Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Regulation of Legal Services (Scotland) Act 2025

Type Act of the Scottish Parliament

Publication 2025-06-27

Last updated 2026-03-05

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) An advertisement required under subsection (1)(c) must state that—

(a) a copy of the draft regulatory scheme is available electronically during the relevant period,

(b) written representations concerning the draft scheme may be made to the Lord President, and

(3) Any person may make written representations concerning a draft regulatory scheme during the relevant period.

(4) Representations under subsection (3) must—

(a) be made to the Lord President, and

(b) be received by the Lord President before the expiry of the relevant period.

(5) In this section—

“draft regulatory scheme” in relation to an application made under section 23, means the draft regulatory scheme required to accompany the application under section 23 (4),

“relevant period” in relation to an application under section 23, means the period of six weeks beginning with the date on which the application is made.

Consideration and grant

Consideration of applications

27

(1) The Lord President is to consider an application submitted under section 23 (1) and must consider any written representations made to the Lord President in accordance with section 26 (3) and (4).

(2) The Lord President may not consider the application if the Lord President is not satisfied that the requirements of section 26 have been complied with.

(3) The Lord President may make preliminary observations to the body in relation to the draft regulatory scheme accompanying the application.

(4) In the event that the body makes adjustments to the draft regulatory scheme in response to preliminary observations made under subsection (3), the Lord President is to consider the draft scheme as so adjusted.

(5) The Lord President, when considering a draft regulatory scheme, is—

(a) to have regard to whether the provisions of the scheme would be sufficient to achieve, and to ensure the maintenance of, appropriate standards of conduct and practice by persons who may acquire the rights sought, and

(b) to consult—

(i) the Scottish Ministers,

(ii) the Competition and Markets Authority,

(iii) the independent advisory panel of the Commission, and

(iv) such other persons as the Lord President considers appropriate.

(6) In considering the proposed practice rules, the Lord President is to have regard to the desirability of there being common principles applying in relation to the exercising of rights to conduct litigation and rights of audience by all practitioners in relation to the court or, as the case may be, the courts, mentioned in the application.

Approval of application and giving effect to the regulatory scheme

28

(1) This section applies where the Lord President has considered an application in accordance with section 27.

(2) If the Lord President—

(a) is satisfied with the draft regulatory scheme, the Lord President is to approve the application and inform the body,

(b) is not satisfied with the draft scheme, the Lord President is to refuse the application and inform the body, giving written reasons for the refusal.

(3) As soon as reasonably practicable after notifying the body under subsection (2) of the decision to approve or refuse the application, the Lord President must publish notification of the decision.

(4) Notification under subsection (3) must—

(a) include a summary of the Lord President’s reasons for the decision, and

(b) be published in such manner as the Lord President considers appropriate (having regard to the desirability of the document being accessible to those likely to have an interest in it).

(5) The Lord President must send a copy of a letter approving or refusing an application under this section to any person who has made representations in relation to the draft regulatory scheme under section 26 (3).

(6) Where the application has been approved, the Scottish Ministers must, as soon as reasonably practicable, lay before the Scottish Parliament draft regulations under section 7 (5) to assign the body as a category 1 or category 2 regulator.

(7) If a body’s application is approved under this section, as soon as reasonably practicable after receiving notice of the Lord President’s approval under subsection (2), the body must—

(a) give effect to the draft regulatory scheme and apply it as its regulatory scheme in relation to its authorised providers and persons applying to it for authorisation, and

(b) publish its regulatory scheme in a manner that is accessible to the public, free of charge, by such electronic means as the body considers appropriate.

(8) For the purposes of this Part, a body which has its application approved under this section is referred to as an accredited regulator.

Exercise of the acquired rights

Exercise of rights to provide legal services

29

(1) This section applies when an accredited regulator has given effect to a draft regulatory scheme and applied it as its regulatory scheme under section 28(7), and the regulator is assigned as a category 1 or category 2 regulator.

(2) A legal services provider that is authorised by the accredited regulator may exercise an acquired right (or rights).

(3) Nothing in subsection (2) (or the authorisation rules of the regulatory scheme) affects the power of any court in relation to any proceedings—

(a) to hear a person who would not otherwise have a right of audience before that court in relation to those proceedings, or

(b) to refuse to hear a person (for reasons which apply to the person as an individual) who would otherwise have a right of audience before that court in relation to those proceedings, and where a court so refuses it must give its reasons to the person for that decision.

(4) Where a conduct complaint is made in relation to the exercise of an acquired right, the accredited regulator of the legal services provider that is the subject of the complaint may, or if so requested by the Lord President must, suspend the provider from exercising the acquired right pending determination of the complaint by the regulator.

(5) Where an authorised provider who is authorised to exercise a right of audience in a court is instructed to appear in that court, those instructions are to take precedence before any other professional or business obligation.

(6) An authorised provider exercising a right of audience has the same immunity from liability for negligence in respect of the provider’s acts or omissions as if the provider were an advocate.

(7) An act or omission on the part of an authorised provider does not give rise to an action for breach of contract in relation to the exercise of a right of audience by the provider.

(8) For the purposes of this Chapter—

“acquired right” means the right or rights to provide legal services specified and described in a regulatory scheme given effect to under section 28,

“conduct complaint” is to be construed in accordance with Part 1 of the 2007 Act,

“right of audience” includes, in relation to any court, any such right exercisable by an advocate,

“right to conduct litigation” means the right to exercise on behalf of a client all or any of the functions, other than any right of audience, which may be exercised by a solicitor in relation to litigation.

Surrender of rights

30

(1) An accredited regulator may apply to the Lord President to surrender some or all of the acquired rights.

(2) Before submitting an application under subsection (1), the accredited regulator must consult its authorised providers in relation to the proposed application.

(3) An application under subsection (1) must include copies of any representations received in response to the consultation under subsection (2).

(4) As soon as practicable after receipt of such an application, the Lord President must—

(a) send a copy of the application to such person or body (other than an authorised provider of the accredited regulator) as the Lord President considers appropriate, and

(b) consult them accordingly.

(5) Where an application under subsection (1) is for the surrender of all of the regulator’s acquired rights, consultation under subsection (2) with the body’s authorised providers must, in particular, seek their views about whether a majority of the providers would like—

(a) another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights (if that other regulator is content to so authorise and regulate them), or

(b) to form a body and submit an application under section 23 seeking accreditation of the body to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights.

