ukpga/1985/61 — Administration of Justice Act 1985

Administration of Justice Act 1985 1985 c. 61 An Act to make further provision with respect to the administration of justice and matters connected therewith; to amend the Solicitors Act 1974; to regulate the provision of solicitors’ services in the case of incorporated practices; to regulate the provision of conveyancing services by persons practising as licensed conveyancers; to make further provision with respect to complaints relating to the provision of legal aid services; to amend the law relating to time limits for actions for libel and slander; and to make further provision with respect to arbitrations and proceedings in connection with European patents. [30th October 1985] Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— Part I Solicitors Solicitors’ discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Examination of solicitors’ files in connection with complaints. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Practising certificates Issue of practising certificates subject to conditions. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions imposed on current certificates. 5 After section 13 of the Solicitors Act 1974 there shall be inserted— Imposition of conditions while practising certificates are in force. 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 to give a direction under this section in the case of any solicitor shall be exercisable by the Society at any time during the period for which his current certificate is in force if— a in the event of an application for a practising certificate being made by him at that time, section 12 would have effect in relation to him by reason of any such circumstances as are mentioned in paragraph (d), (e), (ee), (k) or (l) of subsection (1) of that section; or b a receiving order in bankruptcy is in force against him; or c he has entered into a composition with his creditors or a deed of arrangement for the benefit of his creditors. 3 Subject to subsection (4), the conditions specified in a direction under this section shall have effect as from the time when the solicitor concerned is notified of the Society’s decision to give the direction. 4 The Society may, if it thinks fit, provide in a direction under this section that the conditions specified in the direction shall not have effect pending the hearing and determination of any appeal under subsection (6). 5 Where there is a pending against any judgment or order an appeal by a solicitor which, if successful, would result in subsection (2) no longer being applicable to him, the Society shall not give a direction under this section in his case so long as the appeal is pending, unless in the opinion of the Society the proceedings on that appeal have been unduly protracted by him or are unlikely to be successful. 6 A solicitor in whose case a direction is given under this section may appeal to the Master of the Rolls against the decision of the Society within one month of being notified of it. 7 On an appeal under subsection (6), the Master of the Rolls 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 Master of the Rolls thinks fit; or c by order revoke the direction; or d make such other order as he thinks fit. 8 Subsection (4A) of section 12 shall apply for the purposes of subsection (1) of this section as it applies for the purposes of subsection (4)(b) of that section. . Restrictions applying to unqualified persons Preparation of conveyancing documents by unqualified persons. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preparation of papers for probate etc. by unqualified persons. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other amendments Other amendments of Solicitors Act 1974. 8 The Solicitors Act 1974 shall have effect subject to the further amendments specified in Schedule 1. Legal services bodies and sole solicitors’ practices Recognition of legal services bodies and of sole solicitors’ practices 9 1 The Society may make rules— a making provision as to the management and control of legal services bodies; b prescribing the circumstances in which— i legal services bodies may be recognised by the Society as being suitable bodies to undertake the provision of any solicitor services or other relevant legal services; and ii sole solicitors’ practices may be recognised by the Society as being suitable to undertake the provision of any such services; c prescribing the requirements which (subject to any exceptions provided by the rules) must at all times be satisfied by bodies and sole solicitors’ practices . . . so recognised if they are to remain so recognised; and d regulating the conduct of the affairs of such bodies and sole solicitors’ practices . 1A Where the Society makes rules under subsection (1), it must by rules under subsection (1)(c) prescribe the requirement that (subject to any exceptions provided by the rules) recognised bodies and recognised sole solicitors’ practices must not provide services other than— a solicitor services, or b solicitor services and other relevant legal services. 1B “ Relevant legal services ” means— a solicitor services, and b where authorised persons other than solicitors or registered European lawyers are managers or employees of, or have an interest in, a recognised body, or are employees in a recognised sole solicitor’s practice, services of the kind provided by individuals practising as such authorised persons (whether or not those services involve the carrying on of reserved legal activities within the meaning of the Legal Services Act 2007). 1C The Society may by rules under this section provide that services specified, or of a description specified, in the rules are not to be treated as solicitor services or other relevant legal services. 2 Rules made by the Society may also make provision— a for the manner and form in which applications for recognition under this section , or for the renewal of such recognition, are to be made, and requiring such applications to be accompanied by a fee of such amount as the Society may from time to time determine; aa for the manner and form in which other applications under the rules are to be made, and requiring such applications to be accompanied by a fee of such amount as the Society may from time to time determine; ab requiring recognised bodies, recognised sole solicitors’ practices, or descriptions of such bodies or practices , to pay periodical fees of such amount as the Society may from time to time determine; b for regulating the names that may be used by recognised bodies or recognised sole solicitors’ practices ; c about the time when any recognition, or renewal of recognition, takes effect and the period for which it is (subject to the provisions made by or under this Part) to remain in force; d for the suspension or revocation of any such recognition, on such grounds and in such circumstances as may be prescribed by the rules; e about the effect on the recognition of a partnership or other unincorporated body (“ the existing body ”) of any change in the membership of the existing body, including provision