Solicitors Act 1974

Where an offence under this Schedule committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

15

Any application to the High Court under this Schedule may be disposed of in chambers.

16

The Society may do all things which are reasonably necessary for the purpose of facilitating the exercise of its powers under this Schedule.

SCHEDULE 2

1

The fund shall be maintained and administered by the Society and shall be held by the Society on trust for the purposes provided for in section 36 and this Schedule.

2

• (1) Subject to sub–paragraphs (2) and (2A), every solicitor—

• (a) shall on each occasion on which he applies for a practising certificate pay to the Society with the fee payable in respect of that certificate under section 11 a contribution (in this Schedule referred to as an “annual contribution”) of such amount as the Council may from time to time determine; and

• (b) where it appears from his application for a practising certificate that he has held or received clients’ money at any time during the period specified in the application, shall also, if so required by the Society, pay to the Society, before the issue of the certificate, a further contribution (in this Schedule referred to as a “special levy”) of such amount . . . as the Council may from time to time determine.

• (2) An annual contribution and a special levy—

• (a) shall not be payable in respect of the first three practising certificates to be issued to a solicitor after his admission; and

• (b) shall be payable in the reduced amount mentioned in sub–paragraph (3) in respect of the next three certificates to be so issued.

• (2A) Sub–paragraph (1) above shall not apply to any solicitor who is a Crown Prosecutor.

• (3) The reduced amount referred to in sub–paragraph (2)(b) is one–half of the amount which would otherwise be payable.

• (3A) The Council may require a solicitor to pay an annual contribution of a reduced amount where that payment is made with respect to a practising certificate which has a replacement date which is less than 12 months after the replacement date of the solicitor’s previous practising certificate.

• (3B) Where it appears from his application for a practising certificate that a solicitor has not held or received clients’ money at any time during the period specified in the application, the Council may require him—

• (a) to pay an annual contribution of a specified reduced amount on that application, or

• (b) to pay no annual contribution on that application.

• (4) All annual contributions and special levies received by the Society under this paragraph shall be paid into the fund.

3

The Society may invest any money which forms part of the fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

4

. . . the Society may borrow for the purposes of the fund from any lender and may charge any investments of the fund by way of security for any such loan; but the aggregate sum owing at any one time in respect of such loans shall not exceed £100,000.

5

The Society may insure with authorised insurers for such purposes and on such terms as the Council may deem expedient in relation to the fund.

6

There shall be carried to the credit of the fund—

• (a) all annual contributions and special levies paid to the Society in pursuance of paragraph 2;

• (b) all interest, dividends and other income and accretions of capital arising from the investment of the fund or any part of it;

• (c) the proceeds of any realisation of any investments of the fund;

• (d) all money borrowed for the purposes of the fund;

• (e) all sums received by the Society under any insurance effected by the society under paragraph 5;

• (f) all sums received by the Society under section 36(4); and

• (g) any other money which may belong or accrue to the fund or be received by the Society in respect of the fund.

7

All money from time to time forming part of the fund and all investments of the fund shall be applicable—

• (a) for payment of any costs, charges and expenses of establishing, maintaining, administering and applying the fund;

• (b) for payment of any premiums on insurances affected by the Society under paragraph 5;

• (c) for repayment of any money borrowed by the Society for the purposes of the fund and for payment of interest on any money so borrowed;

• (d) for payment of any grants which the Society may make under section 36;

• (e) for payment of all costs, charges and expenses incurred by the Society by virtue of paragraph 1(1)(a) of Schedule 1 and of any costs or damages incurred by the Society or its employees or agents as a result of proceedings against the Society or its employees or agents for any act or omission done or made by it or them in good faith and in the execution or purported execution of the powers conferred by Part II of Schedule 1;

• (f) for payment of any other sums properly payable out of the fund by virtue of section 36 or this Schedule.

SCHEDULE 3

1

In section 3(3) of the Forgery Act 1913, in paragraph (e) after the words " the Commissioner for Oaths Act 1889 " insert, in place of the words inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " or the Solicitors Act 1974 ".

