Legal services

Question 1

List the Reserved Legal activities (can be undertaken only by authorized by regulatory bodies)

Answer 1

• exercising right of audience
• conduct litigation
• preparing instruments of transfer OR charge
• applying and lodging documents under Land registration Act
• preparing instrument (document) related to real or personal estate
• preparing probate documents
• administering oath

Question 2

what is minimum insurance coverage for legal companies

Answer 2

• 2-3 mln pounds
• adequate and appropriate

Question 3

what should be considered to define adequate and appropriate insurance

Answer 3

• value of matters
• claims history

Question 4

when freelance solicitor does not need indemnity insurance

Answer 4

if he doesn`t provide reserved legal services. therefore, no need to register as sole practitioner with SRA

Question 5

when freelance solicitor does not need register as sole practitioner to provide reserved legal services

Answer 5

• 3 years pqe
• not hold client`s money
• maintain adequate insurance

Question 6

Put in short conditions when:
- insurance required for freelance solicitor and when not
- registration of sole practitioner required and when not

Answer 6

Insurance required if carrying out reserved legal service. But no minimal amount, just adequate Registration required if carrying out reserved legal service, Exception - 3 years pqe+no clients money+ adequate insurance

Question 7

Conditional fee arrangement :
If client wins, he pays..
If client loses, he pays

Answer 7

If wins:
solicitor takes usual fees+disbursements from looser . solicitor may take success from client (less than 100% of rates, none for family cases)

If loses:
- no win-no fee
- client pays defendant`s costs and disbursements
- client pays own disbursements

Question 8

Damages based arrangement :
If client wins, he pays..
If client loses, he pays

Answer 8

if Wins:
% of damages + Solicitor takes standard costs + disbursements from looser.
%% should cover costs, disbursements. less than 25% for personal injury
if loses:
solicitor gets no fee, no disbursements.
Client pays other parties fees and disbursements

Question 9

Third-party based funding arrangement : 3rd party pays for..

Answer 9

3rd party pays for solicitor, fees and disbursements, and for after event insurance. Does not pay for others side costs.

Question 10

Name forms of funding (other that self-funding, conditional fee, damage-based, 3rd party)

Answer 10

Legal expenses insurance
Union cover
Civil aid
Criminal aid

Question 11

After event insurance: what insurance will cover

Answer 11

• own disbursements (experts, court fees)
• other party`s costs if unsuccessful

Question 12

Criteria to obtain Criminal aid for litigation

Answer 12

• Defendant
• Means test (no for 18 -)
• merits test (no if interest of justice)

Question 12

Criteria to obtain Civil aid for litigation

Answer 12

• housing disputes, family, debts
• merits test
• finance test

Question 12

Which discrimination can be justified and when

Answer 12

Direct - only age and disability, only if justified to be proportionate means

Indirect - any, but same justified proportionate means, and if no les discriminatory way

No discrimination is services

Question 12

List the protected characteristics under Equality act

Answer 12

Always Do good, really shows more progress.
Age Disability Gender Race Religion Sex Marriage Pregnancy

Question 13

Main regulation for money laundering and State agency enforcing

Answer 13

POCA (Proceedings of Crime Act)
NCA (National Crime Agency)

Question 14

Name 3 stages of money laundering

Answer 14

Placement
Layering
Integration

Question 15

Placement (money laundering) is

Answer 15

Placement of money into finance system

Question 16

What is POCA and NCA

Answer 16

Main regulation for money laundering and State agency enforcing

Question 17

Layering (money laundering) is

Answer 17

Running money through complex financial transactions

Question 18

Integration (money laundering) is

Answer 18

Make funds appear legitimate (Property investment, buying business)

Question 19

What are the two types of involvement into money laundering?

Answer 19

Direct
Indirect

Question 20

Name types of Direct involvement into money laundering

Answer 20

Concealing (покривати)
Arrangement
Acquisition / Use / Possession

Question 21

Name elements of concealing (money laundering)

Answer 21

Concealing, disguise, convert, transfer, criminal property, removing from UK. Also relates to source, location, ownership of property

Question 22

Name mental state of concealing (money laundering)

Answer 22

should Know or suspect

Question 23

Name defenses for concealing (money laundering)

Answer 23

Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if : - had no relevant knowledge or suspicion - made ASAP when become known - made as own initiative

Question 24

Privilege vs Disclosure money laundering

Answer 24

If solicitor knows the money laundering is happening, privilege does not apply. If merely suspects - does apply

Question 25

Name elements of Arranging (money laundering)

Answer 25

Acquisition retention use or control of criminal property

Question 26

Name mental state Arranging (money laundering)

