View our glossary of legal terms, or download the complete glossary here.
CLC Authorised Officer: the Licensing and Casework Manager employed by the CLC, or another officer of the CLC of equivalent or senior status.
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.
(FSMA) Authorised Person: arrangers or sellers of insurance products regulated by the Financial Conduct Authority (previously the Financial Services Authority).
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.
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.
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.
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.
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.
Accounting Period: the period for which the accounts of the CLC Body are ordinarily made up, provided however that it begins at the end of the previous Accounting Period and covers 12 months (except with the prior written consent of the CLC).
Accounting Records: includes all documents or records on a Durable Medium necessary for the operation of any system of book-keeping.
Adjudication Panel: established:
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.
Advocacy Licence: a Licence issued by the CLC to provide Advocacy services, under Part 1 of Schedule 8 of the 1990 Act.
(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).
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:
Money Laundering Regulations 2007 – SI 2007/2157 (the ML Regulations).
Applicant: as determined by the particular context:
a body which intends to apply, or is currently applying, for a Licensed Body (ABS) licence.
Approved Person: under the Accounts Code this means:
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.
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.
Arrangements: methods of organisation including systems, procedures, controls, functions, roles, and processes.
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.
Assets: Property owned by a Person or Company, regarded as having value and available to meet debts, commitments, or legacies.
Associate: under the Licensed (ABS) Body Framework ‘associate’ in relation to a Non-Authorised Person with a material interest with: –
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: –
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.
Authorisations (licence): specify the reserved legal activities which a body is authorised by the CLC to provide.
Authorised Insurers: has the meaning given by s.21(5) of the 1985 Act or s.64(5) of the 2007 Act:-
Authorised Person(s)/Parties: a person authorised by an Approved Regulator to carry on reserved legal activities e.g:
a Fellow of the Institute of Legal Executives.
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.
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.
Beneficiary: A person who derives advantage from something, for example a will, trust, or life insurance policy.
Body an entity regulated by the CLC:
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.
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.
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.
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.
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.
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:
CLC Practice: A legal firm regulated by the Council for Licensed Conveyancers.
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).
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.
Client Charter: The document which sets out in detail what all clients of CLC regulated firms can expect.
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.
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.
Commissioner for Oaths: A public official whose main powers include administering oaths and attesting to signatures to minimise fraud in legal documents.
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.
Company: has the meaning given by s. 1(1) of the Companies Act 2006.
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.
Complaint: an oral or written expression of dissatisfaction, which alleges that the complainant has suffered (or may suffer) financial loss, distress, inconvenience or detriment.
Completion: Completion is the day when the buyer becomes the legal owner of a property, on receipt of the monies due.
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.
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.
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.
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.
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.
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.
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.
Conveyancing Licence: a Licence issued by the CLC to provide Conveyancing Services.
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:
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.
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.
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.
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.
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.
Enforcement: action taken by the CLC in response to a CLC regulated individual, or body, acting in breach of their/its regulatory responsibilities.
Equalities Legislation: the Equality Act 2010 and any other relevant legislation such as the Human Rights Act 1998.
Estate: the whole of a person’s possessions, especially all the property and debts left by them upon their death.
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).
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).
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
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).
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.
Evidence of Insurance: evidence that the insured individual, or body, has appropriate PII cover.
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.
Exchange of contracts: This is the point at which signed contracts from the buyer and seller are exchanged and a deposit paid.
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.
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.
Fees: the payment for the provision of Legal Services (also known as charges).
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.
Fit and Proper Person: the CLC requires that all:
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.
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.
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 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.
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.
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.
an order winding up the body is made.
Insurance Intermediaries: the record maintained by the Financial Conduct Authority (previously the Financial Services Authority) under s.347 FSMA.
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.
Insurance Mediation Directive (IMD): Directive No 2002/92/EU.
under the Student Training Framework this means the licence that an applicant is intending to train to acquire:
Intervention: a legal process whereby an agent is appointed to organise the formal closure of the business.
Lawyer: a lawyer is a legally qualified person, someone who gives legal advice and represents people in legal matters.
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.
Legal Ombudsman: the official (office) whose role is to investigate customer complaints against legal service providers.
Legal Services Board (LSB):
the oversight body which supervises Approved Regulators’ and Licensing Authorities’ regulation of legal activities.
