Regulation of Legal Services (Scotland) Act 2025

1. Introductory Text

2. Part 1 Regulatory framework

   1. Chapter 1 Objectives, principles and key definitions

      1. Overview of Part

         1. 1. Overview of the regulatory framework

      2. Regulatory objectives

         1. 2. Regulatory objectives

         2. 3. Application of the regulatory objectives

      3. Professional principles

         1. 4. Professional principles

      4. Meaning of key expressions

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

         2. 6. Meaning of regulatory functions

   2. Chapter 2 regulators

      1. Regulatory categories

         1. 7. Regulatory categories

      2. Requirements of category 1 regulators

         1. 8. Exercise of regulatory functions

         2. 9. Regulatory committee: composition and membership

         3. 10. Regulatory committee: lay and legal members

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

         5. 12. Annual reports of category 1 regulators

         6. 13. Compensation funds

      3. Requirements of category 2 regulators

         1. 14. Exercise of regulatory functions

         2. 15. Annual reports of category 2 regulators

      4. Requirements of both category 1 and category 2 regulators

         1. 16. Register of regulated legal services providers

         2. 17. Professional indemnity insurance

      5. Powers of the Lord President in relation to regulators

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

         2. 19. Measures open to the Lord President

      6. Special rule changes

         1. 20. Power to direct special rule changes

         2. 21. Powers to amend or revoke directions

         3. 22. Register of directions

   3. Chapter 3 New regulators of legal services

      1. Applications

         1. 23. Right to provide legal services

         2. 24. Regulatory scheme

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

         4. 26. Publication of draft regulatory scheme and representations

      2. Consideration and grant

         1. 27. Consideration of applications

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

      3. Exercise of the acquired rights

         1. 29. Exercise of rights to provide legal services

         2. 30. Surrender of rights

         3. 31. Offence of pretending to have acquired rights

      4. Review of regulatory scheme

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

         2. 33. Review of regulatory schemes

         3. 34. Revocation of acquired rights

      5. Miscellaneous

         1. 35. Replacement regulatory arrangements for authorised providers

         2. 36. Consequential amendments and repeals

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

3. Part 2 Regulation of legal businesses

   1. Introductory

      1. 38. Overview of Part

   2. Requirement to be authorised to provide legal services

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

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

   3. Regulation of authorised legal businesses

      1. 41. Rules for authorised legal businesses

      2. 42. Authorisation rules

      3. 43. Appeals in relation to authorisation decisions

      4. 44. Practice rules

      5. 45. Financial sanctions

      6. 46. Reconciling different rules

      7. 47. Monitoring of performance of authorised legal businesses

   4. Miscellaneous

      1. 48. Law Society of Scotland

      2. 49. Entities changing regulatory regime

4. Part 3 Complaints

   1. 50. Receipt of complaints: preliminary steps

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

   3. 52. Ineligible or premature complaints

   4. 53. Commission process relating to complaints

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

   6. 55. Regulatory complaints against authorised legal businesses

   7. 56. Services complaint: sanctions

   8. 57. Commission decision making and delegation

   9. 58. Commission review committee

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

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

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

   13. 62. Handling complaints

   14. 63. Annual general levy and complaints levy

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

   16. 65. Commission rules as to practice and procedure

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

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

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

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

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

   22. 71. Enforcement of minimum standards

   23. 72. Obtaining information from practitioners

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

   25. 74. Restriction on disclosure of information: Commission

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

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

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

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

   30. 79. Commission membership

   31. 80. Role of the independent advisory panel

   32. 81. Commission reports

   33. 82. Minor and consequential amendments

5. Part 4 Miscellaneous

   1. Financial sanctions

      1. 83. Financial sanctions

   2. Licensed legal services providers

      1. 84. Licensing rules: fees

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

      3. 86. Eligibility criteria: law centres

      4. 87. Majority ownership

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

   3. Removal of certain practising restrictions

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

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

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

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

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

      4. 93. Time limit for prosecution of offences

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

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

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

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

   7. Minor and consequential modifications

      1. 96. Modification of other enactments

   8. Review of Act

      1. 97. Review of Act

6. Part 5 General

   1. 98. Individual culpability for offending by an organisation

   2. 99. Civil enforcement in relation to offences

   3. 100. Regulations

   4. 101. Ancillary provision

   5. 102. Interpretation

   6. 103. Commencement

   7. 104. Short title

7. 1. Schedule 1

      Law Society of Scotland

      1. Part 1 Category 1 regulator

         1. 1. Exercise of regulatory functions

         2. 2. (1) Section 3B of the 1980 Act is amended as...

         3. 3. The following sections of the 1980 Act are repealed—

         4. 4. (1) Section 3F of the 1980 Act (meaning of regulatory...

         5. 5. (1) Section 3G of the 1980 Act (extended meaning of...

         6. 6. Client Protection Fund

         7. 7. (1) Schedule 3 of the 1980 Act is amended as...

         8. 8. In section 39 of the 2007 Act (monitoring effectiveness of...

