Legal Services Act 2007

Part 1 — The regulatory objectives

The regulatory objectives

1

• (1) In this Act a reference to “the regulatory objectives” is a reference to the objectives of—

• (a) protecting and promoting the public interest;

• (b) supporting the constitutional principle of the rule of law;

• (c) improving access to justice;

• (d) protecting and promoting the interests of consumers;

• (e) promoting competition in the provision of services within subsection (2);

• (f) encouraging an independent, strong, diverse and effective legal profession;

• (g) increasing public understanding of the citizen's legal rights and duties;

• (h) promoting and maintaining adherence to the professional principles;

• (i) promoting the prevention and detection of economic crime.

• (2) The services within this subsection are services such as are provided by authorised persons (including services which do not involve the carrying on of activities which are reserved legal activities).

• (3) The “professional principles” are—

• (a) that authorised persons should act with independence and integrity,

• (b) that authorised persons should maintain proper standards of work,

• (c) that authorised persons should act in the best interests of their clients,

• (d) that persons who exercise before any court a right of audience, or conduct litigation in relation to proceedings in any court, by virtue of being authorised persons should comply with their duty to the court to act with independence in the interests of justice, and

• (e) that the affairs of clients should be kept confidential.

• (4) In this section “authorised persons” means authorised persons in relation to activities which are reserved legal activities.

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

Part 2 — The Legal Services Board

Constitution

Scottish legal services ombudsman: functions

2

• (1) There is to be a body corporate called the Legal Services Board (“the Board”).

• (2) Schedule 1 is about the Board.

General functions

Offences committed by bodies corporate and unincorporated bodies

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• (1) In discharging its functions the Board must comply with the requirements of this section.

• (2) The Board must, so far as is reasonably practicable, act in a way—

• (a) which is compatible with the regulatory objectives, and

• (b) which the Board considers most appropriate for the purpose of meeting those objectives.

• (3) The Board must have regard to—

• (a) the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed, and

• (b) any other principle appearing to it to represent the best regulatory practice.

Standards of regulation, education and training

4

The Board must assist in the maintenance and development of standards in relation to—

• (a) the regulation by approved regulators of persons authorised by them to carry on activities which are reserved legal activities, and

• (b) the education and training of persons so authorised.

Corporate governance

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In managing its affairs, the Board must have regard to such generally accepted principles of good corporate governance as it is reasonable to regard as applicable to it.

Annual report

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• (1) The Board must prepare a report (“the annual report”) for each financial year.

• (2) The annual report must deal with—

• (a) the discharge of the Board's functions,

• (b) the extent to which, in the Board's opinion, the Board has met the regulatory objectives, and

• (c) such other matters as the Lord Chancellor may from time to time direct.

• (3) As soon as reasonably practicable after the end of each financial year, the Board must give the Lord Chancellor a copy of the annual report prepared for that year.

• (4) The Lord Chancellor must lay a copy of the annual report before Parliament.

• (5) In this section “financial year” means—

• (a) the period beginning with the day on which the Board is established and ending with the next following 31 March, and

• (b) each successive period of 12 months.

Supplementary powers

7

The Board may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.

Consumer Panel

The Consumer Panel

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• (1) The Board must establish and maintain a panel of persons (to be known as “the Consumer Panel”) to represent the interests of consumers.

• (2) The Consumer Panel is to consist of such consumers, or persons representing the interests of consumers, as the Board may appoint with the approval of the Lord Chancellor.

• (3) The Board must appoint one of the members of the Consumer Panel to be the chairman of the Panel.

• (4) The Board must secure that the membership of the Consumer Panel is such as to give a fair degree of representation to both—

• (a) those who are using (or are or may be contemplating using), in connection with businesses carried on by them, services provided by persons who are authorised persons in relation to activities which are reserved legal activities, and

• (b) those who are using (or are or may be contemplating using) such services otherwise than in connection with businesses carried on by them.

