Professional Conduct Principles

Question 1

What 3 requirements must lawyers comply with?

Answer 1

Legal, regulatory, ethical

(See principles and CCS)

Question 2

Do lawyers owe a duty to the public?

Answer 2

Yes

Question 3

What are the 7 principles of ethical behaviour?

Answer 3

1) ROL/ admin of justice
2) Public trust/ confidence
3) Independence
4) Honesty
5) Integrity
6) EDI
7) Client’s best interests

Question 4

Do principles apply to your personal life as well as professional?

Answer 4

Yes

Question 5

If principles conflict, which takes priority?

Answer 5

Those safeguarding wider public interest rather than indv client

Question 6

CCS: how broad and who checks your compliance?

Answer 6

Covers any conduct which touches realistically upon your practice of the profession. You are personally responsible for your compliance

Question 7

What does the CCF cover?

Answer 7

CCS standards plus others, inc: internal systems/ controls; managers’ responsibilities, COLP and COFA requirements

Question 8

COLP

Answer 8

Compliance Officer for Legal Practice

Ensures firm complies/ records failure to comply with t&cs of SRA authorisation and statutory obligations + report any material failure to SRA as soon as practicable

Day to day ensures CCF standards met by firm, staff, managers. Esp CCF 2 (compliance and business systems), CCF 4 (service and competence)

Requirement for clear and effective governance structure and reporting lines (CCF 2.1) underlies standards above

Question 9

COFA

Answer 9

Compliance Officer for Finance and Administration

Ensures firms comply with SRA Accounts Rules 2019 + reports any serious breaches of them to SRA promptly

No prescribed systems to achieve the above but many firms use risk mgmt policy and financial mgmt policy

Question 10

CCS: consequences of breach

Answer 10

Serious. Regulatory action by SRA

Question 11

CCF: consequences of breach

Answer 11

Serious. Regulatory action by SRA against Firm/ managers/ compliance officers AND employees responsible for breach

Question 12

What are the 7 priority risks for the legal profession?

Answer 12

1) Anti ML
2) Client money (looked after)
3) Diversity (public trust)
4) Cyber security (confidential + sensitive personal info; money)
5) Integrity/ ethics (trust and confidence - clients and public)
6) Meeting legal needs (what clients can afford + funding options; display prices and info about services on website)
7) Standards of service (behaviour and competence)

Question 13

8 CCS and CCF requirements to address 7 risks to the profession

Answer 13

1) Keep client money safe (CCS 4.2)
2) Not take unfair advantage of clients (CCS 1.2)
3) Ensure solicitors’ instructions reflect client’s wishes (CCS 3.1)
4) Address EDI (CCS 1.1; CCF 1.5)
5) Provide clear complaints procedure (CCS 8.2 - 8.5)
6) Provide clear info to client about service provided and cost (CCS 8.6 + 8.7)
7) Update legal knowledge regularly
8) Ensure work of junior lawyers is properly supervised

Question 14

Keeping knowledge up to date CCS and CCF

Answer 14

CCS 3.2 (competent and timely service); 3.3 (knowledge and skills); 7.1 (governing law and regs of your work)
CCF 4.3 (prof knowledge and skills + understanding of legal/ ethical/ regulatory requirements)

Question 15

Supervision of junior lawyers

Answer 15

CCS 3.5 (managers are accountable and supervisory)
CCS 3.6 (ensure indvs are competent and update their knowledge of legal/ ethical/ regulatory obligations)
CCF 4.4 (use effective system for supervising client matters - NOT necessary for person to be legally qualified/ they just need suitable experience/ knowledge/ competence and guidance on how to refer issues outside their authority ‘upwards’)

Question 16

What are the 3 Cs used whenever you receive new instructions?

Answer 16

1) Customer Due Diligence (CDD)
2) Conflict checks
3) Client care letters

Question 17

Where does CDD come from and when should it be carried out?