2

In section 216(1) of the Supreme Court of Judicature (Consolidation) Act 1925, in paragraph (a) after the word "oaths " insert, in place of the words inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " and by solicitors exercising the powers of commissioners for oaths by virtue of section 81 of the Solicitors Act 1974 ".

3

In section 88 (5) of the Patents Act 1949, for the words " section forty-seven of the Solicitors Act 1932 " substitute the words " section 22 of the Solicitors Act 1974 ".

4

In section 20(3) of the Justices of the Peace Act 1949—

• (a) for the words " subsection (1) of section 2 of the Solicitors (Amendment) Act 1956 ", and

• (b) for the words " the Solicitors Acts 1932 to 1956 ",

substitute, in place of the words substituted for those words by Schedule 2 to the Solicitors (Amendment) Act 1974, the words " the Solicitors Act 1974 ".

5

In Part III of Schedule 1 to the House of Commons Disqualification Act 1957 insert, in place of the entry inserted there by Schedule 2 to the Solicitors (Amendment) Act 1974, the following entry:—

• Lay observer appointed under section 45 of the Solicitors Act 1974.

6

In section 192(2) of the County Courts Act 1959 (as substituted by section 10(2) of the Administration of Justice Act 1969), for paragraph (c) substitute the following paragraph:—

(c) section 69(3) of the Solicitors Act 1974

.

7

In section 1(2) of the Barristers (Qualification for Office) Act 1961, for the words " the Solicitors Act 1957 " substitute the words " the Solicitors Act 1974 ".

8

In section 4(2) of the Matrimonial Causes Act 1967, for the words " section 73(4) of the Solicitors Act 1957 " substitute the words " section 74(3) of the Solicitors Act 1974 ".

9

In section 223(1) of the Local Government Act 1972, for the words " the Solicitors Acts 1957 to 1965 " substitute the words " the Solicitors Act 1974 ".

10

In Schedule 2 to the Legal Aid Act 1974, in paragraph 4(2) for the words " subsection (4) of section 73 of the Solicitors Act 1957 " substitute the words " subsection (3) of section 74 of the Solicitors Act 1974 ".

SCHEDULES 3

Qualifications for practising as solicitor.

1A

A person who has been admitted as a solicitor and whose name is on the roll shall, if he would not otherwise be taken to be acting as a solicitor, be taken for the purposes of this Act to be so acting if he is employed in connection with the provision of any legal services—

• (a) by any person who is qualified to act as a solicitor;

• (b) by any partnership at least one member of which is so qualified; . . .

• (c) by a body recognised . . . under section 9 of the Administration of Justice Act 1985 (incorporated practices). or

• (d) by any other person who, for the purposes of the Legal Services Act 2007, is an authorised person in relation to an activity which is a reserved legal activity (within the meaning of that Act).

1B

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10A

• (1) The Society must keep a register of all solicitors who hold practising certificates.

• (2) The register must contain—

• (a) the full name of each solicitor who holds a practising certificate,

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

• (c) such other information as may be specified in regulations under section 28(1)(d).

Imposition of conditions while practising certificates are in force.

12A

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13ZA

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13ZB

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Publicity in relation to suspension of practising certificates.

13A

• (1) Subject to the provisions of this section, the Society may in the case of any solicitor direct that his practising certificate for the time being in force (his “current certificate”) shall have effect subject to such conditions as the Society may think fit.

• (2) The power conferred by subsection (1) is exercisable in relation to a solicitor at any time during the period for which the solicitor's current certificate is in force if—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) it appears to the Society that the case is of a prescribed description.

• (3) “Prescribed” means prescribed by regulations under section 28.

• (6) A solicitor in whose case a direction is given under this section may appeal to the High Court against the decision of the Society.

