Solicitors Act 1974

Part I — Right to Practise as Solicitor

Qualifications and training

Provision of information and documents by other persons

1

No person shall be qualified to act as a solicitor unless—

• (a) he has been admitted as a solicitor, and

• (b) his name is on the roll, and

• (c) he has in force a certificate issued by the Society in accordance with the provisions of this Part authorising him to practise as a solicitor (in this Act referred to as a “practising certificate”).

Training regulations

2

• (1) The Society . . . may make regulations (in this Act referred to as “training regulations”) about education and training for persons seeking to be admitted or to practise as solicitors.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Training regulations—

• (a) may prescribe—

• (i) the education and training . . . to be undergone by persons seeking admission as solicitors;

• (ii) any education or training to be undergone by persons who have been admitted as solicitors;

• (iii) the examinations or other tests to be undergone by persons seeking admission as solicitors or who have been admitted;

• (iv) the qualifications and reciprocal duties and responsibilities of persons undertaking to give education or training for the purposes of the regulations or undergoing such education or training; and

• (v) the circumstances in which . . . education or training under the regulations may be started or terminated;

• (b) may require persons who have been admitted as solicitors to hold practising certificates while they are undergoing education or training under the regulations;

• (c) may include provision for the charging of fees by the Society and the application of fees which the Society receives;

• (d) may make different provision for different classes of persons and different circumstances.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Admission

Admission as solicitor

3

• (1) ... No person shall be admitted as a solicitor unless he has obtained a certificate from the Society that the Society—

• (a) is satisfied that he has complied with training regulations, and

• (b) is satisfied as to his character and his suitability to be a solicitor.

• (2) Any person who has obtained a certificate that the Society is satisfied as mentioned in subsection (1) may apply to the Society to be admitted as a solicitor; and if any such person so applies, the Society , . . ., shall, unless cause to the contrary is shown to its satifaction, in writing, and in such manner and form as the Society may from time to time think fit, admit that person to be a solicitor.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Admission of certain overseas solicitors

4

Restrictions on admission of overseas solicitors

5

The roll

Keeping of the roll

6

• (1) The Society shall continue to keep a list of all solicitors of the Senior Courts, called “the roll”.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry of name and restoration of name struck off

7

On production—

• (a) of written evidence of admission of any person as a solicitor by the Society,

• (b) of an order for the restoration to the roll of the name of a person whose name has been struck off it, or

• (c) of an order under section 47(2)(h) for the restoration of a person’s name to the roll,

and on payment to the Society of such fee . . . as the Society may from time to time determine, the Society shall enter the name of that person on the roll.

Removal or restoration of name at solicitor's request

8

• (1) The Society, on the application of a solicitor, may remove his name from the roll.

• (2) The Society, on the application of a former solicitor whose name is not on the roll because it has been removed from it, may enter his name on the roll, on payment to the Society of such fee . . . as the Society may from time to time determine.

• (2A) Subsection (2) does not apply to a former solicitor with respect to whom a direction has been given under section 47(2)(g).

• (3) The power to enter a name on the roll conferred on the Society by subsection (2) includes power to enter the name of a person whose name was removed from the roll before the coming into force of section 5 of the Solicitors (Amendment) Act 1974.

• (4) An appeal from any decision of the Society under subsection (2) shall lie to the High Court.

• (4A) In relation to an appeal under subsection (4) the High Court may make such order as it thinks fit as to payment of costs.

• (4B) The decision of the High Court on an appeal under subsection (4) shall be final.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Practising certificates

Applications for practising certificates

9

• (1) A person whose name is on the roll may apply to the Society to be issued with a practising certificate.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) An application under this section must be—

• (a) made in accordance with regulations under section 28, and

• (b) accompanied by the appropriate fee.

• (4) “The appropriate fee”, in relation to an application, means—

• (a) any fee payable under subsection (1) of section 11 in respect of the practising certificate applied for, and

• (b) any additional fee payable under subsection (4) of that section in respect of the application.

Issue of practising certificates

10

• (1) Subject to the following provisions of this section, where an application is made in accordance with section 9, the Society must issue a practising certificate to the applicant if it is satisfied that the applicant—

• (a) is not suspended from practice, and

• (b) is complying with any prescribed requirements imposed on the applicant.

• (2) A practising certificate issued to an applicant of a prescribed description must be issued subject to any conditions prescribed in relation to applicants of that description.

• (3) In such circumstances as may be prescribed, the Society must, if it considers it is in the public interest to do so—

• (a) refuse to issue a practising certificate under this section, or

• (b) where it decides to issue a practising certificate, issue it subject to one or more conditions.

• (4) The conditions which may be imposed include—

• (a) conditions requiring the person to whom the certificate is issued to take specified steps that will, in the opinion of the Society, be conducive to the carrying on by that person of an efficient practice as a solicitor ...;

• (b) conditions which prohibit that person from taking any specified steps, except with the approval of the Society.

• (5) In this section —

• “prescribed” means prescribed by regulations under section 28;

• “specified”, in relation to a condition imposed on a practising certificate, means specified in the condition.

Fees payable on issue of practising certificates

11

• (1) Before a practising certificate is issued, there must be paid to the Society in respect of the certificate a fee of such amount as the Society may from time to time determine.

• (2) Different fees may be specified for different categories of applicant and in respect of different circumstances.

• (3) Subsection (4) applies where a solicitor makes an application for a practising certificate if—

• (a) the solicitor has failed to deliver an accountant's report required by rules under section 34(1) by such time or in such circumstances as may be prescribed by those rules, and

• (b) a practising certificate has not been issued by the Society to the solicitor since the Society became aware of the failure.

• (4) Where this subsection applies, the solicitor's application must be accompanied by an additional fee of such amount as the Society from time to time determines.

Discretion of Society with respect to issue of practising certificates in special cases

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals in connection with issue of practising certificates

13

• (1) A person who makes an application under section 9 may appeal to the High Court against—

• (a) a decision to refuse the application for a practising certificate,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

• (c) a decision to impose a condition on a practising certificate issued in consequence of the application.

• (2) A person who holds a practising certificate subject to a condition within section 10(4)(b) may appeal to the High Court against any decision by the Society to refuse to approve the taking of any step for the purposes of that condition.

• (3) The Society may make rules which provide, as respects any application under section 9 that is neither granted nor refused by the Society within such period as may be specified in the rules, for enabling an appeal to be brought under this section in relation to the application as if it had been refused by the Society.

• (4) On an appeal under subsection (1), the High Court may—

• (a) affirm the decision of the Society,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) direct the Society to issue a certificate to the applicant free from conditions or subject to such conditions as the High Court may think fit,

• (d) direct the Society not to issue a certificate,

• (e) if a certificate has been issued, by order suspend it,

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

• (g) make such other order as the High Court thinks fit.

• (5) On an appeal under subsection (2), the High Court may—

• (a) affirm the decision of the Society,

• (b) direct the Society to approve the taking of one or more steps for the purposes of a condition within section 10(4)(b), or

• (c) make such other order as the High Court thinks fit.

• (6) In relation to an appeal under this section the High Court may make such order as it thinks fit as to payment of costs.

• (7) The decision of the High Court on an appeal under subsection (1) or (2) shall be final.

Date and expiry of practising certificates

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suspension of practising certificates

15

• (1) The making by the Tribunal or by the court of an order suspending a solicitor from practice shall operate, and an adjudication in bankruptcy of a solicitoror the making of a debt relief order (under Part 7A of the Insolvency Act 1986) in respect of a solicitor shall operate immediately, to suspend any practising certificate of that solicitor for the time being in force.

