Regulatory Role of SRA (U1) Flashcards
Who governs the SRA?
Board of 9 members (4 solicitors + 5 lay members)
What is the risk based approach the SRA adopts?
Assesses risk to achieving its regulatory objectives
- Risk = impact of a certain event occurring (potential harm that could be caused) + probability of the event occurring
What should be the firm’s approach to risk management?
Para 2.5 - firms must engage in own risk managements; identify, monitor and manage all material risks
Which businesses are eligible for SRA authorisation?
- Recognised sole practice
- Recognised body
- Licenced bodies
Who can the SRA authorise?
Firms and individuals
What is a recognised sole practice?
Solicitor that practices alone; responsible for firm entirely
What is a recognised body?
Where:
* At least 75% of body’s managers are legally qualified
* They hold at least 75% of the shares or voting right
* Managers who are not legally qualified are approved by SRA
* At least one manager must be solicitor
Can take form of:
* Partnerships
* LLP
* Companies
What is a licenced body?
Alternative business structure and is wholly or partially owned by non lawyers.
How can a licenced body be eligible for authorisation?
- Must be at least one manager authorised by the SRA or another approved regulator AND
- Has to be a ‘licensable body’
What is the effect of authorisation by the SRA for a recognised body?
Recognised body can carry on all reserved legal activities (except notarial activities) AND can carry out immigration work
What is the effect of authorisation by the SRA for a licenced body?
Can carry out same range of activities as recognised body in accordance with the licence granted by SRA
What must a recognised body have at all times?
- Compliance Officer for Legal Practice (COLP)
- Compliance Officer for Finance and Administration (COFA)
- Both approved by SRA
What must a licenced body have at all times?
- Head of Finance and Administration (HOFA)
- Head of Legal Practice (HOLP)
How can an individual be a practicing solicitor?
- Admitted to the roll
- Practicing certificate
What happens if an unqualified person practices w/o a certificate?
Criminal offence
How does a person get admitted as a solicitor?
Applicants must meet qualification and training standards, and the SRA must be satisfied with their character and suitability.
What is treated as most serious in the character assessment and likely to result in an application refusal (criminal)?
Applicant has been convicted by a court of a criminal offence resulting in a custodial or suspended sentence involving:
* Dishonesty
* Perjury
* Fraud and/ or bribery
* of a violent or sexual nature
* Associated with obstructing the course of justice
* Associated with terrorism
* Discrimination towards others.
Caution has been accepted from the police for:
* Offence involving dishonesty
* Violence
* Discrimination
* Sexual offence
* Applicant has been included on the Violent and Sex Offender register.
What is treated as most serious in the character assessment (criminal)?
May result in refusal (e.g., lesser convictions or cautions that are not in the most serious category).
What are the individual’s disclosure obligations?
Applicants must disclose all relevant conduct, including from overseas
Who is eligible for a practicing certificate?
- Be on the roll
- Have adequate English/Welsh language skills
- Not be suspended from practice as a solicitor.
How often must practicing certificates be renewed?
Annually by October 31st, with a fee payable.
Who may be exempt from authorisation?
- Freelance solicitors
- in house solicitors
- non- commercial organisations
What is the effect of professional indemnity insurance?
insurer indemnifies the insured in respect to the loss/damage
Does not absolve the solicitor from liability
What is the minimum coverage of indemnity insurance?
- For recognised and licenced bodies = £3 million
- Other cases = at least £2 million
- Firm must not exclude liability below this minimum level
Which firms does the requirement for adequate and appropriate insurance apply to?
- SRA authorised firms
- freelance solicitors
- non-commercial organisations if providing legal services
