Solicitors Act 1974

• Citation: 1974 c. 47
• Sections: 157

Section 1 Qualifications for practising as solicitor.

No person shall be qualified to act as a solicitor unless—

(a) he has been admitted as a solicitor, and

(b) his name is on the roll, and

(c) he has in force a certificate issued by the Society in accordance with the provisions of this Part authorising him to practise as a solicitor (in this Act referred to as a “practising certificate”).

Section 1A Practising certificates: employed solicitors.

A person who has been admitted as a solicitor and whose name is on the roll shall, if he would not otherwise be taken to be acting as a solicitor, be taken for the purposes of this Act to be so acting if he is employed in connection with the provision of any legal services—

(a) by any person who is qualified to act as a solicitor;

(b) by any partnership at least one member of which is so qualified; . . .

(c) by a body recognised . . . under section 9 of the Administration of Justice Act 1985 (incorporated practices). or

(d) by any other person who, for the purposes of the Legal Services Act 2007, is an authorised person in relation to an activity which is a reserved legal activity (within the meaning of that Act).

Section 1B Restriction on practice as sole solicitor

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Section 2 Training regulations.

(1) The Society . . . may make regulations (in this Act referred to as “ training regulations ”) about education and training for persons seeking to be admitted or to practise as solicitors.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Training regulations—

(a) may prescribe—

(i) the education and training . . . to be undergone by persons seeking admission as solicitors;

(ii) any education or training to be undergone by persons who have been admitted as solicitors;

(iii) the examinations or other tests to be undergone by persons seeking admission as solicitors or who have been admitted;

(iv) the qualifications and reciprocal duties and responsibilities of persons undertaking to give education or training for the purposes of the regulations or undergoing such education or training; and

(v) the circumstances in which . . . education or training under the regulations may be started or terminated;

(b) may require persons who have been admitted as solicitors to hold practising certificates while they are undergoing education or training under the regulations;

(c) may include provision for the charging of fees by the Society and the application of fees which the Society receives;

(d) may make different provision for different classes of persons and different circumstances.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 3 Admission as solicitor.

(1) ... No person shall be admitted as a solicitor unless he has obtained a certificate from the Society that the Society—

(a) is satisfied that he has complied with training regulations, and

(b) is satisfied as to his character and his suitability to be a solicitor.

(2) Any person who has obtained a certificate that the Society is satisfied as mentioned in subsection (1) may apply to the Society to be admitted as a solicitor; and if any such person so applies, the Society , . . ., shall, unless cause to the contrary is shown to its satifaction, in writing, and in such manner and form as the Society may from time to time think fit, admit that person to be a solicitor.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 6 Keeping of the roll.

(1) The Society shall continue to keep a list of all solicitors of the Senior Courts , called “the roll”.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 7 Entry of name and restoration of name struck off.

On production—

(a) of written evidence of admission of any person as a solicitor by the Society,

(b) of an order for the restoration to the roll of the name of a person whose name has been struck off it, or

(c) of an order under section 47(2)(h) for the restoration of a person’s name to the roll,

and on payment to the Society of such fee . . . as the Society may from time to time determine, the Society shall enter the name of that person on the roll.

Section 8 Removal or restoration of name at solicitor’s request.

(1) The Society, on the application of a solicitor, may remove his name from the roll.

(2) The Society, on the application of a former solicitor whose name is not on the roll because it has been removed from it, may enter his name on the roll, on payment to the Society of such fee . . . as the Society may from time to time determine.

(2A) Subsection (2) does not apply to a former solicitor with respect to whom a direction has been given under section 47(2)(g).

(3) The power to enter a name on the roll conferred on the Society by subsection (2) includes power to enter the name of a person whose name was removed from the roll before the coming into force of section 5 of the Solicitors (Amendment) Act 1974.

(4) An appeal from any decision of the Society under subsection (2) shall lie to the High Court .

(4A) In relation to an appeal under subsection (4) the High Court may make such order as it thinks fit as to payment of costs.

(4B) The decision of the High Court on an appeal under subsection (4) shall be final.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 9 Applications for practising certificates.

(1) A person whose name is on the roll may apply to the Society to be issued with a practising certificate.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An application under this section must be—

(a) made in accordance with regulations under section 28, and

(b) accompanied by the appropriate fee.

(4) “ The appropriate fee ”, in relation to an application, means—

(a) any fee payable under subsection (1) of section 11 in respect of the practising certificate applied for, and

(b) any additional fee payable under subsection (4) of that section in respect of the application.