(6) A consultee under subsection (2) has a period of 6 weeks beginning with the day on which the consultee receives notification from the accredited regulator of the opportunity to make representations (or, if the regulator considers it appropriate and the Lord President consents, such shorter period as may be specified in the notice) to make representations to the regulator about the proposed surrender.

(7) The consultees under subsection (4) have a period of 6 weeks beginning with the day on which a copy of the application is sent (or, if the Lord President considers it appropriate, such shorter period as may be specified when sending a copy to the consultees) to make representations to the Lord President about the proposed surrender.

(8) The Lord President may give directions (at any time) as to the requirements with which a body wishing to surrender all or some of its authorised providers’ acquired rights will have to comply.

(9) Directions under subsection (8) may—

(a) in particular—

(i) require arrangements to be made for the completion of any work outstanding at the time the application is made, and

(ii) relate to the circumstances of a particular body,

(b) be varied or revoked by the Lord President.

(10) Where the Lord President grants the application in respect of some or all of the acquired rights of the accredited regulator, the Lord President is to—

(a) give notice to the regulator specifying the date (or dates) on which it is to take effect, and

(b) publish the notice in such manner as the Lord President considers appropriate (having regard to the desirability of it being accessible to those likely to have an interest in it).

(11) From the date specified in the notice, a person authorised by the body to provide legal services ceases to be authorised and may not exercise the acquired rights or, if applicable, such of them as has been surrendered.

(12) Subsection (13) applies where—

(a) an application under subsection (1) is for the surrender of all of the regulator’s acquired rights, and

(b) the majority of the providers consulted under subsection (2) have expressed a preference for an outcome mentioned in paragraph (a) or (b) of subsection (5).

(13) Notice given by the Lord President under subsection (10) may (instead of specifying the date on which the notice is to take effect) specify that the notice is to take effect on the date on which one of the following events occurs—

(a) the providers consulted under subsection (2) are authorised to exercise their acquired rights (and are regulated in their exercise of the acquired rights) by another category 1 or category 2 regulator,

(b) an application submitted under section 23(1) by a body formed by those providers is approved or refused by the Lord President under section 28.

(14) Where a notice under subsection (10) specifies that the notice is to take effect on the occurrence of an event mentioned in subsection (13), subsection (11) has effect as if the reference to “the date specified in the notice” were a reference to “the date of the occurrence of the event mentioned in subsection (13) that is specified in the notice”.

Offence of pretending to have acquired rights

31

(1) A person commits an offence if the person without reasonable excuse—

(a) takes or uses any name, title, addition or description implying that the person is authorised to exercise an acquired right,

(b) otherwise pretends to be authorised to exercise an acquired right.

(2) A person who commits an offence under subsection (1) is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Review of regulatory scheme

Review of regulatory scheme on initiative of accredited regulator

32

(1) This section applies where an accredited regulator has carried out a review of its regulatory scheme on its own initiative and proposes such revision to its scheme as it considers appropriate in light of the review.

(2) The accredited regulator must send a report to the Lord President detailing the proposed revision to the scheme.

(3) Following receipt of a report under subsection (2), the Lord President may—

(a) approve the proposed revision to the scheme,

(b) not approve the proposed revision to the scheme,

(4) Following revision of its scheme pursuant to paragraph (a) or (c) of subsection (3), the accredited regulator must publish the revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.

(5) The Lord President may vary or revoke a direction given under subsection (3)(c).

Review of regulatory schemes

33

(1) The Lord President may direct an accredited regulator to carry out a review of its regulatory scheme.

(2) Following a review, the accredited regulator must give the Lord President a report on the review containing any revisions it proposes to make to its regulatory scheme (if any).

(3) Where the Lord President considers that the terms of any proposed revision to the regulatory scheme are satisfactory, the Lord President is to approve the revised scheme and direct the accredited regulator to apply the revised scheme.

(4) Subsection (5) applies where the Lord President considers that—

(a) the proposed revisions to the scheme are not satisfactory, or

(b) revisions should have been proposed (but have not been).

(5) Where this subsection applies—

(a) the Lord President may direct the accredited regulator to apply the revisions that the Lord President considers should be made to the regulatory scheme from such date as may be specified in the direction, or

(b) the Lord President may—

(i) provide comments in relation to the proposed revisions to the regulatory scheme, and

(ii) direct the accredited regulator to take account of the comments in reviewing the proposed revisions before giving the Lord President a revised report containing any proposed revision to the scheme.

(6) Subsections (3) to (5) apply in relation to a revised report given to the Lord President under subsection (5)(b) as they apply in relation to a report given to the Lord President under subsection (2).

(7) Following the revision of its regulatory scheme under this section, the accredited regulator must publish its revised scheme in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.

(8) The Lord President may vary or revoke a direction given under this section.

Revocation of acquired rights

34

(1) Where it appears to the Lord President that an accredited regulator has failed to comply with a direction under section 32 (3)(c) or 33 (5), the Lord President may revoke the approval of the application under section 28.

(2) The Lord President must—

(a) give notice of the Lord President’s decision to revoke approval of the application under section 28 (a “decision notice”) to the regulator, and

(b) publish the decision notice in such manner as the Lord President considers most appropriate for bringing it to the attention of any relevant person or body.

(3) Before issuing a decision notice, the Lord President must consult each person who is authorised by the accredited regulator to provide legal services (“the authorised providers”) in relation to the proposed decision and, in particular, with a view to determining whether, in consequence of the revocation of the accredited regulator’s approval, a majority of the authorised providers would like—

(a) another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights if that other regulator is content to so authorise and regulate them, or

(b) to form a body and submit an application under section 23 seeking accreditation of the body to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights.

(4) Where a majority of the providers consulted under subsection (3) have expressed a preference for an outcome mentioned in paragraph (a) or (b) of that subsection, the Lord President may decide not to issue a decision notice for such period as the Lord President considers appropriate to enable—

(a) another category 1 or category 2 regulator to authorise and regulate the providers, or (as the case may be)

(b) the providers to form a body and submit an application under section 23 in respect of that body.

(5) From such date as may be specified in a decision notice, a person authorised by the accredited regulator ceases to be so authorised and may not exercise the rights acquired by virtue of that authorisation.

Miscellaneous

Replacement regulatory arrangements for authorised providers

35

(1) Where an accredited regulator is a discontinuing regulator as mentioned in paragraph (d) of the definition of that term as set out in subsection (6), the Lord President must consult each authorised provider to determine in particular whether a majority of the authorised providers would like another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights (if that other regulator is content to so authorise and regulate them).