• (1A) Where the power conferred by paragraph 6(1) , 6A(1) or 9(1) of Schedule 1 has been exercised in relation to a solicitor by virtue of paragraph 1(1)(a)(i), (aa),(c) (so far as it applies to rules made by virtue of section 31 or 32) or (e) of that Schedule, the exercise of that power shall operate immediately to suspend any practising certificate of that solicitor for the time being in force.

• (1B) Subsection (1A) does not apply if, at the time when the power referred to there is exercised, the Society directs that subsection (1A) is not to apply in relation to the solicitor concerned.

• (1C) If, at the time when the power referred to in subsection (1A) is exercised, the Society gives a direction to that effect, the solicitor concerned may continue to act in relation to any matter specified in the direction as if his practising certificate had not been suspended by virtue of subsection (1A), but subject to such conditions (if any) as the Society sees fit to impose.

• (2) For the purposes of this Act, a practising certificate shall be deemed not to be in force at any time while it is suspended.

Duration of suspension of practising certificates

16

• (1) Where a practising certificate is suspended, it expires on such date as may be prescribed by regulations under section 28.

• (1) Where, on the replacement date for a practising certificate, the certificate is suspended it shall expire on that date.

• (2) The suspension of a practising certificate by virtue of section 15(1) by reason of an adjudication in bankrupty shall terminate if the adjudication is annulled and an office copy of the order annulling the adjudication is served on the Society.

• (2A) The suspension of a practising certificate by virtue of section 15(1) by reason of the making of a debt relief order shall terminate—

• (a) if the debt relief order is revoked on the ground mentioned in section 251L(2)(c) or (d) of the Insolvency Act 1986 and a copy of the notice provided to the debtor under Rule 9.18 of the Insolvency (England and Wales) Rules 2016 is served on the Society or the debt relief order is revoked by the court under section 251M(6)(e) of that Act and a copy of the court order is served on the Society;

• (b) if the debt relief order is revoked and a period of one year has elapsed beginning with the effective date of that order.

• (3) Where a solicitor’s practising certificate is suspended—

• (a) by an order under section 13(4); or

• (b) by virtue of section 15(1) by reason of his adjudication in bankruptcyor the making of a debt relief order (under Part 7A of the Insolvency Act 1986) in respect of him; or

• (c) by virtue of section 15(1) by reason of his suspension from practice and the period of his suspension from practice expires before the date on which his certificate will expire,

• (d) by virtue of section 15(1A)

the solicitor may at any time before the certificate expires (and, in the case of adjudication in bankruptcy, while the adjudication remains unannulled) apply to the Society to terminate the suspension.

• (4) On an application under subsection (3), the Society may in its discretion—

• (a) by order terminate the suspension either unconditionally or subject to such conditions as the Society may think fit; or

• (b) refuse the application.

• (5) If on an application by a solicitor under subsection (3) the Society refuses the application or terminates the suspension subject to conditions, the solicitor may appeal against the decision of the Society to the High Court, which may—

• (a) affirm the decision; or

• (b) terminate the suspension either unconditionally or subject to such conditions as it may think fit.

• (6) In relation to an appeal under subsection (5) the High Court may make such order as it thinks fit as to payment of costs.

• (7) The decision of the High Court on an appeal under subsection (5) shall be final.

Publicity in relation to suspension of practising certificates

17

• (1) Where a solicitor’s practising certificate is suspended by an order under section 13(4), or by virtue of section 15(1) by reason of his adjudication in bankruptcy, the Society shall forthwith cause notice of that suspension to be published . . . and a note of it to be entered against the name of the solicitor on the roll.

• (2) Where any such suspension of a practising certificate as is mentioned in subsection (1) is terminated under section 16(2), (4) or (5), the Society shall forthwith cause a note of that termination to be entered against the name of the solicitor on the roll and, if so requested in writing by the solicitor, a notice of it to be published . . . .

Evidence as to holding of practising certificates

18

• (1) An extract from the roll, or an extract from the register kept under section 10A, which is certified as correct by the Society is evidence of the matters mentioned in it.

• (2) A certificate from the Society stating that—

• (a) a person's name is or was on the roll, or

• (b) a person is or was registered in the register kept under section 10A,

is evidence of the matters stated.

Rights and privileges of solicitors

Rights of practising and rights of audience

19

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Unqualified persons acting as solicitors

Unqualified person not to act as solicitor

20

• (1) No unqualified person is to act as a solicitor.

• (2) Any person who contravenes subsection (1) is guilty of an offence and liable on conviction on indictment to imprisonment for not more than 2 years or to a fine, or to both.

Unqualified person not to pretend to be a solicitor

21

Any unqualified person who wilfully pretends to be, or takes or uses any name, title, addition or description implying that he is, qualified or recognised by law as qualified to act as a solicitor shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale

Unqualified person not to prepare certain instruments

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unqualified person not to act in preparation of papers for probate, etc.

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of penal provisions to body corporate

24

• (1) If any act is done by a body corporate, or by any director, officer or servant of a body corporate, and is of such a nature or is done in such a manner as to be calculated to imply that the body corporate is qualified or recognised by law as qualified to act as a solicitor—

• (a) the body corporate shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale, and

• (b) in the case of an act done by a director, officer or servant of the body corporate, he also shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale.

• (2) For the avoidance of doubt it is hereby declared that in section 20 the reference to an unqualified person and the reference to a person both include a reference to a body corporate.

Costs where unqualified person acts as solicitor

25

• (1) No costs in respect of anything done by any unqualified person acting as a solicitor shall be recoverable by him, or by any other person, in any action, suit or matter.

• (2) Nothing in subsection (1) shall prevent the recovery of money paid or to be paid by a solicitor on behalf of a client in respect of anything done by the solicitor while acting for the client without holding a practising certificate in force if that money would have been recoverable if he had held such a certificate when so acting.

Time limit for commencement of certain proceedings

26

Notwithstanding anything in the Magistrates’ Courts Act 1980, proceedings in respect of any offence under section 21 . . . may be brought at any time before the expiration of two years from the commission of the offence or six months from its first discovery by the prosecutor, whichever period expires first.

Saving for persons authorised to conduct legal proceedings

27

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

Regulations

28

• (1) The Society may make regulations . . . about the following matters, namely—

• (a) admission as a solicitor;

• (b) the keeping of the roll;

• (c) practising certificates . . . ;

• (ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) the keeping of the register under section 10A .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) Regulations about the keeping of the roll may (among other things)—

• (za) make provision about the form in which the roll is to be kept and the manner in which entries are to be made, altered and removed;

• (a) provide for the Society, at such intervals as may be specified in the regulations, to enquire of solicitors of any class so specified whether they wish to have their names retained on the roll;

• (b) require solicitors of any such class, at such intervals as aforesaid, to pay to the Society a fee in respect of the retention of their names on the roll of such amount as may be prescribed by the regulations;. . .

• (c) authorise the Society to remove from the roll the name of any solicitor who—

• (i) fails to reply to any enquiry made in pursuance of paragraph (a) or to pay any fee payable by virtue of paragraph (b), or

• (ii) replies to any such enquiry by indicating that he does not wish to have his name retained on the roll;

• (d) authorise the Society to remove from the roll the name of any solicitor who has died.

• (e) require the information on the roll to be made available to the public;

• (f) specify the manner in which information is to be made so available and require it to be made so available during office hours and without charge.

