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

Schedule 3Minor and consequential modifications of enactments

Part 3Modification of other enactments in relation to complaints

Law Reform (Miscellaneous Provisions) (Scotland) Act 1990

15

(1)

The 1990 Act is amended as follows.

(2)

In section 17 (conveyancing practitioners), subsection (8)(d) is repealed.

(3)

In section 20 (professional misconduct etc.)—

(a)

in subsection (1), in the opening words, for “6(2)(a) or 15(5)(a) of the 2007 Act” substitute “6(2) of the 2007 Act (or treated as having been so remitted by virtue of section 33A(2) of that Act)”,

(b)

subsection (2)(ca) is repealed,

(c)

subsection (2ZB) is repealed,

(d)

subsection (2B)(aa) is repealed,

(e)

for subsection (4) substitute—

“(4)

Any fine imposed under subsection (2)(cb) or (2B)(b) is payable to the Scottish Ministers.”,

(f)

subsection (6) is repealed,

(g)

subsection (7) is repealed,

(h)

subsections (11ZA) to (11ZC) are repealed,

(i)

subsections (11B) to (11E) are repealed,

(j)

subsection (11G) is repealed,

(k)

subsection (11H) is repealed.

(4)

Section 20ZA (remission of complaint by Tribunal to Council) is repealed.

(5)

In section 20ZB (unsatisfactory professional conduct)—

(a)

in subsection (1), in the opening words—

(i)

for “6(2)(a) or 15(5)(a) of the 2007 Act” substitute “6(2) of the 2007 Act (or is treated as having been so remitted by virtue of section 33A(2) of that Act)”,

(ii)

after “must” insert “(subject to section 47(1A) of the 2007 Act and subsections (1A) and (1B))”,

(b)

after subsection (1), insert—

“(1A)

The Council may propose a settlement in respect of the complaint which they consider is fair and reasonable in the circumstances to the practitioner and the complainer and, if the practitioner accepts the proposal, the Council—

(a)

must make a direction to that effect, and

(b)

may not determine the complaint under subsection (1) unless—

(i)

the practitioner has failed to comply with the direction under paragraph (a), or

(ii)

the direction is quashed under section 20B(2)(f).

(1B)

The practitioner may propose a settlement to the Council and the complainer, and if the Council considers the proposed settlement is fair and reasonable in the circumstances the Council—

(a)

must make a direction to that effect, and

(b)

may not determine the complaint under subsection (1) unless—

(i)

the practitioner has failed to comply with the direction under paragraph (a), or

(ii)

the direction is quashed under section 20B(2)(f).”,

(c)

subsection (2) is repealed,

(d)

in subsection (3), in the opening words—

(i)

the words “or (2)” are repealed,

(ii)

after “complaint” insert “or where the Council make a direction under subsection (1A)(a) or (1B)(a)”,

(e)

after subsection (3), insert—

“(3A)

Where the Council censures a practitioner under subsection (3), the Council may provide that the censure is to have effect for a specified period and must give their reasons for doing so when making an intimation under subsection (8).”,

(f)

subsection (4)(c) is repealed,

(g)

in subsection (5)—

(i)

after “complaint” where it first occurs insert “(including whether to make a proposed settlement under subsection (1A) or accept a proposed settlement made under subsection (1B))”,

(ii)

after “of” where it first occurs insert “—

(a)”,

(iii)

for “(but not a complaint in respect of which an appeal is pending or which has been quashed ultimately on appeal).” substitute ,

(b)

any previous decision made under section 47(1A)(a) of the 2007 Act with respect to a complaint against the practitioner,

(c)

any previous direction made under subsection (1A)(a) or (1B)(a) with respect to a complaint against the practitioner,

(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.”,

(h)

for subsection (7) substitute—

“(7)

Any fine imposed under subsection (4)(b) is payable to the Scottish Ministers.”,

(i)

in subsection (8)—

(i)

in paragraph (a), the words “or (2)” are repealed,

(ii)

in paragraph (c), after “subsection” insert “(1A)(a), (1B)(a) or”,

(iii)

in the closing words, after “practitioner” insert “, and to the Commission and any other relevant party,”,

(iv)

in the closing words, after “determination” where it second occurs insert “or the direction under subsection (1A)(a) or (1B)(a)”,

(j)

after subsection (8) insert—

“(8A)