Answer 17

MLR 2017. Reg 27 of it says CDD should be carried out when:

1) Est. business relationship
2) Carrying out occasional transaction
3) Suspect ML or terrorist financing

Question 18

What is CDD? (Ie. KYC)

Answer 18

1) ID client (name and address)
2) Verify their identity (original docs like passport; conduct it electronically; obtain info from other regulated people like banks)

Each firm has its own policy

Question 19

Own interest conflict or significant risk of one (CCS/ CCF 6.1) - can you act? Why?

Answer 19

GR = no. No exceptions

Upholds Principles 2 (trust), 3 (independence), 4 (honesty), 5 (integrity), 7 (best interests)

Egs: financial interest of yours or someone close to you (eg DD on company you have shares in), personal or business relationship of yours (eg friend involved in client’s claim), your role as an employee (eg client in dispute involving your employer), your conduct as indv or firm (eg wrong advice)

Question 20

CCS/ CCF 6.2 - CANNOT act if there is a conflict of interest or significant risk of one, UNLESS (x2 exceptions):

Answer 20

1) Clients have substantially common interest in whole or part of matter (clear common purpose + strong consensus on how to achieve it/ little negotiation left + satisfy para 6.2(i)-(iii) Codes’ conditions)

2) Clients are competing for same objective + satisfy para 6.2(i)-(iii) Codes’ conditions

Question 21

What are the 3 components constituting the requirement to carry out a conflict check?

Answer 21

1) See if new instructions would conflict with work your firm is doing for another client AND your own interests
2) Nat’l and Int’l firms: would work conflict with work firm is doing for existing client in another office in same country or overseas
3) Do when receiving instruction from new AND existing clients

Question 22

How to carry out conflict check?

Answer 22

1) Search against client name (inc parent or subsidiary companies)
2) Search against client’s company number (inc parent or subsidiary companies)
3) Search names of counter parties to matter

Extra: company name and number being bought; names of directors of client (inc parent and subsidiaries) and company being bought to check conflict; name of matter

Check firm policy

Question 23

What is a client care letter (ie. letter of engagement/ retainer letter)?

Answer 23

Not required under CCS/ CCF but sets out terms solicitor will carry out work on to help client understand what law firm does. Sent out at beginning of matter. Achieves CCS 3 (service and competence) and CCS 8 (complaints handling). Ongoing obligation to let client know if info in letter becomes superseded as matter progresses.

Firms have standard forms

Question 24

Established clients - client care letter requirements altered

Answer 24

Annual letters sent out followed by shorter letters when instructions received on each new matter

Question 25

5 sections to client care letter

Answer 25

1) Confirmation of your client’s instructions and options (client objectives, options available, agreement on next steps, agreement of level of service/ updates)

2) General info on each parties responsibilities (yours, client’s, anything which may limit your actions (eg conflict), advice to client that you may be entitled to a lien in respect of their files (right to retain possession of them) if there are any unpaid costs)

3) Costs info (charging basis, hourly rate if applicable, intervals when will notify client of fees, VAT/ disbursements/ other fees, agreed limits on fees, fee estimate and when it could be exceeded, payment terms)

4) Explanation of name and status of person dealing with matter and their supervisor

5) Complaints procedure (how to complain, who to complain to, firm’s procedure)

Question 26

SRA guidance on client care letters

Answer 26

1) Easy to understand. They must be able to make informed decisions about the services they need, how their matter will be handled, options available (CCS 8.6) and regulatory protections available to them (CCS 8.11)
2) Contains right info/ transparent (CCS 8): what is going to happen/ when/ by who at firm (without representing any business not authorised by SRA) (CCS 8.10). Also costs, what client needs to do, contact details, clear purpose, concise, plain English, considered needs of vulnerable clients
3) Timely delivery/ as soon as practicable after receiving instructions on new matter

Question 27

3 good reasons to terminate client’s retainer

Answer 27

1) When cannot obtain clear instructions
2) When continuing to act would break law or breach Codes
3) Client failed to pay interim bills