for the existing body's recognition to be transferred where the existing body ceases to exist and another body , or a sole solicitor’s practice, succeeds to the whole or substantially the whole of its business; eza about the effect on the recognition of a sole solicitor’s practice where the sole solicitor ceases to practise as a sole principal and— i another sole solicitor succeeds that sole solicitor as sole principal in the practice; or ii a body or another sole solicitor succeeds to the whole or substantially the whole of the practice’s business; ea for the keeping by the Society of a register containing the names and places of business of all bodies and sole solicitors’ practices which are for the time being recognised under this section, and such other information relating to them as may be specified in the rules; eb for information (or information of a specified description) on such a register to be made available to the public, including provision about the manner in which, and times at which, information is to be made so available; f for rules made under any provision of the 1974 Act to have effect in relation to recognised bodies or recognised sole solicitors’ practices with such additions, omissions or other modifications as appear to the Society to be necessary or expedient; fa about the education and training requirements to be met by managers and employees of recognised bodies or employees in recognised sole solicitors’ practices ; fb for rules made under any provision of the 1974 Act to have effect in relation to managers and employees of recognised bodies or employees in recognised sole solicitors’ practices with such additions, omissions or other modifications as appear to the Society to be necessary or expedient; fc requiring recognised bodies to appoint a person or persons to monitor compliance, by the recognised body, its managers and its employees, with requirements imposed on them by or by virtue of this Act or any rules applicable to them by virtue of this section; fd requiring the sole solicitor in a recognised sole solicitor’s practice to appoint a person or persons to monitor compliance, by the sole solicitor and the employees in the practice, with requirements imposed on them by or by virtue of this Act, the 1974 Act or any rules applicable to them by virtue of this section or the 1974 Act ; g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h for the manner of service on recognised bodies , or on sole solicitors in relation to recognised sole solicitors’ practices, of documents authorised or required to be served ... under or by virtue of this Part. 2ZA Rules under subsection (2)(fd) may provide that the person appointed under that paragraph may be the sole solicitor. 2A If rules under this section provide for the recognition of legal services bodies which have one or more managers who are not legally qualified, the rules must make provision— a for the recognition of such bodies to be suspended or revoked, on such grounds and in such circumstances as may be prescribed by the rules; b as to the criteria and procedure for the Society's approving, as suitable to be a manager of a recognised body, an individual who is not legally qualified (and for the Society's withdrawing such approval). 2B Rules under this section may make provision for appeals to the High Court against decisions made by the Society under the rules— a to suspend or revoke the recognition of any body or sole solicitor’s practice ; b not to approve, as suitable to be the manager of a recognised body, an individual who is not legally qualified (or to withdraw such approval). 2C The rules may provide for appeals against decisions within subsection (2B)(b) to be brought by the individual to whom the decision relates (as well as the body). 2D In relation to an appeal under rules made by virtue of subsection (2B), the High Court may make such order as it thinks fit as to payment of costs. 2E The decision of the High Court on such an appeal shall be final. 2F Where the Society decides to recognise a body or a sole solicitor’s practice under this section it must grant that recognition subject to one or more conditions if— a the case is of a kind prescribed for the purposes of this section by rules made by the Society, and b the Society considers that it is in the public interest to do so. 2G While a body or a sole solicitor’s practice is recognised under this section, the Society— a must direct that the ... recognition is to have effect subject to one or more conditions if— i the case is of a prescribed kind, and ii the Society considers that it is in the public interest to do so; b may, in such circumstances as may be prescribed, direct that the ... recognition is to have effect subject to such conditions as the Society may think fit. “ Prescribed ” means prescribed by rules made by the Society. 2H The conditions which may be imposed under subsection (2F) or (2G) include— a conditions requiring the body , or the sole solicitor, to take specified steps that will, in the opinion of the Society, be conducive to the carrying on ... of an efficient business; b conditions which prohibit the body , or the sole solicitor, from taking any specified steps except with the approval of the Society; c if rules under this section provide for the recognition of legal services bodies which have one or more managers who are not legally qualified, a condition that all the managers of the body must be legally qualified. “ Specified ” means specified in the condition. 2I Rules made by the Society may make provision about when conditions imposed under this section 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). 2J Section 86A of the 1974 Act applies to rules under this section as it applies to rules under that Act. 2K Rules under this section may contain such incidental, supplemental, transitional or transitory provisions or savings as the Society considers necessary or expedient. 3 Despite section 24(2) of the 1974 Act, section 20 of that Act (prohibition on unqualified person acting as solicitor) does not apply to a recognised body; and nothing in section 24(1) of that Act applies in relation to such a body. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 A certificate signed by an officer of the Society and stating that any body or sole solicitor’s practice . . . is or is not, or was or was not at any time, recognised under this section shall, unless the contrary is proved, be evidence of the facts stated in the certificate; and a certificate purporting to be so signed shall be taken to have been so signed unless the contrary is proved. 6 Schedule 2 (which makes provision with respect to the application of provisions of the 1974 Act to recognised bodies, with respect to other matters relating to such bodies , and with respect to matters relating to recognised sole solicitors’ practices ) shall have effect. 