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Glossary

Glossary

(CLC) Authorised Officer

the Licensing and Casework Manager employed by the CLC, or another officer of the CLC  of equivalent or senior status.

Bank

an institution, body, financial intermediary, or financial institution which has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits.

Candidate
  • under the Student Training Framework this refers to a student registered with the CLC who sits or intends to sit a CLC Qualifying Examination
  • under the Licensed Body Code and Licensing Framework this refers to persons nominated by the body to assume the role of the Head of Legal Practice or Head of Finance and Administration.
Disbursements

generally any payments made, or for which a liability to pay has been incurred, by a CLC regulated individual or body to a third party on behalf of a Client.

disbursements are deemed to include: stamp duty land tax; Land Registry fees; Local Authority and any other applicable search fees.

Employee

(depending on the context) an individual employed by a CLC body, by an entity regulated by another legal regulator or by a local authority or other employer. 

Fees

the payment for the provision of Legal Services (also known as charges).

General Prohibition

the prohibition imposed by s.19 of the FSMA which states that no person may carry on a Regulated Activity in the United Kingdom, or purport to do so, unless he is (a) an Authorised Person; or (b) an Exempt Person.

Head of Finance and Administration (HoFA)

the officer in a Licensed Body (ABS) designated responsible for the body complying with their accounts responsibilities as set out in our Regulatory Arrangements;

the individual does not have to be an Authorised Person; it is preferable, though not mandatory, for the individual to be a Manager.

Improper influence

when a person – usually the owner -  attempts to influence the decisions of the Licensed (ABS) Body, or the conduct of Authorised Persons in a way which would constitute a breach of licensing requirements and of regulatory duties.  

Lawyer

a lawyer is a legally qualified person, someone who gives legal advice and represents people in legal matters.

Manager

means a person who is:

(a) if the body is a company and its affairs are managed by members, a member;

(b) if the body is a company and (a) does not apply, a director of the body;

(c) if the body is a partnership, a partner;

(d) if the body is a Limited Liability Partnership, an LLP member;

(e) if the body is an unincorporated body (other than a partnership), a member of its governing body; and

(f) a licensed conveyancer if sub-paragraphs (a)-(e) do not apply and the affairs of the body are not managed by another licensed conveyancer..

National Crime Agency (NCA)

the law enforcement agency (replaced SOCA) which has harm reduction responsibilities and which targets criminal activities such as fraud, money laundering and identity theft.

Office Account

an account in the name of a CLC regulated individual or body for holding Office Money.

Parent Undertaking

as defined in s.1162 of the Companies Act 2006,

(2) An undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if:

(a) it holds a majority of the voting rights in the undertaking, or

(b) it is a member of the undertaking and has the right to appoint, or
remove, a majority of its board of directors, or

(c) it has the right to exercise a dominant influence over the undertaking—

(i) by virtue of provisions contained in the undertaking’s articles, or

(ii) by virtue of a control contract, or

(d) it is a member of the undertaking and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in the undertaking.

(3) For the purposes of subsection (2) an undertaking shall be treated as a member of another undertaking—

(a) if any of its subsidiary undertakings is a member of that undertaking, or

(b) if any shares in that other undertaking are held by a person acting on behalf of the undertaking or any of its subsidiary undertakings.

(4) An undertaking is also a parent undertaking in relation to another undertaking, a subsidiary undertaking, if—

(a) it has the power to exercise, or actually exercises, dominant influence or control over it, or

(b) it and the subsidiary undertaking are managed on a unified basis.

(5) A parent undertaking shall be treated as the parent undertaking of undertakings in relation to which any of its subsidiary undertakings are, or are to be treated as, parent undertakings; and references to its subsidiary undertakings shall be construed accordingly.

(6) Schedule 7 [of the Companies Act 2006] contains provisions explaining expressions used in this section and otherwise supplementing this section.

(7) In this section and that Schedule references to shares, in relation to an undertaking, are to allotted shares.

Qualified Person

under the Student Training Framework this means an individual who has for a cumulative period of five years in the seven years prior to the start of the period of supervision in question been authorised by an approved regulator to carry on the reserved legal activity the subject of your Intended Licence and has carried on that reserved legal activity as his or her principal form of practice during that five year period.

