Legislation – Regulation of Legal Services (Scotland) Act 2025

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Introduction

Part 1
Regulatory framework

Chapter 1 Objectives, principles and key definitions

Overview of Part

1 Overview of the regulatory framework

Regulatory objectives

2 Regulatory objectives

3 Application of the regulatory objectives

Professional principles

4 Professional principles

Meaning of key expressions

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

6 Meaning of regulatory functions

Chapter 2 regulators

Regulatory categories

7 Regulatory categories

Requirements of category 1 regulators

8 Exercise of regulatory functions

9 Regulatory committee: composition and membership

10 Regulatory committee: lay and legal members

11 Regulatory committee: convener, sub-committees and minutes

12 Annual reports of category 1 regulators

13 Compensation funds

Requirements of category 2 regulators

14 Exercise of regulatory functions

15 Annual reports of category 2 regulators

Requirements of both category 1 and category 2 regulators

16 Register of regulated legal services providers

17 Professional indemnity insurance

Powers of the Lord President in relation to regulators

18 Review of regulatory performance by the Lord President

19 Measures open to the Lord President

Special rule changes

20 Power to direct special rule changes

21 Powers to amend or revoke directions

22 Register of directions

Chapter 3 New regulators of legal services

Applications

23 Right to provide legal services

24 Regulatory scheme

25 Regulatory scheme – additional matters to be included: further provision

26 Publication of draft regulatory scheme and representations

Consideration and grant

27 Consideration of applications

28 Approval of application and giving effect to the regulatory scheme

Exercise of the acquired rights

29 Exercise of rights to provide legal services

30 Surrender of rights

31 Offence of pretending to have acquired rights

Review of regulatory scheme

32 Review of regulatory scheme on initiative of accredited regulator

33 Review of regulatory schemes

34 Revocation of acquired rights

Miscellaneous

35 Replacement regulatory arrangements for authorised providers

36 Consequential amendments and repeals

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

Part 2
Regulation of legal businesses

38 Overview of Part

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

40 Offence of pretending to be an authorised legal business

41 Rules for authorised legal businesses

42 Authorisation rules

43 Appeals in relation to authorisation decisions

44 Practice rules

45 Financial sanctions

46 Reconciling different rules

47 Monitoring of performance of authorised legal businesses

48 Law Society of Scotland

49 Entities changing regulatory regime

Part 3
Complaints

50 Receipt of complaints: preliminary steps

51 Complaints initiated by, or continued by, the Commission

52 Ineligible or premature complaints

53 Commission process relating to complaints

54 Commission’s duty to investigate and determine services complaints

55 Regulatory complaints against authorised legal businesses

56 Services complaint: sanctions

57 Commission decision making and delegation

58 Commission review committee

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

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

61 Services complaints: special provision for complaints against unregulated persons

62 Handling complaints

63 Annual general levy and complaints levy

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

65 Commission rules as to practice and procedure

66 Conduct or regulatory complaint raised by relevant professional organisation

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

68 Conduct complaints: consideration by relevant professional organisations

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

70 Compensation funds: setting of minimum standards by the Commission

71 Enforcement of minimum standards

72 Obtaining information from practitioners

73 Power to disclose information about complaints: Commission

74 Restriction on disclosure of information: Commission

75 Power to disclose information about complaints: relevant professional organisations

76 Restriction on disclosure of information: relevant professional organisations

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

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

79 Commission membership

80 Role of the independent advisory panel

81 Commission reports

82 Minor and consequential amendments

Part 4
Miscellaneous

83 Financial sanctions

84 Licensing rules: fees

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

86 Eligibility criteria: law centres

87 Majority ownership

88 Non-solicitor investors: factors as to fitness

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

90 Offence of taking or using the title of lawyer

91 Offence of pretending to be a regulated legal services provider

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

93 Time limit for prosecution of offences

94 Power of the Scottish Ministers to adjust restricted legal services

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

96 Modification of other enactments

97 Review of Act

Part 5
General

98 Individual culpability for offending by an organisation

99 Civil enforcement in relation to offences

100 Regulations

101 Ancillary provision

102 Interpretation

103 Commencement

104 Short title

SCHEDULES

Schedule 1 Law Society of Scotland

Schedule 2 Further provision about measures open to the Lord President

Schedule 3 Minor and consequential modifications of enactments

Part 1Regulatory framework

Chapter 2regulators

Special rule changes

20Power 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).

21Powers to amend or revoke directions

(1)

A regulator may—

(a)

amend a direction on the application of the legal services provider to whom it relates, or

(b)

revoke a direction.

(2)

The Lord President may revoke a direction given for the purpose described in section 20(3)(a) at any time by giving notice to—

(a)

the regulator that gave the direction, and

(b)

the legal services provider to whom the direction relates.

(3)

Section 20(3) to (11) applies to an amendment under subsection (1) as it applies to a direction.

(4)

Section 20(6) and (8)(a) applies to a revocation under subsection (1) as it applies to a direction.

(5)

Section 20(8)(a) applies to a revocation under subsection (2) as it applies to a direction.

(6)

In this section, “direction” and “regulator” have the meanings given in section 20(12).

22Register of directions

(1)

A regulator must establish and maintain a register of relevant directions.

(2)

The register must for each direction—

(a)

contain a copy of—

(i)

the direction, and

(ii)

any amendments to the direction, and

(b)

specify—

(i)

the day on which the direction will cease to have effect (if not revoked earlier), or

(ii)

whether the direction is to have effect for an indefinite period.

(3)

A regulator—

(a)

must withhold information in a document mentioned in subsection (2) if satisfied that its disclosure would or would be likely to breach the data protection legislation,

(b)

may withhold information in such a document if satisfied that its disclosure would or would be likely to—

(i)

prejudice substantially the commercial interests of any person, or

(ii)

breach an obligation of confidence owed by any person.

(4)

The register must be accessible to, and searchable by, the public, free of charge, by such electronic means as the regulator considers appropriate.

(5)

In this section—

the data protection legislation” has the meaning given by section 3(9) of the Data Protection Act 2018,

regulator” has the meaning given by section 20(12),

relevant direction” means, in relation to a regulator, a direction given by the regulator under section 20(1) for the purpose described in section 20(3)(a) that is still in force.