79.This section sets out that a draft regulatory scheme under section 23 must—
	specify the rights and legal services that it proposes persons authorised by the body may acquire,
	contain the body’s proposed authorisation rules, practice rules, and (if applicable) its rules for authorising and regulating legal businesses for the purposes of Part 2,
	set out how the body will exercise its regulatory functions compatibly with the regulatory objectives,
	set out the regulatory category to which the body thinks it should be assigned, and
	deal with such other regulatory matters as the Scottish Ministers may by regulations specify (and in such manner as the regulations may specify).
80.It also states what authorisation rules and practice rules are about, and what they must include. Where relevant, such as in the case of professional indemnity, these rules will have to take account of the requirements that will apply to the body depending on whether it is assigned as a category 1 or category 2 regulator.
81.The authorisation rules will set out the requirements an applicant must meet in order to become a provider that is regulated by the body and the process for seeking that authorisation. This may include granting authorisation subject to conditions (such as restricting the types of, or manner in which, services are to be provided) and how decisions can be reviewed. In particular, the authorisation rules must contain a rule that only fit and proper persons may be authorised and that the authorisation is to be withdrawn if any such person is not complying with the general regulatory scheme or other pertinent rules of professional practice.
82.The practice rules will cover the standards to be met by authorised persons when providing legal services as well as requirements in relation to accounting, auditing and professional indemnity. Practice rules will also set out how complaints are to be handled and the consequences for where there is a breach of the regulatory scheme that doesn’t merit the withdrawal of authorisation. This might, for example, be in the form of fines or being required to take remedial action within a set period. Subsection (8) sets out some particular rules that are required in respect of the exercise of rights of audience. These reflect the requirements imposed on other officers of the court (such as solicitors and advocates).
83.The practice rules must also contain a requirement to publish decisions in relation to conduct complaints about professional misconduct that have been referred to the Commission.
Background Part 1 – Regulatory Framework Applications Section 24 – Regulatory scheme