Legal Services and Professional Conduct Flashcards
What is a damages based fee agreement and what is the maximum?
Fee is % of damages received and capped at 50%.
25% for personal injury.
35% for employment.
What is a no-win, no-fee ‘conditional fee’ agreement?
Capped at 100% of hourly rate.
Does a fee agreement need to stipulate that it is a contentious business agreement?
Yes.
What must be satisfied for someone to receive legal aid?
Merits test
Means test - how poor they are.
Interests of justice test.
If a defendant pleads guilty, are they still eligible for legal aid?
Yes.
Which factors are relevant to the interests of justice test?
Likelihood of jail.
Amount of law in trial.
If witnesses will be cross-examined.
Whether someone besides family has interest in the individual being represented.
In the context of legal aid, when is the interests of justice test automatically satisfied?
In a crown court trial.
What are the income bands for the means test?
Less than 12.7k - automatically eligible.
What is the threshold for satisfying the merits test in civil proceedings?
Around 50% chance of success.
Can a fixed fee be increased halfway through work?
Only if the client agrees. If the client doesn’t agree, solicitor must finish the work.
Which fee agreements can the court assess and set aside?
Contentious agreements only.
When can a solicitor commence claims to recover costs?
One month after invoice.
When will a spouse’s income not be taken into account for the means test?
When the spouse has a contrary interest - eg they want the person to go to jail.
When is a freelance solicitor exempt from having to be authorised as a sole practice?
All legal work is outside reserved activities.
Are in-house solicitors authorised to give legal advice to people outside their company?
Yes as long as there is insurance.
Do non-profit orgs providing legal advice need to be authorised?
No because legal advice is not reserved.
Is professional indemnity insurance required of law firms?
Yes at 3 million minimum.
What are the protected characteristics under the Equality Act 2010?
Race
Sex
Religion
Age
Sexuality
Disability
Marriage
Pregnancy
What is the employment exception to discrimination?
Only people with a particular protected characteristic can perform the job.
What is the prohibited conduct under the Equality Act?
Direct discrimination
Indirect discrimination.
Victimisation: harming someone for doing a ‘protected act’ like filing proceedings.
Sexual harassment.
Can failure to make adjustments amount to discrimination under the Equality Act?
Yes.
Is practicising as a solicitor without being certified a crime?
Yes.
Is it discrimination if a law firm hires people with a protected characteristic that are disproportionately under-represented?
No.
Is the duty to make reasonable adjustments for disabled people anticipatory? Meaning you have to fulfill the duty in anticipation of certain interactions?
Yes.
Is carrying out a financially regulated activity a crime?
Yes.
What are specified investment products?
Stocks
Gilts
Insurance Contracts
Mortgages
NOT land or real estate.
What are specified investment activities?
- Being agent (unless only executing or using authorised third party)
- Arranging (unless just introduction or using authorised third party)
- Managing
- Advising
- Lending
What are the exceptions that apply to all financially regulated activities?
Acting as trustee.
Professionally necessary.
Takeover of 50% or more of a company.
What are the conditions for a solicitor to be able to carry out a regulated activity without authorisation from the FCA?
- Not receiving money from anyone besides client.
- Activity is incidental of legal services AND to the same person.
- NOT insurance distribution activity or recommendation of disposal of rights.
What consumer credit activity between a solicitor and client needs to be authorised by FCA?
If debt is paid over more than twelve payments over more than 12 months or with interest.
If I own 30% of the shares of a company and will purchase 20% more, does that satisfy the ‘takeover’ exception?
Yes.
When can solicitors use an authorised third person for a regulated activity and receive a commission?
When they let the client know about the fee and account to them for it.
Is the provision of generic advice outside the scope of specified regulated activity?
Yes.
Is money laundering training required at all law firms?
Yes.
What can solicitors use for identity verification?
Independent third party documents like passports.
How can a solicitor defend themselves from the corporate offence of failing to prevent criminal facililation of tax evasion?
Risk assessments and preventative procedures.
When is enhanced due diligence required?
Sketchy countries.
Suspicious transactions.
High ranked politicians.
Can a firm represent someone on a sanctions list?
Only with a licence.
What are the offences under the Proceeds of Crime Act 2002?
- Anything involving crime money especially if solicitor is aware.
- Failure to disclose money laundering.
- Tipping off that an investigation is under way.
- Prejudicing an investigation into money laundering.
Is the test for knowing or suspecting that something is crime money subjective or objective?
Subjective but low.
What is a defence to the offences under the Proceeds of Crime Act?
Disclosure as soon as suspicion arises to the nominated officer.
When can a nominated officer give consent to proceed with a suspicious transaction?
If he receives consent from the NCA or does not hear back for seven days.
What must a firm advising on insurance do?
Notify the SRA.
When can a freelance solicitor engage in reserved activities?
After working for three years.
What are the limitations on fee-uplifts in non-contentious agreements?
There are none.
What is the time limit and consequences of a firm running out of indemnity insurance?
They get a 30 day extension in which they can continue working normally. After that, they enter 60 day period where they can only act in continuation of existing instructions.
Can a law firm engage in B2B marketing?
Yes.
When can a firm not accept a referral fee by way of a fee sharing agreement?
When the client is charged with a crime.
Who can a solicitor make unsolicited approaches to?
Only former and current clients.
Can a solicitor advertise to the public?
Yes but only in a non-intrusive and non-targeted way.
Can a solicitor retain a client’s papers through an equitable lien due to unpaid client fees?
Yes as long as a bill has been issued.
What are the conditions for a solicitor to act for two clients with a potential conflict of interest?
Both parties consent.
Measures are in place to protect disclosure of confidential information.
Can you make unsolicited approaches to directors of a company?
Yes because they are not members of the public.
In what form can a solicitor personally hold client money?
Through a third party managed account.
Does a solicitor holding a practising certificate from the SRA need to submit an annual return?
Yes.
Which factors make a gift from a client to a solicitor acceptable?
Value and timing.
Is legal aid available for mortgage possession and family proceedings?
Yes.
Family if there is domestic abuse.
Do you need the client’s permission to disclose their lying to the court?
Yes.
Can solicitors limit their duty in a retainer agreement?
Yes.