An intimation made under subsection (8) must—

(a)

be sent as soon as practicable after the determination or direction under subsection (1A)(a) or (1B)(a) has been made,

(b)

include information about any right of appeal or ability to make a handling complaint by virtue of section 23 of the 2007 Act.”,

(k)

in subsection (9)—

(i)

in the opening words, for “or (2),” substitute “, a decision to reinstate a discontinued investigation has been made under section 47(1A)(b) of the 2007 Act,”,

(ii)

in the opening words, for “determination or” substitute “determination, decision or”,

(iii)

after paragraph (a) insert—

“(aa)

decision,”,

(l)

in subsection (10)—

(i)

after “which” insert “—

(a)”,

(ii)

the words “or (2)” are repealed,

(iii)

for “him, appeal to the Tribunal against the determination.” substitute the complainer,

(b)

a decision under subsection 47(1A)(a) of the 2007 Act to discontinue an investigation is intimated to the complainer, or

(c)

a direction under subsection (1A)(a) or (1B)(a) is intimated to the complainer,

appeal to the Tribunal against the determination, decision or direction.”,

(m)

subsection (11) is repealed,

(n)

subsection (12) is repealed,

(o)

subsection (13)(b) is repealed,

(p)

subsection (14)(b) is repealed.

(6)

In section 20ZC—

(a)

in subsection (1), for “20ZB(4)” substitute “20ZB(1A)(a), (1B)(a) or (4)”,

(b)

in subsection (2)—

(i)

for “(12)” substitute “(10)”,

(ii)

for “20ZB(4)” substitute “20ZB(1A)(a), (1B)(a) or (4)”,

(c)

the title to the section becomes Unsatisfactory professional conduct: Council’s powers to monitor compliance with direction under section 20ZB.

(7)

After section 20ZE, insert—

“20ZFApplication of procedure relating to complaints

(1)

The rules made by the Council under section 42D(1)(a) and (b) of the 1980 Act about the procedure for the making of a decision under section 47(1A) of the 2007 Act apply to such decisions made in relation to a complaint against a practitioner.

(2)

The rules made by the Council under section 42D(1)(c) and (d) of the 1980 Act about the procedure for making and accepting a proposed settlement under section 42ZA(1A) and (1B) of that Act apply to the making and accepting of a proposed settlement under section 20ZB(1A) and (1B).”.

(8)

In section 20B (unsatisfactory professional conduct: powers of Tribunal on appeal)—

(a)

in subsection (1)—

(i)

paragraph (f) is repealed,

(ii)

after paragraph (f) insert—

“(g)

may quash or confirm the decision being appealed against,

(h)

if it confirms the decision, may direct the Council as to which aspects of the complaint should be continued.”,

(b)

in subsection (2)—

(i)

paragraph (b) is repealed,

(ii)

after paragraph (c), insert—

“(d)

may quash or confirm the decision being appealed against,

(e)

if it quashes the decision, may direct the Council as to which aspects of the complaint should be continued,

(f)

may quash or confirm the direction being appealed against,

(g)

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 20ZB(1),

(iii)

may direct the Council to propose a new settlement under section 20ZB(1A), taking into account any matters specified by the Tribunal,

(iv)

may dismiss the complaint.”,

(c)

subsection (3) is repealed,

(d)

subsection (4) is repealed,

(e)

for subsection (6) substitute—

“(6)

Any fine imposed under subsection (1)(e) is payable to the Scottish Ministers.”,

(f)

subsection (8)(b) is repealed,

(g)

subsection (9)(b) is repealed.

(9)

In section 20D (unsatisfactory professional conduct: appeal from decisions of Tribunal), in subsection (3)—

(a)

paragraphs (b) to (d) are repealed,

(b)

paragraph (f) is repealed,

(c)

paragraph (g) is repealed,

(d)

after paragraph (g), insert—

“(h)

a decision under subsection (2)(d) to quash or confirm a decision made under section 47(1A)(a) of the 2007 Act.”.

(10)

In section 20E (unsatisfactory professional conduct: powers of court on appeal)—

(a)

subsection (1)(b) is repealed,

(b)

subsection (3)(b) is repealed,

(c)

subsection (4)(b) is repealed.

(11)

In section 21B (procedures of the Tribunal etc.), in subsection (2)—

(a)

“15” substitute “15A, 16A”,

(b)

for “, (10), (11) or (12)” substitute “or (10)”.