(2) Subsection (3) applies where the Lord President is satisfied that—

(a) following consultation under subsection (1), section 30(4) or 34(3) or paragraph 18(2) of schedule 2 (as the case may be), a majority of the authorised providers of a discontinuing regulator would like another category 1 or category 2 regulator to authorise them to exercise their acquired rights and regulate their exercise of the acquired rights, and

(b) the other category 1 or category 2 regulator (“the receiving regulator”) is willing to authorise and regulate the authorised providers of the discontinuing regulator.

(3) The Lord President may—

(a) in a case where the receiving regulator falls within subsection (4), amend the regulatory functions of the receiving regulator to enable it to regulate the authorised providers of the discontinuing regulator,

(b) in any other case, request that the Scottish Ministers make regulations under subsection (5) to amend the functions of the receiving regulator.

(4) A regulator falls within this subsection if it is an accredited regulator or a body which has had an application under section 25 of the 1990 Act granted under section 26 of that Act.

(5) Following a request of the Lord President under subsection (3)(b), the Scottish Ministers may lay a draft of a Scottish statutory instrument containing regulations before the Scottish Parliament to amend the regulatory functions of the receiving regulator.

(6) In this section—

“authorised provider” means a legal services provider that is authorised by a discontinuing regulator to provide legal services,

“discontinuing regulator” means an accredited regulator that— is the subject of a potential measure as mentioned in section 19(4)(f) to remove all of its regulatory functions, has made an application under section 30, is the subject of regulations to revoke its approval under section 34, or has ceased operating otherwise than in accordance with any of the ways mentioned in paragraph (a), (b) or (c),

“regulatory complaint” is to be construed in accordance with Part 1 of the 2007 Act,

“services complaint” is to be construed in accordance with Part 1 of the 2007 Act.

(7) Regulations under subsection (5)—

(a) may modify any enactment,

(b) are subject to the affirmative procedure.

Consequential amendments and repeals

36

(1) Sections 25 to 29 and schedule 2 of the 1990 Act are repealed.

(2) Section 40 of the 1990 Act (advisory and supervisory functions of the CMA) is amended as follows.

(3) In subsection (1), for paragraph (c) substitute—

(c) considering— (i) any provisions of a draft regulatory scheme under section 27 of the Regulation of Legal Services (Scotland) Act 2025, or (ii) any provision which is proposed as a revision to a regulatory scheme under section 33 of that Act,

(4) Section 42 of the 1990 Act (review of rules approved by the Scottish Ministers) is amended as follows.

(5) In subsection (1)—

(a) paragraph (b) and the word “or” immediately preceding that paragraph are repealed,

(b) in the closing words—

(i) the words “and, where the Lord President, in the case of a draft scheme such as is mentioned in paragraph (b), so requests shall” are repealed,

(ii) the words “or, as the case may be, the scheme” are repealed.

(6) In subsection (2)—

(a) in the opening words—

(i) the words “or, as the case may be, a scheme,” are repealed,

(ii) the words “or scheme” in both places they appear, are repealed,

(b) paragraph (b) and the word “or” immediately preceding that paragraph are repealed.

(7) Subsections (4) to (6) are repealed.

(8) In subsection (7)—

(a) the words “and schemes” where they first appear are repealed,

(b) the words “and schemes submitted under section 25(1) of this Act” are repealed.

Transitional and saving provision for regulators approved under the 1990 Act

37

Sections 30, 32, 33, 34 and 35 apply to a professional or other body whose application under section 25 of the 1990 Act was approved under section 26 of that Act as they apply to a body whose application for accreditation under section 23 of this Act was approved under section 28 of this Act.

Part 2 — Regulation of legal businesses

Introductory

Overview of Part

38

(1) This Part makes provision for category 1 regulators to authorise legal businesses to provide legal services.

(2) Section 39—

(a) defines what constitutes a legal business (and associated expressions) for the purpose of this Part, and

(b) makes it an offence for a legal business to provide legal services without being authorised by the appropriate regulator of that business.

(3) Section 40 makes it an offence to pretend, without reasonable excuse, to be an authorised legal business.

(4) Sections 41 to 46 require category 1 regulators to prepare and operate rules to authorise and regulate legal businesses.

(5) Section 47 deals with how a category 1 regulator is to monitor and investigate the performance of authorised legal businesses.

(6) Section 48 and Part 2 of schedule 1 (which amends the 1980 Act)—

(a) enable the Law Society to authorise (and regulate) legal businesses,

(b) reflect that incorporated practices (within the meaning of section 34 of the 1980 Act) are to be authorised as a type of legal business.

(7) Section 49 makes provision for where a body must change its regulatory regime by virtue of changing the manner in which it is owned.

Requirement to be authorised to provide legal services

Requirement for legal businesses to be authorised to provide legal services

39

(1) A legal business may provide legal services to the public for fee, gain or reward only if it is authorised to do so by the category 1 regulator that is responsible for the regulation of the owners of the legal business.

(2) For the purposes of this Part, a legal business is a business which provides (or offers to provide) legal services to the public for fee, gain or reward that—

(a) consists of—

(i) a solicitor, or

(ii) a qualifying individual, or

(b) is wholly owned by—

(i) a solicitor or solicitors,

(ii) a qualifying individual or individuals, or

(iii) a solicitor (or solicitors) and a qualifying individual (or individuals).

(3) For the purpose of subsection (2)(b), a business may be wholly owned—

(a) directly or through one or more other bodies,

(b) partly directly and partly through one or more other bodies.

(4) A category 1 regulator is responsible for the regulation of the owner of a legal business if the owner is a member of the regulator or is otherwise subject to its regulation in respect of the legal services the owner provides.

(5) It is an offence for a person to own or operate a legal business which provides legal services to the public for fee, gain or reward without that business being authorised in accordance with this Part.

(6) A person who commits an offence under this section is liable on summary conviction to a fine not exceeding £20,000.

(7) The Scottish Ministers may by regulations amend subsection (6) to substitute a different amount of fine for the one for the time being specified there.

(8) Before making regulations under subsection (7), the Scottish Ministers must—

(a) consult—

(i) the regulatory committee (if any) of each category 1 regulator,

(ii) each category 1 regulator that has no functions other than regulatory functions, and

(iii) such other person or body as the Scottish Ministers consider appropriate, and

(b) publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(9) Regulations under subsection (7) are subject to the negative procedure.

(10) For the purpose of this section, a “qualifying individual” means an individual, other than a solicitor, whose provision of legal services is regulated by a category 1 regulator.

