Regulation of Legal Services (Scotland) Act 2025

20 Power to direct special rule changes

(1) A regulator may, on the application of a legal services provider that it regulates, direct that any rule of the regulator—

(a) does not apply to the provider, or

(b) applies to the provider with such modifications as may be specified in the direction.

(2) A regulator may give a direction only if it is satisfied the direction is compatible with the regulatory objectives.

(3) A direction may be given where the regulator considers it—

(a) desirable for the purpose of enabling a new or alternative way of providing or regulating legal services to be piloted,

(b) reasonable and proportionate for the purpose of—

(i) avoiding a regulatory conflict,

(ii) removing an unnecessary rule, or

(iii) making a rule less onerous, or

(c) necessary or appropriate in the circumstances.

(4) A direction may not disapply or modify a requirement under this Act or any other enactment.

(5) Where a regulator considers that giving a direction for the purpose described in subsection (3)(a) could have the effect of restricting, distorting or preventing competition to any significant extent, it must, before giving the direction, consult the Competition and Markets Authority on the effect of the direction.

(6) A copy of a direction must be given to—

(a) the legal services provider to whom the direction relates, and

(b) if the direction falls within subsection (7), the Lord President.

(7) A direction falls within this subsection if—

(a) it disapplies or modifies such rules or types of rules as the Lord President may specify for the purpose of this section, and

(b) the Lord President has notified the regulator that copies of directions relating to such rules (or types of rules) are to be given.

(8) A direction—

(a) must specify—

(i) the day on which it comes into force, and

(ii) the day on which it ceases to have effect or whether it is to have effect for an indefinite period,

(b) may be subject to conditions, and

(c) may make different provision for different purposes.

(9) A legal services provider to whom a direction relates must inform the regulator of any change of circumstances relevant to the direction.

(10) A direction ceases to have effect on whichever day is the earlier of—

(a) if the direction specifies that it ceases to have effect on a particular day, that day,

(b) if the direction is revoked under section 21, the day on which the revocation comes into force.

(11) An application under this section must be made in such manner as the regulator may direct.

(12) In this section—

• “direction” means, in relation to a regulator, a direction given (or to be given) by the regulator under subsection (1) (including as it may be amended under section 21),

• “regulator” means a category 1 or category 2 regulator or an approved regulator of licensed providers,

• “rule” means, in relation to a regulator, a rule (including a rule in a scheme) made in the exercise of the regulator’s regulatory functions.

(13) A function conferred on a regulator by this section or section 21 is a regulatory function of the regulator (see also sections 3 and 6).