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 3Complaints

(1)

The 2007 Act is amended as follows.

(2)

After section 28, insert—

(1)

The Commission must establish and maintain a register of unregulated providers of legal services.

(2)

The Commission is to determine, in accordance with its rules under section 32(1), the information to be included in a register established under subsection (1).

(3)

An unregulated provider of legal services that is specified in (or is of such type or description as may be specified in) regulations made by the Scottish Ministers must make a request to be entered in a register established under subsection (1).

(4)

Any other unregulated provider of legal services may make a request to be entered in a register established under subsection (1).

(5)

An unregulated provider of legal services who is entered in a register established under subsection (1) must pay to the Commission a contribution (referred to in this Part as “the annual contribution”).

(6)

The amount of the annual contribution may be—

(a)

different for unregulated providers of legal services who are individuals and unregulated providers of legal services who are not,

(b)

of different amounts (including nil) in different circumstances.

(7)

The Commission must make the register accessible by members of the public in such form and manner as it considers appropriate.

(8)

The Commission must ensure that the amount of resources allocated for its use is reasonably sufficient to enable it to—

(a)

establish and maintain the register, and

(b)

investigate, determine and review services complaints against unregulated providers of legal services.

(9)

In this section, a reference to an unregulated provider of legal services is to a person who provides legal services to the public for fee, gain or reward but who is not a practitioner.

28BRegulations under section 28A(3): requirements

(1)

The Scottish Ministers may lay a draft of a Scottish statutory instrument containing regulations under section 28A(3) only if—

(a)

they have received a request to exercise the power from—

(i)

the Lord President,

(ii)

the regulatory committee of a category 1 regulator,

(iii)

a category 1 regulator that has no functions other than regulatory functions,

(iv)

an approved regulator,

(v)

the Commission, or

(vi)

the independent advisory panel established by the Commission under paragraph 11A of schedule 1, and

(b)

they have secured the Lord President’s agreement to the laying of the draft.

(2)

Before making a request under subsection (1)(a), the person making the request (“the requester”) must—

(a)

consult—

(i)

the regulatory committee (if any) of each category 1 regulator,

(ii)

each category 1 regulator that has no functions other than regulatory functions,

(iii)

each approved regulator,

(iv)

the Commission,

(v)

the panel mentioned in subsection (1)(a)(vi), and

(vi)

such other person as the requester considers appropriate, and

(b)

except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.

(3)

But a person mentioned in subsection (2)(a)(i) to (v) does not need to be consulted if the person is the requester.

(4)

For the purpose of seeking the Lord President’s agreement under subsection (2)(b), the requester must provide to the Lord President—

(a)

a document setting out why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3), and

(b)

copies of any written representations received in response to the consultation under subsection (2)(a).

(5)

A request under subsection (1)(a) must include—

(a)

a document setting out why the requester considers it to be necessary to specify the unregulated legal services provider (or a type or description of unregulated legal services provider) in regulations under section 28A(3),

(b)

copies of any written representations received in response to the consultation under subsection (2)(a), and

(c)

except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.

(6)

As soon as reasonably practicable after making a request under subsection (1)(a), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(7)

In this section—

approved regulator” has the meaning given by Part 2 of the Legal Services (Scotland) Act 2010,

regulatory functions” in relation to a category 1 regulator, has the meaning given by section 6 of the 2025 Act.

(1)

An unregulated provider of legal services against whom a services complaint is made must pay to the Commission, in the circumstances specified in rules made under section 32(1), a contribution in relation to the complaint (referred to in this Part as “the complaints contribution”).

(2)

The amount of the complaints contribution may be—

(a)

of different amounts for different unregulated providers of legal services according to the amount of annual contributions (if any) paid by an unregulated provider of legal services,

(b)

of different amounts (including nil) in different circumstances.

(3)

In this section, a reference to an unregulated provider of legal services has the same meaning as in section 28A(9).”.