Seòmar agus comataidhean

These amendments relate to part 2 of the bill, which makes provision for category 1 regulators to authorise legal businesses to provide legal services. Amendments 273 and 642 extend the definition of an authorised legal business to include business entities that are owned by a solicitor or solicitors jointly with a person or persons who are regulated by a category 1 regulator and clarify that a business may be wholly owned either directly or through one or more other bodies, or partly directly and partly through one or more other bodies. These amendments address a concern that was raised by the Law Society that various types of business entities are not covered by the provisions.

It is an offence under section 39, liable to a £20,000 fine, for a person to own or operate a legal business that provides legal services to the public for a fee, gain or reward without that business being authorised under part 2 of the bill. The Scottish ministers have the power to change the amount of the fine by regulations, and amendment 274 requires them to consult each category 1 regulator and other persons considered appropriate before making such regulations and to publish any responses to the consultation.

Amendment 275 has the effect of treating a sole solicitor, a firm of solicitors, an incorporated practice and a multinational practice, all as defined in the Solicitors (Scotland) Act 1980, as authorised by the Law Society of Scotland to provide legal services to the public for a fee, gain or reward on the coming into force of the section. This amendment meets a request by the Law Society of Scotland for existing authorised legal businesses to be passported into authorisation when the relevant provisions of the bill commence, so that existing legal businesses are deemed to be authorised rather than all of them having to go through the authorisation process at the same time.

Section 40 introduces the offence of taking or using

“any name, title, addition or description implying that the person is an authorised legal business”

or otherwise pretending

“to be an authorised legal business”

with the “intent to deceive”. Amendment 276 removes the “intent to deceive” ground for the offence and replaces it with the words, “without reasonable excuse”. That aligns with our discussions with the Law Society in respect of the offence of pretending to be regulated.

In response to the views of the Law Society, amendment 277 imposes a new requirement on the Scottish ministers to consult each category 1 regulator and other persons considered appropriate before making regulations to increase the maximum penalty for an offence of pretending to be an authorised legal business and to publish responses.

Section 41 requires a category 1 regulator to prepare and operate a set of rules to authorise and regulate legal businesses, which are referred to in the bill as “ALB rules”. Amendment 279 expands what legal business and legal services ALB rules may relate to by including services—other than legal services—that form part of the professional practice of solicitors or individuals that are regulated by a category 1 regulator within a legal business.

Amendment 280 transfers to the Lord President—rather than the Scottish ministers—the power to approve an amendment to ALB rules. Amendment 281 restricts the requirement to consult about changes to ALB rules to apply only in cases where the change is “material”. Amendment 283 requires the consultation response to be submitted with the amendment of the rules sought by the regulator. Amendment 282 makes a consequential change.

Section 41(2)(c) confers power on the Scottish ministers to specify in regulations such other regulatory matters that ALB rules are to deal with. Amendments 284 and 285 provide that the Scottish ministers may exercise that power only when requested to do so by the Lord President, the consumer panel or a category 1 regulator. The provisions also specify the process in respect of consultation and for obtaining the Lord President’s approval.

Amendment 288 provides that regulator rules for authorising legal businesses may make provision about imposing or varying the conditions or restrictions that apply to existing authorisations.

Amendment 291 adds to the list of things that authorisation rules can be about, to include

“circumstances in which an authorised legal business may surrender its authorisation”.

Amendment 289 means that

“renewal of a legal business’s authorisation”

is no longer one of the particular matters that the authorisation rules must include. Amendments 293 and 298 are consequential to that.

Amendment 292 removes examples of particular fees that may be covered by authorisation rules, such as a fee for renewal, leaving a general provision, which states that authorisation rules can be about chargeable fees.

Amendment 295 provides that authorisation rules can include

“rules or arrangements relating to the continued authorisation ... of a legal business that is a partnership other than a limited liability partnership if ... a person ceases to be a partner ... or ... a person is admitted as a partner”.

The purpose of amendment 295 is to provide clarity regarding such arrangements, following a request by the Law Society.

Both amendments 296 and 297 amend section 43 to recognise a right of appeal to the sheriff by an authorised legal business against a regulator’s decision after an internal review. Amendment 299 provides that the sheriff may

“impose, vary or revoke conditions or restrictions”

in relation to that appeal.