(11) Subsection (12) applies to a legal business—

(a) that intends to provide (or offer to provide) legal services to the public for fee gain or reward, and

(b) which was immediately before the coming into force of this section—

(i) a sole solicitor within the meaning given by section 45(5) of the 1980 Act,

(ii) a firm of solicitors within the meaning of that Act,

(iii) an incorporated practice within the meaning given by section 34(1A)(c) of that Act, or

(iv) a multi-national practice within the meaning given by section 65(1) of that Act.

(12) On the coming into force of this section, a legal business to which this subsection applies is to be treated as authorised in accordance with this Part by the Law Society to provide legal services to the public for fee, gain or reward.

(13) But the effect of subsection (12) is subject to any alternative provision made by rules approved under section 41.

(14) In this Part—

(a) a reference to an authorised legal business of a category 1 regulator is a reference to a legal business that is authorised to provide legal services by the relevant regulator,

(b) a reference to the relevant category 1 regulator, in relation to an authorised legal business, is a reference to the category 1 regulator which authorises the legal business.

Offence of pretending to be an authorised legal business

40

(1) A person commits an offence if the person without reasonable excuse—

(a) takes or uses any name, title, addition or description implying that the person is an authorised legal business,

(b) otherwise pretends to be an authorised legal business.

(2) A person who commits an offence under subsection (1)is liable on summary conviction to a fine not exceeding £20,000.

(3) The Scottish Ministers may by regulations amend subsection (2) to substitute a different amount of fine for the one for the time being specified there.

(4) Before making regulations under subsection (3), the Scottish Ministers must—

(a) consult—

(i) the regulatory committee (if any) of each category 1 regulator,

(ii) each category 1 regulator that has no functions other than regulatory functions, and

(iii) such other person or body as the Scottish Ministers consider appropriate, and

(b) publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(5) Regulations under subsection (3) are subject to the negative procedure.

Regulation of authorised legal businesses

Rules for authorised legal businesses

41

(1) A category 1 regulator must—

(a) make rules for authorising and regulating legal businesses (“ALB rules”),

(b) apply its ALB rules in relation to the legal businesses for which it is responsible, and

(c) publish its ALB rules in a manner that is accessible to the public, free of charge, by such electronic means as the regulator considers appropriate.

(2) ALB rules are to—

(a) contain—

(i) authorisation rules,

(ii) practice rules,

(b) include provision for reconciling different sets of regulatory rules, and

(c) deal with such other regulatory matters as the Scottish Ministers may by regulations specify (and in such manner as the regulations may specify).

(3) ALB rules may—

(a) relate to—

(i) one or more types of legal business,

(ii) some or all legal services,

(iii) other services (in addition to legal services) that form part of the professional practice of solicitors, or qualifying individuals, within a legal business,

(b) make different provision for different cases or types of case.

(4) A category 1 regulator may not amend its ALB rules (or any of them) without the prior approval of the Lord President.

(5) In making any material amendment of its ALB rules, a category 1 regulator must consult—

(a) its members,

(b) the Competition and Markets Authority,

(d) the independent advisory panel of the Commission,

(e) Consumer Scotland, and

(f) such other persons or bodies it considers appropriate.

(6) A category 1 regulator, in submitting an amendment of its ALB rules for approval under subsection (4), must submit copies of any written representations received in response to the consultation under subsection (5).

(7) The Scottish Ministers may exercise the power to make regulations under subsection (2)(c) only if they have received a request to exercise the power from—

(a) the Lord President,

(b) the regulatory committee of a category 1 regulator,

(d) the independent advisory panel of the Commission.

(8) Before making a request under subsection (7), the person making the request (“the requester”) must—

(a) consult—

(i) the regulatory committee (if any) of each category 1 regulator,

(ii) each category 1 regulator that has no functions other than regulatory functions,

(iii) the independent advisory panel of the Commission, and

(iv) such other person or body as the requester considers appropriate, and

(b) except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.

(9) But a body mentioned in subsection (8)(a)(i) to (iii) does not need to be consulted if the body is the requester.

(10) For the purpose of seeking the Lord President’s agreement under subsection (8)(b), the requester must provide to the Lord President—

(a) a document setting out—

(i) an explanation of the change sought by the proposed exercise of the power, and

(ii) the reasons for seeking the change,

(b) copies of any written representations received in response to the consultation under subsection (8)(a).

(11) A request under subsection (7) must include—

(a) a document setting out—

(i) an explanation of the change sought by the proposed exercise of the power, and

(ii) the reasons for seeking the change,

(b) copies of any written representations received in response to the consultation under subsection (8)(a), and

(c) except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.

(12) As soon as reasonably practicable after making a request under subsection (7), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(13) In subsection (3)(a), a “qualifying individual” has the meaning given in section 39(10).

(14) Regulations under subsection (2)(c) are subject to the affirmative procedure.

Authorisation rules

42

(1) For the purposes of this Part, the authorisation rules are rules about—

(a) the procedure for becoming an authorised legal business, including (in particular)—

(i) the making of applications,

(ii) the criteria to be met by applicants,

(iii) the determination of applications,

(iv) the grant of authorisation,

(b) the terms on which authorisation is granted including, in particular, the imposition of conditions or restrictions,

(c) the circumstances in which conditions or restrictions may be imposed, varied or revoked in relation to the existing authorisation of a legal business,

(d) the—

(i) circumstances in which a legal business’s authorisation may or must be reviewed, suspended or withdrawn,

(ii) circumstances in which an authorised legal business may surrender its authorisation,

(e) the fees that are (or may be) chargeable by the regulator in connection with authorisation.

(2) Rules made in pursuance of subsection (1)(a) to (d) must allow for review by the category 1 regulator of any decision made by it under the rules that materially affects an applicant for authorisation or (as the case may be) an authorised legal business.

(3) Authorisation rules must—

(a) state that an application for authorisation may be refused on the ground that the applicant appears to be incapable (for any reason) of complying with the regulatory scheme of the regulator,

(b) provide for how a licensed provider may become an authorised legal business,

(c) provide for grounds for suspension or withdrawal of authorisation where the legal business is breaching (or has breached) the regulatory scheme of the regulator or other rules of professional practice that apply to it,

(d) set out how the fees that are chargeable in connection with authorisation are determined (which may be by reference to the financial performance of an authorised legal business or such other criteria as may be specified in the rules).

(4) Authorisation rules may make provision about the effect on an authorisation (including a deemed authorisation under section 39(12) issued to a legal business which is a partnership or other unincorporated body of any change in the membership of the legal business.

(5) Provision which may be made under subsection (4) includes provision for the authorisation of the legal business to be transferred where the legal business ceases to exist and another legal business succeeds to the whole or substantially the whole of its business.

