Solicitors Regulation Authority Flashcards
Chapter 2
What is the primary purpose of the SRA?
To protect the public by ensuring solicitors and law firms meet high standards and to take action against those who do not follow the rules. It also aims to support the rule of law and the proper administration of justice.
What are the SRA Principles?
The SRA Principles are fundamental tenets of ethical behavior, including:
○ Upholding the rule of law
○ Maintaining public trust
○ Acting with independence, honesty and integrity
○ Encouraging equality, diversity and inclusion
○ Acting in the best interests of each client
What is risk-based regulation?
The SRA focuses its resources on areas where the risk to the public is greatest, considering both the potential harm and the likelihood of an event occurring. This involves assessing risks at the individual, firm, and profession-wide levels.
What types of businesses are eligible for SRA authorisation?
○ Recognised sole practices
○ Recognised bodies (legal services bodies with at least 75% legal qualification among managers and interest holders)
○ Licensed bodies (alternative business structures (ABSs) where ownership/control is not entirely in the hands of legally qualified individuals)
What are “reserved legal activities”?
These are activities that only authorized persons can carry out, such as conducting court proceedings, preparing documents for land transfer, and preparing probate documents.
What is required for an individual to be authorized to practice as a solicitor?
○ Admission as a solicitor
○ Name on the roll of solicitors
○ A valid practising certificate
What factors does the SRA consider when assessing an individual’s character and suitability for admission?
○ Criminal conduct, categorized as most serious and serious
○ Other conduct, such as dishonesty, violence, harassment, or financial mismanagement
○ The need to protect the public and public interest
What is a practising certificate?
It is a certificate that entitles a solicitor to carry out reserved legal activities. A solicitor needs to apply for renewal annually, and must inform the SRA of material changes. The SRA can refuse or impose conditions on a certificate.
Under what circumstances can a solicitor work outside an authorised firm?
○ As a freelance solicitor, if their practice does not include reserved legal activities, or those activities are provided through an authorised body, or if they meet certain requirements
○ As an in-house solicitor, providing legal services to their employer
○ Working for non-commercial organizations
What is professional indemnity insurance and why is it required for solicitors?
It covers civil claims made against a solicitor due to negligence. It protects the public by ensuring that there are funds available to compensate clients for losses and is compulsory for SRA authorised firms.
What are the minimum insurance cover requirements?
For recognised and licensed bodies, the minimum cover is £3 million for any one claim, and £2 million in all other cases. Firms must have continuous cover.
What does ‘adequate and appropriate’ insurance mean?
Insurance cover needs to be appropriate for the specific circumstances, considering the number and type of clients, the firm’s claim history, and the estimated potential level of claims. This requirement applies to both firms, freelance solicitors and solicitors working for non-commercial organisations.