(NOT on self-interest grounds)

Question 28

3 situations when you CANNOT accept instructions

Answer 28

1) Breaching the law or codes, eg fraud; conflict of interest (Principles 1 and 2; CCS)

2) When you cannot provide a competent service, eg not your area of expertise; too busy (CCS 3.2)

3) When you’re not authorised to act in your client’s behalf (if you have reason to believe instructions do not represent wishes of your client, you cannot act) (CCS 3.1)

Question 29

Principles: there’s a conflict between acting in best interests of each client and acting with independence/ honesty/ integrity, which wins?

Answer 29

Acting with independence/ honesty/ integrity

Question 30

Acting with integrity vs acting with honesty?

Answer 30

Integrity is broader than honesty, eg misleading client or court only breaches honesty

Integrity is about being scrupulous, careful, and accurate

Question 31

What are the 3 circumstances where SRA may take action against an indv for lack of integrity?

Answer 31

1) Taking unfair advantage of a client or member of the public
2) Allowed another person to take unfair advantage of someone else
3) Misled another person or stood by and allowed another person to be misled

Question 32

CCS 1.1

Answer 32

Do not unfairly discriminate/ do not let personal views (religious, political, etc) affect the way you provide legal services

Link to principle 7

Question 33

CCS 1.2

Answer 33

Do not abuse position by taking unfair advantage of clients or others. Eg don’t take advantage of other party’s lack of legal knowledge

Question 34

CCS 1.4

Answer 34

Do not mislead client, courts, or others by acts or omissions of yourself or others

(Eg tell client it’s a strong case when it isn’t; draft docs with unarguable facts; allegations crime/ misconduct/ fraud unless material to case and you have reasonable grounds; call a witness whose evidence you know is untrue; not disclosing statutory provision to court which goes against your argument ; making false representations on behalf of client to third party or giving personal opinion)

If realise midway through proceedings that YOU inadvertently misled court, with client’s consent, immediately inform court. If client doesn’t consent you must stop acting for that client

If realise midway through proceedings that CLIENT committed perjury or misled court (or attempted to), cease to act unless client agrees to disclose truth to court

Question 35

EDI

Answer 35

Equality = level playing field and people treated fairly
Diversity = encourage and value people with board range of backgrounds, knowledge, skills, experience
Inclusion = accept people for who they are and encourage everyone to participate and contribute

Question 36

3 reasons EDI is important

Answer 36

1) Effective admin of justice (independent justice system + ROL)
2) Improving access (shared social and cultural characterises can encourage people to ask for help)
3) Most talented people become solicitors and progress. Maintains high standards

Question 37

SRA’s EDI requirements (x4)

Answer 37

Principle 6 (encourage EDI)
CCS 1.1
CCS 1.2
CCS 3.4 (consider client’s attributes, needs, circumstances)

Question 38

SRA EDI guidance for solicitors (x5)

Answer 38

1) Reasonable adjustments for clients and employees to make sure they’re not at a substantial disadvantage. Cost not passed on to others. Positive obligation. Firm has no discretion if adjustments are reasonable (eg minimal cost and disruption to business)
2) Encourage diversity throughout workforce
3) Collect, report, publish data about diversity of workforce
4) Uphold profession’s reputation in professional and personal life; treat people with fairness/ dignity/ respect; ensure personal views don’t have negative impact on others (inc expressed on social media)
5) Be fair and inclusive

Question 39

SRA EDI guidance for firms/ employers

Answer 39

1) Produce EDI statement for workforce/ clients
2) Monitor and analyse diversity of staff and clients
3) Draft and implement EDI policy outlining their approach to recruitment/ retention/ progression. Encourage equality of opportunity and respect for diversity
4) Recruitment policy and fair process for promotions to get best staff
5) Encourage senior leaders to identify and remove barriers to EDI

