Legal services Flashcards
List the Reserved Legal activities (can be undertaken only by authorized by regulatory bodies)
- exercising right of audience
- conduct litigation
- preparing instruments of transfer OR charge
- applying and lodging documents under Land registration Act
- preparing instrument (document) related to real or personal estate
- preparing probate documents
- administering oath
what is minimum insurance coverage for legal companies
- 2-3 mln pounds
- adequate and appropriate
what should be considered to define adequate and appropriate insurance
- value of matters
- claims history
when freelance solicitor does not need indemnity insurance
if he doesn`t provide reserved legal services. therefore, no need to register as sole practitioner with SRA
when freelance solicitor does not need register as sole practitioner to provide reserved legal services
- 3 years pqe
- not hold client`s money
- maintain adequate insurance
Put in short conditions when:
- insurance required for freelance solicitor and when not
- registration of sole practitioner required and when not
Insurance required if carrying out reserved legal service. But no minimal amount, just adequate
Registration required if carrying out reserved legal service, Exception - 3 years pqe+no clients money+ adequate insurance
Conditional fee arrangement :
If client wins, he pays..
If client loses, he pays
If wins:
solicitor takes usual fees+disbursements from looser . solicitor may take success from client (less than 100% of rates, none for family cases)
If loses:
- no win-no fee
- client pays defendant`s costs and disbursements
- client pays own disbursements
Damages based arrangement :
If client wins, he pays..
If client loses, he pays
if Wins:
% of damages + Solicitor takes standard costs + disbursements from looser.
%% should cover costs, disbursements. less than 25% for personal injury
if loses:
solicitor gets no fee, no disbursements.
Client pays other parties fees and disbursements
Third-party based funding arrangement : 3rd party pays for..
3rd party pays for solicitor, fees and disbursements, and for after event insurance. Does not pay for others side costs.
Name forms of funding (other that self-funding, conditional fee, damage-based, 3rd party)
Legal expenses insurance
Union cover
Civil aid
Criminal aid
After event insurance: what insurance will cover
- own disbursements (experts, court fees)
- other party`s costs if unsuccessful
Criteria to obtain Criminal aid for litigation
- Defendant
- Means test (no for 18 -)
- merits test (no if interest of justice)
Criteria to obtain Civil aid for litigation
- housing disputes, family, debts
- merits test
- finance test
Which discrimination can be justified and when
Direct - only age and disability, only if justified to be proportionate means
Indirect - any, but same justified proportionate means, and if no les discriminatory way
No discrimination is services
List the protected characteristics under Equality act
Always Do good, really shows more progress.
Age Disability Gender Race Religion Sex Marriage Pregnancy
Main regulation for money laundering and State agency enforcing
POCA (Proceedings of Crime Act)
NCA (National Crime Agency)
Name 3 stages of money laundering
Placement
Layering
Integration
Placement (money laundering) is
Placement of money into finance system
What is POCA and NCA
Main regulation for money laundering and State agency enforcing
Layering (money laundering) is
Running money through complex financial transactions
Integration (money laundering) is
Make funds appear legitimate (Property investment, buying business)
What are the two types of involvement into money laundering?
Direct
Indirect
Name types of Direct involvement into money laundering
Concealing (покривати)
Arrangement
Acquisition / Use / Possession
Name elements of concealing (money laundering)
Concealing, disguise, convert, transfer, criminal property, removing from UK. Also relates to source, location, ownership of property
Name mental state of concealing (money laundering)
should Know or suspect
Name defenses for concealing (money laundering)
Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if :
- had no relevant knowledge or suspicion
- made ASAP when become known
- made as own initiative
Privilege vs Disclosure money laundering
If solicitor knows the money laundering is happening, privilege does not apply. If merely suspects - does apply
Name elements of Arranging (money laundering)
Acquisition retention use or control of criminal property
Name mental state Arranging (money laundering)
Knew or suspected
Name defenses Arranging (money laundering)
Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if :
- had no relevant knowledge or suspicion
- made ASAP when become known
- made as own initiative
Name elements of Acquisition, Use, or possession (money laundering)
Acquisition, Use, or possession of criminal property
Name mental state of Acquisition, Use, or possession (money laundering)
Know or suspected
Name defenses for Acquisition, Use, or possession (money laundering)
- Adequate consideration. If solicitor receives reasonable fee and does not not know and doesn`t suspect the crime nature
-Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if : - had no relevant knowledge or suspicion
- made ASAP when become known
- made as own initiative
Name types of indirect involvement into money laundering
Failure to report
Tipping off
Prejudicing investigation
Name elements of Failure to report (money laundering)
- Solicitors are obliged to submit suspicious activity reports (SARs). Failure to submit is offence
- suspicious activity includes tax overpayment, depositing in with solicitor and then depositing out.