Section 45 allows practice rules under section 44 to provide for the imposition of a financial penalty. Amendments 301 and 302 provide for

“the withdrawal of the imposition of a financial penalty”

where the regulator considers that it is not reasonable to seek payment of it.

Amendment 303 provides that the regulator can recover from the authorised legal business the reasonable cost of collecting any financial penalty that is imposed on the business. The purpose of amendment 303 is to allow the regulator to recover the costs that they incur when collecting any financial penalty from an authorised legal business.

Section 45(2) of the bill allows the Scottish ministers to specify, by regulations, the maximum amount that the financial penalty can be. Amendment 304 requires the Scottish ministers, before making such regulations, to consult the category 1 regulator—and other persons or bodies that they “consider appropriate”—and to publish the responses.

Amendment 305 provides that the Scottish ministers can make such regulations in respect of reconciling different sets of regulatory rules only if they have received a request from the Lord President, a category 1 regulator or the consumer panel, which has undertaken a period of consultation and has included with the request information about the consultation responses that have been received. Following the request, the requester must publish the documents that are included in the request.

Amendment 308 requires the Law Society to seek approval for its first ALB rules under the bill.

Amendment 309 removes section 49, which would have allowed Scottish ministers to intervene to establish a body

“with a view to it becoming a category 1 regulator”

or allow for direct authorisation by ministers. I wrote to the committee in January last year, accepting that the

“risk of the Law Society of Scotland being unable to operate its regulatory functions as a category 1 regulator is ... low”,

and again in April, undertaking to

“lodge an amendment at Stage 2 to remove section 49.”

Amendments 271, 272, 278, 286, 287, 290, 294, 300, 306 and 307 are on minor technical and consequential points.

As I mentioned when speaking to group 7, on special rule changes, Paul O’Kane’s amendment 556 in the current group is not a full replacement for the special measures approach to be taken, as it would apply only to legal businesses and not to all legal services providers. As I said previously, that would leave a gap with regard to the Faculty of Advocates and the Association of Construction Attorneys, so unfortunately I cannot support it.

With regard to what Pam Gosal and Paul O’Kane seek to do through amendments 549 to 556 and amendment 641, amendments 273 and 642 in my name will cover a mixture of a legal business as wholly owned by either solicitors or qualifying individuals and will cover registered foreign lawyers where appropriate. My amendment 275 will also address the concerns by confirming the approach in respect of any such multinational practice. That is subject to alternative provision made by rules approved under section 41.

That means that the Law Society of Scotland will be able to make rules, but the starting position is that multinational practices that are wholly owned by solicitors enrolled in Scotland, or qualifying individuals, or a mixture of both, will be treated as authorised businesses under the controls in part 2 of the bill, unless or until the Law Society makes alternative provision in rules. The amendments in my name will therefore achieve the stated aim, while providing a proportionate level of flexibility.

I believe that we all share the same intention in this area, and I am happy to consider working with Pam Gosal and Paul O’Kane again at stage 3 to see how we can adjust the explanatory notes to the bill to ensure that the position is clear.

I ask members to support each of my amendments in the group. In particular, I ask members to support my amendments 273 and 642, and not amendments 549 to 555, and 641, from Pam Gosal and Paul O’Kane. I also ask Paul O’Kane not to move his amendment 556 on special rules for legal business, in favour of the approach that is taken in the bill to special rules changes for all legal services providers. If he moves that amendment, I would ask members not to support it.

I move amendment 271.

The sections on special rule changes relate to the practice rules and provide regulators with the powers to waive practice rules in defined circumstances for the purpose of promoting innovation or avoiding a regulatory conflict by removing an unnecessary rule or making a rule less onerous, where a regulator considers that to be necessary or appropriate. The waivers are not intended to be permanent, so the bill incorporates transparency and accountability to the Lord President in the process.

The intention of my amendments in the group is to retain the system of special rule changes that are set out in the bill as introduced, but to remove some elements, including the requirement to produce a dedicated report every year, and to introduce more flexibility in other areas in response to concerns that have been raised by the Law Society. The proposals for changes were reached following engagement with the Law Society, which feels that some provisions in sections 21 to 24 do not allow for enough flexibility in relation to the granting of waivers.

