, a director, secretary, manager or other similar officer,

(b) where the practitioner is a limited liability partnership, a member,

(c) where the practitioner is an ordinary partnership, a partner,

(d) where the practitioner is another body or association, a person who is 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.”.

(4) In section 29 (amount of levies and consultation)—

(a) in subsection (1), after paragraph (b) (but before the closing words), insert—

“(c) annual contribution,

(d) complaints contribution,”,

(b) in subsection (2), for the words from “must” to the end of the subsection substitute “may be—

(a) of different amounts for different persons (or persons of different descriptions) who are liable under section 27(1) to pay it, including different amounts for persons who are individuals and persons who are not,

(b) of different amounts (including nil) in different circumstances based on such criteria (such as the size and income of a person who is not an individual who is liable under section 27(1) to pay the annual general levy) as rules made under section 32(1) may specify.”,

(c) after subsection (2) insert—

“(2A) Rules under section 32(1) may provide for circumstances in which the Commission may waive a portion of the amount of annual general levy which would otherwise require to be paid.”,

(d) in subsection (5)(a), in sub-paragraph (ii), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”,

(e) for subsection (6) insert—

“(6) For the purpose mentioned in subsection (6A)—

(a) each relevant professional organisation must provide the Commission with an estimate of the number of persons as respects whom it is the relevant professional organisation and who it anticipates should be liable under section 27(1) to pay the annual general levy for the financial year concerned, and

(b) each relevant professional organisation that is a category 1 regulator must assist the Commission with its enquiries in relation to the size and income of each authorised legal business that is authorised by the organisation to provide legal services.

(6A) The purpose referred to in subsection (6) is the purpose of informing the Commission in relation to—

(a) the inclusion in the Commission’s proposed budget for each financial year of the proposed amount of the annual general levy,

(b) the Commission’s determination under subsection (1) of the amount of the annual general levy in respect of each financial year.”,

(f) in subsection (7), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”.

Commencement Information

I14 S. 63 not in force at Royal Assent, see s. 103(3)

64 Unregulated providers of legal services: register, annual contributions and complaints contributions S

(1) The 2007 Act is amended as follows.

(2) After section 28, insert—

“28A Unregulated providers of legal services: register and annual contribution

(1) The Commission must establish and maintain a register of unregulated providers of legal services.

(2) The Commission is to determine, in accordance with its rules under section 32(1), the information to be included in a register established under subsection (1).

(3) An unregulated provider of legal services that is specified in (or is of such type or description as may be specified in) regulations made by the Scottish Ministers must make a request to be entered in a register established under subsection (1).

(4) Any other unregulated provider of legal services may make a request to be entered in a register established under subsection (1).

(5) An unregulated provider of legal services who is entered in a register established under subsection (1) must pay to the Commission a contribution (referred to in this Part as “the annual contribution”).

(6) The amount of the annual contribution may be—

(a) different for unregulated providers of legal services who are individuals and unregulated providers of legal services who are not,

(b) of different amounts (including nil) in different circumstances.

(7) The Commission must make the register accessible by members of the public in such form and manner as it considers appropriate.

(8) The Commission must ensure that the amount of resources allocated for its use is reasonably sufficient to enable it to—

(a) establish and maintain the register, and

(b) investigate, determine and review services complaints against unregulated providers of legal services.

(9) In this section, a reference to an unregulated provider of legal services is to a person who provides legal services to the public for fee, gain or reward but who is not a practitioner.

28B Regulations under section 28A(3): requirements

(1) The Scottish Ministers may lay a draft of a Scottish statutory instrument containing regulations under section 28A(3) only if—

(a) they have received a request to exercise the power from—

(i) the Lord President,

(ii) the regulatory committee of a category 1 regulator,

(iii) a category 1 regulator that has no functions other than regulatory functions,

(iv) an approved regulator,

(v) the Commission, or

(vi) the independent advisory panel established by the Commission under paragraph 11A of schedule 1, and

(b) they have secured the Lord President’s agreement to the laying of the draft.

(2) Before making a request under subsection (1)(a), the person making the request (“the requester”) 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,

(iii) each approved regulator,

(iv) the Commission,

(v) the panel mentioned in subsection (1)(a)(vi), and

(vi) such other person 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) But a person mentioned in subsection (2)(a)(i) to (v) does not need to be consulted if the person is the requester.

(4) 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 why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3), and

(b) copies of any written representations received in response to the consultation under subsection (2)(a).

(5) A request under subsection (1)(a) must include—

(a) a document setting out why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3),

(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.

(6) As soon as reasonably practicable after making a request under subsection (1)(a), 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).

(7) In this section—

• “approved regulator” has the meaning given by Part 2 of the Legal Services (Scotland) Act 2010,

• “regulatory functions” in relation to a category 1 regulator, has the meaning given by section 6 of the 2025 Act.

28C Unregulated providers of legal services: upheld services complaints and complaints contribution

(1) An unregulated provider of legal services against whom a services complaint is made must pay to the Commission, in the circumstances specified in rules made under section 32(1), a contribution in relation to the complaint (referred to in this Part as “the complaints contribution”).

(2) The amount of the complaints contribution may be—

(a) of different amounts for different unregulated providers of legal services according to the amount of annual contributions (if any) paid by an unregulated provider of legal services,

(b) of different amounts (including nil) in different circumstances.

(3) In this section, a reference to an unregulated provider of legal services has the same meaning as in section 28A(9).”.

Commencement Information

I15 S. 64 not in force at Royal Assent, see s. 103(3)

65 Commission rules as to practice and procedure S

(1) The 2007 Act is amended as follows.

(2) In section 32 (duty of Commission to make rules as to practice and procedure), in subsection (5)—

(a) in paragraph (d), for “such” substitute “the independent advisory panel established under paragraph 11A of schedule 1 and such other”,

(b) after paragraph (d), insert—

“(e) such groups of persons representing the interests of the legal profession as it considers appropriate,”.

