Regulation of Legal Services (Scotland) Act 2025

Prospective

Regulatory complaints S

10 (1) The 1980 Act is amended as follows.

(2) In section 3A (discharge of functions of Council of the Law Society), in subsection (5)—

(a) after paragraph (aa), insert—

“(aaa) that under section 52A of the 2007 Act of determining of a regulatory complaint remitted to them under section 7A(2) of that Act (or treated as having been remitted to them under that section by virtue of section 33B(2) of that Act),”,

(b) after paragraph (ad), insert—

“(ae) that under section 51(1) of determining whether or not to make a regulatory complaint to the Tribunal,”.

(3) After section 42D (procedure relating to complaints) as inserted by this Act, insert—

“42E Powers relating to regulatory complaints

(1) Before the Council make a determination upholding a regulatory complaint under section 52A(1) of the 2007 Act—

(a) the Council may propose a settlement in respect of the complaint which they consider is fair and reasonable in the circumstances to—

(i) the authorised legal business or, as the case may be, the licensed provider, and

(ii) the complainer,

(b) the authorised legal business or, as the case may be, the licensed provider may propose a settlement in respect of the complaint to the Council and the complainer.

(2) If the authorised legal business or, as the case may be, the licensed provider accepts a proposal under subsection (1)(a), or the Council consider that a proposal under subsection (1)(b) is fair and reasonable in the circumstances, the Council—

(a) must make a direction to that effect, and

(b) may not determine the complaint unless—

(i) the authorised legal business or, as the case may be, licensed provider has failed to comply with the direction made under paragraph (a), or

(ii) the direction is quashed under section 53ZE(2)(e).

(3) Where the Council make a determination upholding a regulatory complaint under section 52A(1) of the 2007 Act or where the Council make a direction under subsection (2)(a), the Council—

(a) must censure the authorised legal business or, as the case may be, the licensed provider,

(b) may—

(i) where the Council consider that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor to undertake such education or training as regards the law or legal practice as the Council consider appropriate in that respect,

(ii) where the imposition of a fine is permitted under the regulatory scheme of the Council, direct the authorised legal business or, as the case may be, the licensed provider to pay a fine,

(iii) impose conditions on the practising certificate of a solicitor of the authorised legal business or, as the case may be, the licensed provider,

(iv) order that the authorisation of a legal business to provide legal services be subject to such conditions as the Council may direct,

(v) impose any other sanction permitted by the regulatory scheme of the Council.

(4) Where the Council censures an authorised legal business or a licensed provider under subsection (3)(a), the Council may provide that the censure is to have effect for a specified period and, where they do so, must give their reasons for doing so in the report under section 52A(5) of the 2007 Act.

(5) Where the Council have placed conditions on the practising certificate of a solicitor under subsection (3)(b), the Council may provide that the certificate is subject to those conditions for a specified period and, where they do so, must give their reasons for doing so in the report under section 52A(5) of the 2007 Act.

(6) When considering a regulatory complaint, including whether to propose a settlement under subsection (1)(a) or in considering a proposal under subsection (1)(b), the Council may take into account—

(a) any previous determination by them, the Tribunal or the Court upholding a regulatory complaint against the authorised legal business or, as the case may be, the licensed provider,

(b) any previous decision under section 52A(2)(a) of the 2007 Act with respect to a complaint against the authorised legal business or, as the case may be, the licensed provider,

(c) any previous direction made under subsection (2)(a) with respect to a complaint against the authorised legal business or, as the case may be, the licensed provider,

(d) any previous determination of the Commission of a services complaint under section 9(1) of the 2007 Act relating to the same alleged set of circumstances,

but not a determination, decision or direction in respect of which an appeal is pending or which has been quashed ultimately on appeal.

(7) An authorised legal business or a licensed provider may, before the expiry of the period of 21 days beginning with the day on which—

(a) a determination under section 52A(1) of the 2007 Act upholding a regulatory complaint is intimated to them,

(b) a decision under section 52A(2)(b) of that Act to reinstate a discontinued investigation is intimated to them, or

(c) a decision to impose a sanction under subsection (3)(b) is intimated to them,

appeal to the Tribunal against the determination or decision.

(8) A complainer may, before the expiry of 21 days beginning on the day on which—

(a) a determination under section 52A(1) of the 2007 Act not upholding a regulatory complaint is intimated to the complainer,

(b) a decision under section 52A(2)(a) of that Act to discontinue an investigation is intimated to the complainer,

(c) a direction under subsection (2)(a) is intimated to the complainer,

appeal to the Tribunal against the determination or decision.

