SGS 5 Flashcards
Structure of a Money Laundering Q?
Start with 27(1)
Relevant person (8, then move to 12)
Business relationship 4
What is CDD? 28
When? 30(2) or (3).
What is the structure of a FSMA question?
s. 19(1)
s. 22
Check whether you have specified investment
Check whether you are carrying out a regulated activity
What sections of the SRA are relevant to acting for a borrower and a lender in the context of a borrower wishing to withhold information?
P(4)
O(4.1) & (4.2)
O(4.3) - confidentiality overrides disclosure obligations.
P(2): if lender appoints new solicitor - must act with integrity and cannot lie to new solicitor during title enquiries.
What sections of the SRA are relevant to acting for a borrower and a lender where terms of the loan are still up for negotiation?
P(4)
O(3.5), exceptions in (3.6),(3.7).
Glossary definition of client conflict
IB (3.7) / IB(3.3)
What Its are relevant to acting for buyer and seller?
- 14: default position - unlikely to achieve O(3.5) if acting for buyer and seller.
- 3 supports this
- 5: cannot represent client even handedly.
Mortgage fraud question?
Same up until O(4.3).
Then additionally, consider P(1): duty to uphold the rule of law and P(2): duty to act with integrity.
Need to terminate retainer as only basis upon which it could proceed would be unlawful O(1.3).
Useful phrase to discount O(3.6) and (3.7)
do not have a substantially common interest (‘SCI’) under O(3.6), nor are they competing for the same objective pursuant to O(3.7).
SCI requires a clear common purpose.
Still terms to negotiate so no strong consensus.
Client conflict not peripheral – matters of conflict go to the heart of the loan agreement and security.
What type of advice can be given in relation to a regulated mortgage contract?
Generic advice such as explaining the terms and conditions.
Why will O(3.7) rarely apply?
No tender or auction process.