(3) In schedule 3 (rules as to Commission’s practice and procedure)—

(a) for paragraph 1 (provision which must be included), substitute—

“1 The rules as to the Commission’s practice and procedure made under section 32(1) must include provision about—

(a) the criteria to be met for a complaint to be considered eligible, including—

(i) the time limit within which a complaint must be made,

(ii) circumstances in which time limits may be extended,

(iii) requiring a complaint that is determined to be frivolous, vexatious or totally without merit to be considered ineligible,

(b) how a complaint is to be assessed with reference to eligibility criteria,

(c) the requirement for the complainer, for the purposes of Parts 1 and 2 of this Act, to waive any right of confidentiality in relation to the matters to which the complaint relates and, without which, the Commission is not to—

(i) remit a conduct complaint to a relevant professional organisation under section 6(2),

(ii) remit a regulatory complaint to a relevant professional organisation under section 7A(2),

(iii) investigate a services complaint by virtue of section 9,

(iv) investigate a handling complaint by virtue of section 23,

(d) matters to be considered by the Commission in assessing whether or not legal services provided by a person mentioned in section 2(1)(b)(ii) are merely incidental to the provision of other services (in determining whether a services complaint against such a person is an eligible complaint),

(e) how a complaint is to be categorised as a services complaint, a conduct complaint or a regulatory complaint (or any combination of the same and to any extent),

(f) assessing whether to initiate a complaint against a practitioner under section 2A(1) which, had it been received by a person mentioned in section 2(2), would be a conduct complaint or a regulatory complaint,

(g) the circumstances in which the Commission may decide—

(i) to discontinue the investigation of a services complaint under section 9(1A)(a),

(ii) to discontinue the investigation of a handling complaint under section 23(2)(b),

(h) the circumstances in which the Commission may decide—

(i) to reinstate the investigation of a discontinued services complaint under section 9(1A)(b),

(ii) to reinstate the investigation of a discontinued handling complaint under section 23(2)(c),

(i) the manner in which a services complaint is to be investigated by the Commission (and by whom),

(j) hearings to be held by the Commission in relation to a services complaint or a handling complaint being dealt with by it under Part 1 which must require the Commission—

(i) to hold a hearing in relation to such a complaint where it considers it appropriate, and

(ii) require the Commission to decide whether such a hearing should be public or private,

(k) evidence, including—

(i) the evidence that may be required or admitted,

(ii) the extent to which it may be oral or written,

(iii) the consequences of a person’s failure to produce any information or document which the person has been required to produce,

(l) the manner in which a services complaint is to be determined by the Commission (and by whom),

(m) the manner in which a handling complaint is to be investigated and determined by the Commission,

(n) the timing and the manner in which the Commission is to notify, in relation to a complaint other than a handling complaint, the complainer, practitioner and the practitioner’s employer (if any) and, where appropriate, the relevant professional organisation of its decisions including a decision—

(i) that a complaint referred to in section 2(1) is not an eligible complaint,

(ii) to initiate a conduct complaint or a regulatory complaint under section 2A(1),

(iii) that a complaint referred to in section 2(1) is eligible and whether it is being (or is to be) investigated by the Commission, the relevant professional organisation or both,

(iv) that the investigation of a complaint referred to in section 2(1) or 2A(1) has been (or is to be) discontinued or reinstated,

(v) whether or not a services complaint has been upheld by the Commission under section 9(1) and, if it has, any determination, direction or report by the Commission under section 10(2),

(vi) relating to an application for review under section 20A,

(o) the timing and the manner in which the Commission is to notify, in relation to a handling complaint, the following persons of its decisions—

(i) the person who made the handling complaint (and, if made on behalf of another person, that other person),

(ii) the other party to the conduct complaint or regulatory complaint to which the handling complaint relates (see section 24(10)), and

(iii) the relevant professional organisation,

(p) the membership of a review committee, including in particular provision requiring—

(i) that such a committee has at least 3 members, of which the majority are non-lawyer members of the Commission,

(ii) that such a committee is chaired by a lawyer member of the Commission,

(q) the procedure to be followed in connection with reviews under section 20A including—

(i) grounds on which an application for review will be considered eligible, including whether it has a reasonable prospect of success,

(ii) notice to be given of applications and decisions,

(iii) the manner in which reviews are to be conducted,

(r) the determination of the annual general levy, and the arrangements for payment of the levy, including—

(i) the matters to be taken account of by the Commission in determining the amount of the annual general levy relating to practitioners who are not individuals which may be different in different circumstances such as the size and income of the practitioner,

(ii) arrangements to be made with a view to ensuring that the annual general levy is not payable more than once by or in relation to an individual practitioner within an authorised legal business,

(s) the circumstances in which the complaints levy is payable under section 28(1) by a practitioner against whom a services complaint is made,

(t) the circumstances in which the complaints contribution is payable under section 28C(1) by a person against whom a services complaint is made,

(u) the charging of interest at such rate as may be specified by the Scottish Ministers by order under section 27(3)(b) on any amount of the annual general levy due to be paid to the Commission by a relevant professional organisation under section 27(2)(b) from the date the amount is due under the rules until it is paid,

(v) the charging of interest at such rate as may be specified by the Scottish Ministers by order under section 28(3)(b) on any amount of the complaints levy due to the Commission from the date the amount is due under the rules until it is paid.

1A Rules under paragraph 1(n)(v) must in particular provide that where a complaint referred to in section 2(1) constituted a services complaint and additionally constituted a conduct complaint or a regulatory complaint that has been remitted to a relevant professional organisation under section 6(2) or 7A(2) (as the case may be), the Commission must inform the organisation—

(a) of the outcome under section 9 of—

(i) any decision by the Commission relating to the investigation of the services complaint, or

(ii) any determination by the Commission of the services complaint, and

(b) if the Commission makes a determination under that section upholding the services complaint, of any determination, direction or report by the Commission under section 10(2).