• (7) On an appeal under subsection (6), the High Court may—

• (a) affirm the decision of the Society; or

• (b) direct that the appellant’s current certificate shall have effect subject to such conditions as the High Court thinks fit; or

• (d) make such other order as it thinks fit.

• (7A) The decision of the High Court on an appeal under subsection (6) shall be final.

• (8) Subsections (4) and (5) of section 10 apply for the purposes of subsection (1) of this section as they apply for the purposes of that section.

• (9) A solicitor who holds a practising certificate subject to a condition imposed under subsection (1) which prohibits that solicitor from taking any steps specified in the condition, except with the approval of the Society, 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.

• (10) On an appeal under subsection (9), 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 the condition, or

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

• (11) The decision of the High Court on an appeal under subsection (9) shall be final.

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

13B

• (1) Where—

• (a) a solicitor has been convicted of–

• (i) an offence involving dishonesty or deception; or

• (ii) an indictable offence; and

• (b) the Society has made an application to the Tribunal under section 47 with respect to him,

the Society may direct that any practising certificate ... of his which is for the time being in force be suspended.

• (2) Any such suspension shall be for such period, not exceeding six months, as the Society shall specify in the direction.

• (3) If, before the specified period expires–

• (a) the Tribunal determines the Society’s application;

• (b) the conviction is quashed or set aside; or

• (c) the Society withdraws its application to the Tribunal,

the suspension shall cease to have effect.

• (4) Where the specified period comes to an end without any of the events mentioned in subsection (3) having occurred, the Society may direct that the suspension be continued for such period, not exceeding six months, as it shall specify in the direction.

• (5) A suspension under this section may only be extended once under subsection (4).

• (6) Nothing in this section is to be taken as in any way affecting the Tribunal’s power to suspend a solicitor from practice ... .

• (7) A solicitor in whose case a direction is given under subsection (1) or (4) may appeal to the High Court against the direction within one month of being notified of it.

• (8) In an appeal under subsection (7), the High Court may–

• (a) affirm the suspension;

• (b) direct that the appellant’s certificate shall not be suspended but shall have effect subject to such conditions as the High Court thinks fit;

• (c) by order revoke the direction; or

• (d) make such other order as it thinks fit.

• (9) In relation to an appeal under subsection (7) the High Court may make such order as it thinks fit as to payment of costs.

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

Duration of suspension of practising certificates.

17A

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17B

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22A

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33A

• (1) The Society may make rules ... empowering the Society to require a solicitor to produce documents relating to any account kept by him at a bank or with a building society—

• (a) in connection with his practice; or

• (b) in connection with any trust of which he is or formerly was a trustee,

for inspection by a person appointed by the Society pursuant to the rules.

• (2) The Society shall be at liberty to disclose information obtained in exercise of the powers conferred by rules made under subsection (1) for use in investigating the possible commission of an offence by the solicitor and for use in connection with any prosecution of the solicitor consequent on the investigation.

Sole solicitors

34A

• (1) Rules made by the Society may provide for any rules made under section 31, 32, 33A or 34 to have effect in relation to employees of solicitors with such additions, omissions or other modifications as appear to the Society to be necessary or expedient.

• (2) If any employee of a solicitor fails to comply with rules made under section 31 or 32, as they have effect in relation to the employee by virtue of subsection (1), any person may make a complaint in respect of that failure to the Tribunal.

• (3) If any employee of a solicitor fails to comply with rules made under section 34, as they have effect in relation to the employee by virtue of subsection (1), a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

34B

• (1) Where rules made under section 32(1) have effect in relation to employees of solicitors by virtue of section 34A(1), section 85 applies in relation to an employee to whom the rules have effect who keeps an account with a bank or building society in pursuance of such rules as it applies in relation to a solicitor who keeps such an account in pursuance of rules under section 32.

• (2) Subsection (3) applies where rules made under section 32—

• (a) contain any such provision as is referred to in section 33(1), and

• (b) have effect in relation to employees of solicitors by virtue of section 34A(1).