7 Subject to the provisions of that Schedule, the Lord Chancellor may by order made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament provide for any enactment or instrument passed or made before the commencement of this section and having effect in relation to solicitors to have effect in relation to recognised bodies with such additions, omissions or other modifications as appear to the Lord Chancellor to be necessary or expedient. 8 In this section— “ the 1974 Act ” means the Solicitors Act 1974; “the Society” has the meaning given by section 87(1) of the 1974 Act; . . . “ legally qualified ” and “ legal services body ” have the meaning given by section 9A; “ manager ”, in relation to a body, has the same meaning as in the Legal Services Act 2007 (see section 207 of that Act); “ authorised person ” means an authorised person in relation to an activity which is a reserved legal activity (within the meaning of the Legal Services Act 2007); references to employment in a recognised sole solicitor’s practice are references to employment by a sole solicitor for the purposes of a practice recognised under this section; “ multi-national partnership ” means a partnership whose members consist of one or more registered foreign lawyers and one or more solicitors; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “ recognised body ” means a body . . . for the time being recognised under this section. “recognised sole solicitor’s practice” means a sole solicitor’s practice for the time being recognised under this section; “registered European lawyer" means a person who is registered with the Law Society under regulation 17 of the European Communities (Lawyers’s Practice) Regulations 2000 , as that regulation has effect by virtue of regulation 6 of the Services of Lawyers and Lawyer’s Practice (Revocation etc.) (EU Exit) Regulations 2020 . “sole solicitor” has the meaning given by section 87(1) of the 1974 Act ; “ solicitor services ” means professional services such as are provided by individuals practising as solicitors or lawyers of other jurisdictions; and a person has an interest in a body if the person has an interest in the body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act). 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Legal services bodies 9A 1 For the purposes of section 9, a “ legal services body ” means a body (corporate or unincorporate) in respect of which — a the management and control condition, and b the relevant lawyer condition, are satisfied. 2 The management and control condition is satisfied if— a at least 75% of the body's managers are legally qualified, b the proportion of shares in the body held by persons who are legally qualified is at least 75%, c the proportion of voting rights in the body which persons who are legally qualified are entitled to exercise, or control the exercise of, is at least 75%, d all the persons with an interest in the body who are not legally qualified are managers of the body, and e all the managers of the body who are not legally qualified are individuals approved by the Society as suitable to be managers of a recognised body. 3 The Society may by rules under section 9 provide that, in relation to specified kinds of bodies, subsection (2) applies as if the references to 75% were to such greater percentage as may be specified (and different percentages may be specified for different kinds of bodies). 4 The relevant lawyer condition is satisfied in relation to a body if at least one manager of the body is— a a solicitor, b a registered European lawyer, or c a qualifying body. 5 For that purpose a qualifying body is a body in respect of which— a the management and control condition is satisfied b the relevant lawyer condition is satisfied by virtue of subsection (4)(a) or (b), and c the services condition is satisfied. 6 For the purposes of this section the following are legally qualified— a an authorised person who is an individual; b a registered foreign lawyer (within the meaning of section 89 of the Courts and Legal Services Act 1990 (c. 41)); c an advocate or solicitor in Scotland; ca a member of the Bar of Northern Ireland or a solicitor of the Court of Judicature of Northern Ireland; d an authorised person which is a body in respect of which— i the services condition is satisfied, and ii the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of paragraphs (a) to (ca) ; e a body which provides professional services such as are provided by individuals who are authorised persons or lawyers of other jurisdictions, and in respect of which the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of paragraphs (a) to (ca) . f a legal partnership which— i was in existence immediately before the commencement of this paragraph, ii since that time has continued to be a partnership of the kind mentioned in rule 12.01(1)(b), 12.02(1)(b) or 12.04(1)(c)(i) of the pre-commencement conduct rules (framework of practice), and iii has not, since that time, had a body corporate (other than a body within paragraph (g)) as a member; g a body corporate which— i was recognised under section 9 immediately before the commencement of this paragraph, and ii has since that time continued to satisfy the requirements of rule 14.03(1) and 14.04(1) to (3) or the requirements of rule 14.05(1) to (3) of the pre-commencement conduct rules (restrictions on directors, owners etc. of incorporated practices); h a body which— i is an authorised person and satisfies the services condition, or ii provides professional services such as are provided by individuals who are authorised persons or lawyers of other jurisdictions, and which satisfies the requirements of rules under subsection (6C). 6A For the purposes of subsection (6)(f), a partnership is to be treated as the same partnership despite a change in membership, if any person who was a member before the change remains a member. 6B For the purposes of subsection (6)(f) and (g), the references in the pre-commencement conduct rules to a recognised body are to be construed as references to a body which was recognised under section 9 immediately before the commencement of subsection (6)(f) and (g). 6C The Society must make rules for the purposes of paragraph (h) of subsection (6) prescribing the requirements relating to management and control which must be satisfied by or in relation to a body for it to fall within that paragraph. 7 For the purposes of this section, the services condition is satisfied in relation to a body if the body provides only services which may be provided by a recognised body (having regard to rules under section 9(1A) and (1C)). 8 For the purposes of this section— “ authorised person ” has the same meaning as in section 9; ... “ legal partnership ” means a partnership in which a solicitor, a registered European lawyer or a recognised body is permitted to practise by virtue of rules made under section 31 of the Solicitors Act 1974 (c. 47), as those rules had effect immediately before the commencement of subsection (6)(f); “ manager ”, in relation to a body, has the meaning given by section 9; “ pre-commencement conduct rules ” means rules under Part 2 of the Solicitors Act 1974 or section 9 of this Act, known as the Solicitors' Code of Conduct 2007, as those rules had effect immediately before the commencement of subsection (6)(f) and (g); “ recognised body ” has the same meaning as in section 9(subject to subsection (6B) above); “ registered European lawyer ” has the same meaning as in section 9; “ shares ” has the same meaning as for the purposes of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act); “ the Society ” has the meaning given by section 87(1) of the Solicitors Act 1974; “ specified ” means specified in rules made by the Society; and a person has an interest in a body if the person has an interest in the body for the purposes of section 9. Penalty for pretending to be a body recognised under s. 9. 