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 5Miscellaneous modifications of other enactments

Freedom of information

40

(1)

The Freedom of Information (Scotland) Act 2002 is amended as follows.

(2)

In Part 7 of schedule 1, after paragraph 61C insert—

“61D

A body that is assigned as a category 1 regulator in or under section 7 of the Regulation of Legal Services (Scotland) Act 2025, but only in respect of information relating to the exercise of its regulatory functions within the meaning of section 6 of that Act.”.

Removal of special provision for confirmation agents and will writers etc.

41

In the 2007 Act, Part 2B (special provision for confirmation agents and will writers) is repealed.

42

(1)

The 2010 Act is amended as follows.

(2)

In section 48(5) (eligibility criteria)—

(a)

at the end of paragraph (b), insert “or”,

(b)

paragraph (d) and the “or” immediately preceding it are repealed.

(3)

In section 72(1)(c) (employing disqualified lawyer)—

(a)

at the end of sub-paragraph (ii) insert “or”,

(b)

sub-paragraph (iv) and the “or” immediately preceding it are repealed.

(4)

In section 73(1)(c) (concealing disqualification)—

(a)

at the end of sub-paragraph (ii) insert “or”,

(b)

sub-paragraph (iv) and the “or” immediately preceding it are repealed.

(5)

Part 3 (confirmation and will writing services) is repealed.

(6)

In section 146(3)(a) (regulations)—

(a)

at the end of sub-paragraph (viii) insert “or”,

(b)

sub-paragraphs (x) to (xiv) are repealed.

(7)

In section 149(4)(b) (definitions), for “Parts 2 and 3” substitute “Part 2”.

(8)

In schedule 9 (index of expressions used), the entries relating to the following definitions (and the preceding heading relating to “Part 3 expressions”) are repealed—

(a)

“approving body (of confirmation agent)”,

(b)

“approving body (of will writer)”,

(c)

“confirmation agent and confirmation services”,

(d)

“regulatory scheme (of approving body)”,

(e)

“will writer and will writing services”.

43

In the Enterprise and Regulatory Reform Act 2013, in schedule 6 (regulatory repeals etc: minor and consequential amendments), paragraphs 198 to 200 are repealed.

Civil enforcement of certain offences

44

After section 63A of the 1980 Act (inserted by paragraph 39(17)) insert—

“63BCivil enforcement in relation to certain offences

(1)

This section applies if a category 1 or category 2 regulator considers that a person has committed an offence under any of the following provisions—

(a)

section 23(1) (offence of practising as solicitor without practising certificate),

(b)

section 26(1) (offence for solicitor to act as agent for unqualified person),

(c)

section 28 (offence for disqualified solicitor to seek employment without informing employer),

(d)

section 31(1) (offence for unqualified person to pretend to be solicitor or notary public),

(e)

section 32(1) (offence for unqualified person to provide certain legal services).

(2)

The regulator may apply to the sheriff or the Court of Session for interdict (including interim interdict) against the person to seek to prevent the person from doing anything that constitutes or would constitute the offence.

(3)

Following an application under subsection (2), the sheriff or the Court of Session may grant such interdict (or interim interdict) on such terms as it considers appropriate for the purpose of preventing the person from doing anything that constitutes or would constitute the offence.

(4)

This section does not restrict a category 1 or category 2 regulator from seeking any other court order against a person mentioned in this section.”.

45

After section 74 of the 2010 Act insert—

“74ACivil enforcement in relation to certain offences

(1)

Subsection (2) applies if an approved regulator considers that a person has committed an offence under either of the following provisions—

(a)

section 73(2) (offence of employee concealing disqualification from licensed provider employer),

(b)

section 74(1) (offence of pretending to be licensed provider).

(2)

The approved regulator may apply to the sheriff or the Court of Session for interdict (including interim interdict) against the person to seek to prevent the person from doing any thing that constitutes or would constitute the offence.

(3)

Following an application under subsection (2), the sheriff or the Court of Session may grant such interdict (or interim interdict) on such terms as it considers appropriate for the purpose of preventing the person from doing any thing that constitutes or would constitute the offence.

(4)

If an approved regulator considers that a body has committed an offence under section 73(5) (offence of concealing revocation as incorporated practice), the regulator may apply to the sheriff or the Court of Session for interdict (including interim interdict) against the body, or a person connected to the body, to seek to prevent—

(a)

the body from doing anything that constitutes or would constitute the offence, or

(b)

the person from doing anything that contributes to, or would contribute to, the commission of the offence by the body.

(5)

Following an application under subsection (4), the sheriff or the Court of Session may grant such interdict (or interim interdict) on such terms as it considers appropriate for the purpose of preventing anything mentioned in subsection (4)(a) or (b) from being done.

(6)

This section does not restrict an approved regulator from seeking any other court order against a person or body mentioned in this section.”.

Disclosure requirements in connection with new offences

46

(1)

The Disclosure (Scotland) Act 2020 is amended as follows.

(2)

In schedule 1 (list A offences)—

(a)

after paragraph 43 (insolvency), insert—

43A

An offence under the Solicitors (Scotland) Act 1980.

43B

An offence under either of the following provisions of the Legal Services (Scotland) Act 2010—

(a)

section 73(2) (offence of concealing disqualification),

(b)

section 74 (offence of pretending to be licensed).

43C

An offence under any of the following provisions of the Regulation of Legal Services (Scotland) Act 2025—

(a)

section 31(1) (offence of pretending to have acquired rights),

(b)

section 39(5) (offence of owning or operating a legal business without authorisation),

(c)

section 40(1) (offence of pretending to be an authorised legal business),

(d)

section 90(1) (offence of taking or using the title of lawyer),

(e)

section 91(1) (offence of pretending to be a regulated provider of legal services),

(f)

section 92(1) (offence of pretending to be a member of the Faculty of Advocates).”,

(b)

paragraph 60 (solicitors) and the heading immediately preceding it are repealed.

47

(1)

The Rehabilitation of Offenders Act 1974 (Exclusions and Exceptions) (Scotland) Order 2013 (S.S.I. 2013/50) is amended as follows.

(2)

In schedule A1 (offences which must be disclosed subject to exceptions)—

(a)

after paragraph 32B (insolvency), insert—

32C

An offence under the Solicitors (Scotland) Act 1980.

32D

An offence under either of the following provisions of the Legal Services (Scotland) Act 2010—

(a)

section 73(2) (offence of concealing disqualification),

(b)

section 74 (offence of pretending to be licensed).

32E

An offence under any of the following provisions of the Regulation of Legal Services (Scotland) Act 2025—

(a)

section 31(1) (offence of pretending to have acquired rights),

(b)

section 39(5) (offence of owning or operating a legal business without authorisation),

(c)

section 40(1) (offence of pretending to be an authorised legal business),

(d)

section 90(1) (offence of taking or using the title of lawyer),

(e)

section 91(1) (offence of pretending to be a regulated provider of legal services),

(f)

section 92(1) (offence of pretending to be a member of the Faculty of Advocates).”,

(b)

paragraph 44D (solicitors) and the heading immediately preceding it are revoked.