Question 40

CCS 1.3

Answer 40

Perform all undertakings (statement, which someone relies on reasonably, that you or third party will do or not do something) in an agreed timescale, or if there isn’t one, within a reasonable time

Question 41

SMART drafting of undertakings - define

Answer 41

Specific (be clear on what is involved)
Measured (quantifiable)
Agreed
Realistic (within solicitor’s control)
Timed

Any ambiguity construed in favour of recipient

Question 42

Undertakings info

Answer 42

1) Failure to perform = serious disciplinary offences, eg misconduct
2) Can be given by any indv at firm
3) Does NOT have to be in writing
4) Word ‘undertaking’ does not need to be mentioned (so never promise to do something outside of your control, esp when junior)
5) They are specifically enforceable = firms have system in place to keep track of them, eg electronic accounting safeguards to reserve money for certain undertaking
6) Firms often only allow partners or senior lawyers to give undertakings to pay another party’s costs

Question 43

Dealings with the court info

Answer 43

A solicitor is an officer of the court and has an overriding duty to the court.

CCS 2: don’t waste court’s time, don’t place yourself in contempt of court, only make assertions/ statements/ representations/ submissions which are arguable

Question 44

CCS 2 - your duty to the court

Answer 44

2.1Don’t use or tamper with evidence (or attempt to)
2.2 Don’t seek to influence substance of evidence (inc false stuff, persuade witnesses to change theirs, etc)
2.3 Don’t provide (or offer to) any benefit to witnesses dependant on nature of their evidence or outcome of case
2.4 Only make assertions/ statements/ representations/ submissions which are arguable
2.5 Comply with court orders and don’t place yourself in contempt of court
2.6 Don’t waste court’s time
2.7 Draw court’s attention to relevant cases/ provisions/ procedural irregularities which you know of and are likely to have material effect on outcome of proceedings

Question 45

SRA requirements for level of service

Answer 45

1) Competent and timely (CCS 3.2)
2) Maintain competence, skills, knowledge (CCS 3.3)
3) Consider client’s attributes, needs, circumstances (CCS 3.4) - you must be competent enough to help them
4) Managers accountable for and supervise your work (CCS 3.5)
5) Managers ensure people they oversee keep knowledge/ skills/ legal/ ethical/ regulatory understanding up to date (CCS 3.6)
6) Solicitor only acts on instructions from client or someone properly authorised. If suspect instructions don’t represent client wishes, do NOT act unless satisfied they do
7) Keep up to date with law and regulations governing how you work (CCS 7.1)

Question 46

CCS 4.2

Answer 46

Safeguard client money and client assets. Comply with Accounts Rules and other legal obligations, eg MLR

Question 47

Introductions

Answer 47

Third party introduces client to you for payment

Payment often a fixed fee OR calculated with reference to the amount being charge to client (% of gross or net fees)

Often in express contractually binding written agreements, but informal arrangements are covered by CCS 5.1 (preserving firm’s and solicitor’s independence)

Client must not have been acquired in way that would breach SRA regs if person acquiring is regulated by SRA

Question 48

Referrals

Answer 48

You introduce client to third party

(Remember Principle 7 - only act in client’s best interests)

Question 49

CCS 5.1 - introductions, referrals, fee arrangements

Answer 49

Preserving integrity and independence of firm and solicitor

A) Inform client or financial or other interest you/ your business/ your employer has in referring client to another person OR introducer has in referring client to you (CCS 5.1(a))

B) Inform client or any fee sharing arrangement relevant to their matter (CCS 5.1(b))

C) Fee sharing arrangement in writing (CCS 5.1(c))

D) No payments for introductions or referrals involving clients who are subjects of criminal proceedings (CCS 5.1(d))

E) Don’t acquire client by breaching SRA regs (if person acquiring is regulated by SRA) (CCS 5.1(e))

(Remember principle 7 - client’s best interest)