(6) Authorisation rules may include such further rules or arrangements as to authorising legal businesses for which provision is (in the category 1 regulator’s opinion) necessary or expedient.

Appeals in relation to authorisation decisions

43

(1) An appeal against a relevant authorisation decision may be made to the sheriff by—

(a) an applicant for authorisation under rules made in pursuance of section 42, or

(b) an authorised legal business.

(2) An appeal under subsection (1) must be made within the period of 3 months beginning with the later of—

(a) the day on which the relevant authorisation decision is intimated to the applicant or, as the case may be, authorised legal business, or

(b) where the relevant authorisation decision has been the subject of an internal appeal process of the category 1 regulator, the day on which the decision of the internal appeal is intimated to the applicant or, as the case may be, the authorised legal business.

(3) A relevant authorisation decision is a decision taken under authorisation rules made in pursuance of this Part to—

(a) refuse an application for authorisation of a legal business,

(b) impose, vary or revoke conditions or restrictions in relation to its authorisation, or

(4) In the appeal, the sheriff may—

(a) uphold, vary or quash the decision,

(b) make such further order (including for the expenses of the parties) as is necessary in the interests of justice.

(5) The sheriff’s determination in the appeal is final.

Practice rules

44

(1) For the purposes of this Part, the practice rules are rules about—

(a) the—

(i) operation and administration of authorised legal businesses,

(ii) standards to be met by authorised legal businesses,

(b) the operational positions within authorised legal businesses,

(d) professional indemnity,

(e) the making and handling of any complaint about an authorised legal business,

(f) the measures that may be taken by the regulator, in relation to an authorised legal business, if—

(i) there is a breach of the regulatory scheme of the regulator, or

(ii) a complaint referred to in paragraph (e) is upheld.

(2) Without limit to the generality of subsection (1), practice rules must—

(a) require authorised legal businesses to—

(i) comply with the regulator’s ALB rules and the terms on which authorisation is granted including, in particular, any conditions or restrictions which have been imposed in relation to the authorisation,

(ii) adhere to the professional principles,

(iii) have proper accounting and auditing procedures,

(iv) have sufficient arrangements for professional indemnity, and

(v) co-operate with reviews of, and investigations into, their performance,

(b) include provision that it is a breach of the ALB rules for an authorised legal business to fail to comply with—

(i) its duties under this Part, and

(ii) duties under any other enactment specified in the scheme, and

(c) allow an authorised legal business to make representations to the regulator before the regulator takes any of the measures available to it under the rules.

(3) Practice rules may include such further arrangements as to the professional practice, conduct or discipline of authorised legal businesses for which provision is (in the regulator’s opinion) necessary or expedient.

Financial sanctions

45

(1) Practice rules made in pursuance of section 44 (1)(f) may provide for—

(a) the imposition of a financial penalty,

(b) the withdrawal of the imposition of a financial penalty if the regulator considers that it would not be reasonable to seek (or to continue to seek) payment of the financial penalty.

(2) The Scottish Ministers may by regulations specify the maximum amount of a financial penalty that may be imposed by virtue of subsection (1).

(3) A financial penalty imposed by virtue of this section is payable to the Scottish Ministers (but the regulator may collect it on their behalf).

(4) Where a regulator collects a financial penalty imposed on an authorised legal business under subsection (3), the regulator may—

(a) retain a sum to be deducted from the amount payable to the Scottish Ministers under subsection (3) in respect of any expenditure reasonably incurred by the regulator in collecting the penalty, or

(b) recover from the authorised legal business any expenditure reasonably incurred by the regulator in collecting the penalty.

(5) At any time a regulator may discontinue collection of a financial penalty imposed by virtue of this section where the regulator considers it would not be reasonable in the circumstances for the regulator to attempt or continue to attempt collection.

(6) Subsection (5) does not prevent the regulator from, in circumstances where it has discontinued attempts to collect a financial penalty, resuming such attempts where the regulator considers it is reasonable in the circumstances to do so.

(7) An authorised legal business may appeal against a financial penalty (or the amount of a financial penalty) imposed on it by virtue of this section—

(a) to the sheriff,

(b) within the period of 3 months beginning with the date on which the penalty is intimated to it.

(8) Where an appeal is made under subsection (7), no part of the penalty requires to be paid before the appeal is determined or withdrawn.

(9) In the appeal, the sheriff may—

(a) uphold, vary or quash the decision,

(b) make such further order (including for the expenses of the parties) as is necessary in the interests of justice.

(10) The sheriff’s determination in the appeal is final.

(11) Before making regulations under subsection (2), the Scottish Ministers must—

(a) consult—

(i) the regulatory committee (if any) of each category 1 regulator,

(ii) each category 1 regulator that has no functions other than regulatory functions, and

(iii) such other person or body as the Scottish Ministers consider appropriate, and

(b) publish copies of any written representations received in response to the consultation in such manner as they consider appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(12) Regulations under subsection (2)—

(a) are subject to the negative procedure, and

(b) may not be made without the agreement of the Lord President.

Reconciling different rules

46

(1) The provision required by section 41 (2)(b) to be in the ALB rules is such provision as is reasonably practicable (and appropriate in the circumstances) for—

(a) preventing or resolving regulatory conflicts, and

(b) avoiding unnecessary duplication of regulatory rules (for example, by applying existing regulatory rules in so far as possible).

(2) For the purposes of this section, a regulatory conflict is a conflict between (any of)—

(a) the ALB rules of a category 1 regulator,

(b) any other professional or regulatory rules made by the regulator in respect of the persons who provide legal services that it regulates, and

(c) any professional or regulatory rules made by any other body which regulates the provision of legal or other services by the persons regulated by the category 1 regulator.

(3) The Scottish Ministers may by regulations make further provision about regulatory conflicts (such as may involve a category 1 regulator).

(4) The Scottish Ministers may exercise the power to make regulations under subsection (3) only if they have received a request from—

(a) the Lord President,

(b) the regulatory committee of a category 1 regulator,

(d) the independent advisory panel of the Commission.

(5) Before making a request under subsection (4), the person making the request (“the requester”) must—

(a) consult—

(i) the regulatory committee (if any) of each category 1 regulator,

(ii) each category 1 regulator that has no functions other than regulatory functions,

(iii) the independent advisory panel of the Commission, and

(iv) such other person or body as the requester considers appropriate, and

(b) except where the requester is the Lord President, secure the Lord President’s agreement to the making of the request.