Recognised Body

a body corporate or incorporate recognised by the CLC under s.32 of the 1985 Act to provide regulated services  to the public

Searches

The investigations that are required on a property sale or purchase

Terms (licence)

specifies by way of endorsements, the authorisations, permissions and conditions of a CLC licence

Undertaking

an unequivocal declaration of intention addressed to someone who reasonably places reliance upon it; it need not be in writing nor contain the word “undertake” to be enforceable

Without Delay

in normal circumstances, either on the same day or on the next Working Day

Beneficial Owner

the individual or company which has all the benefits and entitlements of a legal owner, even if not named or registered as the legal owner. 

Carrying on (a Reserved Legal Activity)

under the Code of Conduct this means that Authorised Persons must personally carry out or supervise the Reserved Legal Activity provided.

Enforcement

action taken by the CLC in response to a CLC regulated individual, or body, acting in breach of their/its regulatory responsibilities. 

Financial Services and Markets Act 2000 (FSMA)

the statute which provides the framework within which the Regulator for the Financial Services Industry, the Financial Conduct Authority (previously the Financial Services Authority), operates. 

Guidance

many of our regulatory Codes are underpinned by guidance which identify considerations to be borne in mind when seeking to deliver the identified outcomes; the guidance provided is not mandatory  

Head of Legal Practice (HoLP)

the officer in a Licensed Body (ABS) designated responsible for the body complying with its responsibilities as set out in our regulatory arrangements;

the individual must be an Authorised Person; it is preferable, though not mandatory, for the individual to be a Manager.

Insolvency (event)
  1. resolution for a voluntary winding up of the body is passed without a solvency declaration (under s.89 of the Insolvency Act 1986)
  2. the body enters administration under the meaning of Schedule B1, para 1(2)(6) of that Act
  3. an administrative receiver within s.251 of that Act is appointed
  4. a meeting of creditors – which has the effect of converting a members’ voluntary winding up into a creditor’s voluntary winding up – is held in relation to the body under s.95 of that Act

an order winding up the body is made.

Legal Activity/ Activities

as defined at s.12 of the 2007 Act summarised as follows:

(a) a reserved legal activity, and

(b) any other activity, which consists of one, or both, of the following:

(i) the provision of legal advice, or assistance, in connection with the application of the law, or with any form of resolution of legal disputes.

(ii) the provision of representation in connection with any matter concerning the application of the law, or any form of resolution of legal disputes.

Master Policy

the CLC’s professional indemnity insurance policy authorised by the CLC under s.21 of the 1985 Act.

Nominated Officer

a person in a CLC body who receives internal reports (disclosures) of known or suspected money laundering and with responsibility to assess whether a Suspicious Activity Report should be made.

Office Money

money which belongs to a CLC regulated individual, or body, and any other money which is not Client Money and includes:

(a) money held or received in connection with running the body e.g. PAYE, or VAT on the firm’s fees

(b) interest on Client Accounts (other than on Separate Designated Accounts)

(c) payments received in respect of fees for which a bill has been delivered, and the bill is recorded in the office columns of the appropriate client ledger account

(d) payments received in respect of disbursements already paid, or for which a liability to pay has been incurred, and the payment, or liability is recorded in the office columns of the appropriate client ledger account

(e) money received from a Client as a debt owed, which is recorded in the office columns of the appropriate client ledger account.

Permissions (licence)

specify the non-reserved legal activities that a body is permitted to provide.

Qualifying Examiner

the methods of assessment and examination in accordance with the CLC’s syllabus from time to time in force.

Recognised Course

a course, lecture, seminar or other programme or

activity approved or run by the CLC 

Separate Designated Account

an interest bearing account (but not a share account) at the branch (or the head office) located in England or Wales of a Building Society or Bank in each case in the name of the CLC regulated individual or body, and in the title of which account the word ‘Client’ and a reference to the identity of the Client or the matter concerned must appear

Terms of Engagement

a statement on a Durable Medium of all terms upon which instructions are accepted

Working Day

any day from Monday to Friday (inclusive) which is not Christmas Day, Good Friday or a statutory bank holiday other expressions shall, except where otherwise stated, have the meanings given to them by the 1985 

2007 Act (LSA)

the Legal Services Act 2007 which created the Legal Services Board, the Office for Legal Complaints (Legal Ombudsman), authorised Approved Regulators to regulate Authorised Persons and enabled the development of new forms of legal practice known as Alternative Business Structures and the licensing of these bodies by Licensing Authorities.