(9) In this section—

• “complainer” has the same meaning as in section 42ZA,

• “qualifying individual” has the meaning given in section 39(10) of the Regulation of Legal Services (Scotland) Act 2025,

• “regulatory scheme” is to be construed in accordance with Part 1 of the Regulation of Legal Services (Scotland) Act 2025, and

references to provisions of the 2007 Act include references to those provisions as they are applied in relation to licensed providers by Part 2A of the 2007 Act.”.

(4) In section 51 (complaints to Tribunal)—

(a) in subsection (1A), after “includes” insert “—

(a) a regulatory complaint,

(b)” ,

(b) subsection (2) is repealed,

(c) subsection (3) is repealed,

(d) subsection (4) is repealed.

(5) After section 51, insert—

“51A Procedure on making regulatory complaints to Tribunal

(1) The Council must make rules as to the procedure for determining whether or not to make a regulatory complaint to the Tribunal under section 51(1).

(2) Before making any rules under this section, the Council must—

(a) consult the Tribunal,

(b) send to each member of the Society a draft of the rules,

(c) after sending the rules under paragraph (b), submit the draft rules to a meeting of the Society, and

(d) take into consideration any resolution passed at that meeting relating to amendments to the draft rules.

(3) Rules made under this section will not have effect unless the Lord President, after considering any objections the Lord President thinks relevant, has approved the rules so made.”.

(6) In section 52 (procedure on complaints and appeals to Tribunal), in subsection (2)(aa), after “42ZD(1)” insert “, 42E(7) or (8)”.

(7) After section 53ZC, insert—

“53ZD Powers relating to regulatory complaints

(1) Where a regulatory complaint is made to the Tribunal under section 51(1), the Tribunal must determine the complaint.

(2) Where the Tribunal make a determination upholding a regulatory complaint, the Tribunal—

(a) must censure the authorised legal business or, as the case may be, the licensed provider,

(b) may—

(i) where the Tribunal consider that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor to undertake such education or training as regards the law or legal practice as the Tribunal consider appropriate in that respect,

(ii) where the imposition of a fine is permitted under the regulatory scheme of the Council, impose a fine,

(iii) order that the practising certificate of a solicitor of the authorised legal business or, as the case may be, the licensed provider is to be subject to such conditions as the Tribunal may direct,

(iv) order that the recognition under section 34(1A) of the incorporated practice be revoked,

(v) order that the authorisation of a legal business to provide legal services be withdrawn,

(vi) order that the authorisation of a legal business to provide legal services be subject to such conditions as the Tribunal may direct,

(vii) impose any other sanction permitted by the regulatory scheme of the Council.

(3) Where the Tribunal censures an authorised legal business or a licensed provider under subsection (2)(a), the Tribunal may provide that the censure is to have effect for a specified period and, where they do so, must give their reasons in their decision.

(4) Where the Tribunal orders that the practising certificate of a solicitor is to be subject to conditions under subsection (2)(b)(iii), the Tribunal may direct that the certificate is to be subject to those conditions for a specified period and, where they do so, must give their reasons in their decision.

(5) Where the Tribunal order that the recognition under section 34(1A) of an incorporated practice be revoked, the Tribunal must direct that the order is to take effect on such date as the Tribunal specifies, being a date not earlier than 60 days after its order is intimated to the authorised legal business and such an order is to take effect accordingly.

(6) Where the Tribunal order that the authorisation of a legal business to provide legal services be withdrawn, the Tribunal must direct that the order is to take effect on such date as the Tribunal specifies, being a date not earlier than 60 days after its order is intimated to the authorised legal business and such an order is to take effect accordingly.

(7) Where an appeal against an order mentioned in subsection (5) or (6) is taken to the Court under section 54B, the order continues to have effect pending the determination or abandonment of the appeal unless the Court otherwise directs.

(8) When considering a regulatory complaint, the Tribunal may take into account—

(a) any previous determination by the Council, the Tribunal or the Court upholding a regulatory complaint against the authorised legal business or, as the case may be, the licensed provider,

(b) any previous decision under section 52A(2)(a) of the 2007 Act with respect to a complaint against the authorised legal business or, as the case may be, the licensed provider,

(c) any previous direction made under section 42E(2)(a) with respect to a complaint against the authorised legal business or, as the case may be, the licensed provider,

(d) any previous determination of the Commission of a services complaint under section 9(1) of the 2007 Act relating to the same alleged set of circumstances,

but not a determination, decision or direction in respect of which an appeal is pending or which has been quashed ultimately on appeal.”.