Section 10 Issue of practising certificates.

(1) Subject to the following provisions of this section, where an application is made in accordance with section 9, the Society must issue a practising certificate to the applicant if it is satisfied that the applicant—

(a) is not suspended from practice, and

(b) is complying with any prescribed requirements imposed on the applicant.

(2) A practising certificate issued to an applicant of a prescribed description must be issued subject to any conditions prescribed in relation to applicants of that description.

(3) In such circumstances as may be prescribed, the Society must, if it considers it is in the public interest to do so—

(a) refuse to issue a practising certificate under this section, or

(b) where it decides to issue a practising certificate, issue it subject to one or more conditions.

(4) The conditions which may be imposed include—

(a) conditions requiring the person to whom the certificate is issued to take specified steps that will, in the opinion of the Society, be conducive to the carrying on by that person of an efficient practice as a solicitor ... ;

(b) conditions which prohibit that person from taking any specified steps, except with the approval of the Society.

(5) In this section —

“ prescribed ” means prescribed by regulations under section 28;

“ specified ”, in relation to a condition imposed on a practising certificate, means specified in the condition.

Section 10A Register of holders of practising certificates

(1) The Society must keep a register of all solicitors who hold practising certificates.

(2) The register must contain—

(a) the full name of each solicitor who holds a practising certificate,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) such other information as may be specified in regulations under section 28(1)(d).

Section 11 Fees payable on issue of practising certificates.

(1) Before a practising certificate is issued, there must be paid to the Society in respect of the certificate a fee of such amount as the Society may from time to time determine.

(2) Different fees may be specified for different categories of applicant and in respect of different circumstances.

(3) Subsection (4) applies where a solicitor makes an application for a practising certificate if—

(a) the solicitor has failed to deliver an accountant's report required by rules under section 34(1) by such time or in such circumstances as may be prescribed by those rules, and

(b) a practising certificate has not been issued by the Society to the solicitor since the Society became aware of the failure.

(4) Where this subsection applies, the solicitor's application must be accompanied by an additional fee of such amount as the Society from time to time determines.

Section 12 Discretion of Society with respect to issue of practising certificates in special cases.

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Section 12A Additional fee payable by certain solicitors on applying for practising certificates.

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Section 13 Appeals etc in connection with the issue of practising certificates.

(1) A person who makes an application under section 9 may appeal to the High Court against—

(a) a decision to refuse the application for a practising certificate,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

(c) a decision to impose a condition on a practising certificate issued in consequence of the application.

(2) A person who holds a practising certificate subject to a condition within section 10(4)(b) may appeal to the High Court against any decision by the Society to refuse to approve the taking of any step for the purposes of that condition.

(3) The Society may make rules which provide, as respects any application under section 9 that is neither granted nor refused by the Society within such period as may be specified in the rules, for enabling an appeal to be brought under this section in relation to the application as if it had been refused by the Society.

(4) On an appeal under subsection (1), the High Court may—

(a) affirm the decision of the Society,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) direct the Society to issue a certificate to the applicant free from conditions or subject to such conditions as the High Court may think fit,

(d) direct the Society not to issue a certificate,

(e) if a certificate has been issued, by order suspend it,

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

(g) make such other order as the High Court thinks fit.

(5) On an appeal under subsection (2), the High Court may—

(a) affirm the decision of the Society,

(b) direct the Society to approve the taking of one or more steps for the purposes of a condition within section 10(4)(b), or

(c) make such other order as the High Court thinks fit.

(6) In relation to an appeal under this section the High Court may make such order as it thinks fit as to payment of costs.

(7) The decision of the High Court on an appeal under subsection (1) or (2) shall be final.

Section 13A Imposition of conditions while practising certificates are in force.

(1) Subject to the provisions of this section, the Society may in the case of any solicitor direct that his practising certificate for the time being in force (his “current certificate”) shall have effect subject to such conditions as the Society may think fit.

(2) The power conferred by subsection (1) is exercisable in relation to a solicitor at any time during the period for which the solicitor's current certificate is in force if—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) it appears to the Society that the case is of a prescribed description.

(3) “ Prescribed ” means prescribed by regulations under section 28.

(6) A solicitor in whose case a direction is given under this section may appeal to the High Court against the decision of the Society.

(7) On an appeal under subsection (6), the High Court may—

(a) affirm the decision of the Society; or

(b) direct that the appellant’s current certificate shall have effect subject to such conditions as the High Court thinks fit; or

by order revoke the direction; or

(d) make such other order as it thinks fit.