Beneficiary

A person who derives advantage from something, for example a will, trust, or life insurance policy.

Certificate of Recognition

a certificate issued by the CLC to a body corporate recognising it as a Recognised Body - under s.32 of the 1985 Act - suitable to undertake the provision of Regulated Services authorized by the CLC.

Discipline and Appeals Committee (DAC)

committee established under s.25 of the 1985 Act to hear and determine appeals and cases referred to it by the Adjudication Panel.

Equalities Legislation

the Equality Act 2010 and any other relevant legislation such as the Human Rights Act 1998.

Fit and Proper Person

the CLC requires that all:

  • applicants
  • authorised persons
  • owners or managers of an Alternative Business Structure

are able to demonstrate that they are suitable for the role for which they are applying, this includes a fit and proper test to determine their probity and financial history.

Insurance Intermediaries

the record maintained by the Financial Conduct Authority (previously the Financial Services Authority) under s.347 FSMA.

Legal Ombudsman

the official (office) whose role is to investigate customer complaints against legal service providers.

Material Interest

a person holds a material interest in a Licensed (ABS) Body if the Person*:

  • holds at least 10% or more shares in the body (or in a parent undertaking);
  • is someone able to exercise significant influence over the management of the body (or a parent undertaking) due to their entitlement to exercise, or control the exercise of voting rights;
  • is entitled to exercise or control the exercise, of voting powers in the body (or a parent undertaking), which, if it consists of voting rights, constitutes at least 10% or more of the voting rights;
  • as a partner having at least 10% interest in the capital or profits of the partnership;

and includes any ultimately beneficial owner of more than 10%. 

’The Person’ means:

    (a) the person;

    (b) any of the person’s associates; or

               (c) the person and any of the person’s
               associates taken together. 

Non-Authorised Person

as set out at s.111 of 2007 Act, a person who is not:

  1. an Authorised Person in relation to an activity that constitutes a reserved legal activity
  2. a registered foreign lawyer (within the meaning of s.89 of the 1990 Act)
  3. a person entitled to pursue professional activities under a professional title to which the Directive applies, in a state to which the Directive applies (other than the title of barrister or solicitor in England and Wales)
  4. a body that provides professional services, such as provided by persons within (a) or lawyers of other jurisdictions, and all the Managers of which, and all the persons with an interest in which – i) are within (a) to (c), or ii) are bodies in which persons within (a) to (c) are entitled to exercise, or control the exercise of, more than 90% of the voting rights.  
Outcomes

delivery of a positive result for Clients; it is the end result of the application of a principle or specific requirement

the CLC’s Regulatory Arrangements are focused upon these Outcomes, which everyone who we regulate must deliver.

Practical Training

you are engaged in the provision of Legal Activities associated with your Intended Licence(s) which must:

  • be for the equivalent of 1,200 chargeable hours which must be documented;
  • at all times be subject to the supervision of a Qualified Person; and

in the opinion of the CLC, be current, relevant and of an adequate standard.

Registered Student

a person who has registered as a student with the

CLC in accordance with its Student Training Framework

Sole Practitioner

the sole manager of a  CLC Recognised Body

the (CLC)

the Council for Licensed Conveyancers established under s.12 of the 1985 Act

(FSMA) Authorised Person

arrangers or sellers of insurance products regulated by the Financial Conduct Authority (previously the Financial Services Authority). 

Body

an entity regulated by the CLC:

  • an Alternative Business Structure (also called a Licensed Body) regulated by the CLC acting as a Licensing Authority; or

a Recognised Body regulated by the CLC acting as an Approved Regulator.

Claim

under the Professional Indemnity Insurance Code and Operating Framework and Compensation Fund Operating Framework, unless otherwise stated, this means a request of payment due under the terms of a professional indemnity insurance policy (including the CLC’s Master Policy) or the CLC’s Compensation Fund.