(6) But a body mentioned in subsection (5)(a)(i) to (iii) does not need to be consulted if the body is the requester.

(7) For the purpose of seeking the Lord President’s agreement under subsection (5)(b), the requester must provide to the Lord President—

(a) a document setting out—

(i) an explanation of the change sought by the proposed exercise of the power, and

(ii) the reasons for seeking the change,

(b) copies of any written representations received in response to the consultation under subsection (5)(a).

(8) A request under subsection (4) must include—

(a) a document setting out—

(i) an explanation of the change sought by the proposed exercise of the power, and

(ii) the reasons for seeking the change,

(b) copies of any written representations received in response to the consultation under subsection (5)(a), and

(c) except where the requester is the Lord President, written confirmation of the Lord President’s agreement to the making of the request.

(9) As soon as reasonably practicable after making a request under subsection (4), the requester must publish the documents included with the request in such manner as the requester considers appropriate (having regard to the desirability of the documents being accessible to those likely to have an interest in them).

(10) Regulations under subsection (3) are subject to the negative procedure.

Monitoring of performance of authorised legal businesses

47

(1) A category 1 regulator is to carry out a review of the performance of an authorised legal business—

(a) at such time or in such circumstances as the regulator considers appropriate, or

(b) when requested to do so by the Lord President.

(2) A review under this section may (in particular) examine—

(a) the authorised legal business’s compliance with—

(i) its duties under this Act and any other enactment,

(ii) the terms on which its authorisation is granted including any conditions or restrictions imposed in relation to the authorisation,

(b) the financial sustainability of the business,

(3) A request for the review of an authorised legal business under subsection (1)(b) must—

(a) set out, by reference to the matters that may be reviewed, why the Lord President considers a review appropriate, and

(b) be copied to the authorised legal business which is to be reviewed.

(4) When conducting a review of an authorised legal business, a category 1 regulator may—

(a) require the business to produce any relevant document or other information (either at the business’s premises or otherwise),

(b) interview any person who owns, is employed by, or is otherwise involved with the business.

(5) Following a review, the category 1 regulator must—

(a) prepare a report on its review, and

(b) send a copy of its report to—

(i) the authorised legal business, and

(ii) if the review was requested under subsection (1)(b), the Lord President.

(6) Before finalising the report, the category 1 regulator must—

(a) send a draft of the report to the authorised legal business, and

(b) give it a reasonable opportunity to make representations about—

(i) the findings of the report, and

(ii) any action the business may be required to take or steps that may be taken by the regulator as a result of the review.

Miscellaneous

Law Society of Scotland

48

(1) The Law Society must prepare its ALB rules in accordance with section 41 within such period (not exceeding 3 years from the date on which this section comes into force) as it may agree with the Lord President.

(2) But the Law Society’s ALB rules are invalid unless they have the prior approval of the Lord President.

(3) The Law Society may use its powers to make rules under the 1980 Act to make the rules necessary to comply with its duties as a category 1 regulator under this Part.

(4) Part 2 of schedule 1 contains provision amending the 1980 Act in respect of the Law Society’s functions of authorising and regulating legal businesses.

Entities changing regulatory regime

49

(1) Subsection (2) applies where a licensed provider becomes an authorised legal business.

(2) The licensed provider is deemed, by virtue of this subsection, to continue to be so licensed from that time until the earliest of the following events—

(a) the end of the period of 90 days beginning with the day on which that time falls,

(b) the time from which the relevant category 1 regulator determines this subsection is to cease to apply to the provider, or

(3) Subsection (4) applies where an authorised legal business becomes a licensed provider.

(4) The authorised legal business is deemed, by virtue of this subsection, to continue to be so authorised from that time until the earliest of the following events—

(a) the end of the period of 90 days beginning with the day on which that time falls,

(b) the time from which the approved regulator that regulates (or regulated) the licensed provider determines this subsection is to cease to apply to the authorised legal business, or

Part 3 — Complaints

Receipt of complaints: preliminary steps

50

(1) The 2007 Act is amended as follows.

(2) The italic heading before section 2 becomes “Conduct, services and regulatory complaints”.

(3) In section 2 (receipt of complaints: preliminary steps)—

(a) in subsection (1), for paragraph (b) substitute—

(b) suggesting that— (i) professional services were inadequate where they were provided by a practitioner in connection with any matter in which the practitioner has been instructed by a client, or (ii) legal services were inadequate where they were provided by a person other than a practitioner to the public for fee, gain or reward, (a complaint suggesting any such matter being referred to in this Part as a “services complaint”), (c) suggesting that an authorised legal business is failing (or has failed) to comply with— (i) the practice rules forming part of the rules for authorising and regulating the legal business made by the relevant professional organisation under (or for the purposes of) section 41 (1)(a) of the 2025 Act, or (ii) the terms on which its authorisation is granted by the relevant professional organisation including any conditions or restrictions imposed in relation to the authorisation, (a complaint suggesting any such matter being referred to in this Part as a “regulatory complaint”).

(b) after subsection (1) insert—

(1ZA) A complaint as mentioned in subsection (1)(b)(ii) suggesting that legal services provided by a person other than a practitioner were inadequate— (a) may include a complaint suggesting that the manner in which legal services were provided by the person was inadequate, (b) but is not an eligible services complaint for the purposes of this Part where the Commission considers, in accordance with any provision in rules made under section 32(1), that the legal services provided by the person were merely incidental to other services (not being legal services) provided by the person. (1ZB) Where a services complaint is made in relation to a practitioner who is an individual and the Commission considers that the complaint should also be made against the practitioner’s firm or (as the case may be) where the practitioner is an employee of another practitioner that other practitioner (referred to in this Part as the “employing practitioner”), the Commission may decide to treat the complaint as— (a) also having been made against the practitioner’s firm or the employing practitioner (as the case may be), or (b) having been made against the practitioner’s firm or the employing practitioner (as the case may be) instead of the practitioner.

(1A) The Commission must, subject to any provision in rules made under section 32(1) as to eligibility for making complaints, determine whether the complaint constitutes (to any extent)— (a) a conduct complaint, (b) a services complaint, (c) a regulatory complaint, or (d) any combination of more than one of the categories of complaint mentioned in paragraphs (a) to (c). (1B) For the purpose of subsection (1A), the Commission may determine— (a) where the complaint includes more than one element, that— (i) an element constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and (ii) another element constitutes a separate complaint falling within another of those categories, (b) that any element of the complaint— (i) constitutes a complaint falling within a category mentioned in paragraphs (a) to (c) of subsection (1A), and (ii) additionally constitutes a complaint falling within another of those categories, (for example, a single element of the complaint may constitute both a conduct complaint and a services complaint).