(7A) The decision of the High Court on an appeal under subsection (6) shall be final.

(8) Subsections (4) and (5) of section 10 apply for the purposes of subsection (1) of this section as they apply for the purposes of that section.

(9) A solicitor who holds a practising certificate subject to a condition imposed under subsection (1) which prohibits that solicitor from taking any steps specified in the condition, except with the approval of the Society, may appeal to the High Court against any decision by the Society to refuse to approve the taking of any step for the purposes of that condition.

(10) On an appeal under subsection (9), the High Court may—

(a) affirm the decision of the Society,

(b) direct the Society to approve the taking of one or more steps for the purposes of the condition, or

(c) make such other order as the High Court thinks fit.

(11) The decision of the High Court on an appeal under subsection (9) shall be final.

(12) In relation to an appeal under this section the High Court may make such order as it thinks fit as to payment of costs.

Section 13B Suspension of practising certificates where solicitors convicted of fraud or serious crime.

(1) Where—

(a) a solicitor has been convicted of–

(i) an offence involving dishonesty or deception; or

(ii) an indictable offence; and

(b) the Society has made an application to the Tribunal under section 47 with respect to him,

the Society may direct that any practising certificate ... of his which is for the time being in force be suspended.

(2) Any such suspension shall be for such period, not exceeding six months, as the Society shall specify in the direction.

(3) If, before the specified period expires–

(a) the Tribunal determines the Society’s application;

(b) the conviction is quashed or set aside; or

(c) the Society withdraws its application to the Tribunal,

the suspension shall cease to have effect.

(4) Where the specified period comes to an end without any of the events mentioned in subsection (3) having occurred, the Society may direct that the suspension be continued for such period, not exceeding six months, as it shall specify in the direction.

(5) A suspension under this section may only be extended once under subsection (4).

(6) Nothing in this section is to be taken as in any way affecting the Tribunal’s power to suspend a solicitor from practice ... .

(7) A solicitor in whose case a direction is given under subsection (1) or (4) may appeal to the High Court against the direction within one month of being notified of it.

(8) In an appeal under subsection (7), the High Court may–

(a) affirm the suspension;

(b) direct that the appellant’s certificate shall not be suspended but shall have effect subject to such conditions as the High Court thinks fit;

(c) by order revoke the direction; or

(d) make such other order as it thinks fit.

(9) In relation to an appeal under subsection (7) the High Court may make such order as it thinks fit as to payment of costs.

(10) The decision of the High Court on an appeal under subsection (7) shall be final.

Section 13ZA Application to practise as sole practitioner while practising certificate in force

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Section 13ZB Fee payable on making of sole solicitor endorsement

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Section 14 Commencement, expiry and replacement of practising certificates.

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Section 15 Suspension of practising certificates.

(1) The making by the Tribunal or by the court of an order suspending a solicitor from practice shall operate, and an adjudication in bankruptcy of a solicitor or the making of a debt relief order (under Part 7A of the Insolvency Act 1986) in respect of a solicitor shall operate immediately, to suspend any practising certificate of that solicitor for the time being in force.

(1A) Where the power conferred by paragraph 6(1) , 6A(1) or 9(1) of Schedule 1 has been exercised in relation to a solicitor by virtue of paragraph 1(1)(a)(i), (aa), (c) (so far as it applies to rules made by virtue of section 31 or 32) or (e) of that Schedule, the exercise of that power shall operate immediately to suspend any practising certificate of that solicitor for the time being in force.

(1B) Subsection (1A) does not apply if, at the time when the power referred to there is exercised, the Society directs that subsection (1A) is not to apply in relation to the solicitor concerned.

(1C) If, at the time when the power referred to in subsection (1A) is exercised, the Society gives a direction to that effect, the solicitor concerned may continue to act in relation to any matter specified in the direction as if his practising certificate had not been suspended by virtue of subsection (1A), but subject to such conditions (if any) as the Society sees fit to impose.

(2) For the purposes of this Act, a practising certificate shall be deemed not to be in force at any time while it is suspended.

Section 16 Duration of suspension of practising certificates.

(1) Where a practising certificate is suspended, it expires on such date as may be prescribed by regulations under section 28.

(1) Where, on the replacement date for a practising certificate, the certificate is suspended it shall expire on that date.

(2) The suspension of a practising certificate by virtue of section 15(1) by reason of an adjudication in bankrupty shall terminate if the adjudication is annulled and an office copy of the order annulling the adjudication is served on the Society.

