| Short Title: | Legal Services Act 2007[1] |
| Parliament: | United Kingdom Parliament |
| Long Title: | An Act to make provision for the establishment of the Legal Services Board and in respect of its functions; to make provision for, and in connection with, the regulation of persons who carry on certain legal activities; to make provision for the establishment of the Office for Legal Complaints and for a scheme to consider and determine legal complaints; to make provision about claims management services and about immigration advice and immigration services; to make provision in respect of legal representation provided free of charge; to make provision about the application of the Legal Profession and Legal Aid (Scotland) Act 2007; to make provision about the Scottish legal services ombudsman; and for connected purposes. |
| Statute Book Chapter: | 2007 c. 29 |
| Introduced By: | Lord Falconer Secretary of State for Constitutional Affairs, 23 November 2006 |
| Territorial Extent: | England and Wales[2] |
| Royal Assent: | 30 October 2007 |
| Commencement: | 7 March 2008[3] |
| Repeal Date: | — |
| Amendments: | — |
| Related Legislation: | — |
| Repealing Legislation: | — |
| Status: | Not_fully_in_force |
| Original Text: | http://www.legislation.gov.uk/ukpga/2007/29/contents/made |
| Legislation History: | https://publications.parliament.uk/pa/pabills/200607/legal_services.htm |
| Revised Text: | http://www.legislation.gov.uk/ukpga/2007/29/contents |
The Legal Services Act 2007 is an Act of the Parliament of the United Kingdom that seeks to liberalise and regulate the market for legal services in England and Wales, to encourage more competition and to provide a new route for consumer complaints.[4] It also makes provisions about the Legal Profession and Legal Aid (Scotland) Act 2007.
Section 1 of the Act defines eight regulatory objectives:[5]
The professional principles are:[5]
Sections 2 to 7 and Schedule 1 create the Legal Services Board with a duty to promote the regulatory objectives. David Edmonds was appointed the first chair of the Board on 23 April 2008 and nine members were appointed on 17 July. The members took up post on 1 September 2008 and the Board became fully operational on 1 January 2010.[6] [7]
The Act also created a Consumer Panel to represent consumers (ss. 8–11) which started work on 1 November 2009. The Panel is independent of the Legal Services Board and consists of eight lay members whose appointments are approved by the Lord Chancellor. The Panel provides advice to the Board and publishes policy briefings, consultation responses, and research reports.[8]
Section 12 and Schedule 2 define six reserved legal activities:[5]
This list can be amended by an Order in Council of the Chancellor (ss. 24–26).[5]
Section 12 then goes on to define, for the purposes of the Act, a legal activity as either a reserved legal activity or as the provision of legal advice, assistance or representation in connection with the application of the law or with any form of resolution of legal disputes. Legal activity does not include acting as a mediator or arbitrator.[5]
Only an authorised person or an exempt person can carry out a reserved legal activity (s. 14). It is a crime to carry out a reserved activity otherwise though it is a defence that the person "did not know, and could not reasonably have been expected to know" that they were committing an offence. It is also an offence to pretend to be authorised (s. 17) An offender can be sentenced on summary conviction to up to six months' imprisonment and a fine of up to £5,000. If convicted on indictment in the Crown Court an offender can be sentenced to up to two years' imprisonment and an unlimited fine. An unauthorised person who purports to exercise a right of audience also commits a contempt of court for which he can be punished.[5]
These provisions came into force on 1 January 2010.[9]
Authorised persons are either (s. 18):[5]
Relevant approved regulators are (s. 20/ Sch. 4, Pt. 1):[5]
| Regulator | Rights of audience | Conduct of litigation | Reserved instruments | Probate activities | Notarial activities | Administration of oaths |
|---|---|---|---|---|---|---|
| Law Society | ||||||
| Bar Council | ||||||
| Master of the Faculties | ||||||
| Chartered Institute of Legal Executives | ||||||
| Council for Licensed Conveyancers | ||||||
| Chartered Institute of Patent Attorneys | ||||||
| Chartered Institute of Trade Mark Attorneys | ||||||
| Association of Costs Lawyers | ||||||
| Institute of Chartered Accountants in England and Wales | ||||||
| Association of Chartered Certified Accountants | ||||||
The Legal Services Board does not have the power to recommend to the Lord Chancellor that he approve further approved regulators (s. 20/ Sch. 4, Pt. 2). The regulatory arrangements of all the approved regulators defined in Sch. 4, Pt. 1 remain in place at the coming into force of the Act but thereafter, all changes to internal professional regulatory arrangements must be approved by the Board (s. 20/ Sch. 3, Pt. 3).[5] The Institute of Chartered Accountants in England and Wales was added as an approved regulator on 6 April 2020.[10]
Approved regulators have a duty to promote the regulatory objectives (s. 28). If they fail to do so, or if they fail in some other way to comply with the Act, the Legal Services Board can:[5]
The Board has a duty to regulate practising fees (s. 51), resolve regulatory conflicts (ss. 52–54), and work with the Office of Fair Trading, the Competition Commission and the Lord Chancellor on competition issues (ss. 57–61).[5] These provisions came into force on 1 January 2009 and 1 January 2010.[11]
, no date is fixed for the coming into force of these provisions.
Before the coming into force of the Act, lawyers in England and Wales could only practice as:
The Act allows alternative business structures (ABSs) with non-lawyers in professional, management or ownership roles. The Act creates a system whereby approved regulators can authorise licensed bodies to offer reserved legal services (ss.71–111).[5]
The Solicitors Regulation Authority licensed the first set of ABSs in 2012, including Cooperative Legal Services.
Approved regulators must operate a complaints system as part of their internal regulatory arrangements (s. 112). Section 114 of the Act creates an Office for Legal Complaints which the section 115 stipulates must administer an ombudsman scheme (ss. 114–158 /Sch. 15). Section 114 came into force on 7 March 2008.[12]
On 3 February 2009, the Legal Services Board announced the board members for the Office for Legal Complaints and the Office officially launched on 24 July 2009.[13] The new scheme was the Legal Ombudsman, which has exclusive first instance jurisdiction for complaints regarding legal professionals. The Legal Ombudsman began receiving complaints on 6 October 2010.[14]
This scheme replaced the Legal Services Complaints Commissioner and Legal Services Ombudsman, which had been established in the Courts and Legal Services Act 1990 (s. 159). The Office of the Legal Services Complaints Commissioner closed on 31 March 2010.[15] The Office of the Legal Services Ombudsman closed in 2011.
For the purposes of complaints only, claims management services are regarded as reserved legal activities and the Claims Management Services Regulator as an approved regulator (s. 161).[5]
The Act extends legal professional privilege to authorised persons other than barristers and solicitors (s. 190).[5] This section came into force in 2010.[16]
Where a litigant is represented in civil proceedings on a pro bono basis, it would be contrary to the indemnity principle to award costs to that person.[17] [18] [19] Section 194 allows the court to order a payment to a charity in lieu.[5] These provisions came into force progressively from 30 June to 1 October 2008.[20] [21]
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