(d) in subsection (2), in paragraph (a), after “complaint” insert “or a regulatory complaint”,

(e) the following subsections are repealed—

(i) subsection (2A),

(ii) subsection (2B),

(iii) subsection (2C),

(iv) subsection (4).

Complaints initiated by, or continued by, the Commission

51

(1) The 2007 Act is amended as follows.

(2) After section 2, insert—

(2A) (1) In addition to receiving a conduct complaint or a regulatory complaint mentioned in section 2(1), the Commission may itself initiate a complaint against a practitioner which, had it been received from a person mentioned in section 2(2), would be a conduct complaint or a regulatory complaint. (2) Section 2(1A) applies to a complaint under subsection (1) as it applies to a complaint referred to in section 2(1). (3) References in this Part (other than in this section) and in sections 47 to 52A to a conduct complaint or a regulatory complaint include references to a conduct complaint or a regulatory complaint that is initiated by the Commission under subsection (1). (4) The Commission may not initiate a complaint under subsection (1) if it would not be an eligible complaint in accordance with any provision in rules made under section 32(1).

Ineligible or premature complaints

52

(1) Section 4 (complaint not made timeously or made prematurely) of the 2007 Act is amended as follows.

(2) The section title becomes “Complaint not eligible or made prematurely”.

(3) For subsection (1), substitute—

(1) Where the Commission considers that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1), the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required under such rules).

(4) For subsection (2), substitute—

(2) Where a complaint referred to in section 2(1) is made prematurely, the Commission need not take any further action under this Part in relation to the complaint (except the giving of notice to the complainer, the practitioner and any other person as may be required by rules made under section 32(1)).

(5) The following subsections are repealed—

(a) subsection (3),

(b) subsection (5),

(6) In subsection (4)—

(a) in the opening words, the words “or section 9A(2)” are repealed,

(b) in paragraph (a), for the words from “where” to ““employing practitioner”)” substitute “the employing practitioner”,

Commission process relating to complaints

53

(1) The 2007 Act is amended as follows.

(2) In section 6 (complaint determined to be conduct complaint)—

(a) for subsection (1), substitute—

(1) This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is— (a) wholly a conduct complaint, or (b) includes one or more elements constituting a conduct complaint.

(b) in subsection (2)—

(i) in paragraph (a), after “complaint” where it first occurs insert “(or the part of the complaint constituting a conduct complaint)”,

(ii) paragraph (b) is repealed,

(3) It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a conduct complaint (to any extent).

(3) Section 7 (services complaint: notice) is repealed.

(4) In section 8 (services complaint: local resolution or mediation)—

(a) for subsection (1), substitute—

(1) Subsection (2) applies where the Commission determines that a complaint referred to in section 2(1) that is made by or on behalf of a person referred to in section 2(2)(b)(i)— (a) constitutes (in whole or in part) a services complaint, and (b) either— (i) the complaint has been made prematurely (within the meaning of section 4(4)), or (ii) the practitioner, the practitioner’s firm or the employing practitioner has made no attempt, or an insufficient attempt, to achieve a negotiated settlement with the complainer.

(b) in subsection (2)—

(i) the words from “Where” to the end of paragraph (b) are repealed, and

(ii) for “such a settlement” substitute “a negotiated settlement with the complainer”.

(5) In section 9 (services complaint: Commission’s duty to investigate and determine), in subsection (2), for “must” substitute “may”.

(6) Section 9A (services complaint: further provision) is repealed.

(7) Section 12 (services complaint: notice where not upheld or upheld) is repealed.

(8) Section 13 (services complaint: reports) is repealed.

(9) Section 15 (complaint appears during mediation or investigation to fall within different category) is repealed.

(10) Section 45 (giving of notices etc. under Part 1) is repealed.

Commission’s duty to investigate and determine services complaints

54

(1) The 2007 Act is amended as follows.

(2) In section 9 (services complaint: Commission’s duty to investigate and determine), after subsection (4) insert—

(5) Where the practitioner (and, where subsection (3) applies, the employing practitioner) accepts a settlement proposed by the Commission under subsection (2) as respects the complaint but the complainer does not accept the settlement, the Commission may discontinue the investigation of the complaint and not determine it under subsection (1). (6) If subsection (7) applies, the Commission may decide— (a) not to initiate the investigation of a services complaint and determine it under subsection (1), or (b) to discontinue the investigation of a services complaint and not to determine it under subsection (1). (7) This subsection applies if— (a) the Commission considers that the practitioner, the practitioner’s firm or the employing practitioner has offered the complainer a settlement as respects the complaint (“the proposed settlement”) which the Commission considers is fair and reasonable in the circumstances, (b) the complainer has not accepted the proposed settlement, and (c) the Commission is satisfied that the proposed settlement will remain available for acceptance by the complainer for a period of up to 28 days after the complainer receives notice of the Commission’s decision under subsection (6).

Regulatory complaints against authorised legal businesses

55

(1) The 2007 Act is amended as follows.

(2) After section 7, insert—

(7A) (1) This section applies where the Commission determines that a complaint referred to in section 2(1) or 2A(1) is— (a) wholly a regulatory complaint, or (b) includes one or more elements constituting a regulatory complaint. (2) The Commission must remit the complaint (or the part of the complaint constituting a regulatory complaint) to the relevant professional organisation to deal with (and give to the organisation any material which accompanies the regulatory complaint). (3) It does not matter for the purpose of subsection (1) (and the application of this section) whether the Commission’s determination mentioned in that subsection follows its earlier determination that the complaint is a services complaint (to any extent) and, having investigated the complaint, the Commission subsequently determines that it is instead a regulatory complaint (to any extent).

