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GAZETTE
N E W
AUGUST/SEPTEMBER
1994
T h e S o l i c i t o rs ( A m e n d m e n t )
A c t 1 9 9 4
The Solicitors (Amendment) Act 1994
was passed on 4 November 1994. Its
provisions are profoundly important
for the future of the profession. The
Act is now in force except for Section
68 which shall come into operation
three months after the date of its
passing and sections 16, 17, 18, 22, 23,
25 and 58(3) which shall come into
operation by commencement order/s. A
comprehensive guide to the changes
made by this new Act is being prepared
by the Law Society. The following are
some of the important changes brought
about by the Act.
Complaints
The Act gives the Law Society stronger
powers to investigate and deal with
complaints from the public against
solicitors. It also empowers the Society
to require a solicitor to take certain
steps where the Society finds that the
solicitor has provided inadequate
services or has charged excessive fees.
The Act provides for a Disciplinary
Tribunal to replace the Disciplinary
Committee.
Compensation Fund
The Act provides for a 'cap' of
£350,000 on grants made to any client
of a solicitor from the Fund in respect
of matters arising from the relationship
between the client and the solicitor.
This is an important change in the law
relating to the Compensation Fund
which will now limit claims to clients
of solicitors.
Costs
Section 68 of the Act deals with charges
to clients. It comes into operation on 4
February 1995. As and from that date, a
solicitor must provide each client with
written particulars of the charges to be
made for the legal services to be
provided. These particulars must be
given on the taking of instructions or as
soon as possible thereafter. The
particulars must state either
354
(a) the actual charges which will be
made, or
(b) an estimate of those charges, or
(c) the basis on which the charges will
be made.
i
"Charges" includes fees, outlays,
1
disbursements and expenses.
In addition, in litigation or arbitration
matters, the particulars must state -
(a) the circumstances in which the
client may be required to pay costs
to any other party, and
i !
| (b) the circumstances, if any, in which
the party and party costs will not
cover the charges to be made.
Í
i The Society's Remuneration/Costs
Committee is drawing up forms of
agreement intended to meet the
requirements of the section, which will
be circulated shortly.
| Education
í
The period of apprenticeship will be
reduced from three years to two years,
as and from 4 May 1995 (six months
after enactment) or on the earlier
making of regulations to that effect by
i the Society. This change will apply
both to new apprenticeships and to
existing apprenticeships. In addition,
the Act allows solicitors to take two
apprentices at the same time and, with
i the written consent of the Society,
allows the taking of one apprentice for
j
every two assistant solicitors in a firm.
| Commissioners for Oaths
i All practising solicitors are now
j conferred with the powers of a
Commissioner for Oaths in relation to
the administration of oaths and the
taking of affidavits. This does not
| mean that a practising solicitor who is
not already a Commissioner for Oaths
I can call himself a "Commissioner for
Oaths", as that separate and distinct
category of person is retained. The
only restrictions are that a practising
solicitor cannot exercise these powers
in any proceedings in which he is the
solicitor to any of the parties or in
i which he has an interest, or in
! contravention of any conditions
attaching to his practising certificate.
An appropriate new form of jurat will
be published in the
Gazette
shortly.
Statutory Offences
Section 76 of the Act creates a number
of statutory offences relating to client
accounts/client monies/accounting
records, the maximum penalty for
which is a fine of £1,500 on summary
conviction and a fine of £10,000 on
conviction on indictment.
Enabling Provisions
| There are a number of significant new
enabling provisions in the Act, under
which the Society may make
regulations providing for the following:
(a) Compulsory professional
indemnity insurance
(b) Restrictions on practice after
qualifications
(c) Mandatory continuing legal
education
Any such regulations would require to
be first approved by the Council and
promulgated to the profession.
•
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