Amendment 179 will add to the conditions that are already set out in section 21 a condition that a regulator can give a direction to its member or members “only if” the regulator

“is satisfied the direction is compatible with the regulatory objectives.”

Amendments 180 and 181 will add additional circumstances in which a direction may be given—that is, where the regulator considers that a direction is

“necessary or appropriate in the circumstances.”

Amendment 182 provides that a direction may not disapply or modify a requirement under the bill “or any other enactment”. That will ensure that regulators will continue to meet their obligations in respect of the provisions in the bill or any other enactment.

Amendments 185 and 186 will add to the list of things that a direction must specify, including the period of time for which the direction is to have effect. Amendment 188 will remove the requirement that a direction ceases to have effect after five years.

Amendment 183 will limit the duty of a regulator to consult the Competition and Markets Authority before giving a direction that could restrict, distort or prevent competition to a significant extent to circumstances where the direction that is being given is for the purpose of enabling a new or alternative way of providing or regulating legal services to be piloted.

Amendment 184 will make changes to the bodies to which a copy of a direction is to be given and in what circumstances.

Amendment 187 will place a new requirement on a legal services provider to whom a direction relates to inform the regulator of any changes in circumstances.

Amendment 189 will limit the circumstances in which the Lord President may revoke a direction to the directions that have been given by a regulator, on the basis that it was desirable for the purpose of enabling new or different ways of providing or regulating legal services to be piloted. Amendment 190 will remove the duty to give notice of doing so to the Scottish ministers.

Amendment 191 will remove section 23 of the bill, with the effect that the regulator’s duty to prepare a report on each direction will be removed. Amendment 194 will make a consequential change to section 24. Section 24 of the bill requires a regulator to establish and

“maintain a register of ... Directions”

given under section 21 and sets out what documents the register must contain.

Amendments 192 and 193 will remove the need to include a copy of the application for, or application to amend, the direction.

Amendment 196 will add a requirement to specify

“whether the direction is to have effect for an indefinite period.”

Amendment 195 will make a technical change to denote the placement of the new subparagraphs of section 24(2)(b).

Amendments 197, 198 and 199 will make minor technical changes.

Paul O’Kane’s amendments 543, 544 and 545 would remove most of the special rule changes provisions—sections 21, 22 and 24—from the bill. Unfortunately, I cannot support them. Mr O’Kane’s amendment 556, which is to be debated with group 12, would not be a full replacement for the special measures approach that will be taken through sections 21 to 24, because it would apply only in relation to legal businesses, and not to all legal services providers. That would leave a gap in respect of the Faculty of Advocates and the Association of Construction Attorneys.

The provisions apply not only to the Law Society but to all current and future regulators of legal services in Scotland. The provisions would allow rules to be disregarded where that could bring innovation that could benefit consumers or make a rule less onerous for a legal services provider. The Lord President and the Law Society have been consulted on the Scottish Government amendments. I have listened to the Law Society’s comments and I have sought to address its concerns.

I also consider it important to retain transparency and oversight by the Lord President, following engagement with the senior judiciary. The senior judiciary consider that it is appropriate for the Lord President to have oversight of special rules changes and to have powers to revoke certain types of directions.

I will move amendment 179 and I ask members to support my other amendments in this group. I ask Mr O’Kane not to move his amendments 543 to 545. If he does, I urge members not to support them in favour of retaining the special rule changes arrangements in the bill.

I move amendment 179.

Sections 25 to 27 of the bill would allow a body to apply to the Lord President and the Scottish ministers together to become a new regulator of legal services, being accredited to authorise persons to acquire the right to conduct litigation, the rights of audience in courts and the right to provide other types of legal services. The provisions will replace and modernise similar provisions that are contained in the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990.

Following engagement with the Lord President about the concerns that have been raised by the senior judiciary at stage 1 on the role of the Scottish ministers in the regulation of legal services, I gave an undertaking to the committee that I would lodge an amendment to the effect that it would be the responsibility of the Lord President acting alone to consider any application by a body wishing to enter the legal services sector as a new regulator. Amendment 200 will do just that and amendments 211, 212 and 213 will make consequential amendments.