• (3B) Regulations about practising certificates ... may (among other things)—

• (a) prescribe the form and manner in which applications for, or relating to, practising certificates ... are to be made;

• (b) prescribe information which must be included in or accompany such applications;

• (c) make provision about time limits for dealing with such applications, and confer on a person power to extend or bring forward such a time limit in prescribed circumstances;

• (d) prescribe the requirements which applicants for practising certificates must satisfy before they may be issued with a practising certificate;

• (e) prescribe descriptions of applicants, and conditions in relation to them, for the purposes of section 10(2) (circumstances in which practising certificates must be issued subject to prescribed conditions);

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) prescribe circumstances for the purposes of section 10(3) (circumstances in which application may be refused etc in the public interest);

• (h) make provision about when conditions imposed on practising certificates take effect (including provision conferring power on the Society to direct that a condition is not to have effect until the conclusion of any appeal in relation to it);

• (i) make provision for the commencement, duration, replacement, withdrawal and expiry of practising certificates ...;

• (j) prescribe circumstances for the purposes of section 13A(2) (circumstances in which conditions can be imposed during period of practising certificate);

• (k) require solicitors who hold practising certificates to notify the Society of such matters as may be prescribed, at such times, or in such circumstances as may be prescribed.

• (3C) Regulations about the keeping of the register under section 10A may (among other things)—

• (a) make provision about the form in which the register is to be kept and the manner in which entries are to be made, altered and removed;

• (b) require information of a specified kind to be included in entries in the register;

• (c) require information (or information of a specified description) on the register to be made available to the public;

• (d) specify the manner in which it is to be made so available and require it to be made so available during office hours and without charge.

• (3D) Regulations under this section may make provision for appeals to the High Court against decisions made by the Society under the regulations.

• (3E) In relation to an appeal under regulations made by virtue of subsection (3D), the High Court may make such order as it thinks fit as to payment of costs.

• (3F) The decision of the High Court on such an appeal shall be final.

• (3G) Regulations under this section may—

• (a) provide for a person to exercise a discretion in dealing with any matter;

• (b) include incidental, supplementary and consequential provision;

• (c) make transitory or transitional provision and savings;

• (d) make provision generally or only in relation to specified cases or subject to specified exceptions;

• (e) make different provision for different cases.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-British subjects as solicitors

29

Nothing in section 3 of the Act of Settlement (which provides among other things that aliens are incapable of enjoying certain offices or places of trust) shall be taken to disqualify a person from becoming or practising as a solicitor of the Senior Courts or of the Court of Judicature.

Evidence as to solicitors in Scotland

30

For the purposes of this Part, a letter purporting to be signed by or on behalf of the registrar of solicitors in Scotland—

• (a) stating that a person specified in the letter is or is not a solicitor in Scotland shall be evidence that that person is or, as the case may be, is not a solicitor in Scotland;

• (b) stating that a person specified in the letter did not at any time during a period so specified have in force a practising certificate as a solicitor in Scotland shall be evidence that that person was not during any part of that period a duly certificated solicitor in Scotland.

Part II — Professional Practice, Conduct and Discipline of Solicitors and Clerks

Practice rules

Rules as to professional practice, conduct and discipline

31

• (1) Without prejudice to any other provision of this Part the Society may make rules ... for regulating in respect of any matter the professional practice, conduct , fitness to practise and discipline of solicitors and for empowering the Society to take such action as may be appropriate to enable the Society to ascertain whether or not the provisions of rules made, or of any code or guidance issued, by the Society are being , or have been, complied with.

• (1A) The powers conferred on the Society by subsection (1) include power to make, in relation to solicitors, provision of a kind which the Society would be prohibited from making but for section 157(5)(c) of the Legal Services Act 2007 (exception from prohibition on approved regulators making provision for redress).

• (1B) Rules under this section must provide that a solicitor may not practise as a sole solicitor unless there is in force in relation to that solicitor’s practice a recognition under section 9 of the Administration of Justice Act 1985.

• (1C) Rules under this section may provide that, for the purposes of the rules, this Act and the Administration of Justice Act 1985, a solicitor is not to be regarded as practising as a sole solicitor in such circumstances as may be prescribed by the rules.

• (2) If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounts etc.

Accounts rules and trust accounts rules

32

• (1) The Society shall make rules . . . —

• (a) as to the opening and keeping by solicitors of accounts at banks or with building societies for money within subsection (1A);

• (aa) as to the operation by solicitors of accounts kept by their clients or other persons at banks or with building societies or other financial institutions;

• (b) as to the keeping by solicitors of accounts containing information as to money received, held or paid by them for or on account of their clients or other persons (including money received, held or paid under a trust); and

• (c) empowering the Society to take such action as may be necessary to enable it to ascertain whether or not the rules are being , or have been, complied with;

. . .

• (1A) The money referred to in subsection (1) is money (including money held on trust) which is received, held or dealt with for clients or other persons.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

• (4) The Society shall be at liberty to disclose a report on or information about a solicitor’s accounts obtained in the exercise of powers conferred by rules made under subsection (1) . . . . . . for use in investigating the possible commission of an offence by the solicitor or any of his employees and . . . for use in connection with any prosecution of the solicitor or any of his employees consequent on the investigation.

• (5) Rules under this section may specify circumstances in which solicitors or any class of solicitors are exempt from the rules or a part of the rules.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on clients' money

33

• (1) Rules under section 32 may require a solicitor to pay interest, or sums in lieu of and equivalent to interest, to a client, any other person or any trust, for whom the solicitor holds money.

• (2) The cases in which a solicitor may be required by the rules to act as mentioned in subsection (1) may be defined, among other things, by reference to the amount of any sum received or the period for which it is or is likely to be retained or both; . . .

• (3) Except as provided by the rules, a solicitor is not liable to account to any client, other person or trust for interest received by the solicitor on money held at a bank or building society in an account which is for money received or held for, or on account of—

• (a) the solicitor's clients, other persons or trusts, generally, or

• (b) that client, person or trust, separately.

• (4) Rules under section 32 may—

• (a) prescribe the circumstances in which a solicitor may make arrangements to limit or exclude an obligation imposed on the solicitor by rules made by virtue of this section, and

• (b) prescribe the requirements to be met by and in relation to those arrangements.

Accountants' reports

34

• (1) The Society may make rules requiring solicitors to provide the Society with reports signed by an accountant (in this section referred to as an “accountant's report”) at such times or in such circumstances as may be prescribed by the rules.

• (2) The rules may specify requirements to be met by, or in relation to, an accountant's report (including requirements relating to the accountant who signs the report).

• (6) If any solicitor fails to comply with the provisions of any rules made under this section, a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) Where an accountant, during the course of preparing an accountant's report—

• (a) discovers evidence of fraud or theft in relation to money held by a solicitor for a client or any other person (including money held on trust) or money held in an account of a client of a solicitor, or an account of another person, which is operated by the solicitor, or

• (b) obtains information which the accountant has reasonable cause to believe is likely to be of material significance in determining whether a solicitor is a fit and proper person to hold money for clients or other persons (including money held on trust) or to operate an account of a client of the solicitor or an account of another person,

the accountant must immediately give a report of the matter to the Society.

• (10) No duty to which an accountant is subject is to be regarded as contravened merely because of any information or opinion contained in a report under subsection (9).

Intervention in solicitor’s practice, Compensation Fund and professional indemnity

Intervention in solicitor's practice

35

The powers conferred by Part II of Schedule 1 shall be exercisable in the circumstances specified in Part I of that Schedule.

Compensation Fund

36

• (1) The Society may make rules concerning the grant of compensation by the Society in respect of loss that a person has suffered, or is likely to suffer, as a result of—

• (a) an act or omission of a solicitor or former solicitor;

• (b) an act or omission of an employee or former employee of a solicitor or former solicitor;

• (c) the exercise by the Society of any of its powers under Part 2 of Schedule 1.