1B Rules under paragraph 1(q)(iii) must in particular provide that any member of the review committee considering a complaint must not have been involved in—

(a) any aspect of the investigation of the complaint (including considering the eligibility of the complaint),

(b) the steps to be taken by the Commission where, in the course of considering a services complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a conduct complaint or regulatory complaint,

(c) determining the complaint under section 9(1),

(d) making a determination under section 10(2) in relation to the complaint.”,

(b) for paragraph 2 (provision which may in particular be included) substitute—

“2 The rules as to the Commission’s practice and procedure made under section 32(1) may in particular include provision about—

(a) the steps to be taken by the Commission where, in the course of considering a services complaint, it becomes aware of new information which causes it to decide that the complaint is not an eligible complaint,

(b) the steps to be taken by the Commission where, in the course of considering a services complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a conduct complaint or regulatory complaint,

(c) the steps to be taken by a relevant professional organisation where, in the course of considering a conduct or regulatory complaint, it considers it to be reasonably likely that the complaint (or any element of it) may instead constitute a services complaint,

(d) the circumstances in which the Commission is not prevented from considering a complaint which would otherwise be considered to have been made prematurely in accordance with the rules.”.

Commencement Information

I16 S. 65 not in force at Royal Assent, see s. 103(3)

66 Conduct or regulatory complaint raised by relevant professional organisation S

(1) The 2007 Act is amended as follows.

(2) In section 33 (duty of relevant professional organisations to forward complaints to Commission)—

(a) the existing provision becomes subsection (1),

(b) after paragraph (b) of that subsection (and before the closing words) insert—

“(c) the compliance by any authorised legal business that is authorised by the organisation to provide legal services with—

(i) the organisation’s practice rules forming part of the rules for authorising and regulating the authorised legal business made under (or for the purposes of) section 41(1)(a) of the 2025 Act), or

(ii) the terms on which the authorisation of the authorised legal business is granted by the organisation including any conditions or restrictions imposed in relation to the authorisation,”,

(c) after that subsection insert—

“(2) Subsection (1)(a) is subject to section 33A(2) (conduct complaint identified by a relevant professional organisation).

(3) Subsection (1)(c) is subject to section 33B(2) (regulatory complaint identified by relevant professional organisation).”.

(3) After section 33 insert—

“33A Conduct complaint identified by relevant professional organisation

(1) This section applies where, in the course of exercising any of its functions conferred by or under this Act or the 2025 Act other than those relating to a handling complaint, a relevant professional organisation—

(a) identifies a matter of concern regarding the conduct of a practitioner who is regulated by it, and

(b) is satisfied that the matter, if it were to be referred to the Commission as mentioned in section 2(1)(a), would be considered by the Commission to be an eligible conduct complaint in accordance with any provision in rules made under section 32(1).

(2) Despite subsection (1)(a) of section 33, the relevant professional organisation need not refer the matter (or any material relating to it) to the Commission under that subsection and may instead treat the matter as if it were a conduct complaint remitted to it under section 6(2) (and the conduct complaint is to be treated for the purposes of this Part as having been made by the relevant professional organisation).

(3) Where the relevant professional organisation treats the matter as mentioned in subsection (2), the relevant professional organisation must—

(a) have regard to the interests of any clients (or former clients) of the practitioner to whom the complaint relates (or clients or former clients of the practitioner’s firm or the employing practitioner) who may have been affected by the conduct of the practitioner, and

(b) as soon as practicable send details of the matter and any material relating to it to the Commission.

(4) For the purposes of subsection (3)(a), where the relevant professional organisation upholds the conduct complaint against the practitioner, the organisation must notify any client (or former client) of the practitioner (or the practitioner’s firm or the employing practitioner) whom it considers was directly affected by the conduct of the practitioner of the outcome of the complaint.

(5) Where the Commission receives details about a matter (and any material relating to it) under subsection (3)(b) from the relevant professional organisation, the Commission must consider the details (and any related material) provided to it to consider whether the matter constitutes a services complaint (to any extent).

33B Regulatory complaint identified by relevant professional organisation

(1) This section applies where, in the course of exercising any of its functions conferred by or under this Act or the 2025 Act other than those relating to a handling complaint, a relevant professional organisation—

(a) identifies a matter of concern suggesting that an authorised legal business that is authorised by it to provide legal services is failing (or has failed) to comply with a matter mentioned in section 2(1)(c)(i) or (ii), and

(b) is satisfied that the matter, if it were to be referred to the Commission as mentioned in section 2(1)(c), would be considered by the Commission to be an eligible regulatory complaint in accordance with any provision in rules made under section 32(1).

(2) Despite subsection (1)(c) of section 33, the relevant professional organisation need not refer the matter (or any material relating to it) to the Commission and may treat the matter as if it were a regulatory complaint remitted to it by the Commission under section 7A(2) (and the regulatory complaint is to be treated for the purposes of this Part as having been made by the relevant professional organisation).

(3) Where the relevant professional organisation treats the matter as mentioned in subsection (2), the organisation must as soon as practicable send details of the matter (and any material relating to it) to the Commission.

(4) Where the Commission receives details about a matter (and any material relating to it) under subsection (3) from the relevant professional organisation, the Commission must consider the details (and any related material) provided to it to consider whether the matter constitutes a services complaint (to any extent).

33C Recategorisation of conduct or regulatory complaint by relevant professional organisation

(1) Subsection (2) applies where a relevant professional organisation—

(a) at any time during its investigation in relation to a conduct complaint remitted to it under section 6(2) (or treated as such by virtue of section 33A(2)), considers that the complaint (or any element of it) instead constitutes a regulatory complaint, or

(b) at any time during its investigation in relation to a regulatory complaint remitted to it under section 7A(2) (or treated as such by virtue of section 33B(2)), considers that the complaint (or any element of it) instead constitutes a conduct complaint.

(2) The relevant professional organisation must as soon as practicable send details to the Commission of the organisation’s recategorisation of the complaint (or any element of it) as mentioned in paragraph (a) or (b) of subsection (1).

