Clause 108
Legal Services Bill [Lords]
2:00 pm
Nicholas Winterton (Macclesfield, Conservative)
With this it will be convenient to discuss the following amendments: No. 272, in clause 108, page 59, line 6, leave out subsection (3) and insert—
‘(3) The ownership condition for B satisfying the management condition set out in subsection (2) is that—
(a) the proportion of shares in B in which non-authorised non managers have an interest is less than 10%, and
(b) the proportion of the voting power in B which non-authorised non managers are entitled to exercise, or control the exercise of, is less than 10%, and
(c) if B has a parent undertaking (“P”)—
(i) the proportion of shares in P in which non-authorised non-managers have an interest is less than 10%, and
(ii) the proportion of the voting power in P which non-authorised non-managers are entitled to exercise, or control the exercise of, is less than 10%.
No. 273, in clause 108, page 59, line 16, at end insert—
‘(3A) The ownership condition for B satisfying the management condition set out in paragraph 2(b) is that shares and voting power in B are only held by authorised persons or members of recognised professional bodies.’.
No. 274, in clause 108, page 59, line 19, at end insert—
‘“recognised professional body” means a body (other than an approved regulator), incorporated by Royal Charter, which makes provision for—
(a) testing the competence of those seeking admission to membership of the body as a condition for such admission; and
(b) imposing and maintaining professional and ethical standards for its members, as well as imposing sanctions for non-compliance with those standards.’.
No. 275, in clause 108, page 59, line 23, at end add—
‘(5) For the purposes of subsection (4)—
“member” means a member or member firm as defined by the appropriate rules of such a body.’.
New clause 15—Low risk and professional bodies—
‘(1) A licensing authority may apply to the Board to determine the status of a recognised professional body if it is in any doubt as to whether that professional body meets the criteria set down in this Act.
(2) A licensing authority may apply to the Board to determine whether a body “B”, which is “low risk” under section 108(2)(b) should not be treated as low risk if it considers the services to be offered by B are inconsistent with the “professional principles” set out in section 1(3).’.