• (2) The rules may (among other things) make provision—

• (a) as to the circumstances in which such grants may and may not be made;

• (b) as to the form and manner in which a compensation claim is to be made;

• (c) as to the procedure for determining compensation claims;

• (d) for the making of grants in respect of a compensation claim before it is finally determined;

• (e) for a grant to be made by way of loan in such circumstances and on such terms as may be prescribed in, or determined in accordance with, the rules;

• (f) for a grant to be made by way of making good a deficiency in monies held in trust by the Society under paragraph 6 or 6A of Schedule 1;

• (g) as to the minimum and maximum grants payable in respect of a compensation claim (or a claim of a prescribed description);

• (h) for the Society to be subrogated, to such extent as may be prescribed, to any rights and remedies of a person to whom a grant is made in relation to the loss in respect of which the grant is made.

• (3) The circumstances which may be prescribed by virtue of subsection (2)(a) include in particular—

• (a) the nature of the loss;

• (b) in a case within subsection (1)(a) or (b), the nature of the act or omission.

• (4) For the purposes of subsection (2)(f), there is a deficiency if the monies mentioned in that subsection are insufficient to satisfy the claims of all persons with a beneficial interest in the monies.

• (5) The Society may prepare and publish guidance as to the criteria it will apply in deciding whether to make a grant in respect of a compensation claim, or any part of a compensation claim.

• (6) Where the Society decides—

• (a) not to make a grant in respect of a compensation claim or any part of a compensation claim, or

• (b) to make a grant of less than the amount claimed,

it must give reasons for its decision.

• (7) Rules under subsection (1) which are not regulatory arrangements within the meaning of the Legal Services Act 2007 are to be treated as such arrangements for the purposes of that Act.

• (8) In this section—

• “compensation claim” means a claim for the Society to make a grant of the kind mentioned in subsection (1);

• “prescribed” means prescribed in rules under subsection (1).

Professional indemnity

37

• (1) The Society may make rules (in this Act referred to as “indemnity rules”) concerning indemnity against loss arising from claims in respect of any description of civil liability incurred—

• (a) by a solicitor or former solicitor in connection with his practice or with any trust of which he is or formerly was a trustee;

• (b) by an employee or former employee of a solicitor or former solicitor in connection with that solicitor’s practice or with any trust of which that solicitor or the employee is or formerly was a trustee.

• (2) For the purpose of providing such indemnity, indemnity rules—

• (a) may authorise or require the Society to establish and maintain a fund or funds;

• (b) may authorise or require the Society to take out and maintain insurance with authorised insurers;

• (c) may require solicitors or any specified class of solicitors to take out and maintain insurance with authorised insurers.

• (3) Without prejudice to the generality of subsections (1) and (2), indemnity rules—

• (a) may specify the terms and conditions on which indemnity is to be available, and any circumstances in which the right to it is to be excluded or modified;

• (b) may provide for the management, administration and protection of any fund maintained by virtue of subsection (2)(a) and require solicitors or any class of solicitors to make payments to any such fund;

• (c) may require solicitors or any class of solicitors to make payments by way of premium on any insurance policy maintained by the Society by virtue of subsection (2)(b);

• (d) may prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (2)(c);

• (e) may authorise the Society to determine the amount of any payments required by the rules, subject to such limits, or in accordance with such provisions, as may be prescribed by the rules;

• (f) may specify circumstances in which, where a solicitor for whom indemnity is provided has failed to comply with the rules, the Society or insurers may take proceedings against him in respect of sums paid by way of indemnity in connection with a matter in relation to which he has failed to comply;

• (g) may specify circumstances in which solicitors are exempt from the rules;

• (h) may empower the Society to take such steps as it considers necessary or expedient to ascertain whether or not the rules are being , or have been, complied with; and

• (i) may contain incidental, procedural or supplementary provisions.

• (4) If any solicitor fails to comply with indemnity rules, any person may make a complaint in respect of that failure to the Tribunal.

• (5) The Society shall have power, without prejudice to any of its other powers, to carry into effect any arrangements which it considers necessary or expedient for the purpose of indemnity under this section.

Restrictions on practice as solicitor

Solicitor who is justice of the peace not to act in certain proceedings

38

• (1) Subject to the provisions of this section, it shall not be lawful for any solicitor who is one of the justices of the peace assigned to any local justice area, or for any partner of his, to act in connection with proceedings before any justice of the peace acting in that area as solicitor or agent for the solicitor of any person concerned in those proceedings.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) Subsection (1) does not apply where a solicitor is a Deputy District Judge (Magistrates’ Courts); but where a solicitor is acting as a Deputy District Judge (Magistrates’ Courts) in any local justice area it shall not be lawful for him, or for any partner of his, to act in connection with proceedings before any justice of the peace acting in that area as solicitor or agent for the solicitor of any person concerned in those proceedings.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Solicitor not to act as agent for unqualified person

39

Solicitor not to commence or defend actions while in prison

40

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on employment of certain persons

Employment by solicitor of person struck off or suspended

41

• (1) No solicitor shall, except in accordance with a written permission granted under this section, employ or remunerate in connection with his practice as a solicitor any person who to his knowledge is disqualified from practising as a solicitor by reason of the fact that—

• (a) his name has been struck off the roll, or

• (b) he is suspended from practising as a solicitor, or

• (c) his practising certificate is suspended while he is an undischarged bankrupt.

• (1A) No solicitor shall, except in accordance with a written permission granted under this section, employ or remunerate in connection with his practice as a solicitor any person if, to his knowledge, there is a direction in force under section 47(2)(g) in relation to that person.

• (1B) Where—

• (a) a solicitor (“the employed solicitor”) is employed by another solicitor in accordance with a written permission granted under this section, and

• (b) the employed solicitor is disqualified from practising as a solicitor by reason of a fact mentioned in subsection (1)(b) or (c),

section 20(1) does not apply in relation to anything done by the employed solicitor in the course of that employment.

• (2) The Society may grant a permission under this section for such period and subject to such conditions as the Society thinks fit.

• (3) A solicitor aggrieved by the refusal of the Society to grant a permission under subsection (2), or by any conditions attached by the Society to the grant of any such permission, may appeal to the High Court which may—

• (a) confirm the refusal or the conditions, as the case may be; or

• (b) grant a permission under this section for such period and subject to such conditions as it thinks fit.

• (4) If any solicitor acts in contravention of this section or of any conditions subject to which a permission has been granted under it, the Tribunal or, as the case may be, the High Court may—

• (a) order that his name be struck off the roll,

• (b) order that he be suspended from practice for such period as the Tribunal or court thinks fit, or

• (c) make such other order in the matter as it thinks fit.

• (4A) In relation to an appeal under subsection (3) the High Court may make such order as it thinks fit as to payment of costs.

• (4B) The decision of the High Court on an appeal under subsection (3) shall be final.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to disclose fact of having been struck off or suspended

42

• (1) Any person who, while he is disqualified from practising as a solicitor by reason of the fact that—

• (a) his name has been struck off the roll, or

• (b) he is suspended from practising as a solicitor, or

• (c) his practising certificate is suspended while he is an undischarged bankrupt,

seeks or accepts employment by a solicitor in connection with that solicitor’s practice without previously informing him that he is so disqualified shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

• (1A) Any person—

• (a) with respect to whom a direction is in force under section 47(2)(g); and

• (b) who seeks or accepts employment by a solicitor in connection with that solicitor’s practice without previously informing him of the direction,

shall be guilty of an offence and liable on summary conviction to a fine not exceeding level three on the standard scale.

• (2) Notwithstanding anything in the Magistrates’ Courts Act 1980, proceedings under this section may be commenced at any time before the expiration of six months from the first discovery of the offence by the prosecutor, but no such proceedings shall be commenced except by, or with the consent of, the Attorney General.

