Ethics

Question 1

What are the seven mandatory principles?

Answer 1

A solicitor must act
- In a way that upholds the constitutional principle of the rule of law and the proper administration of justice
- In a way that uphold public trust and confidence in the solicitor profession and legal services provided by authorised people
- Independence
- Honesty
- Integrity
- In a way that encourages equality, diversion and inclusion

Question 2

What happens when two or more principles coming to conflict?

Answer 2

The principal which safeguards the wider public interest takes precedent over an individual client interest

We are relevant solicitor of form their clients of the circumstances in which their duty to the court or other professional obligation outweighs of duty to the client

Question 3

What does maintaining trust and acting fairly involve?

Answer 3

You must not unfairly discriminate by allowing personal views to affect professional relationships and the way which you provide services

Required to monitor report and publish workforce diversity

Legal obligation to provide reasonable adjustments to ensure disabled clients and employees are not place a substantial disadvantage compared to those who are not disabled.

Cost cannot be passed on

Only need to be reasonable adjustments and do not need to accommodate the needs of all clients or employees

You must not abuse your position by taking unfair advantage of clients or others

Must not mislead others or attempt to mislead others or the court. this can be done by act or a mission or being complicit in the acts or omissions of others

Question 4

What is an undertaking?

Answer 4

Undertaking is a statement to someone who places reasonable reliance on it that or a third-party will do something or cause something to be done or refrain from doing something

If give an undertaking must perform it

Undertaking should be given by solicitor in writing clearly intended to been an undertaking given only with clients express authority recorded on the file and on a register of undertakings and clear in the terms

Question 5

What are the consequences of a breach of an undertaking?

Answer 5

Solicitor is personally bound to comply with the undertaking whether they given orally or writing

Can be enforced by the court and the party seeking to rely on the undertaking may seek compensation for any losses incurred

The SRA do not have the power to enforce an undertaking, but any breach may be a breach of professional conduct which may lead to sanctions

Question 6

What must undertakings be?

Answer 6

Smart
Specific
Measurable
Agreed
Realistic
Time

Question 7

Where might ethical issues coming to play in relation to dispute resolution court proceedings trial enquiries?

Answer 7

Must not use tamper with evidence or attempt to do so

Must also not seek to influence the substance of evidence

Must not provide or offer any benefit to the witness if it is contingent on the nature of the evidence

Respect for court you must not waste court time and any statements must be properly arguable

Must comply with orders and not place yourself in contempt

Must draw attention to relevant law

Question 8

What ethical issues arise in relation to service to clients and competence?

Answer 8

Must only act for client on instructions from the client or someone if properly authorised to provide instructions on their behalf.

If any reason to suspect that the authorised person instructions don’t represent the wishes of the client do not act unless satisfied that they do

If clients instructions cannot be obtained or ascertained and you have legal authority to act for client despite this overriding obligation is to protect clients best interests

Service provided must be in a tiny tiny manner must maintain competence to carry out your role and keep your professional knowledge and skills up-to-date

Must consider and taken into account client attributes and circumstances

Acting as a supervisor or manager to provide legal services must remain accountable for the work carried out by them and affect to be supervised the work being done.

Firm must have an effective system in place or supervising clients matters and must ensure the individuals who are managed our comp to carry out their role they keep their knowledge and skills up-to-date and they understand their legal ethical and regulatory obligations .

Question 9

What ethical issues may arise when handling client money and assets?

Answer 9

If receive financial benefit as a result of clients instructions, you must probably cancel the client for that financial benefit unless the clients are already agreed otherwise

Must save money and assets and trusted by clients and others

Must not personally hold client money unless it is relates to advance payments of fees and expenses annual inform client in advance of where and how the money will be held. Any money help disbursements must relate to cost or expensive incurred by you on the clients behalf and for which you are liable .

Question 10

What ethical issues arise in relation to referrals and introductions?

Answer 10

Must ensure that you follow the standard when refer client to another person or a body or when a third-party introduces business to you or whether you share fees with third-party

Client must be informed of any financial or other interest which you or your business or employer has referring the client to another person or which an introducer has in referring the client to you for example estate agency fees for referral of clients to conveyancing services the fee must be made clear to the client as could compromise the solicitors, independence and duty to act in their best interest

Agreements with third-party and the client must be informed of any sharing arrangement

You must not receive or make payments relating to a referral or make payment to introduced and respective clients who are subject of criminal proceedings

Question 11

What is a prohibited referral fee?

