CO-OPERATION AND ACCOUNTABILITY

Question 1

NOTIFYING SRA OF CERTAIN EVENTS
solicitor

Answer 1

You must notify the SRA promptly upon any of the following
events:
* You are subject to any criminal charge, conviction, or
caution (subject to the Rehabilitation of Offenders Act
1974).
* A relevant** insolvency** event occurs in relation to you.
* You become aware of any material changes to information about you or your practice that was previously
provided to the SRA by you or on your behalf, and such
information is or may be false, misleading, incomplete, or
inaccurate.

Question 2

NOTIFYING SRA OF CERTAIN EVENTS
Firms

Answer 2

A firm must provide to the SRA an information report on an
annual basis, or such other period as specified by the SRA.
A firm also must promptly notify the SRA of:
* Any indicators of serious financial difficulty relating to
the firm;
* Any **insolvency **event relating to the firm;
* The firm’s intention or awareness that it will cease operating as a legal business;
* Any change to information recorded in the register; or
* The firm’s awareness of any material changes to information about the firm or its managers, owners, or compliance officers that was previously provided to the SRA by the firm or on its behalf, if such information is or may be false, misleading, incomplete, or inaccurate.****

Question 3

REPORTING ACTUAL AND POTENTIAL
BREACHES

Answer 3

1. If you are aware that any person or body (including yourself) has committed a serious breach of a regulatory arrangement, you must ensure that a prompt report is made to the SRA or other approved regulator, asappropriate.
2. Specifically, you must promptly report any facts or matters which you reasonably believe are capable of amounting to a serious breach.
3. Additionally, if the SRA requests that you **investigate **whether there have been any serious breaches that should be reported to the SRA, you must do so
4. Even if you do not have sufficient information to determine whether a serious breach has occurred, you have a freestanding obligation to promptly inform the SRA of any facts or matters that** you reasonably believe should be brought to its attention** in order that the SRA may investigate whether a serious breach has occurred or otherwise exercise its
   regulatory powers.

Exam Tip
A solicitor should make a report to the SRA where appropriate even if it involves the disclosure of confidential information. Remember, where two Principles conflict with each other, the Principle which safeguards the wider public interest takes precedence over an individual client’s interests.

Question 4

What Is a ‘Serious Breach

Answer 4

1. no definite definition
2. However, the SRA has pointed to its Enforcement Strategy
   which underpins the Standards and Regulations. The Enforcement Strategy states that the following types of allegations are always taken seriously:
   * Abuse of trust
   * Dishonesty
   * Taking unfair advantage of clients or others
   * Misuse of client money
   * Sexual or violent misconduct
   * Criminal behaviou

Question 5

aggravating factors

Answer 5

Additionally, the SRA provides a number of examples of aggravating factors which might suggest that any type of breach is serious. These include a solicitor:
*Deliberately or recklessly disregarding their obligations(for example, knowingly acting outside their competence)

*Demonstrating a lack of honesty or integrity
*Taking advantage of a person’s vulnerability

*Causing harm that could have been reasonably anticipated to arise from the conduct
*Demonstrating a pattern of repeated misconduct
A breach may be serious in isolation or because it comprises a persistent or concerning pattern of behaviour.

Question 6

SOLICITOR MAY INFORM SRA INDIRECTLY

Answer 6

1. Any obligation to provide information to the SRA is satisfed if you provide the information to your frm’s** COLP** (compliance officer for legal practice) or** COFA** (compliance officer for finance and administration), as and where appropriate, on the understanding that they will provide the information to the SRA.
2. However, this is likely to be a controversial provision to apply in practice. The solicitor discharges the duty to report on the understanding that the compliance officer will report, but there could be a conflict of opinion between the solicitor and the compliance officer. If the solicitor considers that the issue is serious enough, and they are not satisfied that the compliance officer agrees,the SRA would require the solicitor to report the matter themselves. An exam question might require you to be
   able to consider and make this distinction.**

Question 7

ADMITTING MISTAKES TO CLIENTS

Answer 7

1. You must be honest and open with clients if things go wrong. If the client sufers loss or harm as a result, you must put matters right (if possible), and explain fully and promptly what happened and the likely impact.
2. Additionally, if requested by the SRA, you must investigate whether anyone may have a claim against you, provide the SRA** with a report **on the outcome of your investigation, and notify relevant persons that they may have a claim.

Question 8

General Duty to cooperate

Answer 8

1. you must keep up to date and follow the law and regulation governing the way you work.
2. you must not attempt to prevent anyone from providing info to SRA or any other body.
3. you also must not subject a person to detrimental treatment for providing info to SRA or other approved regulators, or proposing to provide such infol