10 1 A body . . . shall not describe itself or hold itself out as a body . . . for the time being recognised under section 9 unless it is so recognised. 2 Any body . . . which contravenes subsection (1) shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale. 3 Where an offence under this section 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 an officer of the body corporate, that officer (as well as the body corporate) is guilty of the offence and is liable to be proceeded against and punished accordingly. 4 Where the affairs of a body corporate are managed by its members, subsection (3) applies in relation to the acts and defaults of a member in connection with the member's functions of management as it applies to an officer of the body corporate. 5 Proceedings for an offence under this section alleged to have been committed by an unincorporated body are to be brought in the name of that body (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court relating to the service of documents have effect as if that body were a corporation. 6 A fine imposed on an unincorporated body on its conviction of an offence under this section is to be paid out of the funds of that body. 7 If an unincorporated body is charged with an offence under this section, section 33 of the Criminal Justice Act 1925 (c. 86) and Schedule 3 to the Magistrates' Courts Act 1980 (c. 43) (procedure on charge of an offence against a corporation) have effect in like manner as in the case of a corporation so charged. 8 Where an offence under this section committed by an unincorporated body (other than a partnership) is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any officer of the body or any member of its governing body, that officer or member as well as the unincorporated body is guilty of the offence and liable to be proceeded against and punished accordingly. 9 Where an offence under this section committed by a partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, that partner as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly. 10 In this section “ officer ”, in relation to a body corporate, means— a any director, secretary or other similar officer of the body corporate, or b any person who was purporting to act in any such capacity. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Penalty for sole solicitor pretending that practice is recognised 10A 1 A sole solicitor shall not describe or hold out the sole solicitor’s practice as a practice for the time being recognised under section 9 unless it is so recognised. 2 Any person who contravenes subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale. 3 In this section “sole solicitor” has the same meaning as in section 9. Part II Licensed Conveyancing Preliminary Provision of conveyancing services by licensed conveyancers. 11 1 The provisions of this Part shall have effect for the purpose of regulating the provision of conveyancing services and other services by persons who hold licences in force under this Part or who are recognised bodies. 2 In this Part— “ licence ” means a licence to practise as a licensed conveyancer; “ licensed conveyancer ” means a person who holds a licence in force under this Part; and references in this Part to practising as a licensed conveyancer are references to providing, as the holder of such a licence, conveyancing services in accordance with the licence. 3 References in this Part to conveyancing services are references to— a the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land, and b any other activities which are reserved instrument activities for the purposes of the Legal Services Act 2007 (see section 12 of and Schedule 2 to that Act). 3A For the purposes of subsection (3)— a “ disposition ” i does not include a testamentary disposition or any disposition in the case of such a lease as is referred to in section 54(2) of the Law of Property Act 1925 (short leases), but ii subject to that, includes in the case of leases both their grant and their assignment, and b “ acquisition ” has a corresponding meaning. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Council for Licensed Conveyancers Establishment of the Council. 12 1 For the purposes of this Part there shall be a body to be known as the Council for Licensed Conveyancers. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Schedule 3 shall have effect with respect to the Council. Training and licensing of persons seeking to practise as licensed conveyancers Training rules. 13 1 The Council shall make rules relating to the education and training of those seeking to practise as licensed conveyancers, and those rules shall, in particular, include provisions prescribing— a the examinations to be taken by such persons; and b requirements as to practical training and experience. 2 Rules made by the Council under this section may— a prescribe minimum standards of general education that must have been attained by persons who seek to practise as licensed conveyancers; b provide for the recognition by the Council of courses of study provided by educational institutions or other bodies as being adequate for the purpose of preparing candidates for any examinations held in pursuance of subsection (1)(a); c prescribe any education or training to be undergone by persons who are licensed conveyancers, and, in connection therewith, provide for the approval by the Council of courses of study provided by educational institutions or other bodies; d include provision for the charging of fees by the Council; e make different provision in relation to different classes of persons. 3 Rules under subsection (1)(b) may provide— a for the manner in which a person may satisfy the Council that he has complied with any requirement of the rules as to practical experience; b for attendance by a person at a training course approved by the Council for the purposes of the rules to count as practical training for those purposes. 4 Without prejudice to the generality of subsection (2)(e), rules under this section may provide for persons who— a hold such qualifications as may be specified in the rules; or b have acquired such experience in relation to the provision of conveyancing services as may be so specified; or c satisfy such other conditions as may be so specified, to be exempt from any of the requirements of the rules. 5 The Council may— a appoint, or approve the appointment of, persons as examiners or moderators in connection with examinations held in pursuance of subsection (1)(a); and b remunerate any person appointed by it under paragraph (a) of this subsection. Applications for licences. 