      2. Part 2 Regulation of legal businesses

         1. 9. Regulatory functions

         2. 10. Suspension of authorisation

         3. 11. Consultants

         4. 12. Offence of disqualified solicitors dishonestly seeking employment

         5. 13. Rules as to professional practice, conduct and discipline

         6. 14. Rules as to accounts etc.

         7. 15. (1) Section 36 of the 1980 Act (interest on client’s...

         8. 16. (1) Section 37 of the 1980 Act (accountant’s certificates) is...

         9. 17. (1) Section 37A of the 1980 Act (accounts and anti-money...

         10. 18. Powers where excessive fees etc. charged

         11. 19. Powers where failure to comply with rules

         12. 20. Judicial factors

         13. 21. Distribution of sums in client bank account

         14. 22. Client Protection Fund

         15. 23. (1) Part 1 of schedule 3 of the 1980 Act...

         16. 24. (1) Part 2 of schedule 3 of the 1980 Act...

         17. 25. Professional indemnity

         18. 26. Safeguarding interests of clients

         19. 27. Recovery of expenses of intervention

         20. 28. Restrictions on employing a struck off or suspended solicitor

         21. 29. Complaints

         22. 30. (1) Section 52 of the 1980 Act (procedure on complaints...

         23. 31. (1) Section 53 of the 1980 Act (powers of Tribunal)...

         24. 32. (1) Section 54 of the 1980 Act (appeals from decisions...

         25. 33. (1) Part 2 of schedule 4 of the 1980 Act...

         26. 34. Protection of banks

         27. 35. Recovery of Council’s expenses

         28. 36. Service of notices

         29. 37. Interpretation

         30. 38. Revenue powers in respect of authorised legal businesses

   2. Schedule 2

      Further provision about measures open to the Lord President

      1. Part 1 Performance targets

         1. 1. Application

         2. 2. Power to set targets

         3. 3. Decision

      2. Part 2 Directions

         1. 4. Application

         2. 5. Power to direct

         3. 6. Decision

         4. 7. Extension of time to comply

         5. 8. Enforcement

      3. Part 3 Censure

         1. 9. Application

         2. 10. Power to censure

         3. 11. Decision

      4. Part 4 Making changes to regulatory functions

         1. 12. Application

         2. 13. Power to make changes

         3. 14. Decision

         4. 15. Parliamentary procedure for regulations

      5. Part 5 Procedure for imposing a measure

         1. 16. Application

         2. 17. Notice of intention

         3. 18. Consultation

         4. 19. Decision

         5. 20. Meaning of relevant persons or bodies

   3. Schedule 3

      Minor and consequential modifications of enactments

      1. Part 1 Regulatory framework

         1. 1. Regulatory objectives and professional principles

         2. 2. (1) The 2010 Act is amended as follows.

         3. 3. New regulators

         4. 4. (1) The Legal Aid (Scotland) Act 1986 is amended as...

         5. 5. (1) The 2010 Act is amended as follows.

         6. 6. (1) The Courts Reform (Scotland) Act 2014 is amended as...

         7. 7. (1) The Inquiries into Fatal Accidents and Sudden Deaths etc....

         8. 8. Renaming etc. of Association of Commercial Attorneys

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

         1. 9. Conduct complaints suggesting unsatisfactory professional conduct

         2. 10. Regulatory complaints

         3. 11. Procedure relating to complaints

         4. 12. Publication of decisions

         5. 13. Other modifications

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

         1. 14. Legal Aid (Scotland) Act 1986

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

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

         4. 17. Legal Services (Scotland) Act 2010

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

         1. 18. The roll and other registers

         2. 19. (1) The 1990 Act is amended as follows.

         3. 20. Restoration of name to roll: appeals

         4. 21. Restoration of name to register of European lawyers: appeals

         5. 22. Restoration of name to register of foreign lawyers: appeals

         6. 23. Restoration of name to roll or register: expenses

         7. 24. Practising certificates

         8. 25. Registration certificates

         9. 26. Powers where excessive fees etc. charged

         10. 27. Powers where failure to comply with rules

         11. 28. Previous findings of record

         12. 29. The Client Protection Fund

         13. 30. (1) The 2007 Act is amended as follows.

         14. 31. (1) The 2010 Act is amended as follows.

         15. 32. Investment business certificates

         16. 33. Appeals from decisions of Tribunal

         17. 34. Constitution of Tribunal

         18. 35. Procedure of Tribunal

         19. 36. Communicating and giving effect to Tribunal decisions

         20. 37. Appeal against decision of Tribunal to dismiss before enquiry

         21. 38. Finality of decisions

         22. 39. Other modifications

      5. Part 5 Miscellaneous modifications of other enactments

         1. 40. Freedom of information

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

         3. 42. (1) The 2010 Act is amended as follows.

         4. 43. In the Enterprise and Regulatory Reform Act 2013, in schedule...

         5. 44. Civil enforcement of certain offences

         6. 45. After section 74 of the 2010 Act insert— Civil enforcement...

         7. 46. Disclosure requirements in connection with new offences

         8. 47. (1) The Rehabilitation of Offenders Act 1974 (Exclusions and Exceptions)...