(3) For the purpose of subsection (1)(a), the relevant professional organisation may consider that the conduct complaint (or an element of it) is a regulatory complaint if the organisation is satisfied that the complaint (or the element of it), if it were to be referred to the Commission as mentioned in section 2(1)(c), would be considered by the Commission to be an eligible regulatory complaint in accordance with any provision in rules made under section 32(1).

(4) For the purpose of subsection (1)(b), the relevant professional organisation may consider that the regulatory complaint (or an element of it) is a conduct complaint if the organisation is satisfied that the complaint (or the element of it), if it were to be referred to the Commission as mentioned in section 2(1)(a), would be considered by the Commission to be an eligible conduct complaint in accordance with any provision in rules made under section 32(1).”.

Commencement Information

I17 S. 66 not in force at Royal Assent, see s. 103(3)

67 Conduct or regulatory complaint appears to relevant professional organisation during investigation to be services complaint S

(1) The 2007 Act is amended as follows.

(2) In section 33 (duty of relevant professional organisations to forward complaints to Commission), after subsection (3) insert—

“(4) Subsection (5) applies where a relevant professional organisation at any time during its investigation in relation to—

(a) a conduct complaint remitted to it under section 6(2) (or treated as such by virtue of section 33A(2)), or

(b) a regulatory complaint remitted to it under section 7A(2) (or treated as such by virtue of section 33B(2)),

considers that it is reasonably likely that the complaint (or any element of it) may instead constitute a services complaint.

(5) The relevant professional organisation must—

(a) suspend the investigation,

(b) consult, co-operate and liaise with the Commission as respects the matter,

(c) send the complaint and any material which relates to it and which is in the organisation's possession to the Commission, and

(d) give notice in writing to the complainer and the practitioner that it considers the complaint (or an element of it) to be a services complaint and that it is sending the complaint to the Commission.”.

Commencement Information

I18 S. 67 not in force at Royal Assent, see s. 103(3)

68 Conduct complaints: consideration by relevant professional organisations S

(1) The 2007 Act is amended as follows.

(2) In section 47 (conduct complaints: duty of relevant professional organisations to investigate etc.)—

(a) after subsection (1) insert—

“(1A) The relevant professional organisation may decide—

(a) to discontinue the investigation of a conduct complaint,

(b) to reinstate the investigation of a discontinued conduct complaint,

but only if the organisation considers that this is in the public interest.

(1B) As soon as practicable after making a decision under subsection (1A), the relevant professional organisation must give notice in writing of its decision to the complainer, the practitioner and the Commission by—

(a) sending them a copy of the decision, and

(b) specifying the reason for the decision.

(1C) In addition, notice under subsection (1B) given to the complainer or the practitioner, must also give them information about any—

(a) right of appeal, and

(b) ability to make a handling complaint to the Commission.”,

(b) in subsection (2)—

(i) in the opening words, for “and the practitioner” substitute “, the practitioner and the Commission”,

(ii) in paragraph (a), for “the facts” substitute “any facts”,

(iii) in paragraph (b), after “action” insert “(if any)”,

(iv) after paragraph (b), insert—

“(c) if the organisation does not propose to take, or has not taken, any action in the matter, an explanation of why this is the case.”,

(c) after subsection (2), insert—

“(2A) The relevant professional organisation must, in considering what action (if any) to take as mentioned in subsection (2)(b), take into account any decision taken by the Commission in respect of a services complaint against the practitioner where the services complaint arises from the same matter to which the conduct complaint relates.

(2B) A relevant professional organisation may proceed to investigate and make a written report in relation to a conduct complaint remitted to it as mentioned in subsection (1) even if the complainer withdraws the complaint (and in such case the conduct complaint is to be treated for the purposes of Part 1 and this Part as having been made by the relevant professional organisation).”.

Commencement Information

I19 S. 68 not in force at Royal Assent, see s. 103(3)

69 Complaints: monitoring and setting of minimum standards by the Commission S

(1) The 2007 Act is amended as follows.

(2) In section 35 (services complaints: monitoring, reports, protocols and information sharing)—

(a) in subsection (3)(a), for sub-paragraphs (i) to (vi), substitute “the Commission’s functions relating to services complaints dealt with by it,”,

(b) after subsection (4) insert—

“(5) If, in the course of exercising its functions under this Act, the Commission identifies a matter of concern relating to one or more practitioners (or practitioners’ firms or employing practitioners), the Commission may notify the relevant professional organisation of the concern and give the organisation any information it holds relating to the concern.”.

(3) In section 36 (conduct complaints: monitoring, reports, guidance and recommendations)—

(a) the title of the section becomes “Conduct and regulatory complaints: monitoring and reports”,

(b) in subsection (1)—

(i) for paragraph (a), substitute—

“(a) practitioners have dealt with matters that result in—

(i) conduct complaints being remitted to the relevant professional organisations under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),

(ii) regulatory complaints being remitted to the relevant professional organisations under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)),”,

(ii) in paragraph (b), after “complaints” insert “or regulatory complaints”,

(c) subsections (3) and (4) are repealed,

(d) in subsection (5), for “conduct complaints remitted to them under section 6(2)(a) or 15(5)(a)” substitute “—

(a) conduct complaints remitted to them under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),

(b) regulatory complaints remitted to them under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).”.

(4) After section 36, insert—

“36A Conduct and regulatory complaints: setting of minimum standards by the Commission

(1) The Commission may issue guidance to relevant professional organisations relating to how they are to investigate and determine the following complaints—

(a) conduct complaints that are remitted to them by the Commission under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),

(b) regulatory complaints that are remitted to them by the Commission under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).

(2) Guidance under subsection (1) may in particular—

(a) set minimum standards for relevant professional organisations in relation to the matters mentioned in that subsection,

(b) include guidance as to the timescales within which relevant professional organisations should aim to complete their investigation of, or determine, complaints.

(3) Guidance under subsection (1)—

(a) may make different provision for—

(i) different types of complaint,

(ii) different acts or omissions (or series of acts or omissions) to which complaints may relate,

(iii) different types of practitioner against whom complaints may be made,

(b) may be issued to—

(i) each relevant professional organisation,

(ii) a particular relevant professional organisation,

(iii) relevant professional organisations of a particular description.