• (5) The Consumer Panel must not include any person who is—

• (a) a member of the Board or of its staff;

• (b) a member of the Office for Legal Complaints (see Part 6), an ombudsman appointed by it or a member of its staff appointed under paragraph 13 of Schedule 15;

• (c) a member of the governing body, or of the staff, of an approved regulator;

• (d) an authorised person in relation to an activity which is a reserved legal activity;

• (e) an authorised person (within the meaning given in section 31 of the Financial Services and Markets Act 2000 (authorised persons)) in relation to regulated claims management activity (within the meaning given by section 417(1) of that Act (definitions));

• (f) an advocate in Scotland;

• (g) a solicitor in Scotland;

• (h) a member of the Bar of Northern Ireland; or

• (i) a solicitor of the Court of Judicature of Northern Ireland.

• (6) The chairman and other members of the Consumer Panel are to be—

• (a) appointed for a fixed period, and on other terms and conditions, determined by the Board, and

• (b) paid by the Board in accordance with provision made by or under the terms of appointment.

• (7) But a person may be removed from office in accordance with those terms and conditions only with the approval of the Lord Chancellor.

• (8) A person who ceases to be chairman or another member of the Consumer Panel may be re-appointed.

Committees and the procedure of the Consumer Panel

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• (1) The Consumer Panel may make such arrangements as it thinks fit for committees established by the Panel to give advice to the Panel about matters relating to the carrying out of the Panel's functions.

• (2) The Consumer Panel may make such other arrangements for regulating its own procedure, and for regulating the procedure of the committees established by it, as it thinks fit.

• (3) Those arrangements may include arrangements as to quorums and as to the making of decisions by a majority.

• (4) The committees established by the Consumer Panel may include committees the membership of which includes persons who are not members of the Panel.

• (5) The membership of every committee established by the Consumer Panel must contain at least one person who is a member of the Panel.

• (6) Where a person who is not a member of the Consumer Panel is a member of a committee established by it, the Board may pay to that person such remuneration and expenses as the Board may determine.

Representations by the Consumer Panel

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• (1) The Board must consider any representations made to it by the Consumer Panel.

• (2) If the Board disagrees with a view expressed, or proposal made, in the representations, it must give the Consumer Panel a notice to that effect stating its reasons for disagreeing.

• (3) The Consumer Panel may publish such information as it thinks fit about any representations made by it to the Board.

• (4) Where the Consumer Panel publishes information about any representations made by it, the Board must publish any notice it gives under subsection (2) in respect of those representations.

Advice and research functions of the Consumer Panel

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• (1) The Consumer Panel may, at the request of the Board—

• (a) carry out research for the Board;

• (b) give advice to the Board.

• (2) The Board must consider any advice given and the results of any research carried out under this section.

• (3) The Consumer Panel may publish such information as it thinks fit about advice it gives, and about the results of research carried out by it, under this section.

Part 3 — Reserved legal activities

Reserved legal activities

Meaning of “reserved legal activity” and “legal activity”

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• (1) In this Act “reserved legal activity” means—

• (a) the exercise of a right of audience;

• (b) the conduct of litigation;

• (c) reserved instrument activities;

• (d) probate activities;

• (e) notarial activities;

• (f) the administration of oaths.

• (2) Schedule 2 makes provision about what constitutes each of those activities.

• (3) In this Act “legal activity” means—

• (a) an activity which is a reserved legal activity within the meaning of this Act as originally enacted, and

• (b) any other activity which consists of one or both of the following—

• (i) the provision of legal advice or assistance in connection with the application of the law or with any form of resolution of legal disputes;

• (ii) the provision of representation in connection with any matter concerning the application of the law or any form of resolution of legal disputes.

• (4) But “legal activity” does not include any activity of a judicial or quasi-judicial nature (including acting as a mediator).

• (5) For the purposes of subsection (3) “legal dispute” includes a dispute as to any matter of fact the resolution of which is relevant to determining the nature of any person's legal rights or liabilities.

• (6) Section 24 makes provision for adding legal activities to the reserved legal activities.

Carrying on the activities

Entitlement to carry on a reserved legal activity

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• (1) The question whether a person is entitled to carry on an activity which is a reserved legal activity is to be determined solely in accordance with the provisions of this Act.

• (2) A person is entitled to carry on an activity (“the relevant activity”) which is a reserved legal activity where—

• (a) the person is an authorised person in relation to the relevant activity, or

• (b) the person is an exempt person in relation to that activity.

• (3) Subsection (2) is subject to section 23 (transitional protection for non-commercial bodies).

