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Part 7: Special bodies, transitional provisions and passporting

Rule 26: Special kinds of licensable bodies

26.1

The SRA does not accept applications for any order to be made by it under section 106 of the LSA from any licensable body.

Guidance note

(i)

The LSA provides the special kind of licensable bodies mentioned in section 23 with a grace period during which they are not required to apply for authorisation as a licensed body. However, during the grace period, such bodies may apply for authorisation under these rules but will not be able to request special treatment under section 106 until this section is commenced.

Rule 27: Commencement, transitional provisions and repeals

27.1

These rules shall come into force:

(a)

on the designation of the Society as a licensing authority under Part 1 of Schedule 10 to the LSA, in respect of licensable bodies;

(b)

on 31 March 2012 ("the relevant date"), in respect of legal services bodies, and the SRA Recognised Bodies Regulations 2011 (in Rule 27.1 referred to as "the Regulations") shall be repealed, save that:

(i)

applications for initial recognition made under Regulation 2.1 of the Regulations but not decided on the relevant date shall be considered and decided in accordance with the Regulations;

(ii)

applications for approval of an individual as suitable to be a manager made under Regulation 5 of the Regulations but not decided on the relevant date shall be considered and decided in accordance with the Regulations;

(iii)

applications for temporary emergency recognition made under Regulation 7.5 of the Regulations, or requests for extension of temporary emergency recognition made under Regulation 7.8(c) of the Regulations, but not decided on the relevant date shall be considered and decided in accordance with the Regulations;

(iv)

where a person has invoked the internal appeal procedure under Regulation 9 of the Regulations, but the appeal has not been concluded by the relevant date, then the appeal shall be considered and determined in accordance with the Regulations; and

(v)

where directions have been issued in respect of a reconsideration under Regulation 18 of the Regulations, the reconsideration shall proceed in accordance with the Regulations,

and for the avoidance of doubt, on the relevant date:

(A)

where a notice of succession has been delivered to the SRA under Regulation 3.1 or 3.3 of the Regulations in respect of which the SRA has made no fee determination, the SRA will proceed to consider the matter in accordance with Rule 8.3(d) to (k) above;

(B)

where condition(s) have been imposed on a recognised body's recognition under Regulation 6 of the Regulations, such condition(s) shall continue to apply as if they had been imposed under Rule 9 above.; and

From 31 March 2012 or the date on which an order made pursuant to section 69 of the LSA relating to the status of sole practitioners comes into force, whichever is the later, ("the relevant date" for the purposes of sub-rules (c) and (d)) the SRA Practising Regulations (in Rule 27.1 referred to as "the Practising Regulations") shall have effect with the following amendments:

Regulations 1.6, 4, 5, 8.2(b), 8.3(c), 8.3(d), 8.4(d), 8.4(j), 8.4(l), 9.1(d), 9.2(d), 10.1(d), 10.2(b), 11.2(g), 12.2(h), 14.1(d) and 19.5 shall be repealed;

in Regulation 8.3 the words " who is the subject of any decision in (a)-(d) below and/or the person who is the subject of a decision in (c) or (d) below" shall be omitted;

in Regulation 8.4(e), "13ZA(6)," shall be omitted;

in Regulation 8.5(a)(ii) the words "including, where applicable, the renewal of an existing authorisation as a recognised sole practitioner endorsed on the practising certificate or registration," shall be omitted;

in Regulation 10.2(c) the word "or" shall be substituted for the "," between "practising certificate" and "registration" and the words ", or authorisation as a recognised sole practitioner" shall be omitted;

in Regulation 10.3(a) the word "or" shall be substituted for the "," between "practising certificate" and "registration" and for the "," between "practising certificate" and "renew a registration", and the words ", or authorisation as a recognised sole practitioner" and the words "or renew an authorisation" shall be omitted;

in Regulation 11.2(k) the words "or suspension of the solicitor from practice as a sole practitioner, or suspension of the solicitor'sauthorisation as a recognised sole practitioner," shall be omitted;

in Regulation 12.2(k) the words "or suspension of the lawyer from practice as a sole practitioner, or suspension of the lawyer's authorisation as a recognised sole practitioner," shall be omitted;

in Regulation 13.2(h) and 16.1(b) the words "recognised sole practitioner," shall be omitted;

Notwithstanding the provisions of sub-rule (c) above:

applications for authorisation as a recognised sole practitioner made under Regulation 4.1 of the Practising Regulations but not decided on the relevant date shall be considered and decided in accordance with the Practising Regulations;

applications for temporary emergency recognition made under Regulation 4.4(a) or for recognition made under Regulation 4.5(b) of the Practising Regulations, or requests for extension of temporary emergency recognition made under Regulation 4.4(c)(iii) of the Practising Regulations, but not decided on the relevant date shall be considered and decided in accordance with the Practising Regulations;

applications for approval of a person's designation as a COLP or COFA made under Regulation 4.9 of the Practising Regulations but not decided on the relevant date shall be considered and decided in accordance with the Practising Regulations;

and, for the avoidance of doubt, where on the relevant date, a notice of succession has been delivered to the SRA under Regulation 5.1 or 5.3 of the Practising Regulations in respect of which the SRA has made no fee determination, the SRA will proceed to consider the matter in accordance with Rule 8.3(d) to (l) above.

