Part 2Regulation of licensed legal services

Chapter 2Licensed legal services providers

Non-solicitor investors

67More about investors

1

Schedule 8 provides for other—

a

requirements to which licensed legal services providers are subject,

b

functions of approved regulators,

in relation to interests in licensed providers.

2

The Scottish Ministers may by regulations make further provision—

a

relating to interests in licensed providers,

b

for licensing rules in connection with persons who have an interest in a licensed provider.

3

The Scottish Ministers may by regulations—

a

amend the percentage specified in section 63(4) and paragraph 4(3) of schedule 8,

b

amend (by addition, elaboration or exception) a definition in subsection (6).

4

Regulations under subsection (2)(a) may (in particular)—

a

impose requirements to which a licensed provider, or an investor in a licensed provider, is subject,

b

specify criteria or circumstances by reference to which a non-solicitor investor is to be presumed, or held, to be fit (or unfit),

c

set out—

i

what amounts (to any extent) to ownership, control or another material interest,

ii

what interest (or type) is relevant as regards a particular percentage stake in ownership or control,

iii

by reference to a family, business or other association, what other interest (or type) also counts towards such a stake,

d

for circumstances where an interest is held by a body, set out—

i

what interest (or type) in the body counts towards the interest held by it,

ii

the extent to which the interest in it so counts.

5

Before making regulations under subsection (3), the Scottish Ministers must have the Lord President’s agreement.

6

In this Part—

a

an “investor” in a licensed provider is any person who has (to any extent)—

i

ownership or control of the licensed provider, or

ii

any other material interest in it,

b

a “non-solicitor investor” in a licensed provider is an investor who is not entitled to practise—

i

as a solicitor, a firm of solicitors or an incorporated practice,

ii

in England and Wales or Northern Ireland, as a solicitor (outwith the meaning for this Act), or

iii

as a registered European or foreign lawyer,

c

the reference to a “solicitor investor” in a licensed provider is to be construed accordingly.

7

In sections 62 to 66, this section and schedule 8, a reference to a licensed provider includes an applicant to become one.