Business Requirements

Question 1

What must you do when you make a referral/introduction for a client but you have a financial or personal interest in that referral/introduction?

Answer 1

You must tell the client

Question 2

You pay an estate agent a fee for referrals of conveyancing clients to the firm, when you onboard the client what must you do?

Answer 2

Tell the client about the fee

Question 3

What must you do if you have a fee-sharing arrangement with an accountant to whom you refer clients

Answer 3

You must inform the client of fee sharing matters

Question 4

Can you receive or make payments for referrals/introductions of clients who are subject to criminal proceedings?

Answer 4

Nope

Question 5

What are the prohibited referral fees?

Answer 5

In respect of claims for damages RE personal injury or death

Question 6

Can you pay a personal injury claims management company a referral fee for a personal injury client referral?

Answer 6

No

Question 7

Does the prohibition on referral fees for personal injury clients also apply to ancillary claims arising from the same circumstances, like an uninsured loss recovery claim?

Answer 7

Yes

Question 8

What is good practice for you to do regarding the payment/receipt of referral fees?

Answer 8

Retain records and management information

Question 9

What is a ‘separate business’ of a solicitor?

Answer 9

1. A business you/your firm owns or is owned by or which you actively participate in or control or otherwise connected
2. which is not an authorised body, an authorised non-SRA firm or an overseas practice

Question 10

What actions require a client’s informed consent in respect of a separate business?

Answer 10

1. Referrals, recommendations or introductions to that business
2. Dividing a client’s matter between you and the separate business, or allowing the matter to be divided

Question 11

Can an individual solicitor be a manager/employee/member/interest holder of a business with a name that includes the word “solicitor” or describes its work in a way suggesting its a solicitor’s firm it that business is not an authorised body of the SRA?

Answer 11

No

Question 12

Do you have to ensure that the charity you carry out reserved legal work for maintains indemnity insurance for you?

Answer 12

Yes

Question 13

What level of indemnity insurance must be covered?

Answer 13

Adequate and appropriate cover for ALL services you provide, reserved and unreserved

Question 14

What re reserved legal activities?

Answer 14

1. Exercising a right of audience
2. Conducting litigation
3. Preparing instruments relating to real/personal estate
4. Probate papers
5. Notarial activities
6. Administration of oaths

Question 15

Does a firm have an obligation to maintain business systems to ensure compliance with SRA conduct requirements?

Answer 15

Yes

Question 16

Must a firm keep records of its compliance with SRA regulatory requirements?

Answer 16

Yes

Question 17

Must a firm actively or passively monitor its financial stability and viability?

Answer 17

Actively

Question 18

What happens if a firm becomes aware that it will cease to operate?

Answer 18

It must effect an orderly wind-down of its activities

Question 19

Who is responsible at a firm for the firm’s compliance with the Code of Conduct of the SRA?

Answer 19

The manager

Question 20

If there are several managers, is their duty to ensure compliance joint, or joint and several?

Answer 20

Joint and Several

Question 21

What does a firm’s Compliance Officer for Legal Practice do?

Answer 21

Ensure compliance with the SRA regulatory framework and report any serious breaches of the firms terms and conditions of authorisation or SRA regs to the SRA

Question 22

What does a Compliance Officer for Finance and Administration do?

Answer 22

Report breaches of SRA Accounts rules to the SRA and ensure compliance with SRA Accounts Rules