(4) Before issuing guidance under subsection (1) that sets minimum standards, the Commission must consult—

(a) the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—

(i) the Lord President,

(ii) each relevant professional organisation concerned,

(iii) the practitioners regulated by each organisation, and

(iv) any other person the Commission considers appropriate,

(b) the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—

(i) each relevant professional organisation concerned, and

(ii) any other person the Commission considers appropriate.

(5) For the purpose of subsection (4)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.

(6) The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (4) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.

(7) The Commission must—

(a) publish any guidance issued under subsection (1) in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance, and

(b) if the guidance sets minimum standards, at the time of publishing any such guidance, publish a document summarising—

(i) the consultation carried out under subsection (4),

(ii) any representations received in response to the consultation,

(iii) any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and

(iv) the Commission’s reasons for including the minimum standards in the guidance.”.

(5) In section 40 (how practitioners deal with complaints: best practice notes)—

(a) the existing text becomes subsection (1),

(b) in paragraph (a) of that subsection, for “or the professional services provided by them” substitute “, the professional services provided by them or regulatory matters”,

(c) after that subsection insert—

“(2) The Commission may issue guidance (which may set minimum standards) to relevant professional organisations—

(a) relating to their role overseeing how practitioners deal with complaints to them made about the matters mentioned in subsection (1)(a) or (b),

(b) relating to standards that must be set by the organisations for practitioners that they regulate in relation to how complaints made to practitioners about the matters mentioned in paragraph (a) or (b) of subsection (1) are dealt with by practitioners,

(c) in respect of any practice (and any trends in practice) identified by the Commission in the way in which the practitioners that are regulated by the organisations deal with matters which the Commission considers contributes significantly to—

(i) services complaints being dealt with by the Commission under sections 8 to 12,

(ii) conduct complaints being remitted to the relevant professional organisations under section 6(2) (or treated as having been remitted to them under that section by virtue of section 33A(2)),

(iii) regulatory complaints being remitted to the relevant professional organisations under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B(2)).

(3) Guidance under subsection (1) or (2) or may make different provision for—

(a) different types of complaint,

(b) different acts or omissions (or series of acts or omissions) to which complaints may relate,

(c) different types of practitioner against whom complaints may be made.

(4) Guidance under subsection (1) or (2) may be issued to—

(a) each relevant professional organisation,

(b) a particular relevant professional organisation,

(c) relevant professional organisations of a particular description.

(5) In subsection (1), “regulatory matters” means, in relation to an authorised legal business, failure by the authorised legal business to comply with either of the matters mentioned in section 2(1)(c)(i) or (ii).

(6) Where the Commission issues guidance to a relevant professional organisation under subsection (1) or (2), the relevant professional organisation must notify the practitioners that it regulates of the guidance.

(7) Before issuing guidance under subsection (2) that sets minimum standards, the Commission must consult—

(a) the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—

(i) the Lord President,

(ii) each relevant professional organisation concerned,

(iii) the practitioners regulated by each organisation, and

(iv) any other person the Commission considers appropriate,

(b) the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—

(i) each relevant professional organisation concerned, and

(ii) any other person the Commission considers appropriate.

(8) For the purpose of subsection (7)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.

(9) The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (7) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.

(10) The Commission must publish any guidance issued under this section in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance.

(11) In the case of guidance issued under subsection (2) that sets minimum standards, the Commission must, at the time of publishing the guidance, publish a document summarising—

(a) the consultation carried out under subsection (7),

(b) any representations received in response to the consultation,

(c) any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and

(d) the Commission’s reasons for including the minimum standards in the guidance.”.

Commencement Information

I20 S. 69 not in force at Royal Assent, see s. 103(3)

70 Compensation funds: setting of minimum standards by the Commission S

(1) Section 39 of the 2007 Act (monitoring effectiveness of guarantee funds etc.) is amended as follows.

(2) After subsection (1), insert—

“(1A) The Commission may issue guidance (which may set minimum standards) to relevant professional organisations relating to the operation and effectiveness of the Client Protection Fund and any fund maintained by a relevant professional organisation which are for purposes analogous to those of the Client Protection Fund.”.

(3) In subsection (2)—

(a) the words “the Guarantee Fund,” are repealed,

(b) the words “funds or” are repealed.

(4) In subsection (3), after “subsections (1)” insert “, (1A)”.

(5) After subsection (4), insert—

“(5) Guidance under subsection (1A) may be issued to—

(a) each relevant professional organisation,

(b) a particular relevant professional organisation,

(c) relevant professional organisations of a particular description.

(6) Before issuing guidance under subsection (1A) that sets minimum standards, the Commission must consult—

(a) the following persons in relation to the Commission’s initial proposals for the minimum standards that are to be set out in the guidance—

(i) the Lord President,

(ii) each relevant professional organisation concerned,

(iii) the practitioners regulated by each organisation, and

(iv) any other person the Commission considers appropriate,

(b) the following persons in relation to a subsequent draft of the guidance that includes the proposed minimum standards—

(i) each relevant professional organisation concerned, and

(ii) any other person the Commission considers appropriate.

(7) For the purpose of subsection (6)(a), a duty to consult the practitioners may be met by the Commission directing a relevant professional organisation to issue information about the initial proposals to the practitioners regulated by the organisation.

(8) The Commission must take account of any representations made by a relevant professional organisation consulted under subsection (6) that are received by the Commission within the period of 28 days beginning with the day on which the organisation receives notification from the Commission of the opportunity to make representations.

(9) The Commission must—

(a) publish any guidance issued under subsection (1A) in such manner as it considers appropriate as soon as reasonably practicable after issuing the guidance, and

(b) if the guidance sets minimum standards, at the time of publishing the guidance, publish a document summarising—

(i) the consultation carried out under subsection (6),

(ii) any representations received in response to the consultation,

(iii) any changes made to the Commission’s initial proposals for the minimum standards as a result of the consultation, and

(iv) the Commission’s reasons for including the minimum standards in the guidance.”.