Divestiture

the procedure set out at Part 5 schedule 13 of the 2007 Act, by which the CLC may apply to the High Court for an order for sale of all, or some of the shares held by the holder of a material interest in a CLC Licensed Body who is not an authorised person.

Estate

the whole of a person's possessions, especially all the property and debts left by them upon their death.

Insurance Mediation Activities

the activities of introducing, proposing, or carrying out other work reparatory to the conclusion of contracts of insurance, or of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.

Legal Services Board (LSB)

the oversight body which supervises Approved Regulators’ and Licensing Authorities’ regulation of legal activities.

Memorandum of Association

the meaning given by s.8 of the Companies Act 2006 i.e. a memorandum stating that the subscribers -  

  1.  wish to form a company under the 2006 Act; and
  2.  agree to become members of the company and in the case of a company that it is to take at least one share each.
Outsourcing (Outsource)

business functions contracted out to third party non-Authorised Persons, which support the delivery of reserved legal activities.

Principles

an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.

Regulated Activities

under the Acting as Insurance Intermediaries Code, any of the activities specified under Part II (Specified Activities) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) as amended which is carried on by way of business in relation to an investment of a kind specified in Part III (Specified Investments) of the same Order

Special Bodies

the definition provided in s.106 of the 2007 Act:

  • An independent trade union;
  • A not-for-profit body;
  • A community interest company;
  • A low-risk body; and

A body of such other description as may be prescribed by an order made by the Lord Chancellor

Training Record

a written record of recognised courses attended or undertaken for the purposes of the Continuing Professional Development Code in such form as the CLC may from time to time prescribe

1990 Act CLSA - Court and Legal Services Act

the Courts & Legal Services Act 1990 which amended parts of the 1985 Act and entitles the CLC to apply to regulate probate, litigation and advocacy services in addition to conveyancing services.

Brokers

under the Professional Indemnity Insurance Code and Operating Framework this refers to the agent who sources the contract of insurance for the CLC’s Master Policy.

Claimant

under the Compensation Fund Operating Framework this means any person making a claim for payment of a grant from the CLC’s Compensation Fund and includes:

  • the personal representative where the person entitled to make a claim Claimant has died, or
  • the trustee in bankruptcy  where the person entitled to make a claim has been made bankrupt. 
Durable Medium

the method by which information is stored in a way accessible for future reference (for no less than the period prescribed by the CLC) and which allows the unchanged reproduction of the information stored.

EU Body

an entity providing reserved legal activities in respect of which Control is maintained from a permanent fixed address within the European Union (but outside England and Wales).

Insurance Mediation Directive (IMD)

Directive No 2002/92/EU.

Legal Services Provider

companies (firms or practices) that provide legal services.

Memorandum of Understanding

under the Licensed Body Framework, this defines the relationship between, and the objectives of, the Licensing Authorities (LAs) and other regulators in the regulation of Alternative Business Structures  

Overriding Principles

the Principles that all individuals and bodies regulated by the CLC must comply with at all times in their delivery of legal services:

 

1. Act with independence and integrity

2. Maintain high standards of work

3. Act in the best interests of your Clients

4. Comply with your duty to the court 

5. Deal with regulators and ombudsmen in an open and co-operative way 

6. Promote equality of access and service.

Private Loan

a loan other than one provided by an institution which provides loans in the normal course of its activities.

Regulated entity

A company (firm of practice) regulated by The Council for Licensed Conveyancers

Specific Requirement

a strict direction for conduct which must be complied with

Transaction

An exchange of monies 

1985 Act - Administration of Justice Act (AJA)

The Administration of Justice Act 1985 which created the CLC and provided it with its powers to regulate Licensed Conveyancers.

Building Society

a branch situated in England and Wales of a Building Society incorporated (or deemed to be incorporated) under the Building Societies Act 1986.

CLC Practice

A legal firm regulated by the Council for Licensed Conveyancers.

EU Home Professional Rules

the professional rules which authorise the European Lawyer and the EU body of which the European Lawyer is a Manager to practise in a state within the European Union (but not England and Wales).

Intended licence

under the Student Training Framework this means the licence that an applicant is intending to train to acquire:

  1. a conveyancing licence; and/or
  2. a probate licence; and/or
  3. a litigation licence; and/or
  4. an advocacy licence.
Liabilities

a debt or obligation.