• (4) Nothing in this section or section 23 affects section 84 of the Immigration and Asylum Act 1999 (c. 33) (which prohibits the provision of immigration advice and immigration services except by certain persons).

Offences

Offence to carry on a reserved legal activity if not entitled

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• (1) It is an offence for a person to carry on an activity (“the relevant activity”) which is a reserved legal activity unless that person is entitled to carry on the relevant activity.

• (2) In proceedings for an offence under subsection (1), it is a defence for the accused to show that the accused did not know, and could not reasonably have been expected to know, that the offence was being committed.

• (3) A person who is guilty of an offence under subsection (1) 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), and

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

• (4) A person who is guilty of an offence under subsection (1) by reason of an act done in the purported exercise of a right of audience, or a right to conduct litigation, in relation to any proceedings or contemplated proceedings is also guilty of contempt of the court concerned and may be punished accordingly.

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

Carrying on of a reserved legal activity: employers and employees etc

15

• (1) This section applies for the interpretation of references in this Act to a person carrying on an activity which is a reserved legal activity.

• (2) References to a person carrying on an activity which is a reserved legal activity include a person (“E”) who—

• (a) is an employee of a person (“P”), and

• (b) carries on the activity in E's capacity as such an employee.

• (3) For the purposes of subsection (2), it is irrelevant whether P is entitled to carry on the activity.

• (4) P does not carry on an activity (“the relevant activity”) which is a reserved legal activity by virtue of E carrying it on in E's capacity as an employee of P, unless the provision of relevant services to the public or a section of the public (with or without a view to profit) is part of P's business.

• (5) Relevant services are services which consist of or include the carrying on of the relevant activity by employees of P in their capacity as employees of P.

• (6) Where P is an independent trade union, persons provided with relevant services do not constitute the public or a section of the public where—

• (a) the persons are provided with the relevant services by virtue of their membership or former membership of P or of another person's membership or former membership of P, and

• (b) the services are excepted membership services.

• (7) Subject to subsection (8), “excepted membership services” means relevant services which relate to or have a connection with—

• (a) relevant activities of a member, or former member, of the independent trade union;

• (b) any other activities carried on for the purposes of or in connection with, or arising from, such relevant activities;

• (c) any event which has occurred (or is alleged to have occurred) in the course of or in connection with such relevant activities or activities within paragraph (b);

• (d) activities carried on by a person for the purposes of or in connection with, or arising from, the person's membership of the independent trade union;

and such other relevant services as the Lord Chancellor may by order specify.

• (8) The Lord Chancellor may by order make provision about the circumstances in which relevant services do or do not relate to, or have a connection with, the matters mentioned in paragraphs (a) to (d) of subsection (7).

• (9) Subject to that, the Lord Chancellor may by order make provision about—

• (a) what does or does not constitute a section of the public;

• (b) the circumstances in which the provision of relevant services to the public or a section of the public does or does not form part of P's business.

• (10) The Lord Chancellor may make an order under subsection (7), (8) or (9) only on the recommendation of the Board.

• (11) If P is a body, references to an employee of P include references to a manager of P.

• (12) In subsection (7), “relevant activities”, in relation to a person who is or was a member of an independent trade union, means any employment (including self-employment), trade, occupation or other activity to which the person's membership of the trade union relates or related.

Offence to carry on reserved legal activity through person not entitled

16

• (1) Where subsection (2) applies it is an offence for a person (“P”) to carry on an activity (“the relevant activity”) which is a reserved legal activity, despite P being entitled to carry on the relevant activity.

• (2) This subsection applies if—

• (a) P carries on the relevant activity by virtue of an employee of P (“E”) carrying it on in E's capacity as such an employee, and

• (b) in carrying on the relevant activity, E commits an offence under section 14.

• (3) If P is a body, references in subsection (2) to an employee of P include references to a manager of P.

• (4) In proceedings for an offence under subsection (1), it is a defence for the accused to show that the accused took all reasonable precautions and exercised all due diligence to avoid committing the offence.

• (5) A person who is guilty of an offence under subsection (1) 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), and

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

• (6) A person who is guilty of an offence under subsection (1) by reason of an act done in the purported exercise of a right of audience, or a right to conduct litigation, in relation to any proceedings or contemplated proceedings is also guilty of contempt of the court concerned and may be punished accordingly.