- suspicious activity includes any information in course of business
Name mental state for Failure to report (money laundering)
Reporting information which involves REASONABLE grounds invites SUBJECTIVE test SHOULD have known or BEEN suspicious
Name Defenses for Failure to report (money laundering)
- Privilege and Privileged Circumstances
- Lack of training
Explain defense for Failure to report (money laundering), namely, Privilege and Privileged circumstances
If privilege is not excluded, then not subject to SAR
a) information obtained in connection with giving legal advice
b) from client seeking legal advice
c) in connection with legal proceedings
Name types of Tipping off (money laundering),
- Disclosing that SAR was submit IF this will prejudice investigation
- Disclosing and investigation
Name exceptions of Tipping off (money laundering)
- normal questions to client to remove any concerns
- language included in Standard terms of engagement
Name defenses for Tipping off (money laundering)
- Disclosure within Company (undertaking) or Group
- Disclosure between institutions
- Court order/ to supervisory body/ to prevent client from committing crime
Explain Tipping off defense Disclosure within Company/Group (money laundering)
It is not tipping off if disclosed:
- to fellow employee within company dealing with same retainer
- to other employee within group of companies sharing same ownership, management, control AND business within UK, EEA, equivalent money laundering laws as in EU
Explain Tipping off defense Disclosure between institutions (money laundering)
Applies if ALL criteria are met:
- between legal professionals (solicitors)
- UK, EEA, Equivalent EU
- relates to client involving them both
- to prevent money laundering
- have equivalent professional duties of confidentiality and DP
Explain Tipping off defense Disclosure between institutions (money laundering)
Name elements of Prejudicing an investigation (money laundering)
- person knows or suspects that investigation is being conducted
- makes disclosure that is likely to prejudice investigation
- falsifies conceals or destroys documents relevant to investigation
Name defenses for Prejudicing an investigation (money laundering)
- did not know or suspect this would be prejudicing
- disclosure in connection with legal procedures (legal advice). If solicitors advises client that his transaction probably suspended because of SAR
Name the activities (services) which are under risk of money laundering
- Buying selling real property or legal entity
- Managing client`s money, securities or assets
- ## Creation operation or managing companies/trusts/foundations
Name procedures that solicitor should have to prevent money laundering
- Controls/SOP/Policies
- Identification
- Records keeping (min 5 years)
- Reporting
- Training
When DD should be conducted to prevent money laundering
- Long lasting business relations
- Occasional (15 000 +)
Name Activities and Investments prohibited under General prohibition (FSMA)
ADAMS FM DRIPS
Advising, Dealing as agent, Arranging Managing, Safeguarding
Funeral plans
Mortgages
Debentures
Insurances
Pension schemes
Shares
Name Investments that are not Specified investments under FSMA
Premium Bonds (national saving product)
Interests in land
Name exclusions when General prohibition (FSMA) does not apply to solicitor
- when private advise (not in course of business)
- Takeover exclusion (selling/buying 50% of shares)
- Acting as trustee, Nominee, or Personal representative
- Introducing or dealing through FSMA Authorized
- necessary part of services (except managing assets or paid separately)
- incidental to matter (for SRA - authorized + inform outset)