(8) After section 53ZD (as inserted by this Act), insert—

“53ZE Powers of Tribunal on appeal: regulatory complaints

(1) On an appeal to the Tribunal by an authorised legal business or a licensed provider under section 42E(7), the Tribunal may—

(a) confirm the determination upholding a regulatory complaint,

(b) quash the determination upholding a regulatory complaint and the censure accompanying it,

(c) confirm the decision to reinstate a discontinued investigation and direct the Council as to which aspects of the complaint are to be continued,

(d) quash the decision to reinstate a discontinued investigation,

(e) quash, confirm or vary a sanction imposed under section 42E(3)(b),

(f) where the Tribunal consider that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor to undertake such education or training as regards the law or legal practice as the Tribunal consider appropriate in that respect,

(g) where the imposition of a fine is permitted under the regulatory scheme of the Council, impose a fine,

(h) order that the practising certificate of a solicitor of the authorised legal business or, as the case may be, the licensed provider is to be subject to such conditions as the Tribunal may direct,

(i) order that the recognition under section 34(1A) of the incorporated practice be revoked,

(j) order that the authorisation of a legal business to provide legal services be withdrawn,

(k) order that the authorisation of a legal business to provide legal services be subject to such conditions as the Tribunal may direct,

(l) impose any other sanction permitted by the regulatory scheme of the Council.

(2) On an appeal to the Tribunal by the complainer under section 42E(8), the Tribunal may—

(a) confirm the determination not upholding a regulatory complaint,

(b) quash the determination not upholding a regulatory complaint, make a determination upholding the complaint and censure the authorised legal business or, as the case may be, licensed provider,

(c) confirm the decision to discontinue an investigation,

(d) quash the decision to discontinue an investigation and direct the Council as to which aspects of the complaint are to be continued,

(e) quash or confirm the direction made under section 42E(2)(a),

(f) if it quashes the direction—

(i) must quash any censure and any other associated measures accompanying the direction,

(ii) may direct the Council to carry out their duties under section 52A(1),

(iii) may direct the Council to propose a new settlement under section 42E(1)(a), taking into account any matters specified by the Tribunal,

(iv) may dismiss the complaint,

(g) where the Tribunal consider that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor to undertake such education or training as regards the law or legal practice as the Tribunal consider appropriate in that respect,

(h) where the imposition of a fine is permitted under the regulatory scheme of the Council, impose a fine,

(i) order that the practising certificate of a solicitor of the authorised legal business or, as the case may be, the licensed provider is to be subject to such conditions as the Tribunal may direct,

(j) order that the recognition under section 34(1A) of the incorporated practice be revoked,

(k) order that the authorisation of a legal business to provide legal services be withdrawn,

(l) order that the authorisation of a legal business to provide legal services be subject to such conditions as the Tribunal may direct,

(m) impose any other sanction permitted by the regulatory scheme of the Council.

(3) Where the Tribunal censures an authorised legal business or a licensed provider under subsection (2)(b), the Tribunal may provide that the censure is to have effect for a specified period and, where they do so, must give their reasons in their decision.

(4) Where the Tribunal orders that the practising certificate of a solicitor is to be subject to conditions under subsection (1)(h) or (2)(i), the Tribunal may direct that the certificate is to be subject to those conditions for a specified period and, where they do so, must give their reasons in their decision.

(5) Where the Tribunal order that the recognition under section 34(1A) of an incorporated practice be revoked, the Tribunal must direct that the order is to take effect on such date as the Tribunal specifies, being a date not earlier than 60 days after its order is intimated to the authorised legal business and such an order is to take effect accordingly.

(6) Where the Tribunal order that the authorisation of a legal business to provide legal services be withdrawn, the Tribunal must direct that the order is to take effect on such date as the Tribunal specifies, being a date not earlier than 60 days after its order is intimated to the authorised legal business and such an order is to take effect accordingly.

(7) Where an appeal against an order mentioned in subsection (5) or (6) is taken to the Court under section 54B, the order continues to have effect pending the determination or abandonment of the appeal unless the Court otherwise directs.