ML Regulations

Money Laundering Regulations 2007 (SI 2007/2157).

Owner

please see Material Interest and Beneficial Owner definitions.

Probate

the legal process where the estate of a person is administered on their death..

Regulated Services

all of the legal activities – both Reserved Legal Activities and non-reserved - which the CLC authorises/permits the Licensed Conveyancer or body within the terms of the licence to provide and which are therefore be regulated by the CLC

Supplemental Policy

a contract of professional indemnity insurance, made between the Authorised Insurers and a body or an EU Body, which provides cover as modified in accordance with the Professional Indemnity Insurance Code and Operating Framework, or as otherwise determined by the CLC

Alternative Business Structure

a body which provides legal services to the public and in which a non-lawyer is a manager and/or owner as provided at s.72 of the 2007 Act; for licensing purposes these bodies are referred to as Licensed (ABS) Bodies.

Client

any person or persons for whom a Licensed Conveyancer or CLC  body acts in the provision of Regulated  Services; this may also include a person or persons who may seek the provision of Regulated Services.

Client also includes any person for whom a Licensed Conveyancer or Body acts in the provision of Regulated Activities (and may also include a person who may seek the provision of Regulated Activities).

EU Professional Cover

professional indemnity insurance cover provided to the EU Body in accordance with its EU Home Professional Rules which the CLC is satisfied is in all respects equivalent in its conditions and extent to that which would be provided under the CLC Master Policy

Intervention

a legal process whereby an agent is appointed to organise the formal closure of the business.

Licence

a licence to practise as a Licensed Conveyancer  issued by the CLC under Part II of the 1985  Act (and includes where the context permits a conveyancing licence, a probate licence, a litigation licence and an advocacy licence).

Mortgage

a loan to purchase a property which is secured by a portion of the value of that property.

Proceedings

a series of actions that are progressed.

Regulatory Arrangements

the sum of Codes, Guidance, Frameworks and Policies which set out the responsibilities of the regulated community and our approach to regulation 

Systematically

arrangements are in place to ensure processes are carried out in an orderly fashion 

Access to Justice

the recognition of, and response to, potential and actual, consumer needs. This may take the form of provision of a greater range of services and methods of accessing these services, lower prices, extended opening hours, accessibility, online provision, or other factors.

Client Account

a current or deposit account (but not a share account) at a branch (or the head office) located in England or Wales of a Building Society or Bank, in each case in the name of the CLC regulated body, and in the title of which account the word ‘Client’ appears.

EU Professional Cover - Partial

professional indemnity insurance cover provided to the EU Body in accordance with its EU Home Professional Rules which the CLC is satisfied is only partially equivalent in its conditions and extent to that which would be provided under the CLC Master Policy (and is likely to require a Supplemental Policy to accompany it).

Licence Authorisations, Conditions, Permissions and Terms

please see  authorisations, conditions, permissions and terms.

Professional Indemnity Insurance

the insurance that lawyers have to hold to protect clients against any malpractice

Regulatory Objectives

the regulatory objectives are set out in Part 1 of the 2007 Act:

  1. protecting and promoting the public interest;
  2. supporting the constitutional principle of the rule of law;
  3. improving access to justice;
  4. protecting and promoting the interests of consumers;
  5. promoting competition in the provision of services*;
  6. encouraging an independent, strong, diverse and effective legal profession;
  7. increasing public understanding of the citizen’s legal rights and duties;
  8. promoting and maintaining adherence to the professional principles.

* services provided by Authorised Persons

Accountant's Report

a report signed by the Reporting Accountant in such form as determined by the CLC relating to Client Money held or received by each body in respect of each Accounting Period.

Client Charter

The document which sets out in detail what all clients of CLC regulated firms can expect.

European Lawyer

a European Lawyer as defined in the European Communities (Lawyer’s Practice) Regulations 2000 (SI 2000 No 1119) who is not an Authorised Person.

Licensable Body

a body which could apply, or has applied, to the CLC to become a Licensed (ABS) Body.

Professional Indemnity Insurance (PII)

all practices regulated by the CLC must, as a condition of being licensed, have in place Professional Indemnity Insurance to indemnify them for civil liability incurred arising out of regulated services provided. The minimum cover is £2 million per claim. If, for any reason, the professional indemnity insurance policy does not respond to a claim, it may be possible to make an application for a grant out of the Compensation Fund administered by the CLC.

