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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 22 April 2025
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Displaying 1351 contributions

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Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

No, that is not fair. Early negotiations are on-going regarding the issue, and we will take forward and consider all the recommendations of this committee and the lead committee, and those of the legal sector. Engagement on the matter is on-going.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

Yes, we are engaging with all stakeholders and the legal sector as we progress the bill.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

Having considered the feedback from stakeholders, we intend to lodge amendments at stage 2 that will introduce a requirement for the Lord President’s consent to be obtained before any regulations are made using that provision and which will narrow the scope so that it will be used in response to a request by a regulator or the consumer panel.

The provisions are necessary to ensure that the guarantee fund, which is established in what is now quite aged legislation, continues to be able to adapt to changes in the way in which solicitors operate.

Do any of my officials want to come in on that?

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

I would like to provide some context to what we are proposing by explaining how things are done in England and Wales. In England and Wales, the Legal Services Board acts as an independent regulator of the front-line regulators of solicitors, barristers and other branches of the legal profession. The LSB is accountable to the Parliament through the Lord Chancellor and is sponsored by the Ministry of Justice. The Lord Chancellor, a United Kingdom minister, has several statutory roles in relation to the Legal Services Board and the regulation of legal services within the Legal Services Act 2007. Some of those are very similar to the things that have been proposed in the bill.

I have listened to the views that the committee heard last week, and officials have been engaging with the judiciary and stakeholders.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

Yes.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

The provision is intended to ensure that an appropriate regulator is always in place to regulate authorised legal businesses, should there be no other suitable regulator. Such intervention may be necessary because the members of the regulator may be involved in an on-going court case that might be disrupted, or because of transactions that might put them into difficulty. To avoid that and to respond to it, the Scottish ministers may intervene to create a body to become a new regulator or have another regulator, such as the Law Society, step in to take over the regulation, or they may even regulate the providers themselves.

10:00  

In relation to when the power could be used, the provision is intended as a measure of last resort in specific circumstances and only in the event that a regulator finds itself unable to operate. It is designed to cover situations in which a regulator of authorised legal businesses gets into difficulty, such as a financial collapse or as a result of regulatory failures.

Moving on, as I mentioned when we were discussing section 35, given the similarity of the measures in section 49 with those in section 35, we are exploring amendments that would bring them together in one provision that would maintain the power to take action in urgent situations but would transfer it to the Lord President.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

It is considered that the newer regulators run the greatest risk of encountering circumstances that would render them unable to operate at short notice and create a need for the Scottish ministers to step in and ensure that their members continued to be authorised to provide legal services to the public while alternative arrangements are worked out. It was considered appropriate to separate those provisions from section 49, which also deals with situations of necessity in relation to any regulator, allowing the Scottish ministers to take action as a measure of last resort, while maintaining the requirement for parliamentary scrutiny and approval in advance of such steps. However, given the similarity of the measures in sections 35 and 49, we are exploring amendments that would bring them together in one provision that would maintain the power to take action in urgent situations, take it away from the Scottish ministers, and transfer it to the Lord President.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

I will bring in Leanna MacLarty.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

Yes, we have been having conversations, which are on-going. I will bring in my officials at this point.

Delegated Powers and Law Reform Committee

Regulation of Legal Services (Scotland) Bill: Stage 1

Meeting date: 7 November 2023

Siobhian Brown

Section 41(6) has been criticised by the Law Society as preventing it from regulating legal businesses in terms of non-legal services—for example, that could involve estate agents, accountants or tax advisers. That is not the intention of the bill, and we are working with the Law Society to ensure that the introduction of entity regulation is as effective and beneficial as possible. Currently, we are exploring amendments that will make that clear.