PC & LS

Question 1

What must organisations do to provide reserved legal activities?

Answer 1

Organisations must be authorised by the SRA to provide reserved legal activities, such as exercising rights of audience, advising on litigation, and administering oaths.

Question 2

What is the purpose of professional indemnity insurance as required by the SRA?

Answer 2

To protect firms against claims for loss or damage made by clients or third parties due to negligent services.

Question 3

What types of providers does the SRA regulate?

Answer 3

The SRA regulates providers of immigration services not regulated by the OISC, claims management services not regulated by the FCA, and other financial activities not regulated by the FCA.

Question 4

What is the purpose of the Equality Act 2010?

Answer 4

To protect people from direct discrimination, indirect discrimination, harassment, and victimisation.

Question 5

What are the protected characteristics under the Equality Act 2010?

Answer 5

Age, gender, disability, gender reassignment, marriage, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

Question 6

What must service providers do for disabled individuals?

Answer 6

Service providers must make reasonable adjustments to their services to avoid placing disabled individuals at a substantial disadvantage.

Question 7

Why are solicitors and law firms targets for money laundering?

Answer 7

They are attractive targets for those seeking to ‘clean’ the proceeds of crime.

Question 8

What does the Proceeds of Crime Act (POCA) require from financial institutions?

Answer 8

POCA requires them to report any suspicions about criminal property or money laundering to the NCA.

Question 9

What do the Money Laundering Regulations (MLR) require from private sector firms?

Answer 9

MLR requires firms to carry out customer due diligence and undertake anti-money laundering risk assessments.

Question 10

What are warning signs that suspicions of money laundering should be reported?

Answer 10

Instructions outside the firm’s expertise, inappropriate use of client accounts, unusual structures for trusts, and instructions from high-risk jurisdictions.

Question 11

What should firms do when they suspect money laundering?

Answer 11

Each firm must nominate a money laundering reporting officer (MLRO) to receive and consider SARs under POCA.

Question 12

What are direct involvement offences under POCA?

Answer 12

Direct involvement offences apply to everyone and include concealing, disguising, or transferring criminal property.

Question 13

What are indirect involvement offences under POCA?

Answer 13

Indirect offences apply only to those in the regulated sector and include failing to disclose suspicions to the MLRO.

Question 14

What is a defence to direct and indirect involvement offences?

Answer 14

A person can defend themselves if they made an ‘authorised disclosure’ to the MLRO before, during, or after the prohibited act.

Question 15

What are the due diligence requirements for customer due diligence (CDD)?

Answer 15

CDD must be conducted when establishing a business relationship, carrying out transactions over 1000 euros, or when there are suspicions of money laundering.

Question 16

What is simplified CDD?

Answer 16

Simplified CDD involves identifying the client and verifying their identity based on reliable documents or information.

Question 17

What is enhanced CDD?

Answer 17

Enhanced CDD examines the background and purpose of transactions, increases monitoring, and obtains additional information.

Question 18

What is the role of the SRA?

Answer 18

The SRA authorises organisations to provide legal services, sets standards for solicitors, and deals with disciplinary matters.

Question 19

What are the SRA Principles?

Answer 19

The Principles require individuals and firms to uphold the rule of law, public trust, independence, honesty, integrity, equality, and client interests.

Question 20

What should solicitors do if the SRA Principles conflict?

Answer 20

The Principles safeguarding the wider public interest take priority.

Question 21

What does the SRA Code of Conduct for Solicitors state about discrimination?

Answer 21

Solicitors must not discriminate and must treat colleagues and clients fairly and with respect.

Question 22

What is required regarding confidentiality in the SRA Code of Conduct?

Answer 22

Solicitors must keep client affairs confidential unless disclosure is required by law or consented by the client.

Question 23

What should solicitors do if they inadvertently mislead the court?

Answer 23

They must inform the court immediately with the client’s consent.

Question 24

What is an own interest conflict?

Answer 24

An own interest conflict arises when a solicitor’s duty to act in a client’s best interests conflicts with their own interests.

Question 25

What is required for a solicitor to act in cases of conflict of interest?

Answer 25

Clients must have a substantially common interest or provide informed consent in writing, with safeguards in place.

Question 26

What is a conflict of interest?

Answer 26

A conflict of interest arises where a solicitor is acting for two or more clients in the same or a related matter and their duties to act in the best interests of each of those clients conflict.

Question 27

When can you act despite a conflict of interest?

Answer 27

You can act if the clients have a substantially common interest or if they are competing for the same objective, all clients have given informed consent in writing, appropriate safeguards are in place, and it is reasonable for you to act for all clients.

Question 28

What should you do when taking instructions from clients?

Answer 28

Act only for clients on instructions from the client or from someone properly authorised to provide instructions on their behalf.

Question 29

How should you maintain competent service?

Answer 29

Keep your professional knowledge and skills up to date and take account of your client’s attributes, needs, and circumstances.

Question 30

What is required for handling complaints?

Answer 30

Participate in a procedure for handling complaints.

Question 31

What are the advertising requirements for legal services?

Answer 31

Ensure that any publicity is accurate and not misleading. Do not make unsolicited approaches to advertise legal services.

Question 32

What must clients be informed of regarding referrals?

Answer 32

Clients must be informed of any financial or other interest in the introduction, any fee sharing arrangements, that the fee sharing agreement is in writing, and that you do not receive or make payments relating to referrals.

Question 33

What are the responsibilities of managers in a law firm?

Answer 33

Ensure the individuals you manage are competent and keep their professional knowledge and skills up to date.

Question 34

What is managerial accountability?

Answer 34

Remain accountable for work carried out through others and effectively supervise work being done for clients.

Question 35

What is required of compliance officers in a law firm?

Answer 35

An authorised body must have a designated Compliance Officer for Legal Practice (COLP) and a Compliance Officer for Finance and Administration (COFA).

Question 36

What should you do if you become aware of ceasing operations?

Answer 36

Actively monitor your financial stability and business viability, and effect the orderly wind-down of your activities.

Question 37

What does the SRA require regarding complaints procedures?

Answer 37

Every law firm must have a complaints procedure that clients should follow before escalating their complaint.

Question 38

What can clients do if they have complaints about poor service?

Answer 38

Complaints about poor service and fees can be referred to the Legal Ombudsman (LO), who has no power to discipline a lawyer.

Question 39

What can be reported to the SRA?

Answer 39

Complaints about misconduct, dishonesty, or breaches of the SRA Principles can be taken to the SRA, which has power to discipline a lawyer.

Question 40

What is the role of the Solicitors’ Disciplinary Tribunal (SDT)?

Answer 40

The SDT deals with the most serious complaints about misconduct and has the power to impose serious sanctions but cannot award compensation to the claimant.