Answer 26

Knew or suspected

Question 27

Name defenses Arranging (money laundering)

Answer 27

Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if : - had no relevant knowledge or suspicion - made ASAP when become known - made as own initiative

Question 28

Name elements of Acquisition, Use, or possession (money laundering)

Answer 28

Acquisition, Use, or possession of criminal property

Question 29

Name mental state of Acquisition, Use, or possession (money laundering)

Answer 29

Know or suspected

Question 30

Name defenses for Acquisition, Use, or possession (money laundering)

Answer 30

- Adequate consideration. If solicitor receives reasonable fee and does not not know and doesn`t suspect the crime nature -Authorized disclosure BEFORE criminal act took place. If DURING - then it is defense only if : - had no relevant knowledge or suspicion - made ASAP when become known - made as own initiative

Question 31

Name types of indirect involvement into money laundering

Answer 31

Failure to report Tipping off Prejudicing investigation

Question 32

Name elements of Failure to report (money laundering)

Answer 32

- Solicitors are obliged to submit suspicious activity reports (SARs). Failure to submit is offence - suspicious activity includes tax overpayment, depositing in with solicitor and then depositing out. - suspicious activity includes any information in course of business

Question 33

Name mental state for Failure to report (money laundering)

Answer 33

Reporting information which involves REASONABLE grounds invites SUBJECTIVE test SHOULD have known or BEEN suspicious

Question 34

Name Defenses for Failure to report (money laundering)

Answer 34

- Privilege and Privileged Circumstances - Lack of training

Question 35

Explain defense for Failure to report (money laundering), namely, Privilege and Privileged circumstances

Answer 35

If privilege is not excluded, then not subject to SAR a) information obtained in connection with giving legal advice b) from client seeking legal advice c) in connection with legal proceedings

Question 36

Name types of Tipping off (money laundering),

Answer 36

- Disclosing that SAR was submit IF this will prejudice investigation - Disclosing and investigation

Question 37

Name exceptions of Tipping off (money laundering)

Answer 37

- normal questions to client to remove any concerns - language included in Standard terms of engagement

Question 38

Name defenses for Tipping off (money laundering)

Answer 38

- Disclosure within Company (undertaking) or Group - Disclosure between institutions - Court order/ to supervisory body/ to prevent client from committing crime

Question 39

Explain Tipping off defense Disclosure within Company/Group (money laundering)

Answer 39

It is not tipping off if disclosed: - to fellow employee within company dealing with same retainer - to other employee within group of companies sharing same ownership, management, control AND business within UK, EEA, equivalent money laundering laws as in EU

Question 40

Explain Tipping off defense Disclosure between institutions (money laundering)

Answer 40

Applies if ALL criteria are met: - between legal professionals (solicitors) - UK, EEA, Equivalent EU - relates to client involving them both - to prevent money laundering - have equivalent professional duties of confidentiality and DP

Question 41

Explain Tipping off defense Disclosure between institutions (money laundering)

Question 42

Name elements of Prejudicing an investigation (money laundering)

Answer 42

- person knows or suspects that investigation is being conducted - makes disclosure that is likely to prejudice investigation - falsifies conceals or destroys documents relevant to investigation

Question 43

Name defenses for Prejudicing an investigation (money laundering)

Answer 43

- did not know or suspect this would be prejudicing - disclosure in connection with legal procedures (legal advice). If solicitors advises client that his transaction probably suspended because of SAR

Question 44

Name the activities (services) which are under risk of money laundering

Answer 44

- Buying selling real property or legal entity - Managing client`s money, securities or assets - Creation operation or managing companies/trusts/foundations -

Question 45

Name procedures that solicitor should have to prevent money laundering

Answer 45

- Controls/SOP/Policies - Identification - Records keeping (min 5 years) - Reporting - Training

Question 46

When DD should be conducted to prevent money laundering

Answer 46

- Long lasting business relations - Occasional (15 000 +)

Question 47

Name Activities and Investments prohibited under General prohibition (FSMA)

Answer 47

ADAMS FM DRIPS Advising, Dealing as agent, Arranging Managing, Safeguarding Funeral plans Mortgages Debentures Insurances Pension schemes Shares

Question 48

Name Investments that are not Specified investments under FSMA

Answer 48

Premium Bonds (national saving product) Interests in land

Question 49

Name exclusions when General prohibition (FSMA) does not apply to solicitor

Answer 49

- when private advise (not in course of business) - Takeover exclusion (selling/buying 50% of shares) - Acting as trustee, Nominee, or Personal representative - Introducing or dealing through FSMA Authorized - necessary part of services (except managing assets or paid separately) - incidental to matter (for SRA - authorized + inform outset)