14 1 An application for a licence under this Part shall be made to the Council in such manner, and shall be accompanied by such fee, as may be prescribed by rules made by the Council under this section. 2 Any such rules— a may prescribe the forms to be used in connection with applications for licences under this Part; b may provide for applications of any description specified in the rules to be exempt from any of the requirements of the rules. Issue of licences by Council. 15 1 If, on an application for a licence under this Part made in accordance with section 14, the Council is satisfied— a that the applicant has complied with such rules under section 13 (if any) as are applicable in his case; and b that he has made adequate arrangements for the purpose of complying with any rules made under or for the purposes of section 21(1); and c that he is a fit and proper person to practise as a licensed conveyancer or, in the case of an applicant in relation to whom section 16 has effect, that he is a fit and proper person to practise as such a conveyancer subject to his complying with any particular conditions that may be imposed under that section, the Council shall issue the applicant either with a licence free of conditions or with a licence subject to such conditions as aforesaid, as the case may require. 2 If the Council is for any reason not so satisfied it shall refuse the application, and shall notify the applicant of the refusal of the application and of the grounds on which it has been refused. 3 Where— a an application for a licence has been made in accordance with section 14; and b the Council has within the period prescribed under subsection (3A) neither issued a licence in pursuance of the application nor refused the application under subsection (2), then, for the purposes of this Part, the application shall be deemed to have been so refused by the Council, and the applicant shall be deemed to have been notified of the refusal at the end of the said period. 3A The Council must by rules prescribe the period that applies for the purposes of subsection (3)(b). 4 Subject to the provisions of this Part, the period for which a licence shall be in force under this Part shall be such period, beginning with the date of issue of the licence, as may be specified in the licence. 4A The period specified in a licence under subsection (4) may be a fixed or indefinite period. 5 Where— a an application for a licence is made in accordance with section 14 by a person who, at the date of the application, already holds a licence under this Part; and b no new licence is issued to him in pursuance of the application before the time when his existing licence would, apart from this subsection, expire in accordance with subsection (4), his existing licence shall not expire at that time but shall continue in force until a new licence is issued to him in pursuance of the application or, if the application is refused by the Council— i until the end of the period within which an appeal may be brought against the refusal under section 29(1)(a); or ii if such an appeal is brought, until the appeal is determined or abandoned. 6 Where an applicant for a licence under this Part has held such a licence at any time within the period of twelve months ending with the date of his application, any licence granted to him in pursuance of the application shall, unless the Council directs otherwise, be deemed to have been issued on the day following the date when his previous licence expired in accordance with subsection (4) (or would have so expired but for subsection (5)) and accordingly to have been held by him as from that day. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditional licences. 16 1 Subject to subsection (4), this section has effect in any case where a person applies for a licence under this Part— a for the first time; b when conditions under this section have been imposed on a licence under this Part previously issued to him; ba when conditions under paragraph 5 of Schedule 8 to the Courts and Legal Services Act 1990 have been imposed on a licence under section 53 of that Act previously issued to him; c when, on the first day of the period to which the licence would (if granted) relate, a period of twelve months or more will have elapsed since he held a licence in force under this Part or a licence in force under section 53 of the Courts and Legal Services Act 1990 ; ca after the Investigating Committee established under section 24 has made any order in his case under section 24A (including that section as applied by section 53 of the Courts and Legal Services Act 1990) ; d after the Discipline and Appeals Committee established under section 25 have made any order in his case under section 26 (including that section as applied by section 53 of the Courts and Legal Services Act 1990) ; e after he has been invited by the Council to give an explanation in respect of any matter relating to his conduct and has failed to give an explanation in respect of that matter which the Council regards as satisfactory, and has been notified in writing by the Council that he has so failed; ea when, having been required by rules made under section 22 (including that section as applied by section 53 of the Courts and Legal Services Act 1990) to deliver to the Council a report by an accountant, he has not delivered such a report within the period required by the rules; eb after having been disqualified under section 99 of the Legal Services Act 2007 (disqualification from being manager or employee of a licensed body etc ); ec after his holding of a restricted interest in a licensed body has been approved subject to conditions under paragraph 17, 28 or 33 of Schedule 13 to that Act (ownership of licensed bodies) or objected to under paragraph 19, 31 or 36 of that Schedule; f while he is an undischarged bankrupt . . . ; fa while a moratorium under a debt relief order applies in relation to him (under Part 7A of the Insolvency Act 1986); g after having been made bankrupt and discharged or after having entered into a composition with his creditors ...; ga after a debt relief order has been made in respect of him and at the end of the moratorium period applicable to the order he has been discharged from all the qualifying debts specified in the order; h while he is a person as to whom powers have been exercised under section 98 of the Mental Health Act 1983 (judge’s powers in cases of emergency); i after having been committed to prison in civil proceedings; ia after having been convicted of an offence involving dishonesty or deception or an indictable offence ; or j after having had given against him any judgment which involves the payment of money, not being a judgment— i limited to the payment of costs; or ii as to whose whole effect upon him he is entitled to indemnity or relief from some other person; or iii evidence of whose satisfaction has been produced to the Council. 