Ethics

Question 1

What are the ‘regulated activities’?

Answer 1

A regulated activity is defined as an activity specified in the Regulated Activities Order relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply. The specified activities might be remembered with the mnemonic device ‘ADAMS’. Activities = Advising, Dealing as an agent, Arranging, Managing, and Safeguarding.

Question 2

What are the ‘specified investments’

Question 3

What is ‘dealing as an agent’?

Answer 3

Dealing as agent is buying, selling, subscribing for, or underwriting investments as agent for a client. Here, the solicitor contracted for the purchase of the shares as agent on the client’s behalf, which is the specified activity of dealing as agent.

Question 4

What should a solicitor do if during trial they discover that their client committed perjury while testifying?

Answer 4

Immediately urge the client to tell the truth and refuse to continue representing the client if they do not agree.

First choice is not to inform the court.

Question 5

What should a solicitor do if a person holding a valid power of attorney for a mentally incompetent client instructs the solicitor to execute a transaction the solicitor does not believe is in the best interest of the mentally incompetent person?

Answer 5

Refuse the instruction, as the original client remains the client, and the solicitor owes a duty to look after the client’s best interests.

Question 6

True or false? A solicitor who has an own interest conflict may act for the client if the client fully understands the conflict and provides informed consent to the solicitor acting.

Answer 6

False

Question 7

When must a solicitor or firm inform a client of the solicitor or firm’s complaints procedure?

Answer 7

At the outset of the retainer, and it must be in writing.

Question 8

Impact of the SRA’s transparency rules on solicitors?

Answer 8

The transparency rules require solicitors with websites to display information about pricing with regard to certain services, such as residential conveyancing, motoring offences, and probate.

Question 9

Under a conditional fee agreement, a solicitor can include a success fee of up to what percentage of normal fees charged?

Answer 9

100%

Question 10

Which costs are payable by the insurer under a ‘before the event’ insurance policy?

Answer 10

Solicitors costs only - not disbursements.