Committee
Justice Committee 22 June 2010
22 Jun 2010 · S3 · Justice Committee
Item of business
Legal Services (Scotland) Bill: Stage 2
Fergus Ewing
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Amendment 104 is a drafting amendment.Amendment 110 relates to the fitness-for-involvement test. During stage 1, the committee rightly focused much attention on that test and recommended that we consider whether improvements could be made.Amendment 110 provides one such improvement. It inserts a new subparagraph into section 50(2)(a) to provide that a non-solicitor’s associations are relevant to that investor’s fitness for involvement in a licensed provider. It makes it clear that those associations include“family, business or other associations”that have a bearing on the investor’s character. That provision will ensure that the fitness test is as robust as possible.Amendment 110A, in the name of Robert Brown, seeks to qualify amendment 110 by stating that family, business or other associations are relevant only in so far as they have a bearing on an individual’s “suitability” to be an investor. I await with interest Mr Brown’s arguments on the matter, but we believe that such a provision is unnecessary. All the fitness-for-involvement provisions are focused on the suitability of persons to be investors, and there is no need to state that explicitly for that one provision. For those reasons, we do not support amendment 110A.Amendment 113 also relates to the fitness-for-involvement test. It ensures that individuals are not able to avoid the fitness test by hiding behind a company or a number of companies. It adds a new subsection after section 50(4) and provides that, where a non-solicitor investor is a body, it is relevant for the approved regulator to consider whether the persons who own and control that body would meet the fitness-for-involvement test if they were investing individually. Accordingly, an approved regulator will have to consider the fitness not only of any body that invests in a licensed provider but of that body’s owners and controllers.Amendment 113A, in the name of Robert Brown, appears to be an attempt to widen the group of people who can be subjected to the fitness test by virtue of amendment 113 to include those who have “substantial influence” in the body. With respect, I consider amendment 113A to be unnecessary, as those people who have a substantial influence in the body would be covered by the reference in my amendment 113 to “persons controlling” the body. For that reason, we do not support amendment 113A.I move amendment 104, and I invite Robert Brown not to move his amendments.
In the same item of business
The Convener
The principal business of the morning is day 3 of stage 2 proceedings on the Legal Services (Scotland) Bill. There is no limit as to how far the committee ca...
The Convener
Amendment 44, in the name of the minister, is grouped with amendments 45 to 48, 319, 49, 321, 323, 50, 51 and 102.
The Minister for Community Safety (Fergus Ewing)
Amendment 44 will add the qualification “valid” to “practising certificate” in relation to heads of legal services, with the effect that a head of legal serv...
The Convener
No doubt Mr Brown will bear in mind the minister’s comments with regard to the principle of the Lord President’s involvement, which I would have thought is n...
Robert Brown (Glasgow) (LD)
As the minister said, amendments 319, 321 and 323 relate to the powers of the Lord President in relation to the important functions of the head of legal serv...
The Convener
The question is, that amendment 319 be agreed to. Are we agreed?Members: No.
The Convener
There will be a division.ForAitken, Bill (Glasgow) (Con)Brown, Robert (Glasgow) (LD)Butler, Bill (Glasgow Anniesland) (Lab)Craigie, Cathie (Cumbernauld and K...
The Convener
The result of the division is: For 5, Against 0, Abstentions 3.Amendment 319 agreed to.Section 39, as amended, agreed to.Section 40—Head of PracticeAmendment...
The Convener
The question is, that amendment 321 be agreed to. Are we agreed?Members: No.
The Convener
There will be a division.ForAitken, Bill (Glasgow) (Con)Brown, Robert (Glasgow) (LD)Butler, Bill (Glasgow Anniesland) (Lab)Craigie, Cathie (Cumbernauld and K...
The Convener
The result of the division is: For 5, Against 0, Abstentions 3.Amendment 321 agreed to.Section 40, as amended, agreed to.Section 41—Practice CommitteeAmendme...
The Convener
The question is, that amendment 323 be agreed to. Are we agreed?Members: No.
The Convener
There will be a division.ForAitken, Bill (Glasgow) (Con)Brown, Robert (Glasgow) (LD)Butler, Bill (Glasgow Anniesland) (Lab)Craigie, Cathie (Cumbernauld and K...
The Convener
The result of the division is: For 5, Against 0, Abstentions 3.Amendment 323 agreed to.Section 41, as amended, agreed to.Section 42 agreed to.Section 43—Chal...
The Convener
Amendment 52, in the name of the minister, is grouped with amendments 53, 330, 54 and 55.
Fergus Ewing
During stage 1, concern was expressed about designated persons relating to the possibility of the bill allowing for non-solicitors to do legal work. I have, ...
Robert Brown
I support the Government amendments in the group, but designation is a curious concept in the bill and it is interesting that its purpose is not defined. Des...
The Convener
Mr Brown shows characteristic modesty.An arguable point is involved, but perhaps some clarification is required about the total intent. We can see what the G...
Fergus Ewing
We all want to move in the same direction. The Government’s amendments were framed to meet concerns that the committee expressed after stage 1. The bill make...
The Convener
I will allow Robert Brown to make another contribution.
Robert Brown
I accept the minister’s point about possible unintended consequences. That issue needs to be explored further. However, will he address the issue of investor...
Fergus Ewing
Our proposal would mean that such designated persons—that is, non-solicitors in legal services providers—would nonetheless be able to be investors. I think t...
The Convener
That is most unkind.
Fergus Ewing
That is not necessarily a criticism, convener. I would be more than happy to discuss the matter further with Mr Brown if he remains not 100 per cent persuade...
The Convener
When you are in a hole, minister, you should stop digging.Amendment 52 agreed to.Amendment 53 moved—Fergus Ewing—and agreed to.
The Convener
I invite Robert Brown to move or not move amendment 330.
Robert Brown
I am not entirely satisfied, but I will discuss the matter further, if I may. I will not move amendment 330 at this stage.
The Convener
I think that that is the appropriate way forward.Amendment 330 not moved.Amendment 54 moved—Fergus Ewing—and agreed to.Section 47, as amended, agreed to.Afte...
The Convener
The next group is on outside investors. Amendment 104, in the name of the minister, is grouped with amendments 110, 110A, 113 and 113A.
Fergus Ewing
Amendment 104 is a drafting amendment.Amendment 110 relates to the fitness-for-involvement test. During stage 1, the committee rightly focused much attention...