(3) After section 52, insert—

(52A) (1) Where a regulatory complaint is remitted to the relevant professional organisation under section 7A(2) (or treated as having been remitted to them under that section by virtue of section 33B (2)), the relevant professional organisation must investigate it and, subject to subsection (2), determine the complaint. (2) The relevant professional organisation may decide— (a) to discontinue an investigation of a regulatory complaint, (b) to reinstate the investigation of a discontinued regulatory complaint, but only if the organisation considers that this is in the public interest. (3) As soon as practicable after making a decision under subsection (2), the relevant professional organisation must give notice in writing of its decision to the complainer, the practitioner and the Commission by— (a) sending them a copy of the decision, and (b) specifying the reason for the decision. (4) In addition, notice under subsection (3) given to the complainer or the practitioner, must also give them information about any— (a) right of appeal, and (b) ability to make a handling complaint to the Commission. (5) After determining the regulatory complaint, the relevant professional organisation must make a written report to the complainer, the practitioner and the Commission of— (a) any facts of the matter as found by the relevant professional organisation, (b) the relevant professional organisation’s determination and the reasons for that determination, (c) what action (if any) the relevant professional organisation proposes to take, or has taken, in the matter in accordance with the rules for authorising and regulating legal businesses made by the relevant professional organisation under (or for the purposes of) section 41 (1)(a) of the 2025 Act, and (d) if the relevant professional organisation does not propose to take, or has not taken, any action in the matter, an explanation of why this is the case. (6) When making a written report under subsection (5), the relevant professional organisation must also give notice in writing to the complainer and the practitioner of any right of appeal or ability to make a handling complaint by virtue of section 23. (7) The relevant professional organisation must, in considering what action (if any) to take as mentioned in subsection (5)(c), take into account any decision taken by the Commission in respect of a services complaint against the practitioner where the services complaint arises from the same matter to which the regulatory complaint relates. (8) Each relevant professional organisation must ensure that its procedures for dealing with regulatory complaints do not conflict with the duty imposed on it by section 24(4) in relation to any report sent to it under that section or any direction by the Commission under section 24(6).

Services complaint: sanctions

56

(1) The 2007 Act is amended as follows.

(2) In section 10 (Commission upholds services complaint)—

(a) after subsection (3), insert—

(3A) Where the practitioner was, at the time when the services were provided, a partner of a firm, a direction under subsection (2)(c) may be given to the practitioner’s firm instead of the practitioner. (3B) In the case where a direction under subsection (2)(c) is made to the employing practitioner or the practitioner’s firm, the direction may relate to systems operated by the employing practitioner or the practitioner’s firm that affect the provision of professional services generally by the employing practitioner or the practitioner’s firm where that is relevant to the complaint.

(b) in subsection (4)—

(i) paragraph (c) is repealed,

(ii) after paragraph (c) (and before the closing words), insert—

(d) decision taken by a relevant professional organisation in respect of a conduct complaint, or a regulatory complaint, against the practitioner where the conduct complaint, or the regulatory complaint, arises from the same matter to which the services complaint relates,

(3) After section 12, insert—

(12A) (1) This section applies where— (a) under section 10(2)(a), the Commission directs the practitioner or the employing practitioner (as the case may be) to refund an amount in respect of fees or outlays of the practitioner already paid by or on behalf of the client to whom the professional services were provided by the practitioner (such amount being referred to in this section as “the fee refund”), (b) any proportion of the fee refund has not been paid by the expiry of the period of 90 days commencing on the day on which notice of the direction was given to the practitioner or the employing practitioner in accordance with rules made under section 32(1), and (c) the failure to pay any proportion of the fee refund within that period is— (i) where the direction was given to the practitioner, as a result of the death, insolvency or involuntary cessation of trade of the practitioner, (ii) where the direction was given to the employing practitioner, as a result of the insolvency or involuntary cessation of trade of the employing practitioner. (2) The proportion of the fee refund that has not been paid is to be treated for the purposes of the practitioner’s or the employing practitioner’s (as the case may be) professional indemnity insurance as if it were an amount of compensation that the Commission had directed under section 10(2)(d) the practitioner or employing practitioner to pay to the complainer. (3) But subsection (2) applies only to the extent that the amount of the fee refund that has not been repaid, taken together with any amount of compensation that the Commission directed the practitioner or the employing practitioner to pay to the complainer under section 10(2)(d), does not exceed £35,000. (4) The Scottish Ministers may by regulations amend subsection (3) to substitute a different amount for the one for the time being specified there. (5) Before making regulations under subsection (4), the Scottish Ministers must consult— (a) the relevant professional organisations, and (b) such groups of persons representing consumer interests as they consider appropriate.

Commission decision making and delegation

57

(1) The 2007 Act is amended as follows.

(2) In schedule 1, in paragraph 13(2) (delegation of functions)—

(a) paragraph (a) is repealed,

(b) after paragraph (a) insert—

(aa) a decision under section 2A(1) to initiate a complaint to be taken only by— (i) any of its committees, or (ii) one of the Commission’s members,

(d) after paragraph (c), insert—

(ca) the making of any decision on the disclosure of information under section 41A to be exercised only by one of the Commission’s members,

(e) after paragraph (d), insert—

(e) the function of making a decision under section 23(2) to be exercised only by any of its committees, (f) the function of making a direction under section 24(6) to be exercised only by any of its committees.

Commission review committee

58

(1) The 2007 Act is amended as follows.

(2) After section 20, insert—

(20A) (1) A person mentioned in subsection (2) may make an application for a review of a decision by the Commission in relation to a complaint that is mentioned in subsection (3). (2) The persons are— (a) the complainer, (b) the practitioner to whom the complaint relates, (c) the practitioner’s firm, (d) the employing practitioner, (e) the relevant professional organisation. (3) The decisions are— (a) a decision by the Commission that a complaint referred to in section 2(1) is not an eligible complaint in accordance with any provision in rules made under section 32(1), (b) a decision to discontinue the investigation of a services complaint in accordance with section 9(1A)(a), (c) a decision to reinstate the investigation of a services complaint in accordance with section 9(1A)(b), (d) a determination under section 9(1) to uphold a services complaint, (e) a determination under section 9(1) to not uphold a services complaint, (f) a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(5), (g) a decision not to initiate the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(a), (h) a decision to discontinue the investigation of a services complaint (and not to determine it under section 9(1)) in accordance with section 9(6)(b), (i) a decision to take any of the steps mentioned in section 10(2) other than— (i) a direction to the practitioner or the employing practitioner (as the case may be) to pay compensation to the complainer, or (ii) a decision as to the amount of such compensation to be paid under the direction. (4) Subject to subsection (5), an application for review must be made before the expiry of the period of 28 days beginning with the day on which notice of the decision was given to the complainer and the practitioner. (5) The review committee may decide that it may consider an application for a review of a decision under subsection (1) that is made after the expiry of the period referred to in subsection (4) if it considers that to be appropriate. (6) Following a review, the review committee may make such decision as it considers appropriate (including a decision that substitutes its own decision for the decision to which the application for review relates). (7) Where a decision of the review committee upholds a services complaint or confirms a determination under section 9(1) to uphold a services complaint, the review committee may direct that such of the steps mentioned in section 10(2) as it considers fair and reasonable in the circumstances be taken. (8) A decision of the review committee under this section is final.

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