The Legal Services Act 2007 (The Law Society and The Council for Licensed Conveyancers) (Modification of Functions) Order 2011

4.  In relation to compensation rules which include provision made by virtue of paragraph 2, section 36A of the 1974 Act (compensation funds) has effect as if—

(a) for subsection (2), there were substituted—

“(2) Compensation rules may require—

(a) solicitors, or solicitors of a description prescribed in the rules; or

(b) licensed bodies, or licensed bodies of a description prescribed in the rules;

to make contributions to a compensation fund or funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

(2A) Where compensation rules require persons within subsection (2)(a) and persons within subsection (2)(b) to make contributions into the same compensation fund, anything that may be done in relation to the fund in accordance with this Act or the Legal Services Act 2007 (or any provision made under either Act) may be done—

(a) irrespective of whether any money forming part of the compensation fund was contributed before or after the making of such compensation rules; and

(b) irrespective of the persons or description of persons who contributed the money.”;

(b) in subsection (3) for “such a requirement”, there were substituted “a requirement imposed by virtue of subsection (2)”;

(c) after subsection (9)(d), there were inserted—

“(da) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Schedule 14 to the Legal Services Act 2007;”; and

(d) after the definition of “compensation rules” in subsection (10), there were inserted—

““licensed body” means a body which holds a licence in force under Part 5 of the Legal Services Act 2007 which is granted by the Society.”.