Commencement Information

I21 S. 70 not in force at Royal Assent, see s. 103(3)

71 Enforcement of minimum standards S

(1) The 2007 Act is amended as follows.

(2) After section 40, insert—

“40A Enforcement of minimum standards in relation to relevant professional organisations

(1) A relevant professional organisation must meet any minimum standards set by the Commission that apply to it.

(2) For the purpose of considering whether a relevant professional organisation is meeting any minimum standards that apply to it, the Commission may require from the relevant professional organisation—

(a) the production of information as to how it is meeting the minimum standards, and

(b) if the Commission is of the view that the relevant professional organisation is not (or has not been) meeting the minimum standards, an explanation of why the minimum standards are not being (or have not been) met.

(3) Subsection (4) applies where the Commission considers that a relevant professional organisation, without reasonable excuse, is failing (or has failed) to meet the minimum standards in respect of which information was sought under subsection (2).

(4) The relevant professional organisation and the Commission (“the parties”) must decide whether they are content for the dispute relating to the alleged failure to meet the minimum standards to be submitted to arbitration for resolution that is final and binding on the parties.

(5) If both parties agree that the dispute is to be submitted to an arbitrator, the arbitrator is to be appointed—

(a) jointly by the parties, or

(b) in the absence of agreement for joint appointment, by the Lord President on a request made by either (or both) of the parties.

(6) If the dispute is not submitted to arbitration, the Commission may direct the relevant professional organisation to take such steps as it considers appropriate within such period of time as may be specified in the direction.

(7) The period of time specified in a direction under subsection (6) for the taking of such steps by the relevant professional organisation as the Commission considers appropriate may be extended by agreement between the parties.

(8) The relevant professional organisation must, as soon as practicable following the expiry of the period of time referred to in subsection (6) (or such extended period of time referred to in subsection (7)), notify the Commission in writing of—

(a) the steps taken by or on behalf of the relevant professional organisation to comply with the direction, or

(b) if no such steps have been taken, or if not all steps necessary to comply with the direction have been taken, an explanation of the reason (or reasons) for the failure to comply with the direction.

(9) If the Commission considers that a relevant professional organisation has failed to comply with a direction under subsection (6), the Commission may apply to the court for the relevant professional organisation to be dealt with in accordance with subsection (10).

(10) Where such an application is made, the court may inquire into the matter and after hearing—

(a) any witnesses who may be produced against or on behalf of the relevant professional organisation, and

(b) any statement that may be offered in defence,

may order the relevant professional organisation to comply with the direction or part of the direction (see subsection (12)).

(11) Subsection (12) applies if the court, having considered an application under subsection (9)—

(a) is proposing to make an order under subsection (10) requiring a relevant professional organisation to comply with the direction, and

(b) considers that the taking of one or more steps specified in the order would have a detrimental effect on the ability of the relevant professional organisation to comply with its duty under section 3(1) or (3) of the 2025 Act.

(12) In making an order under subsection (10), the court may provide that the relevant professional organisation is not required to take a step referred to in subsection (11)(b).

(13) In this section, “minimum standards” means minimum standards that are set out in any guidance issued under—

(a) section 36A(1),

(b) section 39(1A),

(c) section 40(2).”.

Commencement Information

I22 S. 71 not in force at Royal Assent, see s. 103(3)

72 Obtaining information from practitioners S

(1) The 2007 Act is amended as follows.

(2) After section 40A (inserted by section 71), insert—

“40B Obtaining information from practitioners

(1) For the purpose of any its functions mentioned in subsection (2), the Commission may request information from a practitioner about complaints received by the practitioner during the relevant period.

(2) The functions are—

(a) monitoring practice and identifying any trends in practice under section 35(1) or 36(1),

(b) the issuing of guidance under section 40(1) or (2).

(3) The information that may be sought under subsection (1) in relation to each complaint received by the practitioner during the relevant period includes—

(a) the date on which the complaint was received,

(b) a description of the substance of the complaint,

(c) the category of personnel in respect of whom the complaint was made,

(d) the type of services in respect of which the complaint was made,

(e) any action taken by the practitioner, the practitioner’s firm or the employing practitioner (as the case may be) in relation to the complaint,

(f) the date on which the practitioner’s consideration of the complaint concluded,

(g) an explanation of whether the complaint was resolved,

(h) any changes in the working practices of, or processes or systems used by, the practitioner, the practitioner’s firm or the employing practitioner (as the case may be) arising from the complaint.

(4) In subsection (1), the “relevant period”, in relation to a request under that subsection, means the period of 3 years before the day on which the request is made.”.

Commencement Information

I23 S. 72 not in force at Royal Assent, see s. 103(3)

73 Power to disclose information about complaints: Commission S

(1) The 2007 Act is amended as follows.

(2) After section 41, insert—

“41A Power to disclose information about complaints: Commission

(1) The Commission may, if it considers it to be in the public interest, disclose information about any conduct complaint, regulatory complaint, services complaint or handling complaint, including—

(a) information that identifies or is likely to identity any person to whom the complaint relates,

(b) information about the investigation or resolution of the complaint,

(c) information about any outcomes resulting from the complaint.

(2) But information that, in the opinion of the Commission, identifies or is likely to identify the complainer may not be disclosed under subsection (1) unless the complainer consents to its disclosure.”.

Commencement Information

I24 S. 73 not in force at Royal Assent, see s. 103(3)

74 Restriction on disclosure of information: Commission S

(1) The 2007 Act is amended as follows.

(2) In section 43 (restriction upon disclosure of information: Commission)—

(a) in subsection (3)(a), at end insert “(including the disclosure of information under section 41A(1))”,

(b) after subsection (3)(a) insert—

“(aa) for the purpose of enabling or assisting a regulatory body to exercise any of the body’s functions,”,

(c) after subsection (4) insert—

“(4A) In subsection (3)(aa), “regulatory body” means any regulatory body as the Scottish Ministers may by regulations specify.