Question 50

Introductions/ referrals - Personal Injury/ death cases

Answer 50

CANNOT refer or receive referrals (latter in an introduction) for a fee in respect of claimant’s claim for damages UNLESS through intermediaries (eg claims management companies) if payment is genuinely for services provided (s56(1) LASPO)

Firm/ referrer must prove any payment is for consideration of services or other genuine reason OTHER THAN referral fee

Report referrer to SRA if they insist on payment of referral fee

CAN accept instructions/ act for client that’s been introduced if the referring firm agreed not to charge referral fee

Question 51

Introductions/ referrals - commissions received from third parties

Answer 51

You gain any tangible benefit (financial or otherwise) there is a risk of own interest conflict

Satisfy yourself and COLP that referral is purely for benefit of client and financial benefit to you/ firm is a by-product

Properly inform client of any financial or other interest you/ firm has in referring them (CCS 5.1(a))

Question 52

Introductions/ referrals - good practice

Answer 52

1) Written statement to client that your advice is independent
2) Confirm to client that info they disclose is confidential
3) Regularly monitor any potential client conflict issues where you’re also acting for referrer/ introducer on same matter (if conflict, cease acting for one of the parties)

Question 53

Bribery Act 2010

Answer 53

Offence for UK citizen or resident to pay or receive bribe directly or indirectly. Ind companies/ partnerships where bribe paid on their behalf

Anti-bribery policies in firms, eg appointing enquiry agents, or around receiving corporate hospitality or gifts

Question 54

CCS/ CCF 6.2 - conflict of interest elements

Answer 54

1) Arises out of same or related matters (asset/ liability is the same or there’s a close relationship between them)

2) Duties owed to your clients conflict

Question 55

CCS/ CCF para 6.2(i)-(iii) conditions

Answer 55

(i) all clients give or evidence informed consent in writing (they must have appropriate knowledge and understanding + if more vulnerable you must take this into account)

(ii) you put effective safeguards in place to protect clients’ confidential info (established structural separation within firm so confidential info cannot pass between lawyers acting for clients on same matter, unless client wants same lawyer to represent them too (very rare)). This condition often stops the SCI or same objective exceptions applying because lawyers have a duty of confidentiality to their clients which means you must stop acting for one or both unless they agree to either of the above

(iii) you are satisfied it is reasonable to act for all clients (knowledge and bargaining power (one more vulnerable = can’t act for both); negotiations (can’t act for both); particular benefits (specialist knowledge, speed, lower cost))

Question 56

Duty of confidentiality (CCS/ CCF 6.3) - who does it apply to?

Answer 56

Applies to all former and current clients (inc firm you used to work for, client who has moved firm, after client’s death etc)

Question 57

X4 exceptional circumstances when duty of confidentiality can be breached

Answer 57

1) Statute requires govt and other bodies (eg HMRC) to require disclose of docs/ info

2) When overridden by statutory or regulatory reporting requirements (eg MLR 2017, Proceeds of Crime Act 2002, anti-terrorism legislation)

3) Where you need to reveal info to support defence in civil claim brought against you by client (eg negligence claim for against firm) or in a criminal prosecution

4) Cases involving child being sexually or physically abused/ their health (mental or physical) is in danger = can breach duty by informing appropriate authority, even if client imparting info refuses to permit disclosure

Question 58

Duty of disclosure (CCS/ CCF 6.4) - what is it?

Answer 58

Places a personal duty on indv solicitor to disclose all info to client which is material (reasonably expected to effect client’s DM in matter which is significant when considering matter as a whole) to their case which SOLICITOR has PERSONAL KNOWLEDGE of

Exists to protect clients

Up to the firm to decide if lawyer can continue acting for that client or not

Question 59

X3 exceptions to duty of disclosure/ when it does not have to be complied with

Answer 59

A) Disclosure prohibited by legal restrictions for national security and prevention of crime (6.4(a))

B) Client gives or evidences informed consent in writing (to info not being disclosed) (6.4(b)) - most common. Client must have some understanding of importance of info to their case and any prejudice there may be in non-disclosure, so you need to give indication of broad nature of info and relevance to matter (link to Principle 7 - client’s best interests would include disclosure not causing prejudice)

C) You have reason to believe serious physical or mental injury will be caused to client or another if info is disclosed (6.4(c))

D) Info is in privileged doc you only know about because it was mistakenly disclosed (6.4(d))

Question 60

Conflict between duty of confidentiality and duty of disclosure?

