Unit 1 Flashcards
What are the 7 SRA principles?
Solicitors must act:
- In a way which upholds the consitutional principle of the rule of law, and the proper administration of justice
- In a way that upholds public trust and confidence in the solicitors’ profession and in legal services provided by authorised persons
- With independence
- With honesty
- With integrity
- In a way that encourages equality, diversity and inclusion;
- In the best interests of each client.
What Act empowers the SRA to authorise solicitors and firms to carry out ‘reserved legal activities’?
Legal Services Act 2007.
What approach does SRA take to regulation?
Risk-based. The focus is on misconduct which is most likely to harm the public interest.
How does SRA measure risk?
1) Impact of a certain event occuring and
2) Probability that the event will occur
Are firms expected to do their own risk management too?
Yes.
What are the 3 types of businesses eligble for SRA authorisation?
1) Recognised sole practice
2) Recognised Body
3) Licensed Bodies
What is 1) Recognised sole practice?
A sole individual solicitor authorised as a recognised practice by the SRA.
What is 2) A Recognised Body?
A legal services body where:
1) At least 75% of the body’s managers are legally qualified,
2) The proportion of shares and voting rights held by legally qualified persons is at least 75% and
3) Managers who are not legally qualififed are approved by the SRA
4) At least 1 manager must be a solicitor (or registered european lawyer)
How may a recognised body take form?
1) Partnerships
2) Limited liabilityu partnerships
3) Companies
What is 3) a licensed body?
A licensed body is an alternative business structure (ABS).
– ABS = ownership, control or management of an ABS is not wholly in the hands of individuals who are legally qualified
Whatare the requirements for a licensed body?
1) Must be at least one manager who is authorised by SRA or another approved regulator
2) Has to be a ‘licensable body’.
What is a licensable body?
Where a non SRA -authorised person is:
1) a manager of the body; or
2) Is an interest holder of the body (i..e, has shares or voting rights)
OR/AND
1) Another body is a manager of the body, or is an interest holder of the body; and
2) Non-authorised persons are entitled to exercise, or control the exercise of, at least 10% of the voting rights in another body.
What is the effect of authorisation for a licensed body?
Once authorised, a licensed body is entitled to carry out the same range of activities as a recognised body in accordance with the terms of the licence granted by the SRA.
What must a licensed body have in place?
Must have individuals designated as compliance officers (termed Head of Finance and Administration (HOFA) and Head of Legal Practice (HOLP).
What is the effect of authorisation for a recognised body?
Once authorised, recognised body is entitled to carry on all reserved legal activities (except notarial activities).
The business of a recognised body is limited to:
(a) Professional services of the sort provided by individuals practising as solicitors and/or lawyers of other jurisdictions; and
(b) Other professional services set out in annex 2 of the Rules, for example alternative dispute resolution, estate agency and financial services.
What. must a recognised body have in place?
Recognised body must at all times have a Compliance Officer for Legal Practice (COLP), and one who is designated as its Compliance Officer for Finance and Administration (COFA) approved by SRA.
If a firm wants to partake in reserved legal activities, what does it need to do?
Make an application to SRA for authorisation.
What is required for an individual to be authorised by SRA to practice as a solicitor?
1) Admission as a solicitor
2) Obtaining a practising certificate
What are the 3 requirements for a solicitor to be qualified?
(a) He has been admitted as a solicitor; and
(b) His name is on the roll and
(c) He has in force a certificate issued by the Society… authorising him to practise as a solicitor (in this Act referred to as a ‘practising certificate’).
Is it a civil or criminal offence to practise as a solicitor without a certificate?
Criminal.
When is a solicitor admitted to the roll?
When their name is placed on it.
What are the 3 requirements to be placed on the roll?
- Attained required qualifications.
- Undertaken the required training.
- SRA satisfied as to their character and suitability to be a solicitor.
What are the 3 tiers of criminal conduct (in relation to admitting a solicitor)?
1) Most serious – Highly likely to result in application being refused.
2) Serious – May result in application being refused.
3) Other conduct
What types of bhevaiour go into the Most serious category?
