The Legal Services Act 2007 (Designation as a Licensing Authority) Order 2011

Explanatory Note

(This note is not part of the Order)

This Order designates the Council for Licensed Conveyancers (“"the Council””) as a licensing authority in relation to reserved instrument activities, the administration of oaths and probate activities. The Council is already an approved regulator in relation to these reserved legal activities by virtue of Part 1 of Schedule 4 to the Legal Services Act 2007 (c.29).

The Schedule makes supplementary provision in consequence of the designation of the Council as a licensing authority.

Paragraph 1 of the Schedule makes provision for the Council, on an application to the High Court, to obtain information and documents for the purpose of allowing it to ascertain whether the terms of a licensed body's licence have been or are being complied with. This is similar to the provision which is made by section 44BB of the Solicitors Act 1974 (c.47) in relation to the provision of information relating to solicitors and legal services bodies recognised by the Law Society.

Paragraph 2 makes provision to prevent a bank or building society being required to enquire, in relation to an account held with it by a licensed body, as to the beneficial ownership of the funds in the account to any greater extent than it would if the account was kept by the person entitled to the funds in it. It also prevents the bank or building society from having recourse to any money in such an account in respect of a liability of the licensed body to the bank or building society, other than in relation to a liability arising in connection with the account. This is similar to the provision made by section 85 of the Solicitors Act 1974 in relation to accounts held by solicitors, and extended to apply to accounts held by legal services bodies recognised by the Law Society by paragraph 31 of Schedule 2 to the Administration of Justice Act 1985 (c.61).

Paragraph 3 provides for certain references to ““solicitor”” which, by virtue of section 34(2) of the Administration of Justice Act 1985, must already be read as including a reference to a licensed conveyancer or a conveyancing services body recognised by the Council, to be read as also including a reference to a licensed body which has been granted a licence by the Council.

Paragraph 4 provides that the Estate Agents Act 1979 does not apply to a licensed body which has been granted a licence by the Council. This mirrors provision made by section 34(3) of the Administration of Justice Act 1985 in relation to licensed conveyancers and conveyancing services bodies recognised by the Council.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private and voluntary sectors is foreseen.