Answer 60

Duty of confidentiality takes precedence

Question 61

Adverse interests (CCS/ CCF 6.5)

Answer 61

Do not act for a client who has an interest adverse (one party is likely to become opposing party on a matter) to the interests of another current or former client for whom you hold confidential info which is material to that matter, unless:

1) Effective measures have been taken which result in there being no real risk of disclosure of confidential info (CCS 6.5(a)). Eg systems identifying potential confidentiality issues; separate depts handling cases at all levels; separate servers and printers; encrypted and password protected info; indvs aware of who is doing what work; appropriate organisational policies and staff training. High test/ info barriers.

2) Current or former client whose info you hold gives informed consent to you acting (CCS 6.5(b)). Client needs an understanding of any possible prejudice which could occur. Another person should ask for consent as you can’t without confidential info being disclosed to you

Question 62

Complaints handling - general

Answer 62

1) Every law firm must have a procedure for handling complaints (CCS 8.2)

2) You must inform client in writing of procedure at time of engagement of right to complaint, how to complain/ who to complain to, right to complain to Legal Ombudsman and when (CCS 8.3). Often in client care letter

Question 63

Complaints handling - practical

Answer 63

Complaints dealt with properly, fairly, free of charge (CCS 8.5)

If client complains and it hasn’t been resolved in 8 weeks, inform them in writing:

A) Right they have to complain to legal ombudsman, time frame, contact details

B) If your complaint procedure has been exhausted: i) you cannot settle complaint, ii) name and website for ADR approved body to take things on, iii) whether you agree to use scheme operated by that body (CCS 8.4)

Question 64

Costs

Answer 64

In client care letter (not required but advised) and meeting with client (at time of engagement and throughout matter). Give ‘best possible info’ (CCS 8.7)

Transparency/ accuracy/ not misleading: charges (inc circumstances when interest is payable) and complaints (CCS 8.8)

Keep track of costs and warn client of possible escalations/ keep their expectations realistic

Question 65

Publicity relating to the firm/ practice (inc charges)

Answer 65

All promotional materials and activities in any form, exc press releases prepared on behalf of client

NOT misleading (CCS 8.8)

Solicitors cannot make unsolicited approaches to public to advertise legal services (exc current or former clients) (CCS 8.9)

Question 66

SRA Transparency Rules - info solicitors should make available to current and potential clients

Answer 66

Rule 1: Costs info (publicised on website in clear, accessible, and prominent place (Rule 1.6))

Services to indvs (Rule 1.3)
- Conveyancing of residential property
- Collection and distribution of assets following a death
- Immigration applications and matters
- Road Traffic Offences
- Certain advice to employees on unfair and wrongful dismissal

Services to businesses (Rule 1.4)
- Certain advice to employers on unfair and wrongful dismissal
- Debt recovery up to £100k
- Certain advice in relation to licensing applications for business premises

Costs info to publish (Rule 1.5)
- Total cost of service, or if not poss an average or range
- Basis for charges (hourly or fixed fees)
- Experience and qualifications of person carrying out work + supervisor
- Description and cost of likely disbursements
- Applicable VAT and amount
- Details of services inc (and exc if expected to be inc) in price, key stages of matter, likely timescales
- When client pays for conditions fees or damages based agreements (if used)

Rule 4: Regulatory info

• Authorised body must show SRA number and SRA digital badge in prominent position on website (Rule 4.1)
• SRA number and words ‘authorised and regulated by SRA’ in letterhead and emails of authorised body (Rule 4.2)

Question 67

SRA authorisation means firms can to die x4 services. What are they?