• (3) Except as provided by the rules, an employee to whom the rules are applied is not liable to account to any client, other person or trust for interest received by the employee 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) clients of the solicitor, other persons or trusts, generally, or

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

• (4) Subsection (5) applies where rules made under section 33A(1) have effect in relation to employees of solicitors by virtue of section 34A(1).

• (5) The Society may disclose a report on or information about the accounts of any employee of a solicitor obtained in pursuance of such rules for use—

• (a) in investigating the possible commission of an offence by the solicitor or any employees of the solicitor, and

• (b) in connection with any prosecution of the solicitor or any employees of the solicitor consequent on the investigation.

• (6) Where rules made under section 34 have effect in relation to employees of solicitors by virtue of section 34A(1), section 34(9) and (10) apply in relation to such an employee as they apply in relation to a solicitor.

36A

• (1) Compensation rules may require or authorise the Society to establish or maintain a fund or funds (“compensation funds”) for the purpose of making grants in respect of compensation claims.

• (2) Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

• (3) Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society.

• (4) Subsection (2) does not apply to a solicitor who is a Crown Prosecutor.

• (5) The Society may invest any money which forms part of a compensation fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

• (6) The Society may insure with authorised insurers, in relation to compensation funds, for such purposes and on such terms as it considers appropriate.

• (7) The Society may, in such circumstances and subject to such conditions as may be prescribed in or determined in accordance with compensation rules—

• (a) borrow for the purposes of a compensation fund;

• (b) charge investments which form part of a compensation fund as security for borrowing by the Society for the purposes of that fund.

• (8) A compensation fund may be applied by the Society for the purposes mentioned in subsection (9) (in addition to the making of grants in respect of compensation claims).

• (9) The purposes are—

• (a) payment of premiums on insurance policies effected under subsection (6);

• (b) repayment of money borrowed by the Society for the purposes of the fund and payment of interest on any money so borrowed;

• (c) payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting administering or applying the fund;

• (d) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Part 2 of Schedule 1;

• (e) payment of any costs or damages incurred by the Society, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers.

• (10) In this section—

• “compensation claim” has the same meaning as in section 36;

• “compensation fund” has the meaning given by subsection (1);

• “compensation rules” means rules under section 36(1).

Interest on clients’ money.

Inadequate professional services

37A

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Imposition by Council of disciplinary sanctions for inadequate professional services

44A

Examination of files

44B

• (1) The Society may by notice require a person to whom this section applies—

• (a) to provide information, or information of a description, specified in the notice, or

• (b) produce documents, or documents of a description, specified in the notice.

• (2) This section applies to—

• (a) a solicitor;

• (b) an employee of a solicitor;

• (c) a recognised body;

• (d) an employee or manager of, or a person with an interest in, a recognised body.

• (3) The Society may give a notice under this section only if it is satisfied that it is necessary to do so for the purpose of investigating—

• (a) whether there has been professional misconduct by a solicitor;

• (b) whether a solicitor, or an employee of a solicitor, has failed to comply with any requirements imposed by or by virtue of this Act or any rules made by the Society;

• (c) whether a recognised body, or any of its managers or employees has failed to comply with any requirement imposed by or by virtue of the Administration of Justice Act 1985 or any rules made by the Society and applicable to the body, manager or employee by virtue of section 9 of that Act;

• (d) whether there are grounds for making, or making an application to the Tribunal for it to make, an order under section 43(2) with respect to a person who is or was involved in a legal practice (within the meaning of section 43(1A)).

• (4) A notice under this section—

• (a) may specify the time and place at which, and manner and form in which, the information is to be provided or document is to be produced;

• (b) must specify the period within which the information is to be provided or the document produced;

• (c) may require the information to be provided or document to be produced to the Society or to a person specified in the notice.

• (5) The Society may pay to any person such reasonable costs as may be incurred by that person in connection with the provision of any information, or production of any document, by that person pursuant to a notice under this section.