Control of employment of certain clerks

43

• (1) Where a person who is or was involved in a legal practice but is not a solicitor—

• (a) has been convicted of a criminal offence which is such that in the opinion of the Society it would be undesirable for the person to be involved in a legal practice in one or more of the ways mentioned in subsection (1A), or

• (b) has, in the opinion of the Society, occasioned or been a party to, with or without the connivance of a solicitor, an act or default in relation to a legal practice which involved conduct on his part of such a nature that in the opinion of the Society it would be undesirable for him to be involved in a legal practice in one or more of the ways mentioned in subsection (1A),

the Society may either make, or make an application to the Tribunal for it to make, an order under subsection (2) with respect to that person.

• (1A) A person is involved in a legal practice for the purposes of this section if the person—

• (a) is employed or remunerated by a solicitor in connection with the solicitor's practice;

• (b) is undertaking work in the name of, or under the direction or supervision of, a solicitor;

• (c) is employed or remunerated by a recognised body;

• (d) is employed or remunerated by a manager or employee of a recognised body in connection with that body's business;

• (e) is a manager of a recognised body;

• (f) has or intends to acquire an interest in such a body.

• (2) An order made by the Society or the Tribunal under this subsection is an order which states one or more of the following—

• (a) that as from the specified date—

• (i) no solicitor shall employ or remunerate, in connection with his practice as a solicitor, the person with respect to whom the order is made,

• (ii) no employee of a solicitor shall employ or remunerate, in connection with the solicitor's practice, the person with respect to whom the order is made,

• (iii) no recognised body shall employ or remunerate that person, and

• (iv) no manager or employee of a recognised body shall employ or remunerate that person in connection with the business of that body,

except in accordance with a Society permission;

• (b) that as from the specified date no recognised body or manager or employee of such a body shall, except in accordance with a Society permission, permit the person with respect to whom the order is made to be a manager of the body;

• (c) that as from the specified date no recognised body or manager or employee of such a body shall, except in accordance with a Society permission, permit the person with respect to whom the order is made to have an interest in the body.

• (2A) The Society may make regulations prescribing charges to be paid to the Society by persons who are the subject of an investigation by the Society as to whether there are grounds for the Society—

• (a) to make an order under subsection (2), or

• (b) to make an application to the Tribunal for it to make such an order.

• (2B) Regulations under subsection (2A) may—

• (a) make different provision for different cases or purposes;

• (b) provide for the whole or part of a charge payable under the regulations to be repaid in such circumstances as may be prescribed by the regulations.

• (2C) Any charge which a person is required to pay under regulations under subsection (2A) is recoverable by the Society as a debt due to the Society from the person.

• (3) Where an order has been made under subsection (2) with respect to a person by the Society or the Tribunal—

• (a) that person or the Society may make an application to the Tribunal for it to be reviewed, and

• (b) whichever of the Society and the Tribunal made it may at any time revoke it.

• (3A) On the review of an order under subsection (3) the Tribunal may order—

• (a) the quashing of the order;

• (b) the variation of the order; or

• (c) the confirmation of the order;

and where in the opinion of the Tribunal no prima facie case for quashing or varying the order is shown, the Tribunal may order its confirmation without hearing the applicant.

• (4) The Tribunal, on the hearing of any application under this section, may make an order as to the payment of costs by any party to the application.

• (5) Orders made under subsection (2) by the Society, or made, varied or confirmed under this section by the Tribunal and filed with the Society, may be inspected . . . during office hours without payment . . . .

• (5A) In this section—

• “manager”, in relation to a recognised body, has the same meaning as it has in relation to a body in the Legal Services Act 2007 (see section 207 of that Act);

• “recognised body” means a body recognised under section 9 of the Administration of Justice Act 1985;

• “specified date” means such date as may be specified in the order;

• “Society permission” means permission in writing granted by the Society for such period and subject to such conditions as the Society may think fit to specify in the permission.

• (5B) A person has an interest in a recognised body for the purposes of this section if the person has an interest in that body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act).

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) For the purposes of this section an order discharging a person absolutely or conditionally in respect of an offence shall, notwithstanding anything in section 82 of the Sentencing Code, be deemed to be a conviction of the offence for which the order was made.

Offences in connection with orders under section 43(2)

44

• (1) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(a)—

• (a) to seek or accept any employment or remuneration from a solicitor, or an employee of a solicitor, in connection with the practice carried on by that solicitor without previously informing the solicitor or employee of the order;

• (b) to seek or accept any employment or remuneration from a recognised body, or a manager or employee of a recognised body, in connection with that body's business, without previously informing the body, or manager or employee, of the order.

• (1A) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(b) to seek or accept a position as a manager of a recognised body, without previously informing that body of the order.

• (1B) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(c) to seek or accept an interest in a recognised body from any person, without previously informing that person and (if different) the recognised body of the order.

• (1C) A person guilty of an offence under subsection (1), (1A) or (1B) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

• (2) Where an order under section 43(2) is in force in respect of a person then, if any solicitor knowingly acts in contravention of that order or of any conditions subject to which permission for the taking of any action has been granted under it, a complaint in respect of that contravention may be made to the Tribunal by or on behalf of the Society.

• (3) Any document purporting to be an order under section 43(2) and to be duly signed in accordance with section 48(1) shall be received in evidence in any proceedings under this section and be deemed to be such an order without further proof unless the contrary is shown.

• (4) Notwithstanding anything in the Magistrates’ Courts Act 1980, proceedings under subsection (1) may be commenced at any time before the expiration of six months from the first discovery of the offence by the prosecutor, but no such proceedings shall be commenced, except with the consent of the Director of Public Prosecutions, by any person other than the Society or a person acting on behalf of the Society.

• (5) In this section—

• “manager” has the same meaning as in section 43;

• “recognised body” means a body recognised under section 9 of the Administration of Justice Act 1985;

and for the purposes of subsection (1B) a person seeks or accepts an interest in a recognised body if the person seeks or accepts an interest which if it were obtained by the person would result in the person having an interest in that body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act).

Lay observers

Investigation by lay observers of Society's treatment of complaints

45

Disciplinary proceedings before Solicitors Disciplinary Tribunal

Solicitors Disciplinary Tribunal

46

• (1) Applications and complaints made by virtue of any provision of this Act shall be made, except so far as other provision is made by this Act or by any regulations under it, to the tribunal known as the “Solicitors Disciplinary Tribunal”.

• (2) The Master of the Rolls shall appoint the members of the Tribunal.

• (3) The Tribunal shall consist—

• (a) of practising solicitors of not less than ten years’ standing (in this section referred to as “solicitor members”); and

• (b) of persons who are neither solicitors nor barristers (in this section referred to as “lay members”).

• (4) A member of the Tribunal shall hold and vacate his office in accordance with the terms of his appointment and shall, on ceasing to hold office, be eligible for re–appointment.

• (5) The Tribunal may pay its members such remuneration, fees or allowances as it may determine with the approval of the Legal Services Board.

• (5A) The Tribunal may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) The Tribunal . . . may make rules—

• (a) empowering the Tribunal to elect a solicitor member to be its president; and

• (b) about the procedure and practice to be followed in relation to the making, hearing and determination of applications and complaints (including provision about the composition of the Tribunal).

• (10) Without prejudice to the generality of subsection (9)(b), rules made by virtue of that paragraph may in particular—

• (a) empower the president of the Tribunal to appoint a chairman for the hearing and determination of any application or complaint;

• (b) provide that, if the president does not appoint a chairman, a solicitor member shall act as chairman; and

• (c) provide, in relation to any application or complaint relating to a solicitor, that, where in the opinion of the Tribunal no prima facie case in favour of the applicant or complainant is shown in the application or complaint, the Tribunal may make an order refusing the application or dismissing the complaint without requiring the solicitor to whom it relates to answer the allegations and without hearing the applicant or complainant.

