REGULATORY ROLE OFTHE SRA

Question 1

REGULATED PROVIDERS OF LEGAL SERVICES

Answer 1

In England and Wales, the conduct of all lawyers is overseen by the L**egal Services Board (‘LSB’). Under its umbrella are
seven regulators, who each set out their own rules for the
diferent branches of the legal profession.

Question 2

7 regulators under LSB

Answer 2

*The SRA which regulates solicitors and law frms of England and Wales, non-lawyers who are managers or employees of such regulated law frms, registered
foreign lawyers (‘RFLs’), and registered European lawyers
(‘RELs’);

*The Bar Standards Board which regulates barristers;

*CILEX which regulates legal executives (that is, a type of
lawyer who carries out work similar to that of solicitors in
one specifc area, most commonly property/real estate or
litigation);

*The Intellectual Property Regulation Board which regu-
lates patent and trademark attorneys;

*The Council of Licensed Conveyancers which regulates
individuals and frms which specialise in real estate/prop-
erty/probate transactions;

*Costs Lawyer Standards Board which regulates costs
lawyers who specialise in the preparation of bills and
schedules of costs; and

*The Master of the Faculties who regulates notaries.

Question 3

6

Reserved Legal Activities
The following activities–known as reserved legal activities–can be undertaken only by those who are authorised by the regulatory bodies above:

Answer 3

*Exercise of a right of **audience **– having the right to appear in and address a court, including the right to call and examine witnesses;

*Conduct of litigation – issuing proceedings, defending proceedings;

*Reserved instrument activities – preparing any instru-
ment of transfer or charge, applying and lodging documents under the Land Registration Act 2002, or pre-
paring any other instrument relating to real or personal estate, which includes a contract for the sale of land;

*Probate activities – preparing any probate papers or court documents related to probate proceedings;

Notarial activities – preparing, witnessing, and certifying documents, and non-contentious legal work, such as wills and administration of estates; and

***Administration of oaths **– administering an oath or taking afdavits.

Question 4

Professional Indemnity Insurance

Answer 4

The SRA requires regulated frms to have professional
indemnity insurance when they provide legal services. The
SRA Professional Indemnity Rules set out the minimum cov-
erage which frms must purchase (which is either £2 million
or £3 million per claim depending on the legal structure of
the regulated entity), but frms also must ensure that insur-
ance coverage is adequate and appropriate. This will difer
from frm to frm. **

Question 5

2

Insurance Requirements forSolicitors Outside Firms
Freelance solicitor

Answer 5

1. A freelance solicitor is someone who practises on their own (without any employees), **in their own name **(that is, not through a company or trading name), and whose clients engage and pay them directly. If the freelance solicitor does not carry out reserved legal activities, they do not need authorisation as a sole practitioner firm with the SRA and therefore do not have an obligation to provide indemnity insurance.
2. Subject to a number of conditions, a freelance solicitor can carry out reserved legal activities without being
   authorised as a sole practitioner firm by the SRA. These include that the freelance solicitor must have three years’ post-qualifcation experience, must not hold client money (with minor exceptions), and must take out and maintain adequate and appropriate insurance. They do not have to purchase insurance on the SRA’s minimum terms (referred to above) but need to notify the SRA that they are acting as a freelance solicitor.

Question 6

Insurance Requirements forSolicitors Outside Firms

Answer 6

Another category of solicitor with obligations in relation to professional indemnity insurance are those in
non-commercial bodies which provide** reserved legal activities** to the public, for example, not-for-proft organisations, independent trade unions, and community interest companies. The solicitor must ensure that** the body takes out and maintains indemnity insurance** with adequate and appropriate coverage.
EXAMPLE
A solicitor works for a charity and gives advice on litigation in the course of their work for the organisation. They must make sure that the charity has professional indemnity insur-ance which is adequate and appropriate.**