Amendment 209 will insert proposed new section 26A into the bill to give Scottish ministers the power to specify in regulations the additional regulatory matters that must be dealt with in a draft regulatory scheme. However, Scottish ministers will be able to exercise that power only if they have received a request to do so from the Lord President, an accredited regulator or the consumer panel, following a period of consultation with the specified bodies. Except where the Lord President is the requester, the Lord President’s agreement to the request must be obtained.

To address concerns that were raised by the senior judiciary, amendments 201, 203, 206, 207 and 210 will make changes to the application requirements in respect of the draft regulatory scheme that must accompany an application for accreditation. Amendments 202, 204, 205 and 208 are consequential amendments.

The purpose of amendments 214 to 224 and 227 is to remove the involvement of Scottish ministers from consideration of an application and the accompanying draft regulatory scheme, which will leave it to the Lord President alone. The amendments will also introduce additional requirements for consultation and transparency.

Amendments 225 and 226 will place an additional duty on the Lord President, when considering a draft regulatory scheme, to consult the Scottish ministers as well as the Competition and Markets Authority, the consumer panel and other persons who are considered to be appropriate. Amendments 228 to 231 are consequential amendments.

Amendment 232 will impose a new requirement, in proposed new subsections 29(2A) and (2B), on the Lord President to publish the decision on an application under section 25 by a prospective regulator seeking accreditation.

Amendment 233 will remove the requirement for Scottish ministers to make regulations to give effect to the draft regulatory scheme.

Amendment 234 will require an applicant to give effect to and publish an approved regulatory scheme. Amendment 235 will make a consequential amendment. The committee will be aware from correspondence with the Lord President and the Law Society that the amendments are welcomed by the senior judiciary and the legal profession.

I ask members to support my other amendments in the group, and I move amendment 200.

Amendment 200 agreed to.

Amendment 201 moved—[Siobhian Brown]—and agreed to.

Section 25, as amended, agreed to.

Section 26—Regulatory scheme

Amendments 202 to 205 moved—[Siobhian Brown]—and agreed to.

Amendments 546 and 547 not moved.

No thank you, convener.

Amendment 250 agreed to.

Section 32, as amended, agreed to.

Before section 33

I thank Paul O’Kane and Tess White for their amendments, which I am happy to support. However, as I said, we will have to ensure at stage 3 that the revised provisions work within the wider legislation.

Amendment 27, by agreement, withdrawn.

Amendments 28 to 37 moved—[Siobhian Brown]—and agreed to.

Schedule 1, as amended, agreed to.

Section 49—Powers of the Scottish Ministers to intervene

Amendment 309 moved—[Siobhian Brown]—and agreed to.

Section 50 agreed to.

The effect of amendment 252 is to require an accredited regulator to review its regulatory scheme if directed to do so by the Lord President. It removes from the bill ministerial involvement in triggering the review process.

A regulator also has the power to initiate such a review itself. Where it does so and proposes a revision, amendment 251 requires it to provide a report of the revision to the Lord President, who can approve the revision, not approve it, or direct another revision to be made.

Amendments 253 to 259 and amendment 261 are consequential on the removal of the role of the Scottish ministers from the process.

Amendment 260 gives a new power to allow the Lord President to comment on an accredited regulator’s proposed revisions to its regulatory scheme and direct the regulator to take account of such comments before giving the Lord President a revised report containing any revision to the scheme.

Amendment 262 places a requirement on the regulator to publish its revised scheme.

Amendment 263 gives the Lord President the power to revoke or vary any direction that they have given.

I move amendment 251 in my name and ask members to support my other amendments in the group.

Amendment 251 agreed to.

Section 33—Review of regulatory schemes

Amendments 252 to 263 moved—[Siobhian Brown]—and agreed to.

Section 33, as amended, agreed to.

Section 34—Revocation of acquired rights

Amendments 264, 266, 265 and 267 to 269 moved—[Siobhian Brown]—and agreed to.

Section 34, as amended, agreed to.

Section 35—Replacement regulatory arrangements for authorised providers

Amendment 270 moved—[Siobhian Brown]—and agreed to.

Section 35, as amended, agreed to.

Sections 36 and 37 agreed to.