• (6) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in relation to the powers to obtain information conferred by this section, but for this purpose—

• (a) paragraph 9 of that Schedule has effect as if—

• (i) in sub-paragraph (3) for “such documents” there were substituted “ information to which a notice given to him under section 44B applies ”,

• (ii) in that sub-paragraph for “sub-paragraph (1)” there were substituted “ the notice ”, and

• (iii) in sub-paragraph (4) for “produce” (in the first place) to the end there were substituted “ provide information pursuant to a notice under section 44B to provide the information to any person appointed by the Society at such time and place as may be specified in the order. ”, and

• (b) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

• (7) Paragraphs 9 (other than sub-paragraphs (1) and (3)), 12, 13, 15 and 16 of Schedule 1 apply in relation to the powers to obtain documents conferred by this section as they apply in relation to the powers conferred by paragraph 9(1) of that Schedule, except that for this purpose—

• (a) any reference in paragraph 9 of that Schedule to a person appointed, or to a requirement, under sub-paragraph (1) of that paragraph is to be construed as a reference to a person appointed, or to a requirement to produce documents, under this section,

• (b) any reference in that paragraph to any such documents as are mentioned in paragraph 9(1) of that Schedule is to be construed as a reference to any documents to which a notice under this section applies,

• (c) the references to the solicitor or his firm in paragraph 9(5) and (6) of that Schedule, and the reference to the solicitor or personal representative in paragraph 9(7) of that Schedule, are to be construed as references to the person to whom the notice was given under this section, and

• (d) the reference in paragraph 9(12) of that Schedule to the Society is to be construed as including a reference to a person specified under subsection (4)(c).

• (8) Where powers conferred by Part 2 of Schedule 1 to the 1974 Act are exercisable in relation to a person within paragraph (a), (b), (c) or (d) of subsection (2), they continue to be so exercisable after the person has ceased to be a person within the paragraph in question.

• (9) In this section—

• “manager” has the same meaning as 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;

and the reference to a person who has an interest in a recognised body is to be construed in accordance with sections 72 and 109 of the Legal Services Act 2007.

44BA

• (1) The Society may, by notice, require a person to whom a notice is given under section 44B (or a representative of the person) to attend at a time and place specified in the notice to provide an explanation of any information provided or document produced pursuant to the notice.

• (2) The Society may pay to any person such reasonable costs as may be incurred by that person in connection with that person's compliance with a requirement imposed under subsection (1).

• (3) Paragraphs 9(3) and (4) and 13, 15 and 16 of Schedule 1 apply in relation to a notice under this section, except that for this purpose—

• (a) paragraph 9 of that Schedule has effect as if—

• (i) in sub-paragraph (3) for “having” to “sub-paragraph (1)” there were substituted “ refuses, neglects or otherwise fails to comply with a requirement under section 44BA(1) ”, and

• (ii) in sub-paragraph (4) for “produce” (in the first place) to the end there were substituted “ provide an explanation of any information provided or document produced pursuant to a notice under section 44B (or a representative of such a person) to attend at a time and place specified in the order to provide an explanation of any information so provided or document so produced. ”, and

• (b) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

Professional indemnity.

44BB

• (1) The High Court, on the application of the Society, may order a person to whom section 44B does not apply—

• (a) to provide information, or information of a description, specified in the notice, or

• (b) to produce documents, or documents of a description, specified in the notice.

• (2) The High Court may make an order under this section only if it is satisfied—

• (a) that it is likely that the information or document is in the possession or custody of, or under the control of, the person, and

• (b) that there is reasonable cause to believe that the information or document is likely to be of material significance to an investigation into any of the matters mentioned in section 44B(3)(a) to (d).

• (3) An order under this section may direct the Society to pay to a person specified in the order such reasonable costs as may be incurred by that person in connection with the provision of any information, or production of any document, by that person pursuant to the order.

• (4) Section 44B(4) applies in relation to an order under this section as it applies in relation to a notice under section 44B.