(2A) The suspension of a practising certificate by virtue of section 15(1) by reason of the making of a debt relief order shall terminate—

(a) if the debt relief order is revoked on the ground mentioned in section 251L(2)(c) or (d) of the Insolvency Act 1986 and a copy of the notice provided to the debtor under Rule 9.18 of the Insolvency (England and Wales) Rules 2016 is served on the Society or the debt relief order is revoked by the court under section 251M(6)(e) of that Act and a copy of the court order is served on the Society;

(b) if the debt relief order is revoked and a period of one year has elapsed beginning with the effective date of that order.

(3) Where a solicitor’s practising certificate is suspended—

(a) by an order under section 13(4); or

(b) by virtue of section 15(1) by reason of his adjudication in bankruptcy or the making of a debt relief order (under Part 7A of the Insolvency Act 1986) in respect of him ; or

(c) by virtue of section 15(1) by reason of his suspension from practice and the period of his suspension from practice expires before the date on which his certificate will expire ,

(d) by virtue of section 15(1A)

the solicitor may at any time before the certificate expires (and, in the case of adjudication in bankruptcy, while the adjudication remains unannulled) apply to the Society to terminate the suspension.

(4) On an application under subsection (3), the Society may in its discretion—

(a) by order terminate the suspension either unconditionally or subject to such conditions as the Society may think fit; or

(b) refuse the application.

(5) If on an application by a solicitor under subsection (3) the Society refuses the application or terminates the suspension subject to conditions, the solicitor may appeal against the decision of the Society to the High Court, which may—

(a) affirm the decision; or

(b) terminate the suspension either unconditionally or subject to such conditions as it may think fit.

(6) In relation to an appeal under subsection (5) the High Court may make such order as it thinks fit as to payment of costs.

(7) The decision of the High Court on an appeal under subsection (5) shall be final.

Section 17 Publicity in relation to suspension of practising certificates.

(1) Where a solicitor’s practising certificate is suspended by an order under section 13(4), or by virtue of section 15(1) by reason of his adjudication in bankruptcy, the Society shall forthwith cause notice of that suspension to be published . . . and a note of it to be entered against the name of the solicitor on the roll.

(2) Where any such suspension of a practising certificate as is mentioned in subsection (1) is terminated under section 16(2), (4) or (5), the Society shall forthwith cause a note of that termination to be entered against the name of the solicitor on the roll and, if so requested in writing by the solicitor, a notice of it to be published . . . .

Section 17A Suspension of sole solicitor endorsement

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Section 17B Duration and publicity of suspension of sole solicitor endorsement

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Section 18 Extracts from the roll or register etc as evidence.

(1) An extract from the roll, or an extract from the register kept under section 10A, which is certified as correct by the Society is evidence of the matters mentioned in it.

(2) A certificate from the Society stating that—

(a) a person's name is or was on the roll, or

(b) a person is or was registered in the register kept under section 10A,

is evidence of the matters stated.

Section 19 Rights of practising and rights of audience.

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Section 20 Unqualified person not to act as solicitor.

(1) No unqualified person is to act as a solicitor.

(2) Any person who contravenes subsection (1) is guilty of an offence and liable on conviction on indictment to imprisonment for not more than 2 years or to a fine, or to both.

Section 21 Unqualified person not to pretend to be a solicitor.

Any unqualified person who wilfully pretends to be, or takes or uses any name, title, addition or description implying that he is, qualified or recognised by law as qualified to act as a solicitor shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale

Section 22 Unqualified person not to prepare certain instruments.

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Section 22A Powers of entry etc. of local weights and measures authorities.

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Section 23 Unqualified person not to prepare papers for probate etc.

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Section 24 Application of penal provisions to body corporate.

(1) If any act is done by a body corporate, or by any director, officer or servant of a body corporate, and is of such a nature or is done in such a manner as to be calculated to imply that the body corporate is qualified or recognised by law as qualified to act as a solicitor—

(a) the body corporate shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale, and

(b) in the case of an act done by a director, officer or servant of the body corporate, he also shall be guilty of an offence and liable on summary conviction to a fine not exceeding the fourth level on the standard scale.

(2) For the avoidance of doubt it is hereby declared that in section 20 the reference to an unqualified person and the reference to a person both include a reference to a body corporate.

Section 25 Costs where unqualified person acts as solicitor.

(1) No costs in respect of anything done by any unqualified person acting as a solicitor shall be recoverable by him, or by any other person, in any action, suit or matter.