Answer 11

Payment or receipt of referral fees in claims following personal injury or death are prohibited by statute also applies to ancillary claims arising from the same circumstances

If it appears to the SRA that you have made or received a prohibited referral fee will be treated as a prohibited referral fee unless you can demonstrate otherwise so should retain records and management information to demonstrate any payments are not referral fees

Question 12

What ethical issues arise when referring client to separate business?

Answer 12

Separate business is a business which 1) is solicitor owns or are owned by or actively participate in or control or otherwise connected with and 2) which is not an authorised body and authorised non-SRA or an overseas practice

Need clients consent to:
Refer recommend or introduce to a separate business or
Dividing clients between you a separate business or allow the clients matter to be divided

Question 13

What other business requirements must solicitors comply with?

Answer 13

Must only associate with authorised bodies cannot be a manager, employee et cetera of a business that has a name which includes the word solicitor or describes it in a way that suggest as a solicitor/ unless it is an authorised body

Practice certificate must complete and deliver SRA annual return in the prescribed form

If carrying out any any reserved activities and a non-commercial body you must ensure the body takes out and maintain indemnity insurance and insurance must be appropriate respective services provide

Regulated services exercising audience conduct mitigation instruments relating to real estate, preparing probate papers no notary activities or administrations of oaths

Question 14

What is the role of manager in an SRA authorised firm?

Answer 14

Responsible for firms compliant with the code of conduct if multiple managers that responsibility is joint & several

Question 15

What is the role of a compliance officer for legal practice?

Answer 15

And show compliance with terms and conditions of the firms authorisation
Ensure firm managers employees comply with the applicable SRA regulatory arrangements
Ensure firms managers and those employees do not orally contribute to the breach of the SRA regulatory arrangements

And that is made of any serious breach of terms and conditions of the firms authorisation or SRA regulatory arrangement

Ensure that the SRA is properly informed of any facts or matters which the COLP reasonably believes should be brought to his attention so the SRA may investigate whether a serious breach has occurred or otherwise exercise this regulatory power

Question 16

What is the role of a compliance officer for financial administration?

Answer 16

Firms COFA must take reasonable steps to:
Ensure that the firm and its managers employees comply with any obligations imposed on them under the SRA account rules

Ensure that prompt report is made to the SRA of any serious breach of the rules

Ensure that the SRA is probably informed of any facts or matters that the CFA reasonable should be bought with attention in order that the SRA may investigate by the serious breach of its regulatory arrangements has occurred or otherwise exercise its powers

Question 17

What are the two types of conflicts?

Answer 17

1) conflict between the solicitor and the client (own interest conflict)
2) conflict between two or more current clients (conflict of interest)

Conflict or significant risk of conflict relates to the same matter or related matter

Conflict provisions cover the firm not just the solicitors

Question 18

When should you consider conflict of interest?

Answer 18

Should consider whether there’s a conflict or significant of a conflict at the beginning of the matter before the retainer has been created and throughout

Question 19

What should you do if if a conflict arises?

Answer 19

Before retainer
- should decline to act

After retainer
- should inform all clients if it’s appropriate declined to continue to act for all clients
- can continue to act for one of the clients but must be wary about the whether their duty of confidentiality is at risk

Client generally cannot consent to conflicts

Limited retainer
- If the firm identifies a conflict between clients it made decide that connect for one of the clients on the basis of a limited retainer meeting in the firm only act on the aspects where there’s no conflict and advice the clients take independent advice on the conflicted area

Professional embarrassment
- May decide that they can act even if there is a conflict or significant risk that made a client to act in any event due to professional embarrassment. This means the firm considered that can act in the best interest of the client due to considerations that are relevant to the firm.

Question 20

What is a own interest conflict?

Answer 20

Exists where conflict between a solicitor and the client interferes with duty to act in the best interest of client in relation to a matter conflict or there is significant risk.
It may conflict with your own interests must not act.

Includes financial interests
- Gift in a will usually raises an own interest conflict but may act if the solicitor satisfied the client has taken independently with regards to making the gifts. Large gifts are always significant but smaller gift may be considered significant if it is a significant part of the estate
- if the solicitors ability to advise the client would not be undermined by the financial interest and then interest would not exist, for example, if they are drafting for their parents and they are being treated equally

Personal relationship with another

Commercial relationship with another

Employment claim of former employee or solicitors conductors question

Question 21

What is a conflict between clients?