Section 38—Overview of Part

Yes, certainly. Amendment 41 makes it clear that the requirement to exercise regulatory functions in a way that contributes to sustainable economic growth applies only to the extent that to do so would not be inconsistent with the regulatory objectives, rather than, as the bill requires at present, only to the extent that it would not be inconsistent with the exercise of regulatory functions. The amendment addresses the Law Society’s concern that it is circular and confusing to require the exercise of regulatory functions only to the extent that that is not inconsistent with the exercise of regulatory functions.

Amendment 41 makes section 3(4)(b) clear that the duty to exercise regulatory functions in a way that would help to achieve economic growth applies only to the extent that that is not inconsistent with the regulatory objectives as set out in section 2(1).

Amendment 42 adds the Scottish Solicitors Discipline Tribunal as a named regulatory authority in section 3(5), which means that, as a regulatory authority, the SSDT is subject to the duties that are set out in section 3. Those duties relate to how the regulatory objectives are applied and to other regulatory authorities, including the Lord President and category 1 and category 2 regulators.

I thank Paul O’Kane for his comments. I know that the bill has been on a bit of a journey since it was introduced in April 2023. When we went into stage 1, committee members wanted to see all the amendments being made at that stage, so I hope that members will now appreciate the amount of work that has had to be done and the discussions that we have had with the judiciary and the Lord President to get us to where we are today. Thanks to my officials, a lot of work has been done in the background, and I think that we are in a better place today than we maybe were at this time last year. I thank Paul O’Kane for his comments on that.

Tess White asked about the SLCC’s comments on amendment 40. There has been a lot of engagement with stakeholders during the bill process. The purpose of amendment 40 is to clarify that, under section 3, the duty of the regulatory authority to exercise its regulatory functions in a manner which is compatible with the regulatory objectives and is considered the most appropriate to meet those objectives is not an absolute duty. The regulatory authority need only carry out that duty as far as practicable. The effect of amendment 40 will be to insert the words “so far as practicable” into section 3(1) of the bill, so that a regulatory authority need only apply the regulatory objectives so far as practicable. Amendment 40 reflects many discussions with the Law Society to get agreement and that is the conclusion that we have come to.

Amendments 51 to 72 bring the provisions relating to a category 1 regulator’s exercise of its regulatory functions by an independent regulatory committee established and maintained by the regulator, in line with the equivalent provisions in the Solicitors (Scotland) Act 1980, which apply to the Law Society’s committees. The amendments reflect engagement with the Law Society.

Taken together, the effect of amendments 51, 52 and 53 is to require rather than allow the regulatory committee to determine its composition, governance arrangements and priorities in accordance with the bill. Amendment 54 ensures that a regulatory committee can continue to delegate its functions.

Amendment 64 allows sub-committees to delegate any of their functions to an individual, such as a member of staff. Delegation to a sub-committee, or onwards to an individual, is subject to some exceptions relating to the regulatory committee’s function of making regulatory rules and decisions around complaints.

Amendment 56 introduces a requirement on a regulatory committee to maintain and publish a document setting out its composition, governance arrangements, regulatory functions and procedures and any arrangements for the delegation of functions.

Amendments 57 and 58 limit the consultation requirement on the regulatory committee to consult the governing body of the regulator to only those cases where the committee is making a “material” change to its governance arrangements, rather than a less significant change to either its structure or governance arrangements.

Amendments 60 to 63 make changes to the rules and requirements relating to the composition, membership and procedure of regulatory committees, with amendment 59 making a minor technical change to clarify the meaning of section 53(3).

Amendment 65 removes the requirement to include in the annual report a summary of decisions to pay out professional indemnity insurance, to reflect concerns raised by the Law Society that it is the insurance provider and not necessarily the regulator that has access to that information.

Amendments 66, 67 and 69 increase the range of material that must be included in a category 1 regulator’s annual report to include information about the number of complaints and regulatory waivers. Amendment 68 is consequential on the transfer of the powers from the Scottish ministers to the Lord President under section 20, to take specified measures in relation to a category 1 regulator.

Following engagement with legal stakeholders, amendment 70 removes the requirement on a category 1 regulator or its regulatory committee to consult the Lord President when preparing an annual report. Instead, amendment 71 will require the regulator to send a copy of the report to the Lord President as well as publishing it.

Amendment 73 is clarificatory and makes minor changes to the interpretation provision in section 13(7), setting out how conduct and regulatory complaints are to be construed, and clarifying that a regulator’s “reporting year” means a 12-month period that coincides with the regulator’s financial year.

