Requirements of category 1 regulators 9 Exercise of regulatory functions (1) A category 1 regulator must exercise its regulatory functions— (a) independently of its other functions or activities (if any), (b) properly in all respects (in particular, with a view to achieving public confidence). (2) Where a category 1 regulator has functions other than regulatory functions, it must— (a) establish and maintain a regulatory committee to discharge its regulatory functions, (b) ensure that the governing body of the regulator does not interfere with the committee’s discharge of those functions, (c) when consulted on a matter relating to its regulatory functions, delegate responsibility for responding to the committee (in so far as the matter relates to those functions). (3) A category 1 regulator must— (a) consult its regulatory committee before making decisions affecting the committee’s funding and resources, and (b) ensure that the committee is adequately funded and resourced to be able to discharge its functions. (4) A regulatory committee may [51] — (a) must (in accordance with this Act or any other enactment) [53] determine its structurecomposition [52] , governance arrangements and priorities, (b) may [54] arrange for the exercise of its functions by a sub-committee or an individual (which may be a member of staff of the regulator). (5) An arrangement under subsection (4)(b) does not affect the regulatory committee’s— (a) responsibility for the carrying out of delegated functions, or (b) ability to carry out delegated functions. (5) But, an arrangement under subsection (4)(b)— (a) may not delegate— (i) the regulatory committee’s function of making regulatory rules under this Act or any other enactment, (ii) to an individual, the committee’s function of determining what action it proposes to take in respect of a conduct or regulatory complaint remitted under section 6 or 7A of the 2007 Act or, as the case may be, initiated in accordance with section 33A or 33B of that Act, and 9 Regulation of Legal Services (Scotland) Bill - Keeling schedule Part 1—Regulatory framework Chapter 2—regulators (b) does not affect or limit the regulatory committee’s— (i) responsibility for the exercise of the delegated functions, or (ii) ability to exercise those functions. [55] (5A) A regulatory committee must maintain and publish a document setting out its— (a) composition, membership and governance arrangements, (b) regulatory functions (including powers and duties) and procedures, (c) arrangements (if any) for the delegation of functions. [56] (6) A regulatory committee of a category 1 regulator must consult the governing body of the regulator before making changesany material change [57] to its structure or [58] governance arrangements. (7) Except where provided for in an enactment, the governing body and regulatory committee of a category 1 regulator are to agree arrangements for resolving any disputes that may arise between them. (8) In this Part, a reference to the governing body of a category 1 regulator is a reference to the group of persons (however described) who are responsible for the direction, management and control of the regulator and the exercise of its statutory functions. 10 Regulatory committee: composition and membership (1) It is for the regulatory committee of a category 1 regulator to appoint its members. (2) But a category 1 regulator may appoint members to its regulatory committee if, at the time of appointment, the regulatory committee is unable to do so (for example, if it is appointing the members of the first regulatory committee). (3) A member of a regulatory committee— (a) may be a person regulated by the regulator as a legal services provider, but (b) must not be, or have been for at least two years, involved in the governance of the regulator or the exercise of itsgoverning body of the regulator or the exercise of the regulator’s [59] non-regulatory functions. (4) A person may not be a member of the regulatory committee if the person— (a) has had a right to practise (in law or otherwise) removed as a result of a finding of misconduct by a professional or disciplinary body, (b) is suspended from practising (in law or otherwise) by a professional or disciplinary body, (c) is subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I.2002/3150 (N.I. 4)), or (d) has been convicted of an offence involving dishonesty. (4A) The regulatory committee may determine that a person may not be a member of the regulatory committee if the person has been convicted of an offence other than one referred to in subsection (4)(d). 10 Regulation of Legal Services (Scotland) Bill - Keeling schedule Part 1—Regulatory framework Chapter 2—regulators [60] (5) At least 50% of the members of a regulatory committee (and any sub-committee of it) of a category 1 regulator are to be lay...