Society welcomes judicial factors law

The Society says finalised legislation to modernise the law around judicial factors provides for significant improvements when such arrangements are needed to safeguard money and other assets.

MSPs voted yesterday in the Scottish Parliament to give final Stage 3 approval for the Judicial Factors (Scotland) Bill. The bill will now be sent for Royal Assent, and its provisions will come into force in due course.

The Society provided briefings to MSPs and engaged with the Scottish Government through the legislative process, and had previously worked extensively with the Scottish Law Commission in developing a framework for reform.

The new legislation reforms procedures for the appointment of a judicial factor and how they operate to protect money and other property in a variety of circumstances, including clients of solicitors when accounts rules have been breached.

The Convener of the Society’s Regulatory Committee, David Gordon, said: “These reforms are a substantial step forward in situations where a judicial factor steps in to protect money and other assets. Most of the current legislation is well over 100 years old and we’ll now have laws fit for the 21st century.

“We are grateful to MSPs for adopting a number of changes suggested by the Law Society and others to improve this legislation. The final result is an even stronger system around the important work of judicial factors.

“Our primary focus through this process has been in relation to the appointment of a judicial factor to protect client funds and other assets held by a solicitor or law firm, however this legislation will also benefit in other important areas including child and family law, trusts, and charity law as well as situations where a judicial factor is appointed to the estate of a missing person.”