Legal Services Flashcards
Firms will need to be authorised by the SRA if they provide any of the following:
- Reserved legal services unless business is exempt
- Immigration services unless regulated by OISC
- Claims management services unless regulated by FCA
- Regulated financial activities unless regulated by FCA
Rules on professional indemnity insurance?
Law firms must take out and maintain profession indemnity insurance that provides adequate and appropriate cover in respect of current or past practice taking into account arrangements the body or its clients may make, and
Ensure its clients have the benefit of indemnity insurance and not exclude or attempt to exclude liability below minimum level required.
What is a licensable body?
Managers include lawyers and non lawyers. Once authorised by SRA, is a licensed body. This is sometimes referred to as an alternative business structure (ABS). Means non lawyers can share in management and control business of firm that conducts regulated legal services.
FOr multinational law firms, are there any requirements for the lawyers abroad?
Comply with SRA overseas rules 2013 and certain CCS provisions.
What is direct discrimination?
Because of a protected characteristic, A treats B less favourably than A would treat others.
What is indirect discrimination?
Acts, decisions, or policies, which are not intended to treat anyone less favourable, but have the effect of disadvantaging a group of people with a protected characteristic.
What is harassment?
A engaged in unwanted conduct related to a relevant protected characteristic which has the purpose or effect of violating Bs dignity or creating an intimidating, hostile, degrading, or humuliating environment for B.
What is victimisation?
A subjects B to a determinant because B has done a protected act or A believes B has done or will do a protected act. The acts are:
Bringing evidence under EA 2010;
Giving evidence or information in connection with proceedings under EA 2010;
Doing any other thing for purposes of or in connection with EA 2010;
Alleging someone has done something that contravened EA 2010.
What does the duty to make reasonable adjustments entail?
Changing way of doing this that could present barriers to disabled people.
Making changes to overcome barriers created by the physical features of premises if these are open to public or section of public.
Providing extra aids and services (auxiliary. aids) if this would make it easier for disabled people to make use of the service.
What are the direct involvement offences under PoCA
s327 - Concealing, disguising, converting or transferring criminal property/ removing criminal property from the UK
s328 - entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or one behalf of another person.
s329 - acquiring, using or possessing criminal property.
What are defences to s327,328,329?
- S338 - authorised disclosure. Before prohibited act OR during act but the solicitor didn’t know it was a prohibited act at the time and disclosure is made on their own initiative and as soon as practicable.
This is disclosure to a constable, customs officer or nominated officer.
- Not making disclosure but having reasonable excuse for not doing so
What are non direct PoCA offences
s330 - failure to disclose if you know or suspect or have reasonable grounds to know or suspect someone is laundering , can identify the person and receive information in the course or business in the regulated sector
s333A tipping off.
After disclosure to NCA, when can you authorise or undertake act
If authorised to do so by NCA, or seven working days has passed from the disclosure to the NCA during which authority to proceed has not been refused, or NCA initially refused consent during notice period and 31 days starting with day firm was told it has been refused have expired.
Non direct offences only apply in…
the regulated sector.
What type of legal work do MRL 2017 not apply to
Employment or most litigation cases.
What does standard CDD entail
identify customer verify their identity, nature of business relationship, if a company its name, number, place of business, names of directors etc, identify beneficial owner (over 25% shareholding).
when would you use enhanced CDD
High risk country or a person established in a high risk country, in relation to correspondent relationships, if someone is a politically exposed person or is the family member or a close associate of one.
Also if the transaction is complex or unusually large, or there is a weird pattern, no apparent economic or legal purpose… basically — FISHY!!
When could simplified CDD be appropriate?
Public administration, publicly owned enterprise, financial or credit institution, company on regulated market, individual resident in geographical low area of risk.
Also life insurance policies with no premium, pension schemes that meet certain prescribed conditions, child trust fund, junior isa.
usually verification needs to take place before the establishment of the relationship. However, in what case could the verification happen during the establishment of the relationship?
The delay is necessary to not interrupt the normal conduct of business and there is little risk of money laundering or terrorist financing occurring.
What are regulated activities FSMA
Dealing in investments, arranging deals in investments, managing investments, advising on the merits of investments.
Specified investment + specified activity.
What are specified investments FSMA (Half of equation for regulated activity)
Rights under contract of insurance
Shares in a company
Instruments creating or acknowledging indebtedness
Government and public securities
Rights under a pension scheme
Regulated mortgage contracts (not loans to buy offices or loans to companies0.
What are specified activities FSMA (Half of equation for regulated activity)
Dealing in investments as principal or agent
Arranging deals in investments
Managing investments
Advising on the merits of investments (this includes giving advice requiring an element of opinion AND a recommendation to a course of action).
What are the three main FSMA exclusions?
Regulated activities that are a necessary part of other services carried on in the course of a profession (cannot be renumerated separately - also this exclusion doesn’t count for contracts of insurance and certain investment firms)
Regulated activities in connection with the sale of a body corporate (50% more of shares or day to day control)
Authorised persons (T is entered on advice of authorised person or client is clearly not seeking an has not sought advice from solicitor on merits of transaction)
s327 FSMA and Scope Rule 2 to make the activity an exempt one:
s327:
= Person carrying on regulated activity must be member of a profession
= not receive commission unless they account to client for this
= specified activity must be provided in a way incidental to provision of professional services
=person must only carry out regulated activities they are permitted to carry out as a result of s332 (scope rules)
Scope rule 2:
= activities arise out of or are complementary to the provision or a particular professional service to a particular client
= there is not an order or direction under FCA s328/329 in force preventing from carrying out these activities.
IF the activity is an exempt regulated activity, law firm needs to ensure it complies with SRA scope rules and is authorised by SRA in relation to this activity. If not, it needs to be authorised by the FCA or refuse to carry out activity.