2.4 Code of Conduct: Regulation and Liability Flashcards
What two compliance officers are required under Ch.7?
COLP and COFA
What does COLP stand for
Compliance Officer for Legal Practice
What does COFA stand for
Compliance Officer for Finance & Admin
What Compliance Office ensures complying with Solicitor’s Accounts Rules
COFA
Can COLP = COFA?
Yes
What Compliance Officer must be legally qualified
COLP
How are COLP and COFA chosen
Designated by firm and authorised by SRA
What qualifications must COLP and COFA have
Sufficient seniority to perform the role
Do COLP and COFA take responsibility of compliance away from owners and managers?
No
Can firm abrogate responsibility for compliance to 3rd?
No
Two general ways CoC seeks to mitigate risk exposure to clients
Requiring firm to inform SRA of certain things, and firms to monitor financial stability
Chapter on relationship between firm and regulator
10
What material changes must firm inform SRA of
Changes in personnel, changes in S, changes in firm, action taken by another regulator
Does SRA need to be informed of action taken by another regulator facing short of disciplinary action?
No
What ‘serious’ issues does firm need to inform SRA of under Ch.10
Financial defaults and misconduct
Example of serious financial default that firm must inform SRA of
Failure to pay rent or PII premium
When must firm inform SRA in terms of closing business
If firm ceases to be financially viable, or planning to wind down
What can lead to client bringing C/T claim against S
S failing to act with due care and skill, and loss caused
What is the first step taken if client alleges negligence/BoC by solicitor
Investigate in-house first
Does negligence automatically = misconduct or inadequate service?
No - only if wider pattern
If there has been a breach of the CoC, what must S do for client
Inform client, and encourage client to seek independent advice
Who must be informed if S becomes aware of breach of CoC (2)
Client and insurers
Can SRA Board waive need to comply w/ Outcomes?
Yes, but exceptional circumstances
Two kinds of insurance applicable to firms
PII and compensation fund
Who needs PII
Every S held out as principal
Who does not need PII
Assistance S and trainees
What is the minimum PII cover
£2m/£3m
What is the compensation fund
Maintained by Law Society, Ss contribute annually to held those suffering loss due to S
When does the compensation fund not apply
If covered by PII already
Three things disciplinary action can be brought against S for
poor service, inadequate service, or professional misconduct
Example of poor service
Incompetence or lack of expertise
Example of inadequate service
E.g. inadequate supervision of trainees
Complain to who for poor service
LO
Complain to who for inadequate service
SRA - can refer to SDT
Example of professional misconduct
Neg, e.g. insufficient content of CCL
Complain to who for professional misconduct
SRA
Conduct unbeffiting S e.g.?
Embezzling client funds
How many tiers to complaints procedure
3
First tier of complaints procedure
Law firm
Second tier of complaints procedure
LO and SRA
When does second tier of complaints procedure kick in
Unresolved in-house after 8 weeks
Who can apply to LO
Individual/small businesses
Who has to pay if client goes to LO
Lawyer, unless resolved in favour of lawyer - NEVER complainant
How long to apply to LO
6 years from response, 12 from problem
Remedies from LO include
Apology, return riles, complete work or compensation
What can LO NOT give as remedy
Discipline/fine to S
Where does one appeal after LO
JR
What body in second tier of complaints procedure can discipline lawyers
SRA
SRA possible remedies
Discipline, refund costs, restrict S practice, publicly reprimand, interfere w/ practice, refer to SDT
SDT possible remedies
Strike off S, suspend, reprimand or fine
What body CANNOT award compensation to client
SDT
What body can strike off S
SDT
Appeal from SRA/SDT decision to where
HC
Third tier of complaints procedure
Court action
