Legal Services - FLK 1 Flashcards
What does the Legal Services Board do?
Overlooks and coordinates the regulation of legal services according to the regulations set in the Legal Services Act 2007.
What are the 6 types of reserved legal activities?
The exercise of a right of audience
The conduct of litigation
Reserved instrument activities
Probate activities
Notarial activities
The administration of estates
Who can carry out reserved legal activities?
Anyone authorised by an approved regulator
Which are the approved regulators?
Solicitors Regulation Authority (SRA)
Bar Standards Board (BSB)
CILEx Regulation
Council for Licenses Conveyancers
IP Regulation Board
Costs Lawyers Standards Board
Master of Faculties
What approach does the SRA adopt to regulation
A risk-based approach
How does the SRA asses the suitability of an individual to be a solicitor?
Through the SRA Assessment of Character and Suitability Rules
What are the rules surrounding indemnity insurance?
All firms authorised by the SRA must take out and maintain professional indemnity insurance.
Indemnity insurance cover must meet minimum requirements and be adequate and appropriate.
Firms must be open with their clients about their professional indemnity insurance provisions.
What is a practicing certificate needed for?
Allows solicitor to carry out reserved legal activities. Practicing as a solicitor without the a certificate is a criminal offence.
What characteristics are protected under the Equality Act 2010?
Race
Religion
Sex
Disability
Gender Reassignment
Marriage/Civil Partnership
Pregnancy and Maternity
The Act outlaws certain forms and circumstances of discrimination including:
Direct discrimination
Indirect discrimination
Disability discrimination
Victimisation
Harassment
Discrimination the provision of services and the workplace
What is the duty for disabled people?
Duty to make reasonable adjustments
What does the Act overlap with?
A solicitor’s professional conduct responsibilities
What are the four tests to determine if an activity is a Regulated Activity?
- Are you a business?
- Is there a specified investment?
- Is there a specified investment activity, an activity related to a person’s finances, or administering a benchmark?
- Is there an exclusion?
Which investments are/are not specified investments?
Shares
Debentures
Gifts
Contract of Insurance
Regulated mortgages
Home purchase plans
Deposits
Not relevant:
interests in land
most National Savings products
What are Specified Investment Activities, and which are excluded?
Dealing as an agent
Arranging
Managing
Safeguarding
Advising
Exclusions:
Introducing
Execution-only
Trustee/PR
Professional/necessary
Takeover
Exempt Regulated Activities:
What should firms not authorised by the FCA be aware of?
FSMA 2000
RAO 2001
any rules made by the FCA
SRA Scope Rules
Exempt Regulated Activities:
What are the main conditions for claiming the s 327 exemption?
- The activity must arise out of, or be complementary to, the provision of a particular professional service to a particular client.
- The manner of provision by the firm of any service in the course of carrying out the activities is incidental to the provision by the firm of professional services
- The firm must account to the client for any reward or other advantage which the firm received from a third party
- The Scope Rules do not prohibit the firm using the exemption
Exempt Regulated Activities:
What are the SRA Conduct of business rules?
Best execution
Records of transactions
Records of commissions
Letter to execution-only clients
Insurance distribution activities
Credit-related regulated financial services activities
What are the four questions to determine financial promotions?
- Are you in business?
- Do you make an invitation or inducement?
- Is there a specified investment?
- Is there a specified investment activity?
What are the two special exemptions for professional firms?
- Real-time promotions
- Non-real-time promotions
Other exemptions:
- one-off promotions
- introducers
- trustees, PRs
- takeover of body corporate
What is money laundering?
Money laundering is the process whereby the proceeds of crime are changed so that they appear to come from a legitimate source
What must solicitors comply with in relation to money laundering?
Solicitors who undertake relevant business must comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692).
What officers must be appointed under the 2017 Regulations?
Firms must appoint a money laundering compliance officer and a nominated officer, who will receive internal reports concerning money laundering and must consider whether to report the matter to the NCA.
Key offence under the Proceeds of Crime Act 2002: s.328
Entering into, or becoming concerned in, an arrangement which a person knows or suspects facilitates the retention, use or control of the proceeds of crime
Key offence under the Proceeds of Crime Act 2002: s.329
Acquiring, using or possessing the proceeds of crime
Key offence under the Proceeds of Crime Act 2002: s.327
Concealing, disguising, converting or transferring the proceeds of crime, or removing the proceeds of crime from the jurisdiction of England and Wales
Key offence under the Proceeds of Crime Act 2002: s.330
Failing to disclose information about money laundering to the appropriate authorities
Key offence under the Proceeds of Crime Act 2002: s.331
Failure on the part of a firm’s nominated officer to disclose information about money laundering to the appropriate authorities
Key offence under the Proceeds of Crime Act 2002: s.333A
‘Tipping off’ an individual that an investigation into money laundering is underway
Key offence under the Proceeds of Crime Act 2002: s.342
Prejudicing an investigation into money laundering
What is private funding?
The client pays for the work done based on the solicitor’s hourly charging rate
What are fixed fees?
The client pays a set amount for the work done
What are conditional feee arrangements?
If client wins the solicitor receives an enhanced fee calculated as a percentage of the solicitor’s usual charging rate. If the client loses the solicitor receives a lower fee or no fee.
What are damages-based arrangements?
If the client wins the solicitor receives a percentage of the damages received. If the client loses the solicitor receives no fee.
What is before-the-event insurance?
The solicitor’s fees are covered by an existing policy (e.g. a household insurance policy)
What is after-the-event insurance?
A policy usually taken out to cover the client’s own disbursements and liability for the opponent’s costs in the event of the client losing
What is third party funding?
A third party (usually a commercial funder) agrees to fund to litigation
What is the legal aid scheme?
It allows those who qualify to have their legal fees paid from public funds
What must solicitors do to carry out legal aid work?
Only firms with a relevant contract with the Legal Aid Agency can carry out legal aid work
What is the solicitor’s relationship with the Legal Aid Agency?
The solicitor has an ongoing relationship with the Legal Aid Agency throughout the client’s case and owes certain duties to the Legal Aid Agency
What are the main forms of civil services and when is it available?
Legal Help
Help at Court
Legal Representation
Only available for a limited range of cases
What tests must the client satisfy for civil legal aid?
To qualify for civil legal aid the client must satisfy tests as to their own means and the merits of the case
What is the statutory charge?
The statutory charge operates so that the client may have to repay their legal fees from money or property received or preserved in the proceedings.
When is Criminal legal aid available?
For advice at the police station, under the duty solicitor scheme and by application for a representation order
What tests must the client satisfy to qualify for a representation order?
The interests of justice and the means test