(8) In this section, “complainer” has the same meaning as in section 42ZA.”.

(9) After section 54A, insert—

“54B Appeals from decisions of Tribunal: regulatory complaints

(1) An authorised legal business or a licensed provider in respect of which a decision mentioned in subsection (2) has been made may, before the expiry of the period of 21 days beginning with the day on which the decision is intimated to them, appeal to the Court against the decision.

(2) The decision is—

(a) a decision under section 53ZD(1) upholding a regulatory complaint,

(b) a decision to impose a sanction under section 53ZD(2)(b),

(c) a decision under section 53ZE(1)(a) confirming the determination upholding a regulatory complaint,

(d) a decision under section 53ZE(2)(b) quashing the determination not upholding the regulatory complaint, making a determination upholding the complaint and censuring the authorised legal business or licensed provider,

(e) a decision under section 53ZE(1)(c) reinstating a discontinued investigation and directing the Council as to which aspects of the complaint are to be continued,

(f) a decision under section 53ZE(2)(d) quashing the decision to discontinue an investigation and directing the Council as to which aspects of the complaint are to be continued,

(g) a decision under section 53ZE(1)(e) to quash, confirm or vary a sanction,

(h) a decision to impose a sanction under section 53ZE(1)(f) to (l) or (2)(g) to (m).

(3) The Council may, before the expiry of the period of 21 days beginning with the day on which a decision mentioned in subsection (4) is intimated to them, appeal to the Court against the decision.

(4) The decision is—

(a) a decision under section 53ZD(1) not upholding a regulatory complaint,

(b) a decision under section 53ZE(1)(b) quashing the determination upholding a regulatory complaint and the censure accompanying it,

(c) a decision under section 53ZE(2)(a) confirming the determination not upholding a regulatory complaint,

(d) a decision under section 53ZE(1)(d) quashing the decision to reinstate a discontinued investigation,

(e) a decision under section 53ZE(2)(c) confirming the decision to discontinue an investigation,

(f) a decision under section 53ZE(1)(e) to quash, confirm or vary a sanction,

(g) a decision to impose a sanction under section 53ZE(1)(f) to (l) or (2)(g) to (m).

(5) Section 43 of the Regulation of Legal Services (Scotland) Act 2025 does not apply to an appeal under this section.”.

(10) After section 55A, insert—

“55B Powers of Court: regulatory complaints

(1) In the case of an appeal under section 54B(1), the Court may—

(a) confirm the determination upholding a regulatory complaint,

(b) quash the determination upholding a regulatory complaint and the censure accompanying it,

(c) confirm the decision to reinstate a discontinued investigation and direct the Council as to which aspects of the complaint are to be continued,

(d) quash the decision to reinstate a discontinued investigation,

(e) quash, confirm or vary a sanction,

(f) where the Court considers that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor or qualifying individual to undertake such education or training as regards the law or legal practice as the Court considers appropriate in that respect,

(g) where the imposition of a fine is permitted under the regulatory scheme of the Council, impose a fine,

(h) order that the practising certificate of a solicitor of the authorised legal business or, as the case may be, the licensed provider is to be subject to such conditions as the Court may direct,

(i) order that the recognition under section 34(1A) of the incorporated practice be revoked,

(j) order that the authorisation of the legal business to provide legal services be withdrawn,

(k) order that the authorisation of the legal business to provide legal services be subject to such conditions as the Court may direct,

(l) impose any other sanction permitted by the regulatory scheme of the Council.

(2) In the case of an appeal under section 54B(3), the Court may—

(a) confirm the determination not upholding a regulatory complaint,

(b) quash the determination not upholding a regulatory complaint, make a determination upholding the complaint and censure the authorised legal business,

(c) confirm the decision to discontinue an investigation,

(d) quash the decision to discontinue an investigation and direct the Council as to which aspects of the complaint are to be continued,

(e) quash, confirm or vary a sanction,

(f) where the Court considers that a solicitor of the authorised legal business or, as the case may be, the licensed provider does not have sufficient competence in relation to any aspect of the law or legal practice, direct the solicitor to undertake such education or training as regards the law or legal practice as the Court considers appropriate in that respect,

(g) where the imposition of a fine is permitted under the regulatory scheme of the Council, impose a fine,

(h) order that the practising certificate of a solicitor of an authorised legal business or, as the case may be, the licensed provider is to be subject to such conditions as the Court may direct,

(i) order that the recognition under section 34(1A) of the incorporated practice be revoked,

(j) order that the authorisation of a legal business to provide legal services be withdrawn,

(k) order that the authorisation of a legal business to provide legal services be subject to such conditions as the Court may direct,

(l) impose any other sanction permitted by the regulatory scheme of the Council.