(2) Nothing in subsection (1) shall prevent the recovery of money paid or to be paid by a solicitor on behalf of a client in respect of anything done by the solicitor while acting for the client without holding a practising certificate in force if that money would have been recoverable if he had held such a certificate when so acting.

Section 26 Time limit for commencement of certain proceedings.

Notwithstanding anything in the Magistrates’ Courts Act 1980 , proceedings in respect of any offence under section 21 . . . may be brought at any time before the expiration of two years from the commission of the offence or six months from its first discovery by the prosecutor, whichever period expires first.

Section 27 Saving for persons authorised to conduct legal proceedings.

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Section 28 Regulations.

(1) The Society may make regulations . . . about the following matters, namely—

(a) admission as a solicitor;

(b) the keeping of the roll;

(c) practising certificates . . . ;

(ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the keeping of the register under section 10A .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3A) Regulations about the keeping of the roll may (among other things)—

(za) make provision about the form in which the roll is to be kept and the manner in which entries are to be made, altered and removed;

(a) provide for the Society, at such intervals as may be specified in the regulations, to enquire of solicitors of any class so specified whether they wish to have their names retained on the roll;

(b) require solicitors of any such class, at such intervals as aforesaid, to pay to the Society a fee in respect of the retention of their names on the roll of such amount as may be prescribed by the regulations; . . .

(c) authorise the Society to remove from the roll the name of any solicitor who—

(i) fails to reply to any enquiry made in pursuance of paragraph ( a ) or to pay any fee payable by virtue of paragraph ( b ), or

(ii) replies to any such enquiry by indicating that he does not wish to have his name retained on the roll;

(d) authorise the Society to remove from the roll the name of any solicitor who has died.

(e) require the information on the roll to be made available to the public;

(f) specify the manner in which information is to be made so available and require it to be made so available during office hours and without charge.

(3B) Regulations about practising certificates ... may (among other things)—

(a) prescribe the form and manner in which applications for, or relating to, practising certificates ... are to be made;

(b) prescribe information which must be included in or accompany such applications;

(c) make provision about time limits for dealing with such applications, and confer on a person power to extend or bring forward such a time limit in prescribed circumstances;

(d) prescribe the requirements which applicants for practising certificates must satisfy before they may be issued with a practising certificate;

(e) prescribe descriptions of applicants, and conditions in relation to them, for the purposes of section 10(2) (circumstances in which practising certificates must be issued subject to prescribed conditions);

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g) prescribe circumstances for the purposes of section 10(3) (circumstances in which application may be refused etc in the public interest);

(h) make provision about when conditions imposed on practising certificates take effect (including provision conferring power on the Society to direct that a condition is not to have effect until the conclusion of any appeal in relation to it);

(i) make provision for the commencement, duration, replacement, withdrawal and expiry of practising certificates ... ;

(j) prescribe circumstances for the purposes of section 13A(2) (circumstances in which conditions can be imposed during period of practising certificate);

(k) require solicitors who hold practising certificates to notify the Society of such matters as may be prescribed, at such times, or in such circumstances as may be prescribed.

(3C) Regulations about the keeping of the register under section 10A may (among other things)—

(a) make provision about the form in which the register is to be kept and the manner in which entries are to be made, altered and removed;

(b) require information of a specified kind to be included in entries in the register;

(c) require information (or information of a specified description) on the register to be made available to the public;

(d) specify the manner in which it is to be made so available and require it to be made so available during office hours and without charge.

(3D) Regulations under this section may make provision for appeals to the High Court against decisions made by the Society under the regulations.

(3E) In relation to an appeal under regulations made by virtue of subsection (3D), the High Court may make such order as it thinks fit as to payment of costs.

(3F) The decision of the High Court on such an appeal shall be final.

(3G) Regulations under this section may—

(a) provide for a person to exercise a discretion in dealing with any matter;

(b) include incidental, supplementary and consequential provision;

(c) make transitory or transitional provision and savings;

(d) make provision generally or only in relation to specified cases or subject to specified exceptions;

(e) make different provision for different cases.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 29 Non–British subjects as solicitors. 12 & 13 Will. 3. c. 2.

Nothing in section 3 of the Act of Settlement (which provides among other things that aliens are incapable of enjoying certain offices or places of trust) shall be taken to disqualify a person from becoming or practising as a solicitor of the Senior Courts or of the Court of Judicature .

Section 30 Evidence as to solicitors in Scotland.

