SRA Code of Conduct and Business Rules

Question 1

SRA Principles

Answer 1

1. Act in a way that upholds RoL and proper
   administration of justice
2. public trust and confidence in the profession
3. with independence
4. honesty
5. integrity
6. encouraging equality, diversity, inclusion
7. best interests of client

Question 2

In what ways are solicitors expected to maintain trust and act fairly?

Answer 2

• not unfairly discriminate by allowing personal views to affect professional relationships and service you provide.
• not abuse position by taking unfair advantage of clients.
• perform all undertakings you commit to within agreed timescale (or none, within reasonable time)
• not mislead or attempt to mislead = court, clients, and others via both own acts/omissions or those of others (incl. client’s)

Question 3

In what ways are solicitors expected to conduct themselves in dispute resolution proceedings?

Answer 3

• not misuse/attempt to + tamper with evidence.
• not try to influence substance of evidence.
• not provide or offer benefit to witnesses dependent upon nature of evidence provided/outcome in case.
• not place one’s self in contempt of court and comply w/ court orders
• not waste court’s time
• draw attention to cases, statutory provisions, or procedural irregularities of which one is aware + likely to have material effect on case’s outcome.
• only make assertions/statements/submissions = properly arguable

Question 4

Standard of service and competence expected of solicitors

Answer 4

• Only act on clients’ instructions or someone properly authorise to do so on their behalf. Do not act unless satisfied client is acting on their own free will.
  +
  overriding duty to protect client’s best interests, even if impossible to ascertain their best wishes (but still have legal authority to act).
• provide competent and timely service.
• keep up to date with professional knowledge and skill to maintain competence to carry out role.
• take into consideration client’s attributes, needs, and circumstances.
• if supervise/manage others providing legal services - (I) vicariously accountable for their work + (II) ensure they are effectively supervised
• ensure individuals you manage = competent and maintain their knowledge up to date too.

Question 5

What additional standards are set on firm managers/supervisor?

Answer 5

• vicariously accountable for their work.
• ensure individuals managed are effectively supervised when carrying out client work
  +
  competent and maintain their knowledge up to date too.
• not act as manager/employee in business that holds themselves out to be a solicitors’ firm unless it is an authorised body

Question 6

How are solicitors expected to act vis-a-vis client money and assets?

Answer 6

• properly account to client for any account for benefits received as results of their instructions
• not accept any benefit except where they have consented.
• safeguard client money and assets
• not personally hold client money unless sole practitioner (must still keep money segregated from own)

Question 7

Steps solicitors must undertake where they have referred client to 3rd party, or been introduced by 3rd party to a client

Answer 7

Ensure
- clients is informed of any personal/business’ interests in referring client to 3rd party (or vice versa)
- client is informed of any fee sharing arrangement that is relevant to their matter
- fee sharing agreement is in writing
- not receive/make payments relating to referral/introduction of client subject to criminal proceedings

• ensure that client is acquired in way that does not contravene SRA’s regulations (hold client = same SRA-conduct standard).

Question 8

Presumption for referral fees received by a solicitor

Answer 8

• payment in treated as a referral fee unless contrary is shown

Question 9

A solicitor may only refer or divide a client’s matter with a separate business, if they obtain __________ from client?

Answer 9

Informed consent!

Question 10

What additional obligations are imposed on solicitors carrying out reserved legal services activities in a non-commercial body?

Answer 10

1. need to ensure body takes and maintains indemnity insurance;
2. insurance provides adequate and appropriate cover in respect of both reserved and non-reserved activities.

Question 11

Duty of _____ overrides duty of ______

Answer 11

Duty of confidentiality overrides duty of disclosure

Question 12

What two duties underpin solicitor’s overarching duty to avoid conflicts of interest?

Answer 12

1- NEVER act where there is a personal conflict or significant risk.

2- not act where conflict of interest or significant risk of one between clients (unless exceptions apply)

Question 13

When can a solicitor still act, notwithstanding risk of conflict between separate clients’ interests?