Legal Services Provider: companies (firms or practices) that provide legal services.
Liabilities: a debt or obligation.
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).
Licence Authorisations, Conditions, Permissions and Terms: please see authorisations, conditions, permissions and terms.
Licensable Body: a body which could apply, or has applied, to the CLC to become a Licensed (ABS) Body.
Licensed Body/Bodies: an Alternative Business Structure licensed by the CLC.
Licensed Conveyancer: a person who holds a Licence issued by the CLC to provide Conveyancing and other legal services regulated by the CLC.
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
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.
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).
Litigation Licence: a licence issued by the CLC to provide litigation services.
LLP Member: a member of a Limited Liability Partnership.
Local Authority: a body listed in s.23 of the Local Government Act 2003.
LSB: Legal Services Board.
Manager: means a person who is:
Master Policy: the CLC’s professional indemnity insurance policy authorised by the CLC under s.21 of the 1985 Act.
Material Interest: a person holds a material interest in a Licensed (ABS) Body if the Person*:
Memorandum of Association: the meaning given by s.8 of the Companies Act 2006 i.e. a memorandum stating that the subscribers –
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.
ML Regulations: Money Laundering Regulations 2007 (SI 2007/2157).
Mortgage: a loan to purchase a property which is secured by a portion of the value of that property.
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.
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.
Non-Authorised Person: as set out at s.111 of 2007 Act, a person who is not:
Office Account: an account in the name of a CLC regulated individual or body for holding Office Money.
Office Money: money which belongs to a CLC regulated individual, or body, and any other money which is not Client Money and includes:
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.
Outsourcing (Outsource): business functions contracted out to third party non-Authorised Persons, which support the delivery of reserved legal activities.
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:
Owner: please see Material Interest and Beneficial Owner definitions.
Parent Undertaking: as defined in s.1162 of the Companies Act 2006,
Permissions (licence): specify the non-reserved legal activities that a body is permitted to provide.
Practical Training: you are engaged in the provision of legal activities associated with your intended licence(s) which must:
in the opinion of the CLC, be current, relevant and of an adequate standard.
Principles: an essential quality; a characteristic, behaviour or ethic, which must be demonstrated so that positive Outcomes are generated for Clients.
Private Loan: a loan, other than one provided by an institution, which provides loans in the normal course of its activities.
Probate: the legal process where the estate of a person is administered on their death.
Proceedings: a series of actions that are progressed.
Professional Indemnity Insurance: the insurance that lawyers have to hold to protect Clients against any malpractice
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.
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.
Promptly: within 2 working days.
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.
Qualifying Examiner: the methods of assessment and examination in accordance with the CLC’s syllabus from time to time in force.
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.
Recognised Course: a course, lecture, seminar or other programme or activity approved or run by the CLC.
Registered Student: a person who has registered as a Student with the CLC in accordance with its Student Training Framework.
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.
Regulated Entity: a Company (firm of practice) regulated by The Council for Licensed Conveyancers.
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 regulated by the CLC.
Regulatory Arrangements: the sum of Codes, Guidance, Frameworks and Policies, which set out the responsibilities of the Regulated Community and our approach to regulation.
Regulatory Objectives: the regulatory objectives are set out in Part 1 of the 2007 Act:
* services provided by Authorised Persons
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.
Reserved Activity: the activities defined in the Legal Services Act (2007) that only authorised (qualified) persons are allowed to undertake.
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.
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.
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).
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.
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.
Searches: the investigations that are required on a property sale or purchase.
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.
Sole Practitioner: the sole Manager of a CLC Recognised Body.
Special Bodies: the definition provided in s.106 of the 2007 Act:
Specific Requirement: a strict direction for conduct that must be complied with.
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.
Systematically: arrangements are in place to ensure processes are carried out in an orderly fashion.
Terms (Licence): specifies by way of endorsements, the Authorisations, Permissions and Conditions of a CLC Licence.
Terms of Engagement: a statement on a Durable Medium of all terms upon which instructions are accepted.
The (CLC): the Council for Licensed Conveyancers, established under s.12 of the 1985 Act.
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.
Transaction: an exchange of monies.
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.
Working Day: any day from Monday to Friday (inclusive) that 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 Act.
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