• (5) Paragraphs 9(5A) and (7) to (12), 12, 13, 15 and 16 of Schedule 1 apply in relation to an order under this section as they apply in relation to an order under paragraph 9(4) of that Schedule, except that for this purpose—

• (a) the reference to the solicitor or personal representative in paragraph 9(7) of that Schedule is to be construed as a reference to the person in respect of whom the order under this section is made,

• (b) the reference in paragraph 9(12) of that Schedule to the Society is to be read as including a reference to a person specified under section 44B(4)(c) (as applied by subsection (4) of this section), and

• (c) the reference to the solicitor or his personal representative in paragraph 13 of that Schedule is to be construed as a reference to the person to whom the notice was given under this section.

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

44BC

• (1) It is an offence for a person who knows or suspects an investigation into any of the matters mentioned in section 44B(3)(a) to (d) is being or is likely to be conducted—

• (a) to falsify, conceal, destroy or otherwise dispose of a document which the person knows or suspects is or would be relevant to the investigation, or

• (b) to cause or permit the falsification, concealment, destruction or disposal of such a document.

• (2) In proceedings for an offence under subsection (1) it is a defence for the accused to show that the accused had no intention of concealing facts disclosed by the documents from the person conducting the investigation.

• (3) It is an offence for a person, in purported compliance with a requirement imposed on the person under section 44B, 44BA or 44BB—

• (a) to provide information which the person knows to be false or misleading in a material particular, or

• (b) recklessly to provide information which is false or misleading in a material particular.

• (4) A person who is guilty of an offence under subsection (1) or (3) is liable—

• (a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine not exceeding the statutory maximum, or both;

• (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine, or both.

• (5) In relation to an offence under subsection (1) or (3) committed before 2 May 2022 the reference in subsection (4)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Costs of investigations

44C

• (1) The Society may make regulations prescribing charges to be paid to the Society by solicitors who are the subject of a discipline investigation.

• (2) A “discipline investigation” is an investigation carried out by the Society into—

• (a) possible professional misconduct by a solicitor, or

• (b) a failure or apprehended failure by a solicitor to comply with any requirement imposed by or by virtue of this Act or any rules made by the Society.

• (3) Regulations under this section 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.

• (4) Any charge which a solicitor is required to pay under regulations under this section is recoverable by the Society as a debt due to the Society from the solicitor.

• (5) This section (other than subsection (2)(a)) applies in relation to an employee of a solicitor as it applies in relation to a solicitor.

Disciplinary powers of the Society

44D

• (1) This section applies where the Society is satisfied—

• (a) that a solicitor or an employee of a solicitor has failed to comply with a requirement imposed by or by virtue of this Act or any rules made by the Society, or

• (b) that there has been professional misconduct by a solicitor.

• (2) The Society may do one or both of the following—

• (a) give the person a written rebuke;

• (b) direct the person to pay a penalty not exceeding £25,000.

• (2A) In a case where this subsection applies, subsection (2)(b) has effect as if the words after “penalty” (which set a limit on the amount of the penalty a person may be directed to pay) were omitted.

• (2B) Subsection (2A) applies where the Society takes action against a person under subsection (2)(b)—

• (a) for failure to comply with a requirement or rule referred to in subsection (1)(a), where—

• (i) the requirement or rule applies only for purposes relating to the prevention or detection of economic crime, or

• (ii) the failure consisted of an act or omission which had the effect of inhibiting the prevention or detection of economic crime, or

• (b) for professional misconduct as referred to in subsection (1)(b), where the misconduct consisted of an act or omission which had the effect of inhibiting the prevention or detection of economic crime.

• (2C) In subsection (2B) “economic crime” has the meaning given by section 193(1) of the Economic Crime and Corporate Transparency Act 2023.

• (3) The Society may publish details of any action it has taken under subsection (2)(a) or (b), if it considers it to be in the public interest to do so.

• (4) Where the Society takes action against a person under subsection (2)(b), or decides to publish under subsection (3) details of any action taken under subsection (2)(a) or (b), it must notify the person in writing that it has done so.

