The 3 C's

Question 1

what are the 3 C’s?

Answer 1

customer due diligence, conflict check, client care letter.

Question 2

is a client care letter mandatory?

Answer 2

no, but is a good way in meeting SRA’s requirements.

Question 3

what is ccs 3.1 about acting for clients and permission?

Answer 3

act only for clients on instructions from the client or someone properly authorised to provide instructions on their behalf.

Question 4

must clients be informed on their right to complain?

Answer 4

CCS 8.3- ensure clients are informed in writing at the time of engagement about their right to complain, how a compliant is made and a right to complain to legal ombudsman.

Question 5

how must cost information be relayed to clients?

Answer 5

always by writing!

Question 6

are there any exceptions to the own interest rule?

Answer 6

NO, you do not act if there is an own interest conflict or a significant risk of an own interest conflict.

Question 7

what are the two exceptions to conflicts of interest?

Answer 7

1. substantially common interest and
2. competing for the same objective.
3. all the client have given informed consent, given or evidenced in writing, to you acting.
4. where appropriate, you put in place effective safeguards to protect your clients’ confidential information and
5. you are satisfied it is reasonable for you to act for all the clients.

Question 8

what is a substantial common interest>

Answer 8

clear common purpose between clients and a strong consensus on how it is to be achieved.
RARE.

Question 9

what is competing for the same objective?

Answer 9

any situation in which two or more clients are competing for an “objective” which, if attained by one client, will make that “objective” unattainable to the other client or clients.

e.g competing to buy a business at an auction or through a tender process.

Question 10

what is a conditional fee arrangement>

Answer 10

‘no win, no fee’ , if successful, solicitor will be paid their usual fee PLUS a success fee.
Success fee is based on actual fee not damages.
Losing side does NOT have to pay success fee.
must not exceed 25% for personal injury cases.

Question 11

what is a damages based agreement?

Answer 11

Solicitor will NOT get back their own fees.
be paid a proportion of damages.
capped at 25% for PI, 35% for employment and 50% for all other cases/