The CLC’s new Adjudication Panel met to discuss cases for the first time on 20 October. CLC Director of Policy and Standards Simon Blandy explains the background to the panel, its membership, and its remit.
The legislative background
The Administration of Justice Act 1985 required the CLC to establish a Council and two committees (the Investigating Committee and the Discipline and Appeals Committee).
The Council’s rules had to be approved by the Lord Chancellor and its accounts submitted to the Ministry of Justice.
The Legal Services Act 2007 (LSA) established the Legal Services Board (LSB) to assume responsibility for the oversight of the CLC, alongside the other legal regulators. These oversights powers are more wide ranging than the CLC had previously experienced.
By the time the LSA had been made, the CLC had come to the conclusion that its Governance Arrangements needed to be re-aligned so that they are consistent with its operational requirements and in tune with the generally accepted standards of good governance.
The LSA has made that transition much easier for the CLC because it had already required all its Council members to be appointed.
Even before it had assumed its full powers on 1 January 2010, the LSB had approved the CLC’s new Regulations for the Appointment and Service of Council members.
The CLC’s Council and Committees
The CLC’s new Council of seven members took office on 1 May 2010 (and since 30 September 2011 has had a lay majority), is supported by an Audit Committee and a Remuneration Committee.
The business of the Council is focused on policy and strategic issues, whilst the Chief Executive and officers of the CLC manage operational matters, including first tier regulatory and disciplinary determinations.
On 6 October 2010 the Legal Ombudsman started accepting service complaints about all regulated lawyers. Since this had previously been its main function, the role of the Investigating Committee needed to be re-assessed.
The new Adjudication Panel
The outcome of that re-assessment is the establishment of the Adjudication Panel which in effect takes over a slightly broader disciplinary remit than that previously exercised by the Investigating Committee because it is able to determine some conduct matters, instead of deciding whether a case in misconduct should be referred to the Discipline and Appeals Committee,
Now that all initial regulatory determinations are made by officers at the CLC, there is no need to have four different committees making these decisions (which previously was the case) with a resultant significant saving in both time (decisions do not have to wait until the next committee meeting) and cost.
Remit and membership
The Adjudication Panel has assumed a broad-ranging remit to review regulatory decisions made by CLC officers. It will provide an additional layer of scrutiny for CLC decisions.
For example, where the CLC has refused an application for a certificate of recognition the applicant is entitled to appeal to the Discipline and Appeals Committee. Under the new procedure an applicant dissatisfied with the determination of the CLC may first appeal to the Adjudication Panel before appealing to the Discipline and Appeals Committee.
Seven members have been appointed to the Adjudication Panel (none of which are members of the Council), although decisions will generally be made by a committee of three.
There is a lay majority. The Panel has flexibility about the procedure to be adopted depending on the nature of the appeal (it may be determined at a meeting or by telephone), provided it is satisfied that the process is fair to the parties.
Exercising its disciplinary function the Adjudication Panel may direct a licensed conveyancer or recognised body to pay a fine of up to £50,000, subject to appeal to the Discipline and Appeals Committee (DAC) and then to the High Court (the maximum penalty the DAC may impose is £1 million).
In contrast, where disciplinary proceedings are taken against an ABS, the Adjudication Panel may direct the payment of a fine of up to £50 million where the disciplinary proceedings are against an individual (such as a manager or employee) or £250 million where the proceedings are against a licensed body, subject in each case to appeal to the General Regulatory Chamber of the Tribunals Service with possibility of appeal on a point of law to the Upper Chamber.
In all cases the Panel must make a decision which fair and proportionate. As the LSB stated “the maximum penalty must be a sufficient deterrent to non-compliance and that in setting the level of a penalty a Licensing Authority must have sufficient flexibility to eliminate financial gain from non-compliance yet impose a proportionate amount”.
However, from the CLC’s point of view the principal role of the Adjudication Panel is to provide assurance about the integrity of regulatory decisions made the CLC in addition to the processes which are already in place.
The CLC’s new Adjudication Panel met to discuss cases for the first time on 20 October. CLC Director of Policy and Standards Simon Blandy explains the background to the panel, its membership, and its remit.