Reporting Accountant

an accountant qualified in accordance with requirements 16.5-16.7 of the Accounts Code, instructed by the CLC regulated individual or body to prepare and sign an Accountant’s Report

Accounting Period

the period for which the accounts of the CLC Body are ordinarily made up, provided however that it must begin at the end of the previous Accounting Period and cover 12 months (except with the prior written consent of the CLC).

Client Money/Monies

any money held or received for a Client by a CLC regulated person or body, incidental to the provision of legal services regulated by the CLC. 

Evidence of Insurance

evidence that the insured individual, or body, has appropriate PII cover. 

Licensed Body/Bodies

an Alternative Business Structure licensed by the CLC.

Professional Services

under the Acting as Insurance Intermediaries Code, services which do not constitute carrying on a Regulated Activity, and the provision of which is supervised and regulated by the CLC.

Reserved activity

The activities defined in the Legal Services Act (2007) that only authorised (qualified) persons are allowed to undertake

Accounting Records

includes all documents or records on a Durable Medium necessary for the operation of any system of book-keeping.

Code of Conduct

the parent document of our regulatory arrangements, outlining the Overriding Principles that the regulated community must comply with and the Outcomes which they must deliver.

Example Approach / Policy / Procedure

guidance documents sometimes provide a possible route to the positive outcomes sought, but importantly are not the only route;

if a member of the regulated community is able to generate the same or better outcomes another way they are encouraged to do so.

Promptly

within 2 working days. 

Respondent - Enf

under the Enforcement Policy this means a CLC regulated individual or body in respect of which a misconduct allegation has been made, or a potential compliance breach identified  

Adjudication Panel

established:

  • in relation to make determinations relating to Licensed Bodies and relating to Owners, Managers and Employees of Licensed Bodies;
  • to determine applications for review in relation to regulatory and enforcement decisions made by a CLC Authorised Officer,  save for those appeals which are reserved to the Discipline and Appeals Committee;
  • to determine allegations of misconduct referred to it. 
Commissioner for Oaths

A public official whose main powers include administering oaths and attesting to signatures to minimise fraud in legal documents.

Exchange of contracts

This is the point at which signed contracts from the buyer and seller are exchanged and a deposit paid.

Licensed Conveyancer

a person who holds a Licence issued by the CLC to provide Conveyancing and other legal services regulated by the CLC.

Respondent Body - CF

under the Compensation Fund Operating Framework this means a CLC regulated individual or body in respect of which a compensation claim is made

Advocacy

referred to at Schedule 2 of the 2007 Act as rights of audience and includes the right to appear before and address a court, including the right to call and examine witnesses. 

Communications

unless otherwise specified, communications sent by, or on behalf of a CLC regulated individual or body by post, a telecommunication system, or by other means, whilst in an electronic form.

Exempt Person - 2007 Act

as defined in Schedule 3 and paragraph 13 and 18 of Schedule 5 of the 2007 Act, a person who is exempt from being an Authorised Person in relation to a reserved legal activity.  

Licensing Authority

as defined at s.73 of the 2007 Act, an approved regulator which is designated as a licensing authority under Part 1 of Schedule 10 and whose licensing rules are approved to license and regulate Alternative Business Structures  

Review Panel

as provided in the Alternative Business Structures (Procedure) Rules to review determinations made by the Adjudication Panel where the Adjudication Panel has made a determination in respect of a matter which has not previously been determined by Authorised Officer  (ie Adjudication Panel has made a first instance determination)

Advocacy Licence

Licence issued by the CLC to provide Advocacy services, under Part 1 of Schedule 8 of the 1990 Act.

Company

has the meaning given by s. 1(1) of the Companies Act 2006. 

Exempt Person - FSMA

as defined in s.417(1) FSMA, in relation to a Regulated Activity, a person who is exempt from the General Prohibition in respect of that activity.

Limited Liability Partnership (LLP)

a body corporate, formed by being incorporated under the Limited Liability Partnerships Act 2000, recognised by the CLC under s.32 of the 1985 Act to provide Reserved Legal Activities.