1) a custodial or suspended sentence, involving dishonesty, perjury, fraud and/or bribery, of a violent or sexual nature, associated with obstructing the course of justice, associated with terrorism or which demonstrated behaviour showing signs of discrimination towards others.
2) Also includes cases where a caution has been accepted from the police for an offence involving dishonesty, violence or discrimination or a sexual offence or the applicant has been included on the Violent and Sex Offender register.
What types of behaviour go into serious category?
- Include where a caution has been accepted for, or the individual has been convicted or, a criminal offence not falling within the ‘most serious’ category and where an individual is subject to a conditional discharge or a bind over by a court.
What types of behaviour go into ‘other conduct’?
– Cheating on tests/ plagarism
– Avoiding responsibility for their debts
– Being declared bankrupt
– Cannot manage their finance
– Serious disciplinary or regulatory findings/sanctions
When do practising certificates become due for renewal?
31st October every year.
When can a solicitor exercise rights of audience in the higher courts?
(Crown Court, High Court, Court of Appeal and Supreme Court) until they have completed the Higher Courts (Civil Advocacy) Qualification for the Higher Courts (Criminal Advocacy) Qualification.
When can SRA exercise their discretion in renewing or granting practising certificates?
. They can refuse or impose obligations on a certificate if it believes the solicitor to:
(a) Is unsuitable to undertake certain activities or engage in certain business or practising arrangements
(b) Is putting, or is likely to put, at risk the interest of clients, third parties or the public;
(c) Will not comply with, or requires monitoring of compliance with, the SRAs regulatory arrangements; or
(d) Should take specified steps conducive to the regulatory objectives
What can the solicitor do if their application for renewal / grant is rejected by SRA?
– Application for a review by SRA or
– Appeal to High Court
If a solicitor works alone as a freelance solicitor, what is the general rule?
The solicitor needs to be authorised as a recognised sole practice.
What are the exceptions to the general rule that a freelance solicitor needs to be a recognised sole practice?
(a) Their practice consists entirely of carrying on activities which are not ‘reserved legal activities’ (e.g., family, employment or personal injury work and general legal advice)
(b) Any reserved legal activities provided through an authorised body or
(c) Certain requirements are met. For example, the solicitor must have practised as a solicitor for a minimum of 3 years since admission, be self-employed and practise in their own name, take out adequate and proportionate indemnity insurance in respect of all the services they provide, does not employ anyone in connection with those services and only holds limited categories of client money.
For a solicitor engaging in work with a non-commercial organisation, what do they need to practice?
They need to take out professional indemnity insurance that is adequate and appropriate for the work they’re carrying out.
Do non-commercial organisations need to be authorised to provide reserved services?
No.
What does professional indemnity insurance usually cover?
– Legal costs of solicitor defending the claim
– If defence is unsuccessful, the client’s legal costs too.
Do the SRA indemnity insurance rules apply to all firms authorised by SRA?
Yes.
Will Individual assistant solicitors, trainees and others employed by a solicitors’ practice also be covered by professional indemnity insurance?
Yes.
Professional indemnity insurance needs to be taken out with participating insurers. What does this mean?
“Participating insurers” = those who are regulated by FCA and have an agreement with SRA to provide insurance on particular terms.
What are the minimum terms and conditions for professional indemnity insurance?
- Recognised & licensed bodies = Sum insured for any claim must be at least £3million (exclusive of defence costs) and at least £2 million in all other cases.
- Firm must have qualifying insurance in place at all times. It must be continuous.
What are the requirements for continuous qualifying insurance?
Continuous = requires a firm to put a new policy in place as the current policy comes to an end.
If they cannot, the minimum terms and conditions will extend the cover for a maximum of 90 days.
Firm must notify SRA that it has entered into the extended policy period.
If after 30 days no cover can be found, what must the firm do?
Notify the SRA and cannot take on new work.
If at the end of the 90 day period insurance cannot be found, what must the firm do?
Cease practising.
What must professional inmednity insurance be in all cases?
Adequate and appropriate.
Can SRA Authorised firms exclude/limit liability to clients below the minimum level under the SRA’s minimum terms & condcitions?
No.