For the purposes of this Part, a letter purporting to be signed by or on behalf of the registrar of solicitors in Scotland—

(a) stating that a person specified in the letter is or is not a solicitor in Scotland shall be evidence that that person is or, as the case may be, is not a solicitor in Scotland;

(b) stating that a person specified in the letter did not at any time during a period so specified have in force a practising certificate as a solicitor in Scotland shall be evidence that that person was not during any part of that period a duly certificated solicitor in Scotland.

Section 31 Rules as to professional practice, conduct and discipline.

(1) Without prejudice to any other provision of this Part the Society may make rules ... for regulating in respect of any matter the professional practice, conduct , fitness to practise and discipline of solicitors and for empowering the Society to take such action as may be appropriate to enable the Society to ascertain whether or not the provisions of rules made, or of any code or guidance issued, by the Society are being , or have been, complied with.

(1A) The powers conferred on the Society by subsection (1) include power to make, in relation to solicitors, provision of a kind which the Society would be prohibited from making but for section 157(5)(c) of the Legal Services Act 2007 (exception from prohibition on approved regulators making provision for redress).

(1B) Rules under this section must provide that a solicitor may not practise as a sole solicitor unless there is in force in relation to that solicitor’s practice a recognition under section 9 of the Administration of Justice Act 1985.

(1C) Rules under this section may provide that, for the purposes of the rules, this Act and the Administration of Justice Act 1985, a solicitor is not to be regarded as practising as a sole solicitor in such circumstances as may be prescribed by the rules.

(2) If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 32 Accounts rules and trust accounts rules.

(1) The Society shall make rules . . . —

(a) as to the opening and keeping by solicitors of accounts at banks or with building societies for money within subsection (1A);

(aa) as to the operation by solicitors of accounts kept by their clients or other persons at banks or with building societies or other financial institutions;

(b) as to the keeping by solicitors of accounts containing information as to money received, held or paid by them for or on account of their clients or other persons (including money received, held or paid under a trust); and

(c) empowering the Society to take such action as may be necessary to enable it to ascertain whether or not the rules are being , or have been, complied with;

. . .

(1A) The money referred to in subsection (1) is money (including money held on trust) which is received, held or dealt with for clients or other persons.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) If any solicitor fails to comply with rules made under this section, any person may make a complaint in respect of that failure to the Tribunal.

(4) The Society shall be at liberty to disclose a report on or information about a solicitor’s accounts obtained in the exercise of powers conferred by rules made under subsection (1) . . . . . . for use in investigating the possible commission of an offence by the solicitor or any of his employees and . . . for use in connection with any prosecution of the solicitor or any of his employees consequent on the investigation.

(5) Rules under this section may specify circumstances in which solicitors or any class of solicitors are exempt from the rules or a part of the rules.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 33 Interest on clients’ money.

(1) Rules under section 32 may require a solicitor to pay interest, or sums in lieu of and equivalent to interest, to a client, any other person or any trust, for whom the solicitor holds money.

(2) The cases in which a solicitor may be required by the rules to act as mentioned in subsection (1) may be defined, among other things, by reference to the amount of any sum received or the period for which it is or is likely to be retained or both; . . .

(3) Except as provided by the rules, a solicitor is not liable to account to any client, other person or trust for interest received by the solicitor on money held at a bank or building society in an account which is for money received or held for, or on account of—

(a) the solicitor's clients, other persons or trusts, generally, or

(b) that client, person or trust, separately.

(4) Rules under section 32 may—

(a) prescribe the circumstances in which a solicitor may make arrangements to limit or exclude an obligation imposed on the solicitor by rules made by virtue of this section, and

(b) prescribe the requirements to be met by and in relation to those arrangements.

Section 33A Inspection of practice bank accounts etc.

(1) The Society may make rules ... empowering the Society to require a solicitor to produce documents relating to any account kept by him at a bank or with a building society—

(a) in connection with his practice; or

(b) in connection with any trust of which he is or formerly was a trustee,

for inspection by a person appointed by the Society pursuant to the rules.

(2) The Society shall be at liberty to disclose information obtained in exercise of the powers conferred by rules made under subsection (1) for use in investigating the possible commission of an offence by the solicitor and for use in connection with any prosecution of the solicitor consequent on the investigation.

Section 34 Accountants’ reports.

(1) The Society may make rules requiring solicitors to provide the Society with reports signed by an accountant (in this section referred to as an “ accountant's report ”) at such times or in such circumstances as may be prescribed by the rules.

