Regulation of Firms Flashcards
(28 cards)
Reserved legal activities
activities which can only be provided by someone authorised by an approved regulator to do so
Examples of reserved legal activities
Rights of audience
Conduct of litigation
Reserved instrument activities
Certain probate activities
Administration of oaths
Give an example of an organisation that may provide reserved legal activities to the public without needing to be authorised
Certain charities are permitted to carry on reserved legal activities under s.23(3) of the Legal Services Act
The SRA categorises the different types of organisation that can be authorised to provide legal services into three types
a sole practice
a legal services body; and
a licensable body
A sole practice
where a solicitor practises on their own account, providing services in their own name, or under a trading name
a ‘recognised sole practice’
a sole practice authorised by the SRA
A sole practitioner can employ several qualified solicitors, as long as those solicitors are not
also principals
A legal services body
a firm within which all managers/interest holders are lawyers. A legal services body can be a partnership, company or a limited liability partnership (‘LLP’).
A recognised body
a legal services body authorised by the SRA
How does a licensable body differ to a legal services body?
In a licensable body, the managers / interest holders include both lawyers and non-lawyers. They must have at least one non-lawyer manager or interest holder.
A licensed body
a licensable body authorised by the SRA (can also be called an alternative business structure (‘ABS’))
How have ABSs changed the legal services market?
non-lawyers are able to share in the management and control of businesses which provide reserved legal activities to the public
How should Law Centres and Legal Advice Centres approach authorisation?
Law Centres and Legal Advice Centres do not have to be authorised by the SRA.
Any pro bono work must be covered by an indemnity
‘reasonably equivalent to that required under the SRA Indemnity Insurance Rules’
An authorised body must at all times have appointed…
a COLP and a COFA
Responsibilities of a Compliance Officer for Legal Practice (COLP)
ensure the firm complies with all the ts and cs of authorisation by the SRA;
ensure the firm complies with its statutory obligations;
record any failures to comply with the firm’s authorisation or statutory obligations and make records available to the SRA; and
report any material failure to the SRA as soon as is practicable
How quickly should a COLP report a material failure to the SRA?
as soon as is practicable
Who is responsible for ensuring that appropriate systems are in place to minimise the risk of non-compliance with CCF?
the COLP
Who is eligible to be a firm’s COLP or COFA?
The COLP or COFA must:
- be a manager or employee of the authorised body;
- consent to the designation;
- not be disqualified from acting as a Head of Legal Practice or Head of Finance and Administration;
- in the case of a COLP, be an individual who is authorised to carry on reserved legal activities by an approved regulator
Can the COLP and COFA be the same person?
Yes, provided they have the necessary skills and fulfil all the criteria
a sole principal whose practice has been authorised as a recognised sole practice is not required to be approved as a
manager of that practice
Requirements for a lawyer to supervise the business
A firm must have at least one manager or employee or must procure the services of an individual who:
a) is a lawyer of England and Wales and has practised as such for a minimum of three years; and
b) supervises the work undertaken by the authorised body
Non-lawyers should not be responsible for the overall
supervision of ‘reserved legal activities’
2 of the main liabilities for firms
rent and salaries