Section 14 of the bill requires a category 1 regulator to establish and maintain a compensation fund. It also gives the Scottish ministers the power, by regulations, to make further provision in connection with the fund or the fund rules. Reflecting engagement with legal stakeholders, amendment 74 will restrict the exercise of that ministerial power to cases where the Lord President, a category 1 regulator or the consumer panel has requested them to use it. The amendment specifies the information that must be included with such a request and sets out who must be consulted before such a request is made and when the Lord President’s agreement must be secured, as well as what information must be given to the Lord President when seeking their agreement.

Amendment 75 makes regulations that are made under the ministerial power subject to the affirmative procedure. It aligns with schedule 1, paragraph 6, which inserts section 43A, in respect of the Law Society of Scotland’s guarantee fund, into the Solicitors (Scotland) Act 1980. That is a delegated power that is subject to the affirmative procedure.

Section 16 requires a category 2 regulator to prepare and publish online an annual report on the exercise of its regulatory functions. The section also specifies the information that the report must include. Amendments 76 and 77 require additional information to be included in the report.

Amendment 78 makes a consequential change to section 16(2)(g) to reflect that amendment 112 changes section 20 of the bill to allow the Lord President rather than Scottish ministers to take specified measures in relation to the performance of a category 1 or category 2 regulator. Under section 16, the annual report must include details of the steps that are taken by the regulator to comply with any such specified measures.

Amendment 79 exempts the Faculty of Advocates as a regulator from the requirement to include a statement in the report that indicates whether it considers it has been assigned to the correct category in line with the adjustments to section 8.

Amendment 80 requires a category 2 regulator to consult the consumer panel when it is preparing an annual report in order to ensure that consumer interests are considered.

Amendment 81, which was included following engagement with stakeholders, makes it a requirement for a category 2 regulator to send a copy of its annual report to the Lord President in addition to publishing it.

Amendment 82 clarifies that a “conduct complaint” is to be construed in accordance with part 1 of the Legal Profession and Legal Aid (Scotland) Act 2007 in respect of a category 2 regulator annual report.

Amendment 83 changes the definition of a “reporting year” to mean, in relation to a category 2 regulator, a 12-month period that coincides with the regulator’s financial year.

The other amendments in the group expand on the information that a regulator must hold about members in its register, as required under section 17 of the bill. They also widen the definition of “professional liability” in the bill to bring it more in line with the definition in the Solicitors (Scotland) Act 1980.

Amendments 84 to 88 and amendment 90 expand the information that is required to be held by regulators on the mandatory register about its members. In order to provide further transparency about the outcome of disciplinary action, that includes information about the business address, any sanction resulting from disciplinary action, suspension and what is required after a period of suspension has been lifted. Those amendments were included following engagement with stakeholders.

Amendment 89 allows the regulator to decide what additional information the register may contain, as it considers appropriate.

Amendments 91 and 92 widen the definition of “professional liability” as set out in section 18(7) on professional indemnity insurance to include former legal services providers and cover other services, in addition to legal services, which form part of the professional practice of the solicitors or qualifying individuals within the legal business that provides the legal services. The definition draws on some elements of the definition in the 1980 act.

I move amendment 51 and ask members to support the other amendments in the group.

Amendment 51 agreed to.

Amendments 53, 52 and 54 to 58 moved—[Siobhian Brown]—and agreed to.

Section 9, as amended, agreed to.

Section 10—Regulatory committee: composition and membership

Amendments 59 to 62 moved—[Siobhian Brown]—and agreed to.

Section 10, as amended, agreed to.

Section 11—Regulatory committee: lay and legal members

Amendment 63 moved—[Siobhian Brown]—and agreed to.

Section 11, as amended, agreed to.

Section 12—Regulatory committee: convener, sub-committees and minutes

Amendment 64 moved—[Siobhian Brown]—and agreed to.

Section 12, as amended, agreed to.

Section 13—Annual reports of category 1 regulators

Amendments 65 and 66 moved—[Siobhian Brown]—and agreed to.