(2) The rules may specify requirements to be met by, or in relation to, an accountant's report (including requirements relating to the accountant who signs the report).

(6) If any solicitor fails to comply with the provisions of any rules made under this section , a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Where an accountant, during the course of preparing an accountant's report—

(a) discovers evidence of fraud or theft in relation to money held by a solicitor for a client or any other person (including money held on trust) or money held in an account of a client of a solicitor, or an account of another person, which is operated by the solicitor, or

(b) obtains information which the accountant has reasonable cause to believe is likely to be of material significance in determining whether a solicitor is a fit and proper person to hold money for clients or other persons (including money held on trust) or to operate an account of a client of the solicitor or an account of another person,

the accountant must immediately give a report of the matter to the Society.

(10) No duty to which an accountant is subject is to be regarded as contravened merely because of any information or opinion contained in a report under subsection (9).

Section 34A Employees of solicitors

(1) Rules made by the Society may provide for any rules made under section 31, 32, 33A or 34 to have effect in relation to employees of solicitors with such additions, omissions or other modifications as appear to the Society to be necessary or expedient.

(2) If any employee of a solicitor fails to comply with rules made under section 31 or 32, as they have effect in relation to the employee by virtue of subsection (1), any person may make a complaint in respect of that failure to the Tribunal.

(3) If any employee of a solicitor fails to comply with rules made under section 34, as they have effect in relation to the employee by virtue of subsection (1), a complaint in respect of that failure may be made to the Tribunal by or on behalf of the Society.

Section 34B Employees of solicitors: accounts rules etc

(1) Where rules made under section 32(1) have effect in relation to employees of solicitors by virtue of section 34A(1), section 85 applies in relation to an employee to whom the rules have effect who keeps an account with a bank or building society in pursuance of such rules as it applies in relation to a solicitor who keeps such an account in pursuance of rules under section 32.

(2) Subsection (3) applies where rules made under section 32—

(a) contain any such provision as is referred to in section 33(1), and

(b) have effect in relation to employees of solicitors by virtue of section 34A(1).

(3) Except as provided by the rules, an employee to whom the rules are applied is not liable to account to any client, other person or trust for interest received by the employee on money held at a bank or building society in an account which is for money received or held for, or on account of—

(a) clients of the solicitor, other persons or trusts, generally, or

(b) that client, person or trust, separately.

(4) Subsection (5) applies where rules made under section 33A(1) have effect in relation to employees of solicitors by virtue of section 34A(1).

(5) The Society may disclose a report on or information about the accounts of any employee of a solicitor obtained in pursuance of such rules for use—

(a) in investigating the possible commission of an offence by the solicitor or any employees of the solicitor, and

(b) in connection with any prosecution of the solicitor or any employees of the solicitor consequent on the investigation.

(6) Where rules made under section 34 have effect in relation to employees of solicitors by virtue of section 34A(1), section 34(9) and (10) apply in relation to such an employee as they apply in relation to a solicitor.

Section 35 Intervention in solicitor’s practice.

The powers conferred by Part II of Schedule 1 shall be exercisable in the circumstances specified in Part I of that Schedule.

Section 36 Compensation grants.

(1) The Society may make rules concerning the grant of compensation by the Society in respect of loss that a person has suffered, or is likely to suffer, as a result of—

(a) an act or omission of a solicitor or former solicitor;

(b) an act or omission of an employee or former employee of a solicitor or former solicitor;

(c) the exercise by the Society of any of its powers under Part 2 of Schedule 1.

(2) The rules may (among other things) make provision—

(a) as to the circumstances in which such grants may and may not be made;

(b) as to the form and manner in which a compensation claim is to be made;

(c) as to the procedure for determining compensation claims;

(d) for the making of grants in respect of a compensation claim before it is finally determined;

(e) for a grant to be made by way of loan in such circumstances and on such terms as may be prescribed in, or determined in accordance with, the rules;

(f) for a grant to be made by way of making good a deficiency in monies held in trust by the Society under paragraph 6 or 6A of Schedule 1;

(g) as to the minimum and maximum grants payable in respect of a compensation claim (or a claim of a prescribed description);

(h) for the Society to be subrogated, to such extent as may be prescribed, to any rights and remedies of a person to whom a grant is made in relation to the loss in respect of which the grant is made.

(3) The circumstances which may be prescribed by virtue of subsection (2)(a) include in particular—

(a) the nature of the loss;

(b) in a case within subsection (1)(a) or (b), the nature of the act or omission.

