3(1)Section 5 (the Regulator) is amended as follows.
(2)After subsection (1) insert—
“(1A)The Secretary of State may designate a person only on the recommendation of the Legal Services Board.”
(3)In subsection (2) for “The Secretary of State may designate a person” substitute “The Legal Services Board may recommend a person for designation”.
(4)Omit subsection (3).
(5)In subsection (4)—
(a)in paragraphs (a), (b), (d) and (e) for “Secretary of State” substitute “Legal Services Board”, and
(b)omit paragraph (c).
(6)In subsection (8) after “may” insert “, on the recommendation of the Legal Services Board,”.
(7)In subsection (9) for “Secretary of State” substitute “Legal Services Board”.
(8)In subsection (10)—
(a)after “may” insert “, on the recommendation of the Legal Services Board,”, and
(b)for “Secretary of State” (in the second place) substitute “Legal Services Board”.
(9)After that subsection insert—
“(11)In discharging any function by virtue of subsection (9) or (10), the Legal Services Board must take such steps as are necessary to ensure an appropriate financial and organisational separation between the activities of the Board that relate to the carrying out of those functions and the other activities of the Board.”