(3) Where the Court censures an authorised legal business or a licensed provider under subsection (2)(b), the Court may provide that the censure is to have effect for a specified period and, where it does so, must give its reasons.

(4) Where the Court orders that the practising certificate of a solicitor is to be subject to conditions under subsection (1)(h) or (2)(h), the Court may direct that the certificate is to be subject to those conditions for a specified period and, where they do so, must give its reasons.

(5) A decision of the Court under this section is final.

(6) The Court may give such directions in the matter as it thinks fit, including directions as to the expenses of the proceedings before the Court and as to any order by the Tribunal relating to expenses.”.

(11) After section 62A (Council’s power to recover expenses), insert—

“62B Power to amend application of regulatory complaints provisions to licensed providers

(1) The Scottish Ministers may by regulations amend sections 42E, 53ZE, 54B and 55B—

(a) to disapply those sections to licensed providers,

(b) where the power in paragraph (a) has been exercised, to reapply those sections to licensed providers.

(2) Regulations under subsection (1) may include incidental, supplementary, consequential, transitional, transitory or saving provision.

(3) Regulations under subsection (1) are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010).”.

(12) In section 65 (interpretation), at the appropriate place insert—

• ““regulatory complaint” is to be construed in accordance with Part 1 of the 2007 Act (and, in the case of a regulatory complaint about a licensed provider, is to be construed in accordance with that Part as applied by Part 2A of that Act),”.

(13) In schedule 4—

(a) after paragraph 9, insert—

“9A (1) Subject to Part 4, the Tribunal may dismiss a regulatory complaint against an authorised legal business—

(a) without requiring the authorised legal business to answer the allegations made against it or without holding any enquiry if sub-paragraph (2) applies, or

(b) without hearing parties if the Tribunal are of the opinion upon consideration of the complaint and other documents that they disclose no case of failure on the part of the authorised legal business to comply with—

(i) the practice rules forming part of the rules for authorising and regulating the legal business made under (or for the purposes of) section 41(1)(a) of the Regulation of Legal Services (Scotland) Act 2025, or

(ii) the terms on which its authorisation is granted including any conditions or restrictions imposed in relation to the authorisation.

(2) This sub-paragraph applies if—

(a) the Tribunal are of the opinion that the complaint discloses no prima facie case of failure on the part of the authorised legal business to comply with—

(i) the practice rules forming part of the rules for authorising and regulating the legal business made under (or for the purposes of) section 41(1)(a) of the Regulation of Legal Services (Scotland) Act 2025, or

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

(b) the complainer fails to comply with any rule made under section 52.

9B (1) Subject to Part 4, the Tribunal may dismiss a regulatory complaint against a licensed provider—

(a) without requiring the licensed provider to answer the allegations made against it or without holding any enquiry if sub-paragraph (2) applies,

(b) without hearing parties if the Tribunal are of the opinion upon consideration of the complaint and other documents that they disclose no case of failure on the part of the licensed provider to—

(i) have regard to the regulatory objectives (as described in section 2 of the Regulation of Legal Services (Scotland) Act 2025 (and construed in accordance with section 3 of that Act)),

(ii) adhere to the professional principles (as described in section 4(1) of that Act),

(iii) comply with the regulatory scheme of the Council, or

(iv) comply with the terms and conditions of its licence.

(2) This sub-paragraph applies if—

(a) the Tribunal are of the opinion that the complaint discloses no prima facie case of failure on the part of the licensed provider to—

(i) have regard to the regulatory objectives (as described in section 2 of the Regulation of Legal Services (Scotland) Act 2025 (and construed in accordance with section 3 of that Act)),

(ii) adhere to the professional principles (as described in section 4(1) of that Act),

(iii) comply with the regulatory scheme of the Council, or

(iv) comply with the terms and conditions of its licence, or

(b) the complainer fails to comply with any rule made under section 52.”,

(b) in paragraph 23, in the opening words, after “section 42ZD(1)” insert “, section 42E(7) or (8)”.

Commencement Information

I1 Sch. 3 para. 10 not in force at Royal Assent, see s. 103(3)