(4) For the purposes of subsection (2)(f), there is a deficiency if the monies mentioned in that subsection are insufficient to satisfy the claims of all persons with a beneficial interest in the monies.

(5) The Society may prepare and publish guidance as to the criteria it will apply in deciding whether to make a grant in respect of a compensation claim, or any part of a compensation claim.

(6) Where the Society decides—

(a) not to make a grant in respect of a compensation claim or any part of a compensation claim, or

(b) to make a grant of less than the amount claimed,

it must give reasons for its decision.

(7) Rules under subsection (1) which are not regulatory arrangements within the meaning of the Legal Services Act 2007 are to be treated as such arrangements for the purposes of that Act.

(8) In this section—

“ compensation claim ” means a claim for the Society to make a grant of the kind mentioned in subsection (1);

“ prescribed ” means prescribed in rules under subsection (1).

Section 36A Compensation funds

(1) Compensation rules may require or authorise the Society to establish or maintain a fund or funds (“ compensation funds ”) for the purpose of making grants in respect of compensation claims.

(2) Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

(3) Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society.

(4) Subsection (2) does not apply to a solicitor who is a Crown Prosecutor.

(5) The Society may invest any money which forms part of a compensation fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

(6) The Society may insure with authorised insurers, in relation to compensation funds, for such purposes and on such terms as it considers appropriate.

(7) The Society may, in such circumstances and subject to such conditions as may be prescribed in or determined in accordance with compensation rules—

(a) borrow for the purposes of a compensation fund;

(b) charge investments which form part of a compensation fund as security for borrowing by the Society for the purposes of that fund.

(8) A compensation fund may be applied by the Society for the purposes mentioned in subsection (9) (in addition to the making of grants in respect of compensation claims).

(9) The purposes are—

(a) payment of premiums on insurance policies effected under subsection (6);

(b) repayment of money borrowed by the Society for the purposes of the fund and payment of interest on any money so borrowed;

(c) payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting administering or applying the fund;

(d) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Part 2 of Schedule 1;

(e) payment of any costs or damages incurred by the Society, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers.

(10) In this section—

“ compensation claim ” has the same meaning as in section 36;

“ compensation fund ” has the meaning given by subsection (1);

“ compensation rules ” means rules under section 36(1).

Section 37 Professional indemnity.

(1) The Society may make rules (in this Act referred to as “ indemnity rules ”) concerning indemnity against loss arising from claims in respect of any description of civil liability incurred—

(a) by a solicitor or former solicitor in connection with his practice or with any trust of which he is or formerly was a trustee;

(b) by an employee or former employee of a solicitor or former solicitor in connection with that solicitor’s practice or with any trust of which that solicitor or the employee is or formerly was a trustee.

(2) For the purpose of providing such indemnity, indemnity rules—

(a) may authorise or require the Society to establish and maintain a fund or funds;

(b) may authorise or require the Society to take out and maintain insurance with authorised insurers;

(c) may require solicitors or any specified class of solicitors to take out and maintain insurance with authorised insurers.

(3) Without prejudice to the generality of subsections (1) and (2), indemnity rules—

(a) may specify the terms and conditions on which indemnity is to be available, and any circumstances in which the right to it is to be excluded or modified;

(b) may provide for the management, administration and protection of any fund maintained by virtue of subsection (2)(a) and require solicitors or any class of solicitors to make payments to any such fund;

(c) may require solicitors or any class of solicitors to make payments by way of premium on any insurance policy maintained by the Society by virtue of subsection (2)(b);

(d) may prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (2)(c);

(e) may authorise the Society to determine the amount of any payments required by the rules, subject to such limits, or in accordance with such provisions, as may be prescribed by the rules;

(f) may specify circumstances in which, where a solicitor for whom indemnity is provided has failed to comply with the rules, the Society or insurers may take proceedings against him in respect of sums paid by way of indemnity in connection with a matter in relation to which he has failed to comply;

(g) may specify circumstances in which solicitors are exempt from the rules;

(h) may empower the Society to take such steps as it considers necessary or expedient to ascertain whether or not the rules are being , or have been, complied with; and

(i) may contain incidental, procedural or supplementary provisions.

(4) If any solicitor fails to comply with indemnity rules, any person may make a complaint in respect of that failure to the Tribunal.

(5) The Society shall have power, without prejudice to any of its other powers, to carry into effect any arrangements which it considers necessary or expedient for the purpose of indemnity under this section.