2 In any case where this section has effect the Council may, on issuing a licence to the applicant under section 15, issue it subject to such conditions as the Council thinks fit; and the Council’s decision in any such case to impose any particular conditions under this subsection may be made by reference to such criteria of general application as may have been determined by the Council. 3 Without prejudice to the generality of subsection (2), conditions may be imposed under that subsection— a for restricting the kinds of conveyancing services that may be provided by the applicant as a licensed conveyancer; or b for requiring the applicant to take any specified steps that will, in the opinion of the Council, be conducive to his carrying on an efficient practice as a licensed conveyancer; and conditions may be imposed under that subsection (whether for the purpose mentioned in paragraph (b) or otherwise) notwithstanding that they may result in expenditure being incurred by the applicant. 4 Where a licence free of conditions is issued by the Council under section 15 to an applicant in relation to whom this section has effect by reason of any such circumstances as are mentioned in paragraph (ca), (d), (e), (ea), (eb), (ec), (f), (fa) , (g), (ga) , (h), (i) or (j) of subsection (1), then, except in the case of any circumstances of whose existence the Council is unaware at the time the licence is issued, this section shall not thereafter have effect in relation to that person by reason of those circumstances. 5 Where the Council decides to issue an applicant with a licence subject to conditions, it may, if it thinks fit, direct that the conditions shall not have effect— a pending the hearing and determination of any appeal brought by the applicant under section 29(1)(b); aa pending the hearing and determination of any appeal brought by the applicant under paragraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to the Legal Services Act 2007; ab pending the review by a licensing authority, in accordance with its licensing rules, of a determination that the applicant should be disqualified under section 99 of the Legal Services Act 2007; or b if this section has effect in relation to the applicant by reason only of any such circumstances as are mentioned in paragraph (f), (i) or (j) of subsection (1) and an appeal has been made to the appropriate court against the order or judgment in question, pending the hearing and determination of that appeal. 6 In this section— “ licensed body ”, “ licensing authority ” and “ licensing rules ” have the same meaning as in the Legal Services Act 2007 (see sections 71, 73 and 83 of that Act); “ restricted interest ”, in relation to a body, has the same meaning as in Schedule 13 to that Act (ownership of licensed bodies). Additional fee payable by certain persons when applying for licences 16A 1 This section applies where a person applies for a licence at a time when section 16 has effect in relation to him by reason of the circumstances mentioned in section 16(1)(ea). 2 The application must be accompanied by an additional fee of an amount prescribed by rules made by the Council for the purposes of this section. Imposition of conditions during currency of licence. 17 1 Subject to the provisions of this section the Council may in the case of any licensed conveyancer direct that his licence shall have effect subject to such conditions as the Council thinks fit. 2 The power to give a direction under this section in the case of any licensed conveyancer shall be exercisable by the Council at any time during the period for which his licence is in force if— a in the event of an application for a licence being made by him at that time, section 16 would have effect in relation to him by reason of any such circumstances as are mentioned in paragraph (ca), (d), (e), (ea), (eb), (ec), (i) or (j) of subsection (1) of that section; or b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c he has entered into a composition with his creditors .... 3 Subject to subsection (4), the conditions specified in a direction under this section shall have effect as from the time when the licensed conveyancer concerned is notified of the Council’s decision to give the direction. 4 The Council may, if it thinks fit, provide in a direction given under this section in the case of any licensed conveyancer that the conditions specified in the direction shall not have effect— a pending the hearing and determination of any appeal brought by the licensed conveyancer under section 29(1)(c); aa pending the hearing and determination of any appeal brought by the licensed conveyancer under paragraph 18, 20, 29, 32, 34 or 37 of Schedule 13 to the Legal Services Act 2007; ab pending the review by a licensing authority, in accordance with its licensing rules, of a determination that the licensed conveyancer should be disqualified under section 99 of the Legal Services Act 2007; or b if an appeal has been made by the licensed conveyancer to the appropriate court against any order or judgment which, if successful, would result in subsection (2) no longer being applicable to him, pending the hearing and determination of that appeal. 5 Subsection (3) of section 16 shall apply for the purposes of subsection (1) of this section as it applies for the purposes of subsection (2) of that section. 6 In this section “ licensing authority ” and “ licensing rules ” have the same meaning as in the Legal Services Act 2007 (see sections 73 and 83 of that Act). Variation of conditions 17A 1 This section applies where a licensed conveyancer's licence has effect subject to conditions. 2 On an application made by the licensed conveyancer, the Council may in prescribed circumstances direct— a the removal of a condition; b the variation of a condition in the manner described in the application. 3 “ Prescribed ” means prescribed by rules made by the Council. 4 Section 14 (applications for licences) applies in relation to an application under this section as it applies in relation to applications for a licence under this Part. Suspension or termination of licences. 18 1 Where an adjudication in bankruptcy is made against a licensed conveyancer or a debt relief order (under Part 7A of the Insolvency Act 1986) is made in respect of a licensed conveyancer , any such adjudication or any such order shall operate immediately to suspend the licence held by that person under this Part; and, subject to subsection (2), the suspension of the licence shall continue until the licence expires. 2 The suspension of a licence by virtue of subsection (1) shall terminate if the adjudication in question is annulled and an office copy of the order annulling the adjudication is served on the Council. 