Answer 21

Exist separate duty to act the best interest of more client in relation to same or related matters and those duties conflict

Includes
- acting for seller and buyer on sale
- acting for investor and the scheme in which they will be investing acting for two clients who are agreeing
- commercial contract acting for clients who are seeking to separately purchase a particular asset or award of the particular contract

Question 22

Can a solicitor act if there is a conflict between clients?

Answer 22

No, unless an exemption applies

Substantially common interest exception
- Clients have a substantially common interest when there is a clear common purpose in relation to a matter of particular asset of it between clients and a strong consensus and how it is to be achieved

Competing for the same objective exemption
- Applies for two more clients are competing for an objective which if attained by one client will make that objective on a table to the other
- Objective means an asset contract or business opportunity which the clients are seeking to acquire or recover through a liquidation or by means of an auction or tender process or through a bid or offer, which is not public

Conditions for exceptions
1) client has given informed consent given or evidenced in writing to acting

2) firm put in place effective safeguards to protect clients confidential information
- Might include separate fee earners and safeguards in place to ensure confidential information cannot pass from one solicitor in the same firm to another
- could involve acting in separate buildings or separate floors and the computer system be set up to ensure information is not available to the other solicitor not appropriate.
- If clients wants the solicitor to both of them, must ensure that the client agrees as to what information can be shared with the other and must obtain informed consent from the clients that no safeguards are required.

3) You are satisfied that is reasonable to act for clients. should consider:
- whether the client will benefit from the solicitor acting for both of them
- whether it will be there will be extensive negotiations between the clients
- whether there has been an imbalance and knowledge or bargaining power between the clients

Question 23

What does the duty of confidentiality involve?

Answer 23

Must keep the affairs of clients confidential unless disclosure is required up permitted by law or the client consents

Disclosure is appropriate where:
- Solicitors disclosed will to an attorney appointed after a under a POA
- solicitor has been used by the client perpetrate crime or fraud
- statutory requirement
- court order of police warrant

Question 24

When might breach of the duty of confidentiality be justified?

Answer 24

When breached to prevent harm to someone
To prevent the commissioning of a criminal offence that will result in serious body harm - disclosure after not justified
Disclosure work on its indicated they intend to commit suicide or self harm
Disclosure to protect a child or vulnerable adult

Question 25

What is the duty of disclosure?

Answer 25

Solicitor must make client aware of all information material to that retainer of which they are aware

Exceptions
Client gives informed consent evidence in writing to nondisclosure
Reason to believe disclosure would cause serious physical and mental injury to a person
Legal restrictions imposed on the interest of national security or for the prevention of crime
You have knowledge of the information because it is contained in privileged documents which have been mistakenly disclosed

Question 26

What happens if confidentiality and disclosure come into conflict?

Question 27

What happens when the duty of confidentiality and duty of disclosure conflict?

Answer 27

Must not act for client A if hold adverse information in relation to client B and is a current or former client unless

Effective measures been taken to result in no real risk of disclosure of confidential information or

Client B Ives informed consent to you acting including any measures taken to protect their information

Information must be relevant to clients matter

Disclosure must not be made unless client A agrees to it

Question 28

What must a solicitor notify the SRA of?

Answer 28

Subject to any criminal charge, conviction or caution

Relevant insolvency event occurs

Become aware of any material changes to information about you or practice that was previously given to SRA and information is or may be misleading, false, incomplete or inaccurate

Question 29

How should a solicitor respond to the SRA?

Answer 29

Should justify actions to demonstrate compliance

Provide full and accurate explanations information and documents in response to any request and ensure the relevant information is available for inspection by the SRA

Question 30

What must firms provide to the SRA?

Answer 30

Information report on an annual basis or any other period specified

Any indicators of serious financial difficulty relating to the firm
Any insolvency event relating to the firm
The firms intention or awareness it will cease operating as a legal business
Any information on the register
The firms awareness of any material changes to information about the firm or managers owners or compliance offices that may now be misleading

Question 31

What must be reported to the SRA?

