2.3 Code of Conduct: Management of the Business Flashcards
What does ABS stand for
Alternative business structure
What do ABSs allow for
Non-lawyers to share and participate in management of provider of legal services
What can non-lawyers as managers of ABS providing legal services not do
Sign client account cheques or be responsible for overall supervision of reserved legal activities
What must non-lawyer manager of legal service ABS pass and when
Proper and fit person test if more than 10% stake
Who must be qualified to supervise whole firm
At least one ‘lawyer manager’
What requires that at least one ‘lawyer manager’ is qualified to supervise whole firm
SRA Practice Framework Rule 12.1
What must a ‘lawyer manager’ supervising whole firm have done to be qualified
12 hours training + entitled to practice for 36 months in last 10 years
Who cannot be responsible for overall supervision of reserved legal activities in ABS
Non-lawyer
What are ‘reserved legal activities’
Conduct of litigation, right of audience, probate activities and most property work
Is there is a need for a firm to have a ‘lawyer manager’ in each office?
No
Who can replace a ‘lawyer manager’ or partner if one is ill?
Locum
Who can supervise a client file
Anyone with sufficient experience and knowing limitations of experience
Does a person supervising a client file need to be legally qualified?
No
What Chapter of SRA CoC covers publicity?
8
What is included in ‘publicity’
All promotional material and activity
What is the key idea underpinning rules on publicity
Must not mislead or diminish public trust
When can you not publicise a business as having ‘solicitors’ in it under Ch.8
If no managers are solicitors
What must you do in the advertising if two businesses are jointly marketing services
Be clear which officers which service in the advertisement
What cannot be included as disbursements for client costs
Overheads
What restrictions are there on cold calling etc. members of the public
Cannot call/visit MoP unsolicited
What is the definition of members of the public for Ch.8
Includes prospective individual clients, but excludes former/professional connections
What info must public be given in advertisements re: regulation
How regulated, distinguish if some services are not, and be clear if another regulator regulates some activities (e.g. FCA)
Do firms not offering legal services have to comply with rules on publicity?
No
What changes re: publicity depending on the nature of the business
What the business need to publicise about itself, e.g. LLP + C must publicise reg name + number
What is a ‘separate business’
Not authorised or regulated by SRA, but owned or owns or connected to SRA regulated business
Does a ‘separate business’ have to be located separately from law firm?
No
Can solicitors be managers/employees of a separate business?
Yes
What must S do if manager/employee of separate business + practising as S
Comply w/ Rule 4 SRA Framework
When can S NOT be manager/employee of separate business
If SB carries out reserved legal activities or immigration work
What chapter covers ‘separate businesses’
12
Why are clients less protected in a separate business
Not authorised or regulated by SRA
What is the consequence of clients being less protected in a separate business
Client must be informed of extent of regulation, and must not represent that regulated by SRA
What is needed if referring client to separate business, or dividing work between law firm + SB
Client must give informed consent