Answer 67

1) Reserved legal activities (unless exempt)
2) Immigration services (unless regulated by Office of Immigration Services Commissioner)
3) Claims management services (unless regulated by FCA)
4) Regulated financial activities (unless regulated by FCA)

Question 68

What are reserved legal activities (s12 LSA 2007) and who can provide them?

Answer 68

Someone authorised by an approved regulator

1) Rights of audience (appear before and address court, examine witnesses)
2) Conduct of litigation
3) Reserved instrument activities (preparing instrument of transfer or change relating to land, and other instruments relating to real or personal estate)
4) Notarial activities
5) Probate activities
6) Administration of oaths

Question 69

Firms - compliance obligations with SRA regs and risk mgmt

Answer 69

Nothing prescribed but:

1) Must have effective governance structures, systems, and controls (CCF 2.1(a))
2) Keep records to demonstrate compliance. (CCF 2.2)
3) Actively monitor financial stability and business viability. Effect orderly wind-down if have to cease to operate (CCF 2.4)
4) Identify, monitor, manage all material risks to business (CCF 2.5)
5) Effective system for supervising client matters - NOT necessary for person to be legally qualified/ they just need suitable experience/ knowledge/ competence and guidance on how to refer issues outside their authority ‘upwards’ (CCF 4.4)

Question 70

Firms - who’s responsible for compliance

Answer 70

Managers and owners of firm - joint and several (‘manager’ = sole principal of sole practice, LLP member, director of company, partner of partnership, member of governing body) (CCF 8.1)

Every firm must have COLP and COFA + appointments must be approved by SRA (SRA’s Authorisation of Firms Rules 2019 8.1). These people ensure the right systems, procedures, and checks are in place to minimise the risk of non-compliance

Question 71

COLP + CCF

Answer 71

Must take all reasonable steps to ensure:

• Compliance with t&cs of firm’s authorisation (CCF 9.1(a))
• Compliance by firm, managers, employees, persons with interest in firm with applicable SRA regs
• Firm’s managers, interest holders, employees, etc don’t cause or substantially contribute to breach of STA regulatory arrangements (CCF 9.1(c))
• Prompt report made to SRA of any serious breach with t&cs of firm’s authorisation or SRA’s regulatory arrangements which apply to firm/ managers/ employees (CCF 9.1(d))

Question 72

Who can be COLP and COFA (x4 criteria must be met)? Can it be same person

Answer 72

1) Manager or employee of authorised body
2) Consent to the designation
4) Not be disqualified from acting as Head of Legal Practice or Head of Finance and Administration
5) COLP: authorised to carry on reserved activities by an approved regulator

Same person can do both roles, but unlikely for big firms

Question 73

Authorised body

Answer 73

Licensed by SRA to practice as a licensed/ recognised body OR sole practitioner’s authorised/ recognised as sole practice

Question 74

Approved regulator

Answer 74

Listed under Legal Services Act 2007. Includes SRA and the Law Society

Question 75

Supervision of the firm’s business as a whole

Answer 75

SRA must approve any manager or owner of firm (Part 4 of SRA Standards and Regs AFR 9.1). X2 exceptions:

1) Sole principal whose practice has been authorised
2) If SRA is satisfied that manager of authorised body is not involved in day to day strategic mgmt of authorised body, compliance by authorised body with SRA regs, or the carrying on of reserved legal activities/ provision of legal services in Eng&Wal

Question 76

Supervision of the firm’s work/ business (AFR 9.4(a) + (b)) - who does it?

Answer 76

A manager or employee or lawyer (Eng&Wal) who has practiced for at least 3yrs

Note: non-lawyers should NOT be responsible for overall supervision of reserved legal activities (issue with ABS - they must now employ at least one lawyer qualified to supervise)