Answer 31

If you’re aware of any person has committed a serious breach of a regulatory arrangement, you must ensure a pro report is made to the SRA

Must report any facts or matters which you recently believe are capable of mounting to serious breach

If the SRA request that you investigate whether there has been any serious breach that should’ve been reported to the SRA, you must do so

Freestanding obligation to report to the SRA any fact or matters which reasonably believe should be brought to their attention so they can investigate

Should make a report even if breaches are duty of confidentiality

Question 32

What is a serious breach?

Answer 32

No guidance in the code, but the enforcement strategy states the following types of allegations always taken seriously
Abuse of trust
Dishonesty
Taking unfair advantage of clients or others
Misuse of client money
Sexual or violent misconduct
Criminal behaviour

Also give examples of aggregating factors that might suggest a breach of serious includes
Deliberately or recklessly disregard their obligations
Demonstrating a lack of honesty and integrity
Taking advantage of persons vulnerability
Causing harm that could’ve been reasonably anticipated
Demonstrating a pattern of repeated misconduct

Question 33

Can a solicitor inform the SRA indirectly?

Answer 33

Obligations provide information as satisfied if information is given to the firms compliance officer for legal practice or compliance officer for finance and administration on the understanding they will provide the information to the SRA

Issue may arise if not satisfied COLP all report, if they don’t must report directly

Question 34

What should you do if you make a mistake?

Answer 34

Admit, be honest and over the clients of things go wrong if they’ve suffered loss or harm you must put things right and explain fully and promptly what happened on the impact?

If asked by the SRA, you must investigate whether anyone may have a claim against you and provide the SRA with an outcome on the report of your investigation and notify any relevant people. They may have a claim.

If there has been a mistake, it will be reported to the indemnity insurer and the firm will have to follow any steps required by them

Question 35

Must the solicitor give a client a client care letter?

Answer 35

Firms need to give information to clients most firms will do this in a client care letter however there is no prescribed form set by the SRA and no requirement to send client letter but must provide the information to the clients

• Must identity for the client
• Must inform them of regulations
• Must provide clients information and they can understand so they can make an informed decision about the services they need and the options available.
• Must ensure clients received the best possible information about how the metal will be priced must be given given a time of engagement and where appropriate as progresses and the likely overall cost must
• Must them of the right to complain

Question 36

What information needs to be given to clients about their right to complain? And how are complaints handled?

Answer 36

At the time of engagement must inform client in writing:
- of their right to complain about you or your services and charges
- to whom complaints can be made and
- any right they have to make complaints for legal ombudsman and
- when they can make such a complaint

Handling
- if Complaint has not been resolved to client satisfaction within eight weeks following the making of the complaint you must ensure the client is informed in writing of any right they had to complain legal ombudsman and the timeframe for doing so and full details of how to contact them .

The complaint procedure has been exhausted after 8 week period. You must inform the client:
- Unable to settle the complaint
- The name and address of an alternative dispute resolution approved to deal with the complaint and
- Whether you agreed to use the scheme operated by the body

All complaints must be dealt with promptly fairly and free of charge

Question 37

How can a firm publicise their practice?

Answer 37

Must not be inaccurate or misleading

Public advertisement is generally allowed however must not make any unsolicited approaches to members of the public to advertise legal services

Cannot advertise in a targeted or intrusive way

There is an exception for current and former clients

Question 38

What are the SRA transparency rules?

Answer 38

Outside the code of conduct but contain important regulatory requirements regarding the publishing of information to consumers on a website

If the firm has a website, firm must display prices and service information in relation to any of the following areas

Conveyancing (residential)
Probate (uncontested)
Motoring offences (summary offences)
Immigration, (excluding asylum)
Employment tribunals
Debt recovery of up to £100,000
Licensing applications (business premises)

Information must be presented in a clear and easy to understand format.

• The firm must also provide a total cost or an average or range
• explain the basis of the charges including hourly rates or fixed fees
• highlight any likely disbursements and costs and
• be clear or the VAT is included and
• for conditional or damages based fees explain when clients may have to make payment

Firms must also explain what services are included the quoted price, highlight any services that are not included in the price which client might expect to be included, include information on key stages and typical timescales for this and publish the qualifications and experience of anyone carrying out the work and of the supervisors

If the firm has no website, this information must be available upon request in other formats

Question 39

Does businesses or not for profit organisations count as members of the public?

Answer 39

No, so therefore can approach directors or individuals in company to offer expertise and services.

Cannot if member of public