Home > News and publications > LSB News > LSB to make a recommendation for Section 69 Order
This site uses cookies to help make it more useful and reliable. Our cookies page explains what they are, which ones we use, and how you can manage or remove them. Don't show this message again.

LSB to make a recommendation for Section 69 Order

11 May 2011

The LSB will today make a recommendation for an Order to be made under Section 69 of the Legal Services Act 2007. The provisions of the Order will apply to the two bodies that have applied to become Licensing Authorities for Alternative Business Structures (ABS).

This order, if approved, would give the SRA and the CLC certain powers to enable them to regulate more effectively and efficiently.

For the SRA, it will:

  • Enable it to charge non-ABS firms periodical fees without the need to renew practising certificates annually
  • Operate one compensation fund for both ABS and non-ABS
  • Charge ABS for the cost of investigations that lead to enforcement action

For the CLC, it will:

  • Enable it to issue licences for a fixed or indefinite period
  • Enable it to make rules about compensation payments for additional reserved legal activities if it is approved to regulate those activities
  • Change the constitution of its Council to ensure a lay majority
  • Charge ABS for the cost of investigations that lead to enforcement action

The draft Order, which will now be recommended, is based on decisions taken following a consultation process. This has also included working with MoJ economists to develop an impact assessment that will accompany the Order through parliament.

The draft Order differs materially from the version that was published in the consultation document on 14 April 2011. A statement has therefore been published that sets out the details of the material changes and the reasons for these changes.