Business Requirements Flashcards
What must you do when you make a referral/introduction for a client but you have a financial or personal interest in that referral/introduction?
You must tell the client
You pay an estate agent a fee for referrals of conveyancing clients to the firm, when you onboard the client what must you do?
Tell the client about the fee
What must you do if you have a fee-sharing arrangement with an accountant to whom you refer clients
You must inform the client of fee sharing matters
Can you receive or make payments for referrals/introductions of clients who are subject to criminal proceedings?
Nope
What are the prohibited referral fees?
In respect of claims for damages RE personal injury or death
Can you pay a personal injury claims management company a referral fee for a personal injury client referral?
No
Does the prohibition on referral fees for personal injury clients also apply to ancillary claims arising from the same circumstances, like an uninsured loss recovery claim?
Yes
What is good practice for you to do regarding the payment/receipt of referral fees?
Retain records and management information
What is a ‘separate business’ of a solicitor?
- A business you/your firm owns or is owned by or which you actively participate in or control or otherwise connected
- which is not an authorised body, an authorised non-SRA firm or an overseas practice
What actions require a client’s informed consent in respect of a separate business?
- Referrals, recommendations or introductions to that business
- Dividing a client’s matter between you and the separate business, or allowing the matter to be divided
Can an individual solicitor be a manager/employee/member/interest holder of a business with a name that includes the word “solicitor” or describes its work in a way suggesting its a solicitor’s firm it that business is not an authorised body of the SRA?
No
Do you have to ensure that the charity you carry out reserved legal work for maintains indemnity insurance for you?
Yes
What level of indemnity insurance must be covered?
Adequate and appropriate cover for ALL services you provide, reserved and unreserved
What re reserved legal activities?
- Exercising a right of audience
- Conducting litigation
- Preparing instruments relating to real/personal estate
- Probate papers
- Notarial activities
- Administration of oaths
Does a firm have an obligation to maintain business systems to ensure compliance with SRA conduct requirements?
Yes
Must a firm keep records of its compliance with SRA regulatory requirements?
Yes
Must a firm actively or passively monitor its financial stability and viability?
Actively
What happens if a firm becomes aware that it will cease to operate?
It must effect an orderly wind-down of its activities
Who is responsible at a firm for the firm’s compliance with the Code of Conduct of the SRA?
The manager
If there are several managers, is their duty to ensure compliance joint, or joint and several?
Joint and Several
What does a firm’s Compliance Officer for Legal Practice do?
Ensure compliance with the SRA regulatory framework and report any serious breaches of the firms terms and conditions of authorisation or SRA regs to the SRA
What does a Compliance Officer for Finance and Administration do?
Report breaches of SRA Accounts rules to the SRA and ensure compliance with SRA Accounts Rules
