151.This section amends the 2007 Act.
152.Subsection (2) amends section 10 (Commission upholds services complaint) so that a direction made to an employing practitioner under section 10(2)(c) may require action in relation to systems operated by the employing practitioner that affect the provision of legal services generally. This enables the Commission to ensure that action can be taken to fix issues which contribute more generally to services complaints against the employing practitioner, including by improving system-wide procedures or training. The Commission can also give the direction to the practitioner’s firm if the practitioner was, at the time when the services were provided, a partner of a firm.
153.Subsection (3) inserts new section 12A (services complaint upheld: failure to refund fees and outlays). The new section applies, in some circumstances, where the Commission requires a practitioner or an employing practitioner to refund an amount of fees or outlays to a client, and the practitioner or employing practitioner fails to do so due to death of the practitioner, or due to the insolvency or involuntary cessation of trade of the business. Where the new section applies, the unpaid amount is treated, for the purposes of the practitioner’s or the employing practitioner’s professional indemnity insurance, as if it were compensation that the Commission directed be paid to the complainer. This means that the unpaid amount can then be paid from the practitioner’s or the employing practitioner’s professional insurance up to a maximum of £35,000 (when combined with other compensation under section 10(2)(d) of the 2007 Act).
154.The section makes other amendments as a result of changes elsewhere to the 2007 Act.
Background Part 3 - Complaints Section 56 – Services complaint: sanctions