Regulatory Role of SRA

Question 1

Indemnity Insurance

Answer 1

1. Min (£3m) + adequate + approp for firms
2. Adequate + approp for charities
3. Adequate + approp for freelance sol IF carrying on reserved activities – BUT must cover both unreserved and reserved if exercising at least some reserved activities.

Question 2

Reserved legal activities (6)

Answer 2

(1) Right of audience
(2) litigation
(3) probate
(4) reserved instrument activities – land
(5) notorial
(6) administration of oaths

Question 3

When can people exercise reserved legal acitivities witout being authorised by regulatory body?

Answer 3

When they are exempt.

Most common: When they are a party to the proceedings - right to be litigant in person.

Question 4

How to determine adequate and appropriate coverage?

Answer 4

1. Historic claims experience of the firm
2. Nature of clients
3. Value of matters
4. Transparency and info provided to clients about insurance coverage.

Question 5

Disbursement

Answer 5

Payments to experts, court fees, and counsel’s fees.

Question 6

What are the requirements for a lawful fee sharing arrangement under the SRA Code of Conduct?

Answer 6

The SRA Codes of Conduct provide that all fee sharing agreements with a third party must be in writing. Additionally, the client must be informed of any fee sharing arrangement that is relevant to their matter.

*NB - Not necessary to have written consent from client.

Question 7

In what circumstances can a firm act for two clients competing for the same objective?

Answer 7

Exception to conflict of interest rules applies where two or more clients are competing for an objective which, if attained by one client, will make that objective unattainable to the other(s).

A firm may act for both clients in this situation where:

(1) the clients have given informed consent, given or evidenced in writing, to the firm acting;
(2) where appropriate, the firm puts in place effective safeguards to protect the clients’ confidential information; and
(3) the firm is satisfied that it is reasonable to act for all the clients. These conditions are met here.

Question 8

In what circumstances can a freelance solicitor carry out reserved legal activities?

Answer 8

These include that the freelance solicitor must have

• three years’ post-qualification experience,
• must take out and maintain adequate and appropriate insurance,
• must not hold client money, and
• must notify the SRA that they are acting as a freelance solicitor.