2ZA The suspension of a licence by virtue of subsection (1) shall terminate— a if the debt relief order is revoked for reasons falling within section 251L(2)(d) of the Insolvency Act 1986 and a copy of the notice of the decision to revoke given to the debtor pursuant to Rule 9.18 of the Insolvency (England and Wales) Rules 2016 is provided to the Council or the debt relief order is revoked by the court under section 251M(e) and a copy of the order is provided to the Council; or b if the debt relief order is revoked and a period of one year has elapsed beginning with the effective date of the order 2A Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5 has been exercised in relation to a licensed conveyancer by virtue of paragraph 1(1)(a)(i), (aa), (c) or (e) of that Schedule, the exercise of that power shall operate immediately to suspend any licence held by that person under this Part. 2B Subsection (2A) does not apply if, at the time when the power referred to there is exercised, the Council directs that subsection (2A) is not to apply in relation to the licensed conveyancer concerned. 2C If, at the time when the power referred to in subsection (2A) is exercised, the Council gives a direction to that effect, the licensed conveyancer concerned may continue to act in relation to any matter specified in the direction as if the licence had not been suspended by virtue of subsection (2A), but subject to such conditions (if any) as the Council sees fit to impose. 2CA Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5 is exercised in relation to a recognised body by virtue of paragraph 10(1)(a) of Schedule 6, the exercise of that power shall operate immediately to suspend any licence under this Part held by a person who is a manager of the recognised body. 2CB Where the power conferred by paragraph 6(1) or 9(1) of Schedule 5 is exercised in relation to a recognised body by virtue of paragraph 10(1)(d) of Schedule 6, the exercise of that power shall operate immediately to suspend any licence under this Part held by a person who is— a a manager of the recognised body, or b an employee of the recognised body. 2CC Where the power conferred by paragraph 3(1) or 8(1) of Schedule 14 to the Legal Services Act 2007 is exercised in relation to a licensed body by virtue of paragraph 1(2)(d) of that Schedule, the exercise of that power shall operate immediately to suspend any licence under this Part held by a person who is— a a manager of the licensed body, or b an employee of the licensed body. 2CD At the time when the power referred to in subsection (2CA), (2CB) or (2CC) is exercised, the Council may direct that subsection (2CA), (2CB) or (2CC) (as the case may be) is not to apply in relation to a particular licensed conveyancer. 2CE The Council may give a direction under subsection (2CD) in relation to a licensed conveyancer only if— a the Council is satisfied that the licensed conveyancer did not fail to comply with the rules applicable to the recognised body by virtue of section 32, or contribute to the body's failure to comply with such rules, in a case where the Council acts by virtue of paragraph 10(1)(a) of Schedule 6, b the Council does not suspect the licensed conveyancer of dishonesty, in a case where the Council acts by virtue of— i paragraph 10(1)(d) of Schedule 6, or ii paragraph 1(2)(d) of Schedule 14 to the Legal Services Act 2007, c the Council is satisfied that the licensed conveyancer was not a manager of the recognised body when the conduct providing the basis for the exercise of the power in paragraph 6(1) or 9(1) of Schedule 5 took place, in a case where the Council acts by virtue of paragraph 10(1)(a) of Schedule 6, d the Council is satisfied that the licensed conveyancer was not a manager or employee of the recognised body when the conduct providing the basis for the exercise of the power in paragraph 6(1) or 9(1) of Schedule 5 is suspected of having taken place, in a case where the Council acts by virtue of paragraph 10(1)(d) of Schedule 6, and e the Council is satisfied that the licensed conveyancer was not a manager or employee of the licensed body when the conduct providing the basis for the exercise of the power in paragraph 3(1) or 8(1) of Schedule 14 to the Legal Services Act 2007 is suspected of having taken place, in a case where the Council acts by virtue of paragraph 1(2)(d) of Schedule 14 to that Act. 2CF At the time when the power referred to in subsection (2CA), (2CB) or (2CC) is exercised, the Council may direct that such of the licensed conveyancers concerned as are identified in the direction may continue to act in relation to any matter specified in the direction as if their licences had not been suspended by virtue of subsection (2CA), (2CB) or (2CC) (as the case may be), subject to such conditions (if any) as the Council sees fit to impose. 2D Subject to subsection (2E), where a licence is suspended by virtue of subsection (2A) , (2CA), (2CB) or (2CC) the suspension of the licence shall continue until the licence expires. 2E The licensed conveyancer may, at any time before the licence expires, apply to the Council to terminate the suspension. 2F On an application under subsection (2E), the Council may in its discretion— a by order terminate the suspension either unconditionally or subject to such conditions as the Council may think fit, or b refuse the application. 2G If on an application by a licensed conveyancer under subsection (2E) the Council refuses the application or terminates the suspension subject to conditions, the licensed conveyancer may appeal against the decision of the Council to the First-tier Tribunal which may— a affirm the decision, or b terminate the suspension either unconditionally or subject to such conditions as it may think fit. 2H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A licence held by a person under this Part shall terminate if he becomes a person who lacks capacity (within the meaning of the Mental Capacity Act 2005) to practise as a licensed conveyancer. 4 For the purposes of this Part a licence shall be treated as not being in force at any time while it is suspended by virtue of any provision of this Part. Register of licensed conveyancers. 19 1 The Council shall establish and maintain, in such form as the Council may determine, a register containing the names and places of business of all persons who for the time being hold licences in force under this Part. 1A The Council may make rules specifying the further information, including information about disciplinary measures taken, to be recorded in the register in relation to a person. 2 The Council shall ... cause the appropriate entries and deletions to be made in the register on the issue and termination of licences under this Part; and where any licence held by a person is for the time being suspended by virtue of any provision of this Part the Council shall cause that fact to be noted in the register against that person’s name. 3 Any change in a licensed conveyancer’s place or places of business shall be notified by him to the Council within the period of fourteen days beginning with the date on which the change takes effect. 4 The Council shall provide facilities for making the information contained in the entries in the register available for inspection in visible and legible form by any person during office hours and without payment. 