Solicitor Regulation Authority

Question 1

what is the SRA?

Answer 1

• The SRA is the regulatory body for solicitors in England and Wales

Question 2

what does the SRA do?

Answer 2

• The SRA sets the Standards and Regulations (StaRs) for law firms, solicitors, registered European lawyers and registered foreign lawyers.

Question 3

what does StaRs include?

Answer 3

o SRA principles
o Codes of Conduct
o Account Rules
o Glossary

Question 4

what happens if there is a failure to comply with STaRs?

Answer 4

• Failure to comply with StaRs may result in SRA using Enforcement Strategy.

Question 4

what is the purpose of the enforcement strategy?

Answer 4

The Enforcement Strategy sets out the approach to taking regulatory action

Question 5

give an example of breach of ‘upholds the constitutional principle of the rule of law and proper administration of justice’

Answer 5

misleading the court.

Question 5

what power does the SRA have?

Answer 5

o Prosecute solicitors and firms at the independent Solicitors Disciplinary Tribunal (SDT). (The SDT can issue fines and strike off solicitors)
o Close down firms
o Fine firms and solicitors and set limits on the work they do
o Manage the discretionary compensation fund which can return money to people who has lost money due to a dishonest solicitor

Question 6

What are the SRA principles?

Answer 6

These are mandatory principles with provide solicitors act:
1) In a way that upholds the constitutional principle of the rule of law and proper administration of justice
2) In a way that upholds public trust and confidence in the profession
3) With independence
4) With honesty (singled out on syllabus)
5) Integrity (singled out on syllabus)
6) In a way that encourages equality, diversity and inclusion
7) In the best interests of the client

Question 6

give examples of breaches of ‘upholds public trust and confidence in the profession’

Answer 6

mismanagement of client funds; committing ABH; sending derogatory emails; inappropriate social media posts

Question 7

give examples of breaches of ‘independence’

Answer 7

• client wants you to act for them. You have shares in the company they want to sue. You cannot provide objective advice so must refuse to act.

Question 8

what is the test for dishonesty?

Answer 8

There is a two-stage test for dishonesty:
1. What was the solicitor’s genuine knowledge or belief as to the facts at the time?
 Subjective element i.e. the belief itself need not be reasonable, but it must be genuine

2. In light of this, was their conduct dishonest by the standards of ordinary people?
    Objective element i.e. it doesn’t matter if the solicitor knew or ought to have known the behaviour was dishonest

Question 9

give examples of a breach of dishonesty

Answer 9

taking/using money without agreement, lying or misleading someone or the Court (i.e. saying the case is going well and it has failed or on a CV), helping others to act improperly)

Question 10

what is the likely outcome if there has been a breach of dishonesty?

Answer 10

• Breach of this principle will likely lead to the solicitor being struck off

Question 11

what is the position regarding criminal offences and dishonesty?

Answer 11

• If the solicitor has committed a criminal offence, a conviction is not necessary for a finding of dishonesty

Question 12

explain ‘integrity’

Answer 12

• Overlap with P4 because a solicitor who has acted dishonestly can’t be said to be acting with integrity, but a solicitor can act without integrity and not dishonestly

Question 13

give examples of a breach of integrity

Answer 13

reckless disregard for StaRs and other legal requirements, causing harm, taking unfair advantage of or misleading someone

Question 14

explain ‘in a way that encourages equality, diversity and inclusion’

Answer 14

• Must not allow personal views to affect professional relationships and delivery of services
• P6 also imposes a positive obligation on solicitors to ensure they encourage equality, diversity and inclusion i.e. ensuring equal opportunities, not discriminating, respecting individual differences, encouraging everyone to participate

Question 15

Give an example of acting in a client’s best interests

Answer 15

should decline instruction if you do not have capacity or the client wants advise beyond your area of expertise.

Question 16

what happens if two principles conflict?

Answer 16

• If two principles conflict, the principle that safeguards the wider public interest takes precedence

Question 17

what may happen if there has been a breach of principles?

Answer 17

• SRA may use their Enforcement Strategy if there is a breach and a breach may amount to professional misconduct

Question 18

when do the SRA principles apply?

Answer 18

they are mandatory and apply to conduct inside and outside of practice

Question 19

what do the SRA codes of conduct set out?

Answer 19

• COC for Firms and a COC for solicitor and foreign lawyers - sets out the standards of professionalism required

Question 20

what happens if there has been a failure to comply with COC?

Answer 20

• Failure to comply with the COCs means the SRA can take action against the body or its managers

Question 21

what must every firm have?

Answer 21

• Every firm must have:
  o Compliance Officer for Legal Practice (COLP); and
  o Compliance Officer for Finance and administration (COFA)

Question 22

what is the role of the compliance officer for legal practice?

Answer 22

• The COLP must to reasonable steps to:
  o Ensure the firm’s compliance with the terms and conditions of authorisation and regulatory arrangements
  o Promptly report potential serious breaches of the account rules or other regulatory arrangements to the SRA

Question 23

what is the role of the compliance officer for finance and administration?

Answer 23

• The COFA must to reasonable steps to:
  o Ensure firm’s compliance with SRA accounts rules
  o Promptly report potential serious breaches of the account rules or other regulatory arrangements to the SRA

Question 24

what is the liability of COLP/COFA?

Answer 24

• Any failure to comply ultimately lies with manager, but COs may be liable if they fail to meet their duties

Question 25

how are the SRA involved with the appointment of compliance officers?

Answer 25

COs need to be approved by the SRA