1. The Regulatory Role of the SRA - MCQ Flashcards
Having completed all the necessary training requirements a man wishes to apply for admission to the roll of solicitors.
At the end of their final year at university the man was drinking with some fellow students in a local bar. A fight broke out in which the barman was punched in the face and sustained a black eye. The fight was broken up by the other bar staff. The bar owner put the fight down to student ‘high spirits’ and decided not to call the police; instead they reported
the incident to the university authorities. The university carried out an investigation. At first the man denied being in the bar, but CCTV footage showed that it was the man who had punched the barman. The man was formally disciplined by the university. The incident was completely out of character. The man has not been involved in anything similar before or since.
Should the man tell the SRA about the disciplinary proceedings?
A) No, because the man was not convicted of a criminal offence.
B) No, because the incident took place too long ago to be of relevance in assessing the man’s character and suitability.
C) No, because the fact that it was an isolated incident demonstrates that the man is of good character.
D) Yes, because there is a risk that the university will inform the SRA.
E) Yes, because the incident is relevant to the assessment of the man’s character and suitability.
Option E is the best answer. The incident and the disciplinary proceedings are relevant in assessing an application irrespective of when they took place (so Option B is not correct).
Option A is not correct because the SRA looks at all types of behaviour, not just criminal or recent behaviour. Rule 4.1 sets out examples of ‘other conduct and behaviour’ including violence, dishonesty and being subject to disciplinary proceedings by a regulatory body.
The man’s behaviour was violent (punching the barman) and dishonest (lying to the university authorities) and they were disciplined by the university. The fact that the incident has not been repeated will be taken into account by the SRA, but it is not a justification for withholding the information (so, Option C is not correct).
Option D is not the best answer because, whilst there is a risk that the university will inform the SRA, this should not be the reason for disclosure – the man is under an obligation to be open and honest.
A solicitor decides to set up in business as a sole practitioner carrying out niche private client work for high net worth individuals. The solicitor anticipates that they will regularly be dealing with estates in excess of £20 million. The solicitor will be authorised by the SRA as a recognised sole practice.
Which of the following best describes how the requirements in respect of professional indemnity insurance applies to the solicitor?
A) The solicitor can limit their liability at below £2 million.
B) The cover must be for at least £3 million.
C) The cover will need to be in excess of the minimum terms and conditions set under the SRA Indemnity Insurance Rules.
D) Having taken out professional indemnity insurance the solicitor will be absolved from liability for negligence.
E) The solicitor is not required to meet the minimum terms and conditions set under the SRA Indemnity Insurance Rules.
Option C is correct. As a recognised sole practice the cover required under the minimum terms and conditions is £2 million. The ability to limit liability below this sum only applies to freelance solicitors. The solicitor is required to take out ‘adequate and appropriate insurance’. Given the size of the estates that the solicitor will be dealing with, the cover will need to be in excess of the minimum. Indemnity insurance does not absolve a solicitor from liability for negligence.
Having completed all the necessary training requirements, a prospective solicitor has been offered a position as an assistant solicitor in the Family Department of a large firm of solicitors authorised by the SRA. In order to take up the offer, the prospective solicitor will be applying for admission to the roll of solicitors. There is no reason to think that the application will be refused.
Is it necessary for the prospective solicitor to obtain a practising certificate in order to take up the position?
A) Yes, because having a practising certificate is a mandatory prerequisite for being admitted to the roll of solicitors.
B) Yes, because otherwise in taking up the position the prospective solicitor will be committing a criminal offence.
C) Yes, because the firm is authorised by the SRA.
D) No, because given the nature of the job the prospective solicitor will not be carrying out reserved legal activities.
E) No, because the prospective solicitor will not be a partner in the firm.
Option B is the best answer. The job is that of a solicitor. Section 1 Solicitors Act 1974, inter alia, requires anyone acting as a solicitor to have a practising certificate. Practising as a solicitor without satisfying the requirements of s 1 is a criminal offence. The requirement is not dependent on the firm being SRA authorised (option C is wrong). The requirement applies irrespective of whether the solicitor will be carrying out reserved legal activities (option D is wrong). The requirement applies to employed solicitors as well as partners (option E is wrong). Finally, option A is wrong as it is possible to be on the roll without having a practising certificate.
