The Regulatory Role of the SRA Flashcards
How does the SRA approach regulation?
Risk based approach, so they focus on assessing the risk to them achieving their regulatory objectives
Their focus is on misconduct most likely to harm the public interest
As well as authorising individuals to carry out reserved legal activities, firms can be authorised as well. What types of business are eligible for authorisation?
- Recognised sole practice – solicitor who practices alone; they own and are responsible for the firm in its entirety
- Recognised body – a ‘legal services body’ where all managers and interest holders are legally qualified can apply for authorisation
i) Might take the form of a partnership, LLP or incorporation as a company
ii) Interest holders hold shares or can exercise voting rights
- Licensed bodies – must be at least one manager authorised by the SRA or other approved regulator and it needs to be a ‘licensable body’
When a firm is authorised by SRA, what other requirement must they meet?
They must have a COLP and COFA at all times
How does an individual become authorised by the SRA to carry out reserved legal activities?
Authorisation for an individual involves admission as a solicitor and obtaining a practicing certificate
- Admission means that an individual is accepted into the profession and their name is placed on the roll of solicitors kept by the SRA
- An admitted solicitor can apply for a practising certificate if their name is on the roll, if they have sufficient knowledge of written and spoken English or Welsh and they are not suspended from practice as a solicitor
Give some details about admission as a solicitor
They need the required qualifications, training and need to meet the character and suitability rules
The main considerations of the Character and Suitability Rules are criminal conduct and other conduct or behaviour
Conduct is classed as ‘most serious’ or ‘serious’
Would types of conduct would need to be declared to SRA in light of their Character and Suitability Rules?
Cautions by police (any criminal activity, not just convictions)
Outstanding county court judgment and being unable to satisfactorily manage finances
Fare dodging and other dishonest conduct would need to be declared too
Broadly, any relevant conduct and circumstances
Give some details about practicting certificates
Practicing certificates must be renewed each year and a fee is payable on renewal of the certificate
Anyone acting as a solicitor to have a practicing certificate – practicing without one is a criminal offence
Are freelance solicitors required to be authorised?
No, if they don’t carry out reserved legal activities
Can in-house solicitors perform reserved legal activities?
In-house solicitors can deliver reserved legal activities to their employer, but not to the general public
What is professional indemnity insurance and who is required to have it?
All SRA authorised firms must take out and maintain professional indemnity insurance that is appropriate for its practice and meets the specific requirements of the SRA Indemnity Insurance Rules
Covers civil claims made against a solicitor in the course of their practice
What are the SRA Indemnity Insurance Rules?
For recognised and licensed bodies, the sum insured for any one claim must be at least £3 million and at least £2 million in all other cases – firm cannot exclude liability to below that, however a freelance solicitor or solicitor working for a non-commercial body can
The actual amount should be adequate and appropriate which will vary in each circumstance
Firm must have qualifying insurance in place at all times – must be continuous
Must be taken out with one or more participating insurers (regulated by FCA and have an agreement with the SRA to provide insurance on particular terms)
What do clients need to be told about insurance?
Solicitors must be open with their clients about their professional indemnity insurance provision, including the level of coverage and details of insurer