 

 

 

 

Rightful Recipient

the person beneficially entitled to receive monies held by the CLC regulated individual or body or any sum vested in the CLC under paragraph 6 or 6A(3) of schedule 5 to the 1985 Act

Aged Balance

(a) a sum outstanding to the credit of an individual ledger account;

(b) where there has been completion of a legal transaction, or it has become abortive; and

(c) there has been no movement on the account for a period in excess of 12 months except for monies held in accordance with the terms of an undertaking (in which case the 12 month period will begin from the date on which such monies are released).

Compensation Fund

as set out at s.21(2) of the 1985 Act,  the Fund out of which grants and other payments are made by the CLC for the purposes of relieving, or mitigating losses, incurred by persons in consequence of the negligence, fraud or other dishonesty, or failure to account, on the part of a CLC Body. 

Litigation

referred at Schedule 2 of the 2007 Act, as the “conduct of litigation” and includes:

(a)  the issuing of proceedings before any court in England and Wales

(b)  the commencement, prosecution and defence of such proceedings

(c)   the performance of any ancillary functions in relation to such proceedings (such as entering appearances to actions).

Risk-based/risk profile

our regulatory approach is based on the assessment of the risk to delivery of positive outcomes which an applicant or CLC regulated individual or body presents; this will inform the risk profile we hold on them which in turn informs our regulatory relationship with them

risk is measured in terms of a combination of the probability of a perceived threat or opportunity occurring and the extent of its impact in determining what (if any) action we will take 

AML/CMF (Anti Money Laundering and Combating the Financing of Terrorism Legislation)

legislation directed to the prevention of Money Laundering and Combating the Financing of Terrorism, and in particular, the:

  • Proceeds of Crime Act 2002 (as amended);
  • Terrorism Act 2000 (as amended); and

Money Laundering Regulations 2007  - SI 2007/2157 (the ML Regulations).

Complaint

an oral or written expression of dissatisfaction, which alleges that the complainant has suffered (or may suffer) financial loss, distress, inconvenience or detriment.

Litigation Licence

a licence issued by the CLC to provide litigation services.

Applicant

as determined by the particular context:

  • any person who intends to apply, or is currently applying, for registration as a CLC student or for a CLC Licence;
  • a body which intends to apply, or is currently applying, for registration as a CLC Recognised Body;

a body which intends to apply, or is currently applying, for a Licensed Body (ABS) licence.

Completion

Completion is the day when the buyer becomes the legal owner of a property, on receipt of the monies due.

LLP Member

a member of a Limited Liability Partnership.

Approved Person

under the Accounts Code this means a:

  • an Authorised Person; or

provided the CLC Body is in compliance with 9.1.4 of the Accounts Code, any other appropriately skilled, trained and competent person of integrity who has been authorised on Durable Medium by the CLC Body.

Composite Licence

authorisations on a licensed conveyancer’s licence which give authority to the regulated individual to carry on additional reserved legal activities e.g. probate, litigation*, advocacy*

 *only applicable if the CLC’s application to regulate these services is successful.

Local Authority

a body listed in s.23 of the Local Government Act 2003.

Approved Regulator

as defined at s.20 of the 2007 Act: the CLC, the Law Society, the General Council of the Bar, the Master of Faculties, the Institute of Legal Executives, the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys, the Association of Law Costs Draftsmen, the Institute of Chartered Accountants in Scotland, the Association of Chartered Certified Accountants and any such other bodies as are authorised to regulate providers of Reserved Legal Activities.

Condition Licence

where a risk is identified to the regulatory Outcomes, a condition is imposed on a Licence to eliminate that risk, or reduce it to an acceptable level. 

LSB

Legal Services Board.

Arrangements

methods of organisation including systems, procedures, controls, functions, roles, and processes.  

Conflict(s) of Interest

situation in which an individual or body has an interest, or a party they are representing has such an interest, sufficient to appear to influence the objective exercise of their regulatory responsibilities, in particular the separate duties to act in the best interests of two or more Clients in relation to the same or related matters.

Articles

prescribes a Company’s regulations: setting out the relationships between shareholders and directors of The Company as required by s.18 of the Companies Act 2006.

