Regulators

Question 1

To whom can a client complain?

Answer 1

• Law firm
  o Each one has a complaints procedure

Legal ombudsman
o If firms internal complains procedure is exhausted, can then refer complaints about poor services or fees from solicitors to the LO
o LO can require solicitor
o To apologise
o Pay compensation
o Correct or put right any error

• SRA
  o If client has a complaint concerning misconduct, dishonesty or breaches of the SRA’s rules.
  o SRA has power to ‘issue a warning to firm
  o Impose disciplinary sanction
  o Reprimand a solicitor
  o Impose restrictions on solicitors’ ability to practice
• Solicitors’ disciplinary tribunal
  o Stike a solicitor of roll
  o Suspend a solicitor
  o Imose a fine
  o Does not have power to award compensation

Question 2

What is professional indemnity insurance?

Answer 2

• When a client or third party makes a claim against a solicitor the claim may be covered by firms’ indemnity insurance policy

Question 3

When is SRA authorisation needed?

Answer 3

• Organisations will need to get SRA authorisation if they provide
• Reserved legal services for the public
  —— these include, rights if audience, conduct of litigation, land registration, certain private activities, administration of oaths.
• Immigrations services
• Claims management services
• Regulated financial activities

Question 4

Advantages of partnerships?

Answer 4

• Flexible structure
• Control and decision making
• Profit sharing
• privacy
• Maintains partnership culture

Question 5

Disadvantages of partnerships?

Answer 5

• Raising finance
• Shared decision making
• Partners running the firm
• Unlimited liability
• Tax burden – falls on individual partners
• Foreign expansion

Question 6

Advantages of LLP?

Answer 6

• Limited liability
• Tax benefits
• Increased funding opportunities

Question 7

Disadvantages of an LLP?

Answer 7

• Less tax efficient than a company
• Increased filing responsibilities
• External investment

Question 8

Regulators?

Answer 8

Legal services board regulated ALL LAWYERS IN England and wales.

SRA regulates solicitors, law firms and individuals who work for businesses authorised by the SRA.
Bar standards board regulated barristers.

Chartered Institute for legal executives - regulates legal executives

Council for listened conveyancers - regulated listened conveyancers

Costs lawyers standards board regulated cost lawyers.