• (11) For the purposes of any application or complaint made to the Tribunal under this Act, the Tribunal may administer oaths, and the applicant or complainant and any person with respect to whom the application or complaint is made (or, in the case of an application under section 47(1)(b), any of the parties to the application) may issue writs of subpoena ad testificandum and duces tecum, but no person shall be compelled under any such writ to produce any document which he could not be compelled to produce on the trial of an action.

• (12) The power to make rules conferred by subsection (9) shall be exercisable by statutory instrument, and the Statutory Instruments Act 1946 shall apply to a statutory instrument containing such rules in like manner as if the rules had been made by a Minister of the Crown.

Jurisdiction and powers of Tribunal

47

• (1) Any application—

• (a) to strike the name of a solicitor off the roll;

• (b) to require a solicitor to answer allegations contained in an affidavit;

• (c) to require a former solicitor whose name has been removed from or struck off the roll to answer allegations contained in an affidavit relating to a time when he was a solicitor;

• (d) by a solicitor who has been suspended from practice for an unspecified period, by order of the Tribunal, for the termination of that suspension;

• (e) by a former solicitor whose name has been struck off the roll to have his name restored to the roll;

• (ea) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) by a former solicitor in respect of whom a direction has been given under subsection (2)(g) to have his name restored to the roll,

shall be made to the Tribunal; but nothing in this susbsection shall affect any jurisdiction over solicitors exercisable by the Master of the Rolls, or by any judge of the High Court, by virtue of section 50.

• (2) Subject to subsections (2E) and (3) and to section 54, on the hearing of any application or complaint made to the Tribunal under this Act, other than an application under section 43, the Tribunal shall have power to make such order as it may think fit, and any such order may in particular include provision for any of the following matters—

• (a) the striking off the roll of the name of the solicitor to whom the application or complaint relates;

• (b) the suspension of that solicitor from practice indefinitely or for a specified period;

• (ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (bb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) the payment by that solicitor or former solicitor of a penalty . . . , which shall be forfeit to Her Majesty;

• (d) in the circumstances referred to in subsection (2A), the exclusion of that solicitor from criminal legal aid work (either permanently or for a specified period);

• (e) the termination of that solicitor’s unspecified period of suspension from practice;

• (ea) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) the restoration to the roll of the name of a former solicitor whose name has been struck off the roll and to whom the application relates;

• (g) in the case of a former solicitor whose name has been removed from the roll, a direction prohibiting the restoration of his name to the roll except by order of the Tribunal;

• (h) in the case of an application under subsection (1)(f), the restoration of the applicant’s name to the roll;

• (i) the payment by any party of costs or a contribution towards costs of such amount as the Tribunal may consider reasonable.

• (2A) An order of the Tribunal may make provision for the exclusion of a solicitor from criminal legal aid work as mentioned in subsection (2)(d) where the Tribunal determines that there is good reason for doing so arising out of—

• (a) his conduct, including conduct in the capacity of agent for another solicitor, in connection with the provision for any person of services provided under arrangements made for the purposes of Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012; or

• (b) his professional conduct generally.

• (2B) Where the Tribunal makes any such order as is re–referred to in subsection (2A) in the case of a solicitor who is a member of a firm of solicitors, the Tribunal may, if it thinks fit, order that any other person who is for the time being a member of the firm shall be excluded (either permanently or for a specified period) from criminal legal aid work.

• (2C) The Tribunal shall not make an order under subsection (2B) . . . unless an opportunity is given to him to show cause why the order should not be made.

• (2D) Any person excluded from criminal legal aid work by an order under this section may make an application to the Tribunal for an order terminating his exclusion ....

• (2E) On the hearing of any complaint made to the Tribunal by virtue of section 34A(2) or (3), the Tribunal shall have power to make one or more of the following—

• (a) an order directing the payment by the employee to whom the complaint relates of a penalty to be forfeited to Her Majesty;

• (b) an order requiring the Society to consider taking such steps as the Tribunal may specify in relation to that employee;

• (c) if that employee is not a solicitor, an order which states one or more of the matters mentioned in paragraphs (a) to (c) of section 43(2);

• (d) an order requiring the Society to refer to an appropriate regulator any matter relating to the conduct of that employee.

• (2F) Subsections (1) to (1C), (3) and (4) of section 44 apply in relation to an order under subsection (2E)(c) as they apply in relation to an order under section 43(2).

• (2G) Section 44(2), paragraph 16(1)(d) and (1A)(d) of Schedule 2 to the Administration of Justice Act 1985 and paragraph 15(3A) of Schedule 14 to the Courts and Legal Services Act 1990 apply in relation to an order under subsection (2E)(c) as they apply in relation to an order under section 43(2).

• (2H) For the purposes of subsection (2E)(d) an “ appropriate regulator ” in relation to an employee means—

• (a) if the employee is an authorised person in relation to a reserved legal activity (within the meaning of the Legal Services Act 2007), any relevant approved regulator (within the meaning of that Act) in relation to that employee, and

• (b) if the employee carries on activities which are not reserved legal activities (within the meaning of that Act), any body which regulates the carrying on of such activities by the employee.

• (3) On proof of the commission of an offence with respect to which express provision is made by any section of this Act, the Tribunal shall, without prejudice to its power of making an order as to costs, impose the punishment, or one of the punishments, specified in that section.

• (3A) Where, on the hearing of any application or complaint under this Act, the Tribunal is satisfied that more than one allegation is proved against the person to whom the application or complaint relates it may impose a separate penalty (by virtue of subsection (2)( c ) ) with respect to each such allegation.

• (3B) For the avoidance of doubt, nothing in this section permits the Tribunal to make an order requiring redress to be made in respect of any act or omission of any person.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3C) In this section “criminal legal aid work” means the provision under arrangements made for the purposes of Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 of—

• (a) advice or assistance described in section 13 or 15 of that Act, or

• (b) representation for the purposes of criminal proceedings.

Orders of Tribunal

48

• (1) An order of the Tribunal shall be filed with the Society, and a statement of the Tribunal’s findings, signed by the chairman or by some other member of the Tribunal authorised by him in that behalf, shall either be prefaced to the order or added to the file containing the order as soon as may be after the order has been made.

• (2) Where an order which has been filed includes provision for any of the matters referred to in paragraphs (a) to (i) of section 47(2), the Society—

• (a) shall cause a note of the effect of the order to be entered on the roll against the name of the solicitor or former solicitor with respect to whom the application or complaint was made; and

• (b) except where it only makes provision for matters referred to in paragraph (e), (ea), (f), (h) or (i) of section 47(2), shall forthwith upon filing the order cause a notice stating its effect to be published ....

• (3) Any file kept by the Society under this section may be inspected during office hours without payment.

• (4) An order which has been filed shall be treated, for the purpose of enforcement, as if it had been made by the High Court.

• (5) In the case of orders of the Tribunal under section 44E, the reference in subsection (2)(a) to the application or complaint is to be read as a reference to the Tribunal's order.

Appeals from Tribunal

49

• (1) An appeal from the Tribunal shall lie to the High Court.

• (2) Subject to subsection (3) and to section 43(5) of the Administration of Justice Act 1985, an appeal shall lie at the instance of the applicant or complainant or of the person with respect to whom the application or complaint was made.

• (3) An appeal against an order under section 43(3A) shall lie only at the instance of the person with respect to whom the order was made.

• (4) The High Court ... shall have power to make such order on an appeal under this section as it may think fit.

• (5) Subject to any rules of court, on an appeal against an order made by virtue of rules under section 46(10)(c) without hearing the applicant or complainant, the court—

• (a) shall not be obliged to hear the appellant, and

• (b) may remit the matter to the Tribunal instead of dismissing the appeal,

• (6) Any decision of the High Court—

• (a) on an application under section 43(3) or 47(1)(d), (e), (ea) or (f), or

• (b) against an order under section 43(3A),

shall be final.

