§ '.—(1) The powers conferred on the Board by this section may be exercised if, after such inquiry (if any) as the Board consider appropriate, it appears to them to be desirable to do so for the purpose of protecting the interests of the clients, or prospective clients, of an independent qualified conveyancer or an executry practitioner (each of whom is in this section referred to as a "relevant practitioner").
§ (2) The Board may, in particular, exercise any such power where it appears to them that a relevant practitioner—
- (a) is no longer a fit and proper person to provide conveyancing services or, as the case may be, executry services;
- (b) has ceased, for whatever reason, to provide such services; or
- (c) has failed, or is likely to fail, to comply with regulations made under section 15(10A) or, as the case may be, section 16(10) of this Act.
§ (3) The Board may direct the relevant practitioner not to dispose of, or otherwise deal with, except in accordance with the terms of the direction—
- (a) any assets belonging to any client of the practitioner and held by or under the control of the practitioner in connection with his business as an independent qualified conveyancer or, as the case may be, an executry practitioner; or
- (b) any assets of the practitioner which are specified, or of a kind specified, in the direction.
§ (4) The Board may direct the relevant practitioner to transfer to the Board, or to such persons (in this section referred to as "the trustees") as may be specified in the direction—
- (a) all assets belonging to any client of the practitioner and held by or under the control of the practitioner in connection with his business as an independent qualified conveyancer or, as the case may be, an executry practitioner; or
- (b) any assets of the practitioner which are specified, or of a kind specified, in the direction.
§ (5) A relevant practitioner to whom a direction is given may, within 21 days of the date on which the direction is received by him, apply to the Court of Session, which may make such order in the matter as it thinks fit.
§ (6) A relevant practitioner to whom a direction is given shall comply with it as soon as it takes effect (and whether or not he proposes to apply to the Court of Session under subsection (5) above).
§ (7) If, on an application to the Court of Session by the Board, the court is satisfied—
- (a) that a relevant practitioner has failed, within a reasonable time, to comply with any direction given to him; or
- (b) that there is a reasonable likelihood that a relevant practitioner will so fail,
§ (8) Any assets which have been transferred as a result of a direction given under subsection (4) above shall be held by the Board, or by the trustees, on trust for the client or, as the case may be, the practitioner concerned.
§ (9) The trustees may deal with any assets which have been transferred to them only in accordance with directions given to them by the Board.
§ (10) If the Board have reasonable cause to believe that a relevant practitioner or an employee of a relevant practitioner has been guilty of dishonesty resulting in pecuniary loss to a 1101 client of the relevant practitioner, they may apply to the Court of Session for an order that no payment be made by any bank, building society or other body named in the order out of any bank, building society or other account or any sum deposited in the name of the relevant practitioner without the leave of the court and the court may make such an order.
§ (11) Any direction under this section—
- (a) shall be given in writing;
- (b) shall state the reason why it is being given;
- (c) shall take effect on such date as may be specified in the direction (which may be the date on which it is served on the relevant practitioner); and
- (d) may be varied or revoked by a further direction given by the Board.
§
(12) In this section—
assets" includes any sum of money (in whatever form and whether or not in any bank, building society or other account) and any book, account, deed or other document held by the relevant practitioner on his own behalf in connection with his business as a relevant practitioner or on behalf of the client concerned; and
independent qualified conveyancer" and "executry practitioner" respectively include any independent qualified conveyancer or executry practitioner whether or not he was registered as such at the time when the matter in relation to which the Board exercise or propose to exercise their powers under this section arose and notwithstanding that subsequent to that time he has ceased to be so registered.'—[Lord James Douglas-Hamilton.]
§ Brought up, and read the First time.
§ Lord James Douglas-HamiltonI beg to move, That the clause be read a Second time.
Mr. Deputy SpeakerWith this it will be convenient to take Government amendments Nos. 38, 51, 53 and 63 to 66.
§ Lord James Douglas-HamiltonThe new clause was not heralded during our discussions in Committee, so it may be helpful to the House if I briefly outline its purpose and effect.
The provision is intended to enhance the regulatory structure under which the board is to operate. It corresponds closely to an amendment brought forward during the Report stage of the Courts and Legal Services Bill. The new clause gives the board the power to intervene in the business of an independent, qualified conveyancer or an executory practitioner where it appears to the board that the interests of the practitioners' clients are likely to be put at serious risk. I do not envisage that that power will be used often, but it could prove valuable if a practitioner were to deviate from acceptable business practice to such an extent as to threaten the interests of clients or prospective clients.
Under the new clause, the board's powers are backed up by an enforcement mechanism that allows it to go to the Court of Session for an order to secure compliance. I do not believe that the new clause is controversial. It represents the final component of the regulatory regime that we have established for independent qualified conveyancers and executory practitioners.
§ Mr. DewarI am quite prepared to accept that the new clause is non-controversial, and I am delighted to hear that it is the final component. However, I fear that it may not be the last time that I hear about independent qualified conveyancers. I understand that the new clause deals largely with the winding up of businesses of independent qualified conveyancers—not a particularly cheery subject for those who have faith in the new breed of operator. I am 1102 advised that it gives the conveyancing board powers similar, in terms of dealing with their assets, to those allowed to the Law Society of Scotland, in terms of sections 45 and 46 of the Solicitors (Scotland) Act 1980. I certainly do not have strong feelings on that matter, and I am prepared to see it go through.
§ Mr. Harry EwingDoes the Minister envisage that the procedure would be activated on a complaint from the client, or is there some other way that I have not understood?
§ Lord James Douglas-HamiltonIt would normally be activated on a complaint from the client, unless some untoward facts were discovered. I sincerely hope that nothing of that nature will ever occur.
§ Question put and agreed to.
§ Clause read a Second time and added to the Bill.