Background Part 1 – Regulatory Framework Special rule changes Section 20 – Power to direct special rule changes
69.This section allows a regulator, on the application of a legal services provider that it regulates, to disapply or modify any rule of the regulator in relation to the applicant. The regulator makes this change by giving a direction, but only if the direction is compatible with the regulatory objectives.
70.But a direction cannot disapply or modify a requirement under the Act or any other enactment. In addition, a direction may be given only if the regulator considers it—
	desirable for the purpose of enabling a new or alternative way of providing or regulating legal services to be piloted (“the first purpose”),
	reasonable and proportionate for the purpose of avoiding a regulatory conflict, removing an unnecessary rule, or making a rule less onerous (“the second purpose”), or
	necessary or appropriate in the circumstances.
71.A direction has effect either indefinitely or for the period of time it specifies or until it is revoked. A copy of a direction must be given to the legal services provider to whom it relates and, in circumstances specified in subsection (7), to the Lord President.
72.A regulator must exercise this power of direction in accordance with section 3(1). This is because the power is a regulatory function of a regulator. The power must therefore be exercised in a manner which is compatible with the regulatory objectives in section 2(1) and in a manner which the regulator considers most appropriate to meet those objectives.