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

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Part 1Regulatory framework

Review of regulatory scheme

32Review of regulatory scheme on initiative of accredited regulator

(1)

This section applies where an accredited regulator has carried out a review of its regulatory scheme on its own initiative and proposes such revision to its scheme as it considers appropriate in light of the review.

(2)

The accredited regulator must send a report to the Lord President detailing the proposed revision to the scheme.

(3)

Following receipt of a report under subsection (2), the Lord President may—

(a)

approve the proposed revision to the scheme,

(b)

not approve the proposed revision to the scheme,

(c)

direct the accredited regulator to make such revision to its scheme as the Lord President considers should be made.

(4)

Following revision of its scheme pursuant to paragraph (a) or (c) of subsection (3), the accredited regulator must publish the revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.

(5)

The Lord President may vary or revoke a direction given under subsection (3)(c).

33Review of regulatory schemes

(1)

The Lord President may direct an accredited regulator to carry out a review of its regulatory scheme.

(2)

Following a review, the accredited regulator must give the Lord President a report on the review containing any revisions it proposes to make to its regulatory scheme (if any).

(3)

Where the Lord President considers that the terms of any proposed revision to the regulatory scheme are satisfactory, the Lord President is to approve the revised scheme and direct the accredited regulator to apply the revised scheme.

(4)

Subsection (5) applies where the Lord President considers that—

(a)

the proposed revisions to the scheme are not satisfactory, or

(b)

revisions should have been proposed (but have not been).

(5)

Where this subsection applies—

(a)

the Lord President may direct the accredited regulator to apply the revisions that the Lord President considers should be made to the regulatory scheme from such date as may be specified in the direction, or

(b)

the Lord President may—

(i)

provide comments in relation to the proposed revisions to the regulatory scheme, and

(ii)

direct the accredited regulator to take account of the comments in reviewing the proposed revisions before giving the Lord President a revised report containing any proposed revision to the scheme.

(6)

Subsections (3) to (5) apply in relation to a revised report given to the Lord President under subsection (5)(b) as they apply in relation to a report given to the Lord President under subsection (2).

(7)

Following the revision of its regulatory scheme under this section, the accredited regulator must publish its revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.

(8)

The Lord President may vary or revoke a direction given under this section.

34Revocation of acquired rights

(1)

Where it appears to the Lord President that an accredited regulator has failed to comply with a direction under section 32(3)(c) or 33(5), the Lord President may revoke the approval of the application under section 28.

(2)

The Lord President must—

(a)

give notice of the Lord President’s decision to revoke approval of the application under section 28 (a “decision notice”) to the regulator, and

(b)

publish the decision notice in such manner as the Lord President considers most appropriate for bringing it to the attention of any relevant person or body.

(3)

Before issuing a decision notice, the Lord President must consult each person who is authorised by the accredited regulator to provide legal services (“the authorised providers”) in relation to the proposed decision and, in particular, with a view to determining whether, in consequence of the revocation of the accredited regulator’s approval, a majority of the authorised providers would like—

(a)

another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights if that other regulator is content to so authorise and regulate them, or

(b)

to form a body and submit an application under section 23 seeking accreditation of the body to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights.

(4)

Where a majority of the providers consulted under subsection (3) have expressed a preference for an outcome mentioned in paragraph (a) or (b) of that subsection, the Lord President may decide not to issue a decision notice for such period as the Lord President considers appropriate to enable—

(a)

another category 1 or category 2 regulator to authorise and regulate the providers, or (as the case may be)

(b)

the providers to form a body and submit an application under section 23 in respect of that body.

(5)

From such date as may be specified in a decision notice, a person authorised by the accredited regulator ceases to be so authorised and may not exercise the rights acquired by virtue of that authorisation.