2.2 Code of Conduct: Third Parties

Question 1

What does Chapter 6 cover

Answer 1

Introducing Client TO 3rd party

Question 2

Does it matter for Chapter 6 if client introduced to 3rd re client matter or not?

Answer 2

No

Question 3

What do you need in order to introduce client to 3rd under Ch. 6?

Answer 3

Client consent and client fully informed

Question 4

What, practically speaking, should you consider before introducing client to 3rd

Answer 4

If 3rd appropriately equipped to deal with referral

Question 5

Two specific cases of referring client to 3rd to think about under Ch.6

Answer 5

Re: financial services and personal injury

Question 6

Why might referring client to financial service not be in their BI

Answer 6

If FA not independent

Question 7

What restrictions are there under Ch.6 re: referring client of personal injury case

Answer 7

No prohibited referral fee

Question 8

What is a prohibited referral fee

Answer 8

Fee cannot be or include claimant’s claim for damages for PI/death

Question 9

What is not considered a prohibited referral fee

Answer 9

If client being referred = defendant

Question 10

In what three circumstances does Ch.6 specifically state referral must be in BI of client

Answer 10

M, insurance or protection product (IB(6.1))

Question 11

When does an arrangement w/ 3rd under Ch.6 generally breach O(6.1 & .3)?

Answer 11

If restricts freedom

Question 12

What is the issue if S is appointed rep of 3rd and referring clients to 3rd under Ch.6?

Answer 12

Lacks independence

Question 13

What happens if receiving general commission for referral of client to 3rd?

Answer 13

Account to client for fee by way in IB(1.20) (per O(1.15))

Question 14

What part of CoC refers to what to do with general commission received for referral

Answer 14

O(1.15)

Question 15

Three things possible to do with commission to ‘account’ for referral fee under IB(1.20)

Answer 15

Pay, offset, or keep with consent

Question 16

When are there special considerations for referral fee under Ch.6

Answer 16

If carrying out exempt RA under FSMA

Question 17

What happens if carrying out exempt RA for referral fee

Answer 17

Account for any benefit under Rule 4.1(c) Scope Rules + record under Rule 6 CoB

Question 18

When must client be informed in advance of referral fee specifically

Answer 18

If carrying out exempt RA

Question 19

What chapter covers fee sharing and referrals

Answer 19

Chapter 9

Question 20

Does a fee sharing/referral arrangement need to be contractual?

Answer 20

No

Question 21

When can there not be a fee sharing or referral arrangement (in terms of client’s position)

Answer 21

If client subject to criminal Ps, costs publicly funded, or prohibited referral fee

Question 22

What obligations does firm have to monitor 3rd in fee sharing/referral agreement

Answer 22

Check reputable and continue to be reputable - if not, terminate agreement

Question 23

When is there a higher risk of independence being compromised in fee sharing/referral agreement

Answer 23

Higher the fee, or if relationship is exclusive

Question 24

Three things to bear in mind for the Bribery Act 2010

Answer 24

Carry out due diligence, refrain from corporate hospitality, and consider if referral fee = bribe

Question 25

Who commits the offence if bribing takes place

Answer 25

Individual referrer/referee and the firm

Question 26

What fundamental O does S owe to a 3rd party under Ch.11

Answer 26

Not to take unfair advantage

Question 27

Example of when S may be taking unfair advantage of 3rd

Answer 27

Unrepresented + lack of legal knowledge

Question 28

What is an undertaking defined as

Answer 28

Statement made by you/on behalf of firm in the course of practice to someone who reasonably relied on it

Question 29

Does an undertaking need to use the word ‘UT’?

Answer 29

No

Question 30

Does a UT need to be written?

Answer 30

No , can be oral

Question 31

Who can give UT

Answer 31

ANYONE working for law firm if reasonable reliance

Question 32

Acronym for UTs

Answer 32

Specific Measured Agreed Realistic Timed

Question 33

When must UTs be performed

Answer 33

Within agreed or reasonable time

Question 34

What should firm have to monitor UTs

Answer 34

System to record when given and when discharged

Question 35

What happens if UT was contingent on event act does not occur?

Answer 35

Notify recipient

Question 36

Who are UTs enforceable against?

Answer 36

The firm, not the client

Question 37

How are UTs enforceable

Answer 37

Serious disciplinary offence

Question 38

Four other situations covered under Chapter 11, beyond UTs

Answer 38

Contract races, costs agreements, returning docs/money, and directly contacting other party

Question 39

Rule for contract race

Answer 39

If acting for S, inform all B’s w/ client’s consent

Question 40

Rule for cost agreements

Answer 40

If 3rd paying client’s costs, give 3rd sufficient time and info

Question 41

Rule for returning docs and money to 3rds

Answer 41

Return if condition unfulfilled

Question 42

Do completion monies need to be returned even if other party in BoC?

Answer 42

Yes

Question 43

Need client consent to return docs/money to 3rd?

Answer 43

No

Question 44

When can the other party be directly contacted, despite having legal rep?

Answer 44

To get LR details, LR consents, or exceptional circumstances

Question 45

Best practice before contacting other party w/ legal rep directly

Answer 45

Give LR warning