• (5) A penalty imposed under subsection (2)(b) does not become payable until—

• (a) the end of the period during which an appeal against the decision to impose the penalty, or the amount of the penalty, may be made under section 44E, or

• (b) if such an appeal is made, such time as it is determined or withdrawn.

• (6) The Society may not publish under subsection (3) details of any action under subsection (2)(a) or (b)—

• (a) during the period within which an appeal against—

• (i) the decision to take the action,

• (ii) in the case of action under subsection (2)(b), the amount of the penalty, or

• (iii) the decision to publish the details,

may be made under section 44E, or

• (b) if such an appeal has been made, until such time as it is determined or withdrawn.

• (7) The Society must make rules—

• (a) prescribing the circumstances in which the Society may decide to take action under subsection (2)(a) or (b);

• (b) about the practice and procedure to be followed by the Society in relation to such action;

• (c) governing the publication under subsection (3) of details of action taken under subsection (2)(a) or (b);

and the Society may make such other rules in connection with the exercise of its powers under this section as it considers appropriate.

• (8) Before making rules under subsection (7), the Society must consult the Tribunal.

• (9) A penalty payable under this section may be recovered as a debt due to the Society, and is to be forfeited to Her Majesty.

• (10) The Lord Chancellor may, by order, amend paragraph (b) of subsection (2) so as to substitute for the amount for the time being specified in that paragraph such other amount as may be specified in the order.

• (11) Before making an order under subsection (10), the Lord Chancellor must consult the Society.

• (12) An order under subsection (10) is to be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

• (13) This section is without prejudice to any power conferred on the Society or any other person to make an application or complaint to the Tribunal.

44E

• (1) A person may appeal against—

• (a) a decision by the Society to rebuke that person under section 44D(2)(a) if a decision is also made to publish details of the rebuke;

• (b) a decision by the Society to impose a penalty on that person under section 44D(2)(b) or the amount of that penalty;

• (c) a decision by the Society to publish under section 44D(3) details of any action taken against that person under section 44D(2)(a) or (b).

• (2) Subsections (9)(b), (10)(a) and (b), (11) and (12) of section 46 (Tribunal rules about procedure for hearings etc) apply in relation to appeals under this section as they apply in relation to applications or complaints, except that subsection (11) of that section is to be read as if for “the applicant” to “application)” there were substituted any party to the appeal.

• (3) Rules under section 46(9)(b) may, in particular, make provision about the period during which an appeal under this section may be made.

• (4) On an appeal under this section, the Tribunal has power to make such order as it thinks fit, and such an order may in particular—

• (a) affirm the decision of the Society;

• (b) revoke the decision of the Society;

• (c) in the case of a penalty imposed under section 44D(2)(b), vary the amount of the penalty;

• (d) in the case of a solicitor, contain provision for any of the matters mentioned in paragraphs (a) to (d) of section 47(2);

• (e) in the case of an employee of a solicitor, contain provision for any of the matters mentioned in section 47(2E);

• (f) make such provision as the Tribunal thinks fit as to payment of costs.

• (5) Where by virtue of subsection (4)(e) an order contains provision for any of the matters mentioned in section 47(2E)(c), section 47(2F) and (2G) apply as if the order had been made under section 47(2E)(c).

• (6) An appeal from the Tribunal shall lie to the High Court, at the instance of the Society or the person in respect of whom the order of the Tribunal was made.

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

• (8) Any decision of the High Court on an appeal under this section shall be final.

• (9) This section is without prejudice to any power conferred on the Tribunal in connection with an application or complaint made to it.

46A

• (1) The Tribunal must submit to the Society in respect of each year a budget for the year approved by the Legal Services Board.

• (2) A budget for a year is a statement of the amount of money which the Tribunal estimates is required to enable it to meet all of its expenditure in that year (having regard to any amounts received but not spent in previous years).

• (3) Before approving a statement for the purposes of subsection (1) the Legal Services Board must consult the Society.

