Pointed tool held by smaller criminal (7)
I believe the answer is:
lawless
'criminal' is the definition.
(I've seen this before)
'pointed tool held by smaller' is the wordplay.
'pointed tool' becomes 'awl' (I've seen this in another clue).
'held by' means one lot of letters goes inside another.
'smaller' becomes 'less' (less great in size).
'awl' placed inside 'less' is 'LAWLESS'.
(Other definitions for lawless that I've seen before include "Anarchic, without any controls" , "Slew Sal for being criminal" , "Without rules" , "insubordinate" , "Ungoverned" .)