Section 20 currently allows Scottish ministers to intervene in the event of concerns being raised that a regulator is failing to exercise their regulatory functions in a way that is compatible with the regulatory objectives, and to take certain specified measures. Amendments 112 to 116 and 118 to 120 have the effect of transferring that power from the Scottish ministers to the Lord President. Although the regulation-making power allowing the Scottish ministers to specify intervention measures that may be taken other than those already provided for is retained in section 20(6), amendment 122 ensures that both the Lord President and other stakeholders have a greater role in the process. That amendment provides that the Scottish ministers can exercise the regulation-making power only at the request of the Lord President, who must, before making such a request, consult regulators, the consumer panel and other persons considered appropriate, as well as adhering to certain publication requirements. Those provisions will ensure an appropriate level of stakeholder involvement in the exercise of the delegated power.

The amendments to section 20 have been welcomed by both the Law Society and the senior judiciary in their recent correspondence to the committee. The amendments alter the sanctions available, with amendment 117 removing the ability to impose a financial penalty from the measures available to the Lord President.

Amendments 68, 121, 146, 310 and 311 make consequential changes to provisions in the bill. Amendment 123 makes a small technical change.

Section 19, together with section 20, provides an important mechanism so that there is a process for review of regulatory performance if concerns are raised about a regulator not upholding the regulatory objectives, with a process allowing specified intervention measures to be taken following such a review.

Amendments 93 and 94 reflect the change of powers to the Lord President that have already been discussed.

Amendments 95 to 99, 101 and 106 to 111 make further changes to alter the bodies that may seek a review of the performance of a legal services regulator, the criteria for a review, the process for conducting a review and the types of things that a performance review can include.

Amendment 99 makes a technical change to clarify that a regulator must provide information about performance when requested to do so by the Lord President in connection with a performance review or a decision as to whether to conduct such a review. Amendment 100 requires that information to be provided within 28, rather than 21, days.

Amendments 102 and 104 insert new provisions into the bill to impose duties on persons other than the relevant regulator in relation to information that they hold relating to the performance of that regulator. That will ensure that the Lord President has all the necessary information available when conducting a review.

Amendment 105 allows the Lord President, when a regulator has failed to provide the information within 28 days, to add such a failure to the existing review. However, the regulator must be given an opportunity to respond to the Lord President’s proposal.

Amendment 103 requires the Lord President to consult such bodies as are considered appropriate in conducting a review of performance.

Amendment 109 requires the Lord President to also send a copy of the report to the relevant regulator and to any requesting body, and amendment 110 requires the Lord President to inform a body that has requested a review of any decision not to conduct such a review.

Amendments 98, 101, 106, 107, 108 and 111 make consequential changes.

Amendment 459 inserts new section 86A into the bill. The new section allows the Lord President to make rules in connection with the exercise of their functions under part 1 or 2 of the bill. Before making rules, the Lord President must consult the consumer panel and each category 1 and category 2 regulator.?

The Lord President is required to publish the rules, once finalised. That transparency provides a check on the exercise of the Lord President’s power.?

I will move on to discuss technical amendments that reflect the substantive changes that have been made to sections 19 and 20 in relation to powers being with the Lord President.

Amendment 147 enables the Lord President to direct a new regulator, or any regulator that acquired rights for its members to provide legal services—other than rights to conduct litigation and rights of audience—under the 1990 act, to change its regulatory scheme in the manner directed by the Lord President. In other cases, the amendment provides that the Lord President can ask Scottish ministers to make regulations to make provision to change the regulatory functions or the way in which those functions are exercised.

Amendments 148 to 152 are consequential or technical amendments, as are amendments 156 to 178, with the exception of amendment 169.

Amendment 169 requires the Lord President, when proposing to remove all the regulatory functions of either an accredited regulator or of a body that has acquired rights for its members to conduct litigation and has acquired rights of audience, to give notice of that intention to authorised providers and to consult them.

I move amendment 68 and ask members to support the other amendments in the group.

Amendment 68 agreed to.

Amendments 69 to 73 moved—[Siobhian Brown]—and agreed to.

Section 13, as amended, agreed to.

Section 14—Compensation funds

Amendments 74 and 75 moved—[Siobhian Brown]—and agreed to.

Section 14, as amended, agreed to.

Section 15 agreed to.

Section 16—Annual reports of category 2 regulators

Amendment 76 moved—[Siobhian Brown]—and agreed to.