(4B) Regulations under subsection (4A) may—

(a) include transitional, transitory or saving provision,

(b) make different provision for different purposes.

(4C) Before making regulations under subsection (4A), the Scottish Ministers must—

(a) consult—

(i) any regulatory body that is proposed to be specified by the regulations,

(ii) the Lord President,

(iii) the Commission,

(iv) the independent advisory panel established under paragraph 11A of schedule 1,

(v) each category 1 and category 2 regulator,

(vi) each approved regulator within the meaning of Part 2 of the Legal Services (Scotland) Act 2010,

(b) publish a report describing—

(i) the consultation carried out,

(ii) any representations received in response to the consultation, and

(iii) the changes (if any) to the proposals as a result of the representations, and

(c) confirm that the Lord President agrees with the proposal to make the regulations.”.

Commencement Information

I25 S. 74 not in force at Royal Assent, see s. 103(3)

75 Power to disclose information about complaints: relevant professional organisations S

(1) The 2007 Act is amended as follows.

(2) After section 51, insert—

“51A Power to disclose information about complaints: relevant professional organisations

(1) A relevant professional organisation may, if it considers it to be in the public interest, disclose information about any relevant conduct or regulatory complaint including—

(a) information that identifies or is likely to identity a person to whom the complaint relates,

(b) information about the investigation or resolution of the complaint,

(c) information about any outcomes resulting from the complaint.

(2) But information that, in the opinion of the relevant professional organisation, identifies or is likely to identify the complainer may not be disclosed under subsection (1) unless the complainer consents to its disclosure.

(3) In subsection (1), “relevant conduct or regulatory complaint” means—

(a) a conduct complaint that has been remitted to the relevant professional organisation under section 6(2)(a) (or that is treated as having been remitted to it under that section by virtue of section 33A(2)),

(b) a regulatory complaint that has been remitted to the relevant professional organisation under section 7A(2) (or that is treated as having been remitted to it under that section by virtue of section 33B(2)).”.

Commencement Information

I26 S. 75 not in force at Royal Assent, see s. 103(3)

76 Restriction on disclosure of information: relevant professional organisations S

(1) The 2007 Act is amended as follows.

(2) In section 52 (restriction upon disclosure of information: relevant professional organisations)—

(a) in subsection (3)(a), at end insert “(including the disclosure of information under section 51A(1))”,

(b) after subsection (3)(a) insert—

“(aa) for the purpose of enabling or assisting a regulatory body to exercise any of the body’s functions,”,

(c) after subsection (4) insert—

“(4A) In subsection (3)(aa), “regulatory body” means any regulatory body as the Scottish Ministers may by regulations specify.

(4B) Regulations under subsection (4A) may—

(a) include transitional, transitory or saving provision,

(b) make different provision for different purposes.

(4C) Before making regulations under subsection (4A), the Scottish Ministers must—

(a) consult—

(i) any regulatory body that is proposed to be specified by the regulations,

(ii) the Lord President,

(iii) the Commission,

(iv) the independent advisory panel established under paragraph 11A of schedule 1,

(v) each category 1 and category 2 regulator,

(vi) each approved regulator within the meaning of Part 2 of the Legal Services (Scotland) Act 2010,

(b) publish a report describing—

(i) the consultation carried out,

(ii) any representations received in response to the consultation, and

(iii) the changes (if any) to the proposals as a result of the representations, and

(c) confirm that the Lord President agrees with the proposal to make the regulations.”.

Commencement Information

I27 S. 76 not in force at Royal Assent, see s. 103(3)

77 Conduct complaints: power to impose unlimited fine and removal of power to award compensation S

(1) The 1980 Act is amended as follows.

(2) In section 42ZA (unsatisfactory professional conduct: Council’s powers)—

(a) in subsection (4), paragraph (c) is repealed,

(b) subsection (11) is repealed,

(c) subsection (12) is repealed,

(d) in subsection (13), paragraph (b) is repealed,

(e) in subsection (14), paragraph (b) is repealed.

(3) In section 42ZB (unsatisfactory professional conduct: Council’s powers to monitor compliance), in subsection (2), the words “or (12)” are repealed.

(4) In section 52 (procedure on complaints and appeals to Tribunal), in subsection (2), in paragraph (aa), the words “(11) or (12),” are repealed.

(5) In section 53 (powers of tribunal)—

(a) in subsection (1)—

(i) in paragraph (b)—

(A) the words “(other than a conviction for an economic crime offence)” are repealed, and

(B) the words “(other than in relation to a conviction for an economic crime offence)” are repealed,

(ii) paragraph (ba) is repealed,

(iii) paragraph (ca) is repealed,

(b) in subsection (2)—

(i) paragraph (bb) is repealed,

(ii) paragraph (bc) is repealed,

(iii) in paragraph (c)—

(A) the words “subject to subsection (3ZA),” are repealed,

(B) for “not exceeding £10,000” substitute “of any amount”,

(iv) paragraph (ca) is repealed,

(c) subsection (2A) is repealed,

(d) subsection (2B) is repealed,

(e) after subsection (2B) insert—

“(2C) Where the solicitor has been convicted of a criminal offence in relation to the subject matter of the Tribunal’s inquiry, the Tribunal must, when deciding whether to exercise a power under subsection (2), have regard to the conviction.”,

(f) subsection (3ZA) is repealed,

(g) in subsection (3A)—

(i) in the opening words, for “subsection (2)(bb)” substitute “subsection (2)(c)”,

(ii) in paragraph (a), for “, (b) or (ba)” substitute “or (b)”,

(iii) in paragraph (b), “, (ca)” is repealed,

(h) subsection (7C) is repealed,

(i) subsection (7D) is repealed,

(j) in subsection (8), paragraph (a) is repealed,

(k) subsection (9) is repealed,

(l) subsection (9A) is repealed.

(6) In section 53ZB (powers of Tribunal on appeal: unsatisfactory professional conduct)—

(a) in subsection (1), paragraph (f) is repealed,

(b) in subsection (2), paragraph (b) is repealed,

(c) subsection (3) is repealed,

(d) subsection (4) is repealed,

(e) in subsection (8), paragraph (b) is repealed,

(f) in subsection (9), paragraph (b) is repealed.

