LSB launches Section 69 consultation

Today the LSB launches a consultation document relating to section 69 of the Legal Services Act 2007, which allows for the modification of legislation by way of an Order laid by the Lord Chancellor.

The first part of the consultation builds on the open letter published by the LSB in February regarding the use of section 69. Now the LSB is consulting on a draft statement of policy (under section 50 LSA). This takes into account the useful and predominately supportive responses from the open letter. The consultation for this part of the document will close 6 weeks after publication on 8 November 2010.

Also included is a consultation about a particular section 69 order, which will close on 20 December 2010. It covers a range of matters including matters relating to the regulation of ABS, the regulation of non-ABS and the constitution of the Council for Licensed Conveyancers. In particular the order includes changes to:

• Enable the SRA and CLC to obtain information about ABS from third parties by application to the High Court
• Recover the costs of investigations into ABS where it leads to disciplinary action by application to the High Court
• Extend the protection of client money for ABS to mirror that of client money held by traditional law firms
• Enable the SRA to operate a single compensation fund for both ABS and non-ABS for a period until 31 December 2012 to allow changes following their review of compensation arrangements
• Allow the SRA to collect period fees from non-ABS, facilitating longer license periods
• Expand the compensation fund operated by the CLC to include those ABS licensed by it
• Change the constitution of the CLC to bring in a lay majority on the Council
• Change the definitions used to prescribe members of the CLC Council
• Enable the CLC to issue licenses for indefinite periods