27.2

From 31 March 2012 these rules shall have effect subject to the following amendments:

(a)

in Rule 8.3(d), 8.3(i)(i) and 8.3(i)(ii) the words ", recognised bodies" shall be omitted;

(b)

in Rule 8.3(f), 8.3(j) and 8.3(k) the words ", recognised bodies" shall be omitted;

(c)

in Rule 8.3(g) and 8.3(l), the words ", recognised body" shall be omitted;

(d)

in Rule 8.3(h)(i), the words "recognised body or" shall be omitted;

(e)

in Rule 24.2(c), the words ", a recognised body" shall be omitted; and

(f)

in Rule 24.2(c)(i)(D), the words "Regulation 7 of the SRA Recognised Bodies Regulations 2011 or" shall be omitted.

27.3

[Deleted]

From 31 March 2012 or the date on which an order made pursuant to section 69 of the Legal Services Act relating to the status of sole practitioners comes into force, whichever is the later, these rules shall have effect subject to the following amendments:

in Rule 6.3(a) the words ", as a group, are, or the sole practitioner is, suitable" shall be substituted for the words "are suitable, as a group";

in Rule 8.3(d), 8.3(i)(i) and 8.3(i)(ii) the words "and recognised sole practitioners" shall be omitted;

in Rule 8.3(f), 8.3(j) and 8.3(k) the words "or recognised sole practitioners" shall be omitted;

in Rule 8.3(g) and 8.3(l), the words "or recognised sole practitioner" shall be omitted;

in Rule 8.3(h)(i), the words "and/or recognised sole practitioner" shall be omitted;

Rule 24.2(b) shall be omitted;

in Rule 24.2(c), the words "or a recognised sole practitioner" shall be omitted;

in Rule 24.2(c)(i)(D), the words "or temporary emergency recognition under Regulation 4 of the SRA Practising Regulations" shall be omitted;

Rule 25.1 shall have effect as if the words "or a new sole practitionerfirm" were inserted after the word "partnership";

Rule 25.1(b) shall have effect as if the words ", or the new sole principal," were inserted after the words "the new partnership";

Rule 25.3(a) shall have effect as if the words "or sole principal" were inserted after the word "partners";

Rule 25.3(c), 25.3(d) and 25.3(e) shall have effect as if the words "or sole principal" were inserted after the word "partnership"; and

Rule 25 shall have effect as if the following provisions were inserted:

25.5 Sole practitioners

(a)  If a sole practitioner dies:

(i)  the SRA must be notified within seven days;

(ii)  within 28 days of the death an emergency application may be made, on the prescribed form, for recognition as a recognised body in the capacity of personal representative, practice manager or employee by a solicitor or an REL who is:

(A)  the sole practitioner's executor;

(B)  practice manager appointed by the sole practitioner's personal representatives; or

(C)  an employee of the firm.

(b) If the application for recognition in the capacity of personal representative, practice manager or employee is granted:

(i)  recognition will be deemed to run from the date of death;

(ii)  recognition will cease to have effect on the winding up of the estate or 12 months from the date of death, whichever is the earlier.

27.4

From 31 March 2012, a legal services body which does not comply with Rule 8.5 above may be treated as an authorised body for the purposes of these rules and the SRA's regulatory arrangements, until 31 December 2012, at which time a legal services body shall be required to comply with Rule 8.5 in order to be authorised under these rules.

27.5

Unless the context otherwise requires, references in these rules to:

(a)

these rules, or a provision of these rules; and

(b)

the SRA Code of Conduct, rules, regulations or regulatory arrangements, or a provision of the same,

include a reference to the equivalent rules, regulations or provisions previously in force.

Rule 28: Transition of recognised bodies

28.1

From 31 March 2012:

(a)

the recognition of a body recognised under section 9 of the AJA, shall have effect as if it were authorisation granted under these rules; and

(b)

all managers and owners of bodies falling within sub-rule (a) shall be deemed to have been approved under Part 4 of these rules, as applicable, including those approved under Rule 27.1(b)(ii) above.