• (4) The budget for a year must be submitted to the Society under subsection (1) no later than the date in the preceding year specified by the Society for the purposes of this subsection.

• (5) Before specifying a date for this purpose the Society must consult the Tribunal.

• (6) The amount specified in a budget submitted under subsection (1) must be paid by the Society to the Tribunal—

• (a) in such instalments and at such times as may be agreed between the Society and the Tribunal, or

• (b) in the absence of such agreement, before the beginning of the year to which the budget relates.

• (7) The Society may pay the Tribunal such other amounts as the Society considers appropriate.

• (8) In this section “year” means a calendar year.

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

47A

49A

• (1) The Society may, with the approval of the Tribunal, make rules which provide that in such circumstances as may be prescribed by the rules an appeal under any of the provisions listed in subsection (2) lies to the Tribunal and not to the High Court.

• (2) Those provisions are—

• (a) section 8(4);

• (b) section 13A(6);

• (c) section 16(5);

• (d) section 28(3D);

• (e) section 41(3);

• (f) paragraph 14 of Schedule 14 to the Courts and Legal Services Act 1990 (foreign lawyers: appeals against conditions or refusals);

• (g) regulation 9B of the Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) Regulations 2023 (S.I. 2023/1286).

• (3) Any decision of the Tribunal on an appeal by virtue of rules made under this section shall be final.

81A

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86A

• (1) Rules made by the Society under this Act may —

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

• (b) make different provision for different cases or circumstances or for different purposes.

• (2) Without prejudice to the generality of subsection (1), any rules prescribing a fee may provide for that fee to be reduced or waived in such circumstances as may be specified in the rules.

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6A

• (1) Without prejudice to paragraph 5, if the Society passes a resolution to the effect that any rights to which this paragraph applies shall vest in the Society, those rights shall vest accordingly.

• (2) This paragraph applies to any right to recover or receive debts due to the solicitor or his firm in connection with his practice or former practice.

• (3) Any sums recovered by the Society by virtue of the exercise of rights vested under sub-paragraph (1) shall vest in the Society and shall be held by it on trust to exercise in relation to them the powers conferred by this Part of this Schedule and, subject to those powers and to rules under paragraph 6B, upon trust for the persons beneficially entitled to them.

• (4) The Society shall serve on the solicitor or his firm, and any person who owes a debt to which the order applies, a certified copy of the Society's resolution.

6B

• (1) The Society may make rules governing its treatment of sums vested in it under paragraph 6 or 6A(3).

• (2) The rules may in particular make provision in respect of cases where the Society, having taken such steps to do so as are reasonable in all the circumstances of the case, is unable to trace the person or persons beneficially entitled to any sum vested in the Society under paragraph 6 or 6A(3) (including provision which requires amounts to be paid into or out of compensation funds (within the meaning of section 36A)).

13A

• (1) The High Court, on the application of the Society, may order a former partner of the solicitor to pay a specified proportion of the costs mentioned in paragraph 13.

• (2) The High Court may make an order under this paragraph only if it is satisfied that the conduct (or any part of the conduct) by reason of which the powers conferred by this Part were exercisable in relation to the solicitor was conduct carried on with the consent or connivance of, or was attributable to any neglect on the part of, the former partner.

• (3) In this paragraph “ specified ” means specified in the order made by the High Court.

SCHEDULE 1A

Power to require explanation of document or information

1

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6

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7

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8

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9

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1

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2

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3

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4

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5

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6

In section 192(2) of the County Courts Act 1959 (as substituted by section 10(2) of the Administration of Justice Act 1969), for paragraph (c) substitute the following paragraph:—

(c) section 69(3) of the Solicitors Act 1974

7

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8

In section 4(2) of the Matrimonial Causes Act 1967, for the words “section 73(4) of the Solicitors Act 1957” substitute the words “ section 74(3) of the Solicitors Act 1974 ”.

9

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10

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Schedule 4

Editorial notes