5 A certificate signed by an officer of the Council appointed for the purpose and stating— a that any person does or does not, or did or did not at any time, hold a licence in force under this Part; or b that any licence held by any person is or was at any time either free of conditions or subject to any particular conditions, shall, unless the contrary is proved, be evidence of the facts stated in the certificate; and a certificate purporting to be so signed shall be taken to have been so signed unless the contrary is proved. Code of conduct Rules as to professional practice, conduct and discipline. 20 1 The Council shall . . . make rules for regulating the professional practice, conduct and discipline of licensed conveyancers. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial requirements Professional indemnity and compensation. 21 1 The Council shall make rules for indemnifying licensed conveyancers and former licensed conveyancers against losses arising from claims in respect of any description of civil liability incurred by them, or by employees or associates or former employees or associates of theirs, in connection with their practices as licensed conveyancers. 2 The Council shall also make rules for the making of grants or other payments for the purpose of relieving or mitigating losses suffered by persons in consequence of— a negligence or fraud or other dishonesty on the part of licensed conveyancers, or of employees or associates of theirs, in connection with their practices (or purported practices) as licensed conveyancers; or b failure on the part of licensed conveyancers to account for money received by them in connection with their practices (or purported practices) as licensed conveyancers. 2A The power of the Council to make rules under subsection (2) shall apply in relation to the practices of licensed conveyancers mentioned in subsection (2B) as it applies to their practices as licensed conveyancers. 2B The practices referred to in subsection (2A) are the practices of licensed conveyancers which consist of carrying on a relevant activity by virtue of a licence issued under section 53 of the Courts and Legal Services Act 1990 (which provides for the Council to authorise the carrying on of certain reserved legal activities in relation to which the Council is designated as an approved regulator). 2C For the purposes of subsection (2B) “relevant activity” has the same meaning as in section 53 of the Courts and Legal Services Act 1990. 3 For the purpose of providing such indemnity and of enabling such grants or other payments to be made, rules under this section— a may authorise or require the Council to establish and maintain a fund or funds; b may authorise or require the Council to take out and maintain insurance with authorised insurers; c may require licensed conveyancers or licensed conveyancers of any specified description to take out and maintain insurance with authorised insurers. 4 Without prejudice to the generality of the preceding subsections, rules under this section— a may specify the terms and conditions on which indemnity or a grant or other payment 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 (3)(a) and require licensed conveyancers or licensed conveyancers of any specified description to make payments to any such fund; c may require licensed conveyancers or licensed conveyancers of any specified description to make payments towards the premium payable on any insurance policy maintained by the Council by virtue of subsection (3)(b); d may prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (3)(c); e may authorise the Council 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 licensed conveyancer for whom indemnity is provided has failed to comply with the rules, the Council 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 there has been a failure to comply with the rules; g may specify circumstances in which, where a grant or other payment is made in consequence of the act or omission of a licensed conveyancer, the Council or insurers may take proceedings against him in respect of the sum so paid; h may specify circumstances in which licensed conveyancers are exempt from any of the requirements of the rules; i may empower the Council to take such steps as it considers necessary or expedient to ascertain whether or not the rules are being complied with; and j may contain incidental, procedural or supplementary provisions. 5   “Authorised insurer” means— a a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance of a relevant class; b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 A contract of insurance is of a relevant class for the purposes of subsection (5) if it insures against a risk arising from— a accident; b credit; c legal expenses; d general liability to third parties; e sickness; f suretyship; or g miscellaneous financial loss. 7 Subsections (5) and (6) must be read with— a section 22 of the Financial Services and Markets Act 2000; b any relevant order under that section; and c Schedule 2 to that Act. Keeping of accounts and establishment of client accounts. 22 1 The Council shall make rules requiring licensed conveyancers to keep such accounts in relation to their practices as may be prescribed by the rules. 2 The Council shall also make rules requiring licensed conveyancers— a to open and keep at authorised institutions accounts for clients’ money; b to hold and pay out money so received in such manner as may be prescribed by the rules; and c without prejudice to the generality of subsection (1), to keep accounts containing particulars and information as to money received or held or paid by them for or on account of their clients; and rules under this subsection shall specify the institutions which are authorised for the purposes of rules under paragraph (a). 3 Rules under subsection (1) or (2) of this section may empower the Council— a to require licensed conveyancers to deliver to the Council at such intervals as may be prescribed by the rules reports given by . . . accountants and containing such information as may be so prescribed— i for the purpose of giving a true and fair view of the state of their businesses; or ii for the purpose of enabling the Council to ascertain whether or not the rules have been complied with; b to take such other steps as it considers necessary or expedient for the latter purpose; and any such rules may specify circumstances in which persons are exempt from any of the requirements of the rules. 4 Provision made in rules by virtue of subsection (3)(a) may provide that the reports delivered to the Council must be reports given by accountants in respect of whom requirements prescribed by the rules are met. Interest on clients’ money. 23 1 Rules made under subsection (2) of section 22 shall make provision for requiring a licensed conveyancer who has received money from a client to account, in such cases as may be prescribed by the rules, to the person who is or becomes entitled to the money for the interest which was, or could have been, earned by putting the money in a separate deposit account at an institution authorised for the purposes of rules under paragraph (a) of that subsection. 2 The cases in which a lice