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Old sqe > Professional conduct > Flashcards

Professional conduct Flashcards

1
Q

Conflict checks - when to carry out and against whom

A

1) before taking a new instruction
2) client + counterparty’s parent, subsidiary, directors (inc overseas)

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1
Q

3Cs

A
  1. customer due diligence (MLR) 2. conflict check 3. client care letter
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2
Q

Own interest conflict and conflict of interests

A

1) own interest conflicts 2) conflict of interests - 2 exceptions: a) substantially common interest and b) competing for the same objective

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3
Q

Substantially common interest exception

A

= clear common purpose and agreement re: how to be achieved

condition: informed consent evidenced in writing, effective info safeguards, satisfied that reasonable

ie residential sale of property can usually act for seller and buyer, but usually not commercial

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4
Q

Competing for the same objective exception

A

both have one objective where if one client gets it would be unattainable for other client

condition: informed consent evidenced in writing, effective info safeguards, satisfied that reasonable

objective = asset, contract, business opportunities acquired through liquidation

ie insolvency, auction, tender process (not public takeover)

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5
Q

Authorisation to act on client’s behalf

A

ie identity check, written permission from spouse, when acting for company must be instructed by validly appointed director who has authority

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6
Q

Relationship between solicitors can be what potential kind of conflict of interest

A

own interest - ie closest friend at another firm asked to act for buyer and you for seller

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7
Q

Duty of confidentiality

A

current past and dead clients
exceptions 1) where disclosure required/allowed by law ie HMRC, National Crime Agency 2) where client gives written consent

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8
Q

Duty of confidentiality v disclosure; which takes precedence

A

Duty of confidentiality

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9
Q

Duty of disclosure

A

= must accessibly tell client of all info material to matter that personally know

exceptions - 1) legal restrictions 2) written informed consent 3) serious physical or mental injury 4) info in privileged doc mistakenly disclosed

(individual duty, not required to have knowledge of entire firm)

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10
Q

Conditions for termination

A

1) cannot get clear instructions 2) continuing acting would break law or breach CCF/CCS 3) failed bills - only if specific contractual agreement

nb not in CCF/CSS

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11
Q

Client care letter requirements

A

1) general - how/which services regulated, ensure only act of authorised bodies 2) costs - likely overall cost, publicity re: must not be misleading, “best possible info” about how will be priced 3) complaints - how can make complaints and how to contact Legal Ombudsman

nb not explicitly required by CCF/CCS

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12
Q

FSMA: specified investments

A
  1. shares
  2. regulated mortgages contracts
  3. contracts of insurance
  4. bonds
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13
Q

FSMA: specified activity

A
  1. arranging deals in investments
  2. advising on merits of investments
  3. dealing in investments
  4. managing investments
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14
Q

FSMA: excluded activities

A
  1. intro to authorised person
  2. necessary part
  3. sale of a body corporate (= 50% or more voting shares else something else indicating full control)
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15
Q

FSMA: basic conditions in in s 327 + SRA Scope Rule 2

A
  1. member of profession 2. no commission 3. incidental 4. complementary

(1-3 327, 4 Scope Rule 2)

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16
Q

FSMA: general advice

A

outside scope of act

17
Q

Offences under Proceeds of Crime Act: Direct involvement offences

A
  1. applies to everyone
  2. concealing, disguising, converting or transferring criminal property/removing from UK (s327)
  3. involved in arrangement where know facilitates acquisition, retention, use or control of crime property
  4. acquiring using or possessing criminal property

(one event can = more than one offence)

defence = authorised disclosure to nominated officer (ie MLRO) or was outside UK, not unlawful, and not prescribed by Sec of State

18
Q

PCA: non-direct involvement offences - failure to disclose

A
  1. applies to regulated sectors
  2. failure to disclose offence - know/suspect money laundering + receive that info while working in regulated sector + can identify who was laundering or where property is
19
Q

FSMA s19 general prohibition

A

prohibition on regulated activities unless authorised or exempt

20
Q

FSMA: if does not fulfil s327 and SRA Scope Rule 2

A

firm must be authorised by FCA or PRA + comply with rules in handbook or refuse to carry out activity

if not approved and carries out then breach of s19(1) = criminal offence

21
Q

PCA: non-direct involvement offences - tipping off

A
22
Q

PCA: how long to wait after disclosure before proceeding

A

no further work until

  1. authorised by NCA
  2. notice period - seven working days have passed and NCA has not refused authority to proceed
  3. NCA refused consent during notice period + moratorium period (31 days from day firm received notice consent refused) expired
23
Q