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disciplinary proceedings before Supreme Court

Jurisdiction of Supreme Court over solicitors

50

• (1) Any person duly admitted as a solicitor shall be an officer of the Senior Courts; ...

• (2) Subject to the provisions of this Act, the High Court, the Crown Court and the Court of Appeal respectively, or any division or judge of those courts, may exercise the same jurisdiction in respect of solicitors as any one of the superior courts of law or equity from which the Senior Courts were constituted might have exercised immediately before the passing of the Supreme Court of Judicature Act 1873 in respect of any solicitor, attorney or proctor admitted to practise there.

• (3) An appeal shall lie to the Court of Appeal from any order made against a solicitor by the High Court or the Crown Court in the exercise of its jurisdiction in respect of solicitors under subsection (2).

Procedure upon certain applications to High Court

51

• (1) Where an application to strike the name of a solicitor off the roll or to require a solicitor to answer allegations contained in an affidavit is made to the High Court, then, subject to section 54, the following provisions of this section shall have effect in relation to that application.

• (2) The court shall not entertain the application except on production of an affidavit proving that the applicant has served on the Society fourteen clear days’ notice of his intention to make the application, together with copies of all affidavits intended to be used in support of the application.

• (3) The Society may appear by counsel on the hearing of the application and any other proceedings arising out of or in reference to the application, and may apply to the court—

• (a) to make absolute any order nisi which the court may have made on the application;

• (b) to make an order that the name of the solicitor be struck off the roll; or

• (c) to make such other order as the court may think fit.

• (4) The court may order the costs of the Society of or relating to any of the matters mentioned in subsections (2) and (3) to be paid by the solicitor against whom, or by the person by whom, the application was made, or was intended to be made, or partly by one and partly by the other of them.

Power of Society to draw up order of court

52

Where an order, whether nisi or absolute, is made by the High Court or the Court of Appeal on a motion to strike the name of a solicitor off the roll, or to require a solicitor to answer allegations contained in an affidavit, and that order is not drawn up by the applicant within one week of its being made, the Society may cause the order to be drawn up, and all future proceedings on the order shall be taken as if the motion had been made by the Society.

Production of order of court to Society

53

Where an order is made by the High Court or the Court of Appeal that the name of a solicitor be struck off the roll, or that a solicitor be suspended from practice, the proper officer of the court shall forthwith send a copy of the order to the Society, and the Society shall enter a note of the order on the roll against the name of the solicitor and, where the order so directs, shall strike that name off the roll.

Disciplinary proceedings—general

Restrictions on powers to strike names off roll

54

• (1) No solicitor shall be liable to have his name struck off the roll on account of any failure to comply with the requirements with respect to persons seeking admission as solicitors of any training regulations or on account of any defect in his admission and enrolment, unless—

• (a) the application to strike his name off the roll is made within twelve months of the date of his enrolment; or

• (b) fraud is proved to have been committed in connection with the failure or defect.

• (2) No solicitor shall be liable to have his name struck off the roll by reason only—

• (a) that a solicitor who undertook a training responsibility for him under training regulations neglected or omitted to take out a practising certificate; or

• (b) that the name of a solicitor who undertook such a responsibility for a period has been removed from or struck off the roll after the end of that period.

Applications to require solicitor to answer allegations

55

For the avoidance of doubt it is hereby declared that an application by any person to require a solicitor to answer allegations contained in an affidavit, whether that application is made to the Tribunal or to the High Court, may be treated as an application to strike the name of that solicitor off the roll on the grounds of the matters alleged.

Part III — Remuneration of Solicitors

Non–contentious business

Orders as to remuneration for non-contentious business

56

• (1) For the purposes of this section there shall be a committee consisting of the following persons—

• (a) the Lord Chancellor;

• (b) the Lord Chief Justice;

• (c) the Master of the Rolls;

• (d) the President of the Society;

• (da) a member of the Legal Services Board nominated by that Board;

• (e) a solicitor, being the president of a local law society, nominated by the Lord Chancellor to serve on the committee during his tenure of office as president; and

• (f) for the purpose only of prescribing and regulating the remuneration of solicitors in respect of business done under the Land Registration Act 2002, the Chief Land Registrar appointed under that Act.

• (2) The committee, or any three members of the committee (the (the Lord Chancellor being one), may make general orders prescribing the general principles to be applied when determining the remuneration of solicitors in respect of non–contentious business.

• (3) The Lord Chancellor, before any order under this section is made, shall cause a draft of the order to be sent to the Society; and the committee shall consider any observations of the Society submitted to them in writing within one month of the sending of the draft, and may then make the order, either in the form of the draft or with such alterations or additions as they may think fit.

• (4) The principles prescribed by an order under this section may provide that solicitors should be remunerated—

• (b) by a gross sum; or

• (c) by a fixed sum for each document prepared or perused, without regard to length; or

• (d) in any other mode; or

• (e) partly in one mode and partly in another.

• (5) The general principles prescribed by an order under this section may provide that the amount of such remuneration is to be determined by having regard to all or any of the following, among other, considerations, that is to say—

• (a) the position of the party for whom the solicitor is concerned in the business, that is, whether he is vendor or purchaser, lessor or lessee, mortgagor or mortgagee, or the like;

• (b) the place where, and the circumstances in which, the business or any part of it is transacted;

• (c) the amount of the capital money or rent to which the business relates;

• (d) the skill, labour and responsibility on the part of the solicitor , or any employee of his who is an authorised person, which the business involves;

• (e) the number and importance of the documents prepared or perused, without regard to length.

• (5A) In subsection (5) “authorised person” means a person who is an authorised person in relation to an activity which is a reserved legal activity, within the meaning of the Legal Services Act 2007 (see section 18 of that Act).

• (6) An order under this section may authorise and regulate—

• (a) the taking by a solicitor from his client of security for payment of any remuneration, to be ascertained by assessment or otherwise, which may become due to him under any such order; and

• (b) the allowance of interest.

• (7) So long as an order made under this section is in operation the assessment of bills of costs of solicitors in respect of non–contentious business shall, subject to the provisions of section 57, be subject to that order.

• (8) Any order made under this section may be varied or revoked by a subsequent order so made.

• (9) The power to make orders under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and the Statutory Instruments Act 1946 shall apply to a statutory instrument containing such an order in like manner as if the order had been made by a Minister of the Crown.

Non-contentious business agreements

57

• (1) Whether or not any order is in force under section 56, a solicitor and his client may, before or after or in the course of the transaction of any non–contentious business by the solicitor, make an agreement as to his remuneration in respect of that business.

• (2) The agreement may provide for the remuneration of the solicitor by a gross sum or by reference to an hourly rate, or by a commission or percentage, or by a salary, or otherwise, and it may be made on the terms that the amount of the remuneration stipulated for shall or shall not include all or any disbursements made by the solicitor in respect of searches, plans, travelling, taxes , fees or other matters.

• (3) The agreement shall be in writing and signed by the person to be bound by it or his agent in that behalf.

• (4) Subject to subsections (5) and (7), the agreement may be sued and recovered on or set aside in the like manner and on the like grounds as an agreement not relating to the remuneration of a solicitor.

• (5) If on any assessment of costs the agreement is relied on by the solicitor and objected to by the client as unfair or unreasonable, the costs officer may enquire into the facts and certify them to the court, and if from that certificate it appears just to the court that the agreement should be set aside, or the amount payable under it reduced, the court may so order and may give such consequential directions as it thinks fit.

• (6) Subsection (7) applies where the agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

• (7) If, on the assessment of any costs, the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the costs officer may enquire into—

• (a) the number of hours worked by the solicitor; and

• (b) whether the number of hours worked by him was excessive.