Continuing Professional Development

the means by which members of the regulated community maintain, improve and broaden their knowledge and skills, keeping themselves up to date with the latest development in the profession and its markets, and so enabling them to meet their full potential and provide Clients with high levels of service.

Assets

Property owned by a Person or Company, regarded as having value and available to meet debts, commitments, or legacies.

Control (of an entity)

the strategic management, risk management, accounting and financial controls (including supervisory and audit functions) and from which services which consist of, or include the carrying on of reserved legal activities are provided.

Associate

under the Licensed (ABS) Body Framework ‘associate’ in relation to a Non-Authorised Person with a material interest with: –

  • a shareholding in a body; or
  • an entitlement to exercise or control the exercise of voting power in a body,

means:

  1. their spouse or civil partner;
  2. their child or step-child (if under 18 years of age);
  3. the trustee of a settlement* under which they have a life interest in possession;
  4. an undertaking of which they are a Director;
  5. an employee;
  6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
  7. if ‘the person’ means an undertaking –
    a director, a subsidiary undertaking (or a director or employee of it); 
  8. a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
  9. a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution);

with 3% or more material interest.

By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation

under the Licensed (ABS) Body Framework ‘associate’ in relation to a Non-Authorised Person with a material interest with: –

  • a shareholding in a body; or
  • an entitlement to exercise or control the exercise of voting power in a body,

means:

  1. their spouse or civil partner;
  2. their child or step-child (if under 18 years of age);
  3. the trustee of a settlement* under which they have a life interest in possession;
  4. an undertaking of which they are a Director;
  5. an employee;
  6. a partner (except where the shareholding or entitlement is a partnership in which the Non-Authorised Person is a partner, another partner);
  7. if ‘the person’ means an undertaking –
    a director, a subsidiary undertaking (or a director or employee of it); 
  8. a person they have agreement or arrangement with respects to the acquisition, holding or disposal of shares or other interests;
  9. a person they have agreement or arrangement with under which they undertake to act together in exercising their voting power (in relation to a body which does not have general meetings at which matters are decided by the exercise of voting rights this refers to the right under the body’s constitution to direct overall policy/alter its constitution);

with 3% or more material interest.

By ‘settlement’* we mean any disposition or arrangement under which property is held on trust (or a comparable obligation.

Controls

strategic management, risk management, accounting and financial arrangements (including supervisory and audit functions) which eliminate, or reduce to acceptable levels, risks to positive Outcomes.

Authorisations (licence)

specify the reserved legal activities which a body is authorised by the CLC to provide.

Conveyancing (Services)

as defined at s.11(3) of the 1985 Act , includes the preparation of transfers, conveyances, contracts and other documents in connection with, and other services ancillary to, the disposition or acquisition of estates or interests in land. 

Authorised Insurers

has the meaning given by s. 21(5) of the 1985 Act or s. 64(5) of the 2007 Act:-
a) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 (c.8) to effect or carry out contracts of insurance of a relevant class;
b) a European Economic Area (EEA) firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance of a relevant class; or
c) a person who does not fall within paragraph (a) or (b) and who may lawfully effect or carry out contracts of insurance of a relevant class in a member State other than the United Kingdom.

Conveyancing Licence

Licence issued by the CLC to provide Conveyancing Services.

Authorised Person(s)/ Parties

a person authorised by an Approved Regulator to carry on reserved legal activities  e.g:

  • a Licensed Conveyancer;
  • a Solicitor;

a Fellow of the Institute of Legal Executives.

Conveyancing Services

The process of buying or selling land or property.

Costs

in relation to costs to Clients this includes fees, charges, expenses and remuneration charged to the Client by the CLC regulated person or body and any Value Added Tax element.

includes fees as defined by s.39(1) of the 1985 Act - “fees” includes charges, disbursements, expenses and remuneration.

Customer Due Diligence (CDD)

includes all of:

  •  “Customer Due Diligence measures” (as defined by regulation 5 ML Regulations)
  •  “Ongoing Monitoring” (as defined by Regulation 8(2) ML Regulations)
  •  “Enhanced Customer Due Diligence measures” (as described in regulation 14 ML Regulations)
  •  ”Enhanced Ongoing Monitoring” (as referred to in regulation 14 ML Regulations).