Commentary on Sections Background Section 45: Cancellation of designation as approved regulator
147.The Lord Chancellor may, by making an order, cancel a body’s designation as an approved regulator in relation to one or more of the reserved legal activities for which it is designated (section 45(1)). But the Lord Chancellor may act only on the recommendation of the Board (section 45(2)).
148.Under section 45(3), if a body applies to the Board to have its designation as an approved regulator cancelled, and the Board is satisfied that the rules that it has set for this process have been met, then the Board must make such a recommendation to the Lord Chancellor.
149.The Board may also recommend that a cancellation order be made if it is satisfied that the conditions listed in section 45(5) (including the requirement for the Board to consider the impact of taking action on the other regulatory objectives) have been met and that the matter cannot be adequately addressed by the Board exercising its powers under sections 31 to 43. The Board must specify the reasons for suggesting cancellation when making its recommendation.
150.Schedule 9, introduced by this section, applies where the Board considers that it may be appropriate for it to make a recommendation under section 45(5). It requires the Board to notify the body of the proposed recommendation, and to seek advice in respect of the recommendation. This Schedule sets out the procedures for giving notice to the approved regulator, for consulting with the OFT, the Consumer Panel and the Lord Chief Justice, and for making representations.