Remuneration of a solicitor who is a mortgagee

58

• (1) Where a mortgage is made to a solicitor, either alone or jointly with any other person, he or the firm of which he is a member shall be entitled to recover from the mortgagor in respect of all business transacted and acts done by him or them in negotiating the loan, deducing and investigating the title to the property, and preparing and completing the mortgage, such usual costs as he or they would have been entitled to receive if the mortgage had been made to a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

• (2) Where a mortgage has been made to, or has become vested by transfer or transmission in, a solicitor, either alone or jointly with any other person, and any business is transacted or acts are done by that solicitor or by the firm of which he is a member in relation to that mortgage or the security thereby created or the property thereby charged, he or they shall be entitled to recover from the person on whose behalf the business was transacted or the acts were done, and to charge against the security, such usual costs as he or they would have been entitled to receive if the mortgage had been made to and had remained vested in a person who was not a solicitor and that person had retained and employed him or them to transact that business and do those acts.

• (3) In this section “mortgage” includes any charge on any property for securing money or money’s worth.

Contentious business

Contentious business agreements

59

• (1) Subject to subsection (2), a solicitor may make an agreement in writing with his client as to his remuneration in respect of any contentious business done, or to be done, by him (in this Act referred to as a “contentious business agreement”) providing that he shall be remunerated by a gross sum or by reference to an hourly rate, or by a salary, or otherwise, and whether at a higher or lower rate than that at which he would otherwise have been entitled to be remunerated.

• (2) Nothing in this section or in sections 60 to 63 shall give validity to—

• (a) any purchase by a solicitor of the interest, or any part of the interest, of his client in any action, suit or other contentious proceeding; or

• (b) any agreement by which a solicitor retained or employed to prosecute any action, suit or other contentious proceeding, stipulates for payment only in the event of success in that action, suit or proceeding; or

• (c) any disposition, contract, settlement, conveyance, delivery, dealing or transfer which under the law relating to bankruptcy is invalid against a trustee or creditor in any bankruptcy or composition.

Effect of contentious business agreements

60

• (1) Subject to the provisions of this section and to sections 61 to 63, the costs of a solicitor in any case where a contentious business agreement has been made shall not be subject to assessment or (except in the case of an agreement which provides for the solicitor to be remunerated by reference to an hourly rate) to the provisions of section 69.

• (2) Subject to subsection (3), a contentious business agreement shall not affect the amount of, or any rights or remedies for the recovery of, any costs payable by the client to, or to the client by, any person other than the solicitor, and that person may, unless he has otherwise agreed, require any such costs to be assessed according to the rules for their assessment for the time being in force.

• (3) A client shall not be entitled to recover from any other person under an order for the payment of any costs to which a contentious business agreement relates more than the amount payable by him to his solicitor in respect of those costs under the agreement.

• (4) A contentious business agreement shall be deemed to exclude any claim by the solicitor in respect of the business to which it relates other than—

• (a) a claim for the agreed costs; or

• (b) a claim for such costs as are expressly excepted from the agreement.

• (5) A provision in a contentious business agreement that the solicitor shall not be liable for his negligence, or that of any employee of his, shall be void if the client is a natural person who, in entering that agreement, is acting for purposes which are outside his trade, business or profession.

• (6) A provision in a contentious business agreement that the solicitor shall be relieved from any responsibility to which he would otherwise be subject as a solicitor shall be void.

Enforcement of contentious business agreements

61

• (1) No action shall be brought on any contentious business agreement, but on the application of any person who—

• (a) is a party to the agreement or the representative of such a party; or

• (b) is or is alleged to be liable to pay, or is or claims to be entitled to be paid, the costs due or alleged to be due in respect of the business to which the agreement relates,

the court may enforce or set aside the agreement and determine every question as to its validity or effect.

• (2) On any application under subsection (1), the court—

• (a) if it is of the opinion that the agreement is in all respects fair and reasonable, may enforce it;

• (b) if it is of the opinion that the agreement is in any respect unfair or unreasonable, may set it aside and order the costs covered by it to be assessed as if it had never been made;

• (c) in any case, may make such order as to the costs of the application as it thinks fit.

• (3) If the business covered by a contentious business agreement (not being an agreement to which section 62 applies) is business done, or to be done, in any action, a client who is a party to the agreement may make application to a costs officer of the court for the agreement to be examined.

• (4) A costs officer before whom an agreement is laid under subsection (3) shall examine it and may either allow it, or, if he is of the opinion that the agreement is unfair or unreasonable, require the opinion of the court to be taken on it, and the court may allow the agreement or reduce the amount payable under it, or set it aside and order the costs covered by it to be assessed as if it had never been made.

• (4A) Subsection (4B) applies where a contentious business agreement provides for the remuneration of the solicitor to be by reference to an hourly rate.

• (4B) If on the assessment of any costs the agreement is relied on by the solicitor and the client objects to the amount of the costs (but is not alleging that the agreement is unfair or unreasonable), the costs officer may enquire into—

• (a) the number of hours worked by the solicitor; and

• (b) whether the number of hours worked by him was excessive.

• (5) Where the amount agreed under any contentious business agreement is paid by or on behalf of the client or by any person entitled to do so, the person making the payment may at any time within twelve months from the date of payment, or within such further time as appears to the court to be reasonable, apply to the court, and, if it appears to the court that the special circumstances of the case require it to be re–opened, the court may, on such terms as may be just, re–open it and order the costs covered by the agreement to be assessed and the whole or any part of the amount received by the solicitor to be repaid by him.

• (6) In this section and in sections 62 and 63 “the court” means—

• (a) in relation to an agreement under which any business has been done in any court having jurisdiction to enforce and set aside agreements, any such court in which any of that business has been done;

• (b) in relation to an agreement under which no business has been done in any such court, and under which more than £50 is payable, the High Court;

• (c) in relation to an agreement under which no business has been done in any such court and under which not more than £50 is payable, the county court which would, but for the provisions of subsection (1) prohibiting the bringing of an action on the agreement, have had jurisdiction in any action on it;

and for the avoidance of doubt it is hereby declared that in paragraph (a) “court having jurisdiction to enforce and set aside agreements” includes the county court.

Contentious business agreements by certain representatives

62

• (1) Where the client who makes a contentious business agreement makes it as a representative of a person whose property will be chargeable with the whole or part of the amount payable under the agreement, the agreement shall be laid before a costs officer of the court before payment.

• (2) A costs officer before whom an agreement is laid under subsection (1) shall examine it and may either allow it, or, if he is of the opinion that it is unfair or unreasonable, require the opinion of the court to be taken on it, and the court may allow the agreement or reduce the amount payable under it, or set it aside and order the costs covered by it to be assessed as if it had never been made.

• (3) A client who makes a contentious business agreement as mentioned in subsection (1) and pays the whole or any part of the amount payable under the agreement without it being allowed by the officer or by the court shall be liable at any time to account to the person whose property is charged with the whole or any part of the amount so paid for the sum so charged, and the solicitor who accepts the payment may be ordered by the court to refund the amount received by him.

• (4) A client makes a contentious business agreement as the representative of another person if he makes it—

• (a) as his guardian,

• (b) as a trustee for him under a deed or will,

• (c) as a deputy for him appointed by the Court of Protection with powers in relation to his property and affairs, or

• (d) as another person authorised under that Act to act on his behalf.

Effect on contentious business agreement of death, incapability or change of solicitor

63

• (1) If, after some business has been done under a contentious business agreement but before the solicitor has wholly performed it—

• (a) the solicitor dies, or becomes incapable of acting; or

• (b) the client changes his solicitor (as, notwithstanding the agreement, he shall be entitled to do),