(7) In section 54 (appeals from decisions of Tribunal)—

(a) subsection (1D) is repealed,

(b) subsection (1E) is repealed,

(c) in subsection (1F), for “(1E)” substitute “(1C)”,

(d) in subsection (1G), the words “, (1D), (1E)” are repealed,

(e) subsection (2A) is repealed.

(8) In section 55 (powers of Court)—

(a) in subsection (1)—

(i) paragraph (bc) is repealed,

(ii) for paragraph (c), substitute—

“(c) impose on the solicitor a fine of any amount,”,

(b) subsection (5) is repealed,

(c) in subsection (6), paragraph (a) is repealed,

(d) subsection (7) is repealed.

(9) In section 55A (power of Court: unsatisfactory professional conduct)—

(a) in subsection (1), paragraph (b) is repealed,

(b) in subsection (3), paragraph (b) is repealed,

(c) subsection (5) is repealed.

(10) In schedule 4, paragraph 23, for “, (10), (11) or (12),” substitute “or (10),”.

Commencement Information

I28 S. 77 not in force at Royal Assent, see s. 103(3)

78 Faculty of Advocates: complaint of professional misconduct and publication of decision S

(1) The 2010 Act is amended as follows.

(2) In section 122 (Faculty of Advocates: particular rules), after subsection (4) insert—

“(5) Rules regulating the discipline of advocates must—

(a) require publication of a decision relating to a conduct complaint suggesting professional misconduct of an advocate that is remitted by the Scottish Legal Complaints Commission to the Faculty (or is treated as having been so remitted by virtue of section 33A(2) of the 2007 Act),

(b) require such a decision to include—

(i) detail of the 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,

(c) where such a complaint is upheld, allow the Faculty to omit any information from the published decision which the Faculty considers would be likely to damage the interests of persons other than—

(i) the advocate against whom the complaint is made, or

(ii) the advocate’s partner or family,

but subject to the Faculty publishing its reasons for any such omission,

(d) where such a complaint is not upheld, allow the Faculty to omit the name of the advocate against whom the complaint is made from the published decision where it considers that to be appropriate.”.

Commencement Information

I29 S. 78 not in force at Royal Assent, see s. 103(3)

79 Commission membership S

(1) Schedule 1 (the Scottish Legal Complaints Commission) of the 2007 Act is amended as follows.

(2) In paragraph 2 (membership of the Commission)—

(a) in sub-paragraph (1)(b), for “8” substitute “at least 8 but no more than 20”,

(b) in sub-paragraph (3), for “5” substitute “at least 4”,

(c) in sub-paragraph (4), after “be” insert “at least”,

(d) sub-paragraphs (5), (7) and (9) are repealed,

(e) in sub-paragraph (8), after “of lawyer members” insert “, but the number of non-lawyer members must not exceed the number of lawyer members by more than three”.

(3) In paragraph 3 (terms of appointment etc.)—

(a) in sub-paragraph (1), for “5” substitute “not less than 5 years and not exceeding 8”,

(b) sub-paragraph (5) is repealed.

Commencement Information

I30 S. 79 not in force at Royal Assent, see s. 103(3)

80 Role of the independent advisory panel S

(1) The 2007 Act is amended as follows.

(2) In section 41 (power by regulations to amend duties and powers of Commission), after subsection (1)(a) insert—

“(aa) the independent advisory panel established under paragraph 11A of schedule 1,”.

(3) In schedule 1, in paragraph 11A—

(a) in sub-paragraph (2)—

(i) in sub-sub-paragraph (c), for “Commission directs” substitute “panel considers appropriate”,

(ii) after sub-sub-paragraph (c), insert—

“(d) to make recommendations to the Commission in relation to any of the Commission’s functions as the panel considers appropriate,

(e) to make recommendations to the Lord President relating to any of the Lord President’s functions conferred under or by virtue of the 2025 Act,

(f) to make recommendations to relevant professional organisations relating to any of their functions conferred under or by virtue of the 2025 Act,

(g) such other functions as may be conferred on the panel by or under an enactment.”,

(b) after sub-paragraph (3) insert—

“(4) The Commission must ensure that the panel is adequately funded and resourced to be able to discharge its functions.”.

Commencement Information

I31 S. 80 not in force at Royal Assent, see s. 103(3)

81 Commission reports S

(1) Schedule 1 of the 2007 Act is amended as follows.

(2) In paragraph 16 (reports), after sub-paragraph (1) insert—

“(1A) The report must, in particular—

(a) explain how the Commission has discharged its functions during the year in a manner which, in accordance with section 3(1) of the 2025 Act—

(i) is compatible with the regulatory objectives (to be construed in accordance with sections 2 and 3 of the 2025 Act), and

(ii) it considers is most appropriate to meet those objectives,

(b) provide a list of any directions given during the year to—

(i) a relevant professional organisation under section 24(6),

(ii) a relevant professional organisation under section 40A(6),

(c) include—

(i) information about compensation awarded during the year to complainers following services complaints, and

(ii) so far as it is known to the Commission, information about whether compensation awarded during the year has been paid,

(d) provide information about—

(i) the work of each review committee established by the Commission under paragraph 11(1)(a), including the number of applications for review that each review committee dealt with during the year,

(ii) the steps taken by the Commission to ensure that each review committee is able to act independently of the Commission when considering and determining each application for review.

(1B) Before preparing the report, the Commission must consult—

(a) the Lord President,

(b) the independent advisory panel of the Commission,

(c) each category 1 and category 2 regulator.”.

Commencement Information

I32 S. 81 not in force at Royal Assent, see s. 103(3)

82 Minor and consequential amendments S

Parts 2 and 3 of schedule 3 contain minor amendments and amendments consequential on the provisions of this Part.

Commencement Information

I33 S. 82 not in force at Royal Assent, see s. 103(3)