Answer 13

• if clients have substantially common interest.
• clients are competing for same objective (ie. auction) BUT provide:

1. informed consent evidenced in writing
2. effective safeguards are placed to protect their respective confidential information.
3. satisfied = reasonable to act for all clients

• ensure account for prospect of future conflict arising.

Question 14

Limits on solicitors’ duty of disclosure

Answer 14

1. client gives informed consent in written waiving right to information being disclosed to them.

2- reason to believe it would cause physical or mental injury to client or another party.

3- information acquired via mistaken disclosure of a privileged document.

Question 15

Can a solicitor take on a new client even where their interests conflict with those of a former client?

Answer 15

NO - duties act in best interests of former client and keep their information confidential = everlasting!

• either former client’s informed consent to act for new client
  AND
• ensure effective measures are taken to safeguard former client’s confidential information.

Question 16

What procedure should solicitors undertake to ensure they avoid conflicts of interests?

Answer 16

Conduct a conflict check whenever receiving new instructions both by new and existing clients.

If firm has overseas office, must also check client work there.

Question 17

What information are solicitors’ obliged to disclose to clients at the time engagement regarding complaints handling?

Answer 17

1. Ensure that clients are informed in writing about:
   - right to complain to you about your services and your charges;
   - how such complaint can be made and to whom;
   AND
   - right to complain to the Legal Ombudsman and when they can do so.

Question 18

If a client wants to raise a complain about your services, who should they first complain to?

Answer 18

firm itself - expected under SRA regulations for firms to have their own internal complaint mechanism.

Question 19

If complaint is not resolved to client’s satisfaction, what next steps must a solicitor undertake?

Answer 19

After 8 weeks = passed

Inform client in writing of:

1. right to complain to Legal Ombudsman (+timeframe/contact details)

AND

2. if all internal complaints procedures have been exhausted that:
   - inform them you cannot settle complaints but instead suggest name of ADR body (+ whether you agree to use scheme operate by that body)

Question 20

To which members of the public can solicitors make unsolicited approaches to advertise their legal services w/ out breaching SRA code?

Answer 20

current and former clients

Question 21

What is an exception to the rule require solicitors to disclose any material information they are aware of that would be of use to their client?

Answer 21

If solicitor acquires knowledge of the information in a mistakenly disclosed document that is privileged.

Question 22

Where a solicitor is aware that the COLP has chosen not to report, what they suspected to be a serious breach of SRA rules, what obligation do they have, if any?

Answer 22

Solicitor still holds personal responsibility to ensure that serious potential breaches of SRA’s regulatory arrangements are reported.
- Follow-up on matter or report matter directly to the SRA.

Question 23

Within what time must a solicitor comply with an undertaking?

Answer 23

within reasonable time, provided no agreed timescale has been given.

Question 24

Under the Code of Business rules, how long must records made under these be retained?

Answer 24

at least 6 years from the date record was made

Question 25

When concluding a contract of insurance, what requirement must a solicitor comply with?

Answer 25

1) Provide client with a statement of the client’s demands and needs;
2) If any personal recommendation is given, must provide a ** personalized explanation** as to why it is the best option for them.
* recommendation requires solicitor to have a good-grasp/experience with the sector.

same idea for a regulated credit agreements

Question 26

What is one key point to note about the prohibition of referral fees in personal injury cases?

Answer 26

Prohibition only applies to claimant clients!

• unless defendant makes a counterclaim.
• note that even an indirect commission from ie. ATE firm is prohibited

Question 27

Where a solicitor refers a client to a separate bsuiness, what steps must be complied with?

Answer 27

Client must give informed consent.
* consent is also needed where a firm decides to split client’s matter with a separate business.

Question 28

What is a ‘separate business’ in the context of client referrals/recommendations?

Answer 28

body that is connected in someway to solicitior/firm.

Question 29

What is required for a solicitor’s conduct in their private life to amount to a breach of SRA’s Code of Conduct?

Answer 29

The conduct must touch realistically upon the individual’s practice of the profession and in a way that is demonstrably relevant.