PCA: tipping off

A

offence to tell client 1. has been report 2. disclose investigation being considered/carried out

24
Q

Money laundering - suspicious fact patterns

A
  1. seller and buyer with similar names/same address
  2. seller and buyer from jurisdiction outside UK
  3. ‘mistakes’ re: overpayment to client account
  4. third party sending money (not client)
  5. client asking to send money to third party
  6. docs showing seller and buyer with similar signatures
  7. clients attempting to pay large amounts in cash
  8. offshore vehicles being made parties to deal
  9. money coming from or being sent to offshore tax havens
25
Q

Money laundering - high risk jurisdictions

A
  1. N Korea (Dem People’s Republic)
  2. Iran
  3. Myanmar
  4. Yemen
  5. Iraq
  6. Syria
  7. Afghanistan

(not Russia)

26
Q

CDD: Companies - identify and verify

A
  1. name of company
  2. company number
  3. address of registered office
  4. law to which is subject
  5. constitutional documents
  6. names of directors and senior management
27
Q

CDD: Companies - beneficial owner (individual or legal person)

A
  1. identity check of beneficial owner = person who owns/controls company

= person who owns or controls > 25% of shares or voting rights in entity or who otherwise exercises control over entity

if = legal person ie trust or company, take reasonable measures to understand ownership/control

28
Q

Enhanced CDD: Indicators

A
  1. high risk country (N Korea, Iran, Myanmar, Yemen, Iraq, Syria, Afghanistan)
  2. politically exposed person (ie public office)
  3. false ID
  4. complex transaction ie unusually large transactions w no apparent legal/economic purpose
29
Q

Enhanced CDD: action

A
  1. background and purpose of transaction
  2. additional info on client, source of funds, beneficial owner
  3. increase monitoring
  4. additional verification from independent and reliable sources
30
Q

Simplified CDD: indicators

A

customer is =

  1. public administration (ie local authority)
  2. publicly owned enterprise
  3. financial or credit institution
  4. company listed on regulated market (ie London Stock Exchange)

nb not individuals, = standard check only

just adjust extend timing or type of CDD to reflect that low risk

31
Q

Crown court = first instance + appellate court for magistrate’s or youth court

A
32
Q

Hierarchy of judges (lowest to highest)

A
  1. Lay magistrates
  2. District judges / Deputy District judges
  3. Circuit judges/recorders
  4. High Court judges
  5. CA judges
  6. SC judges
  7. President of SC
  8. Lord Justice
33
Q

Police hierarchy (lowest to highest)

A
  1. Constable (PC/DC)
  2. Sergeant (PS/DS)
  3. Inspector (Insp/DI)
  4. Chief Inspector (CI/DCI)
  5. Superintendent (Supt/DSU)
  6. Chief Superintendent (CD/DCS)
  7. Assistant Chief Constable (ACC)
  8. Deputy Chief Constable (DCC)
  9. Chief Constable (CC)
34
Q

Police officer role in investigation hierarchy (lowest to highest)

A
  1. Arresting officer, constable
  2. Custody officer, sergeant
  3. Investigating officer (IO), inspector
  4. Officer in the case (OIC), Chief inspector
  5. Review officer, superintendent
35
Q

Alternative to arrest and charge: written requisition or written summons

A

Summary offences only, 6 month limitation period

36
Q

Solicitors Accounts: Client ledger

A

shows amount of money held in client bank account for client

37
Q

Solicitors Accounts: Cash sheet for client account

A

records payments into and out of law firm’s client account

38
Q

Solicitors Accounts: Cash sheet for business account

A

record payments into and out of law firm’s business account

39
Q

Solicitors Accounts: double entry principle

A

every financial transaction recorded twice, once as CR entry and once as DR entry

using diff accounting records ie client ledger client account and cash sheet client account

40
Q

SRA Principles

A

Act in
1. upholds constitutional principles of ROL and proper administration of justice

  1. uphold public trust and confidence in solicitors’ profession and in legal services provided by authorised persons
  2. with independence
  3. with honesty
  4. with integrity
  5. in way that encourages equality diversity and inclusion
  6. in the best interests of each client

Old sqe (8 decks)

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