Solicitors conduct Flashcards
(169 cards)
1
Q
What is the main role of the Solicitors Regulation Authority (SRA)?
A
To regulate the conduct of solicitors and uphold professional standards in England and Wales
The SRA ensures compliance with the Legal Services Act 2007.
2
Q
What are the SRA Standards and Regulations (StaRs)?
A
Regulatory framework governing the behaviour of solicitors and licensed bodies in England and Wales
The StaRs provide flexibility while demanding high professional judgement.
3
Q
What must be met before a solicitor can join the profession?
A
Standards of character and suitability
Ongoing competence and continual learning are also required after qualification.
4
Q
What is the purpose of the SRA Principles?
A
To represent the fundamental rules of ethical behaviour for individuals regulated by the SRA
The Principles apply to solicitors, RELs, RFLs, and law firms.
5
Q
What does the SRA Code of Conduct for Solicitors establish?
A
Outcome-focused standards of professionalism expected of solicitors, RELs, and RFLs
It illustrates how the mandatory Principles apply in practice.
6
Q
Who is responsible for compliance with the SRA Code of Conduct for Firms?
A
Managers and compliance officers of the firm
They ensure compliance with the SRA’s regulatory arrangements.
7
Q
True or False: The SRA is the same as the Law Society.
A
False
The SRA is a regulator while the Law Society is a representative body.
8
Q
Fill in the blank: The SRA published the Code of Conduct for Solicitors on _______.
A
6 June 2023
9
Q
What is a key requirement for firms under the StaRs?
A
To provide a complaints procedure for clients
This is essential to address client dissatisfaction with legal services.
10
Q
What must clients be informed about when engaging legal services?
A
Their right to complain, how to complain, and their rights regarding the Legal Ombudsman
This is part of the complaints handling requirements in the Code of Conduct.
11
Q
Who can make complaints to the Legal Ombudsman (LeO)?
A
Individuals, micro-enterprises, charities, clubs, trustees, and personal representatives
There are limits based on income and asset value.
12
Q
What is the time limit for making a complaint to the LeO?
A
1 year from the act or omission complained of
The LeO can extend this time limit under certain circumstances.
13
Q
What actions can the LeO take in response to a complaint?
A
Apologise, pay compensation, rectify errors, and limit fees
The total value of compensation is limited to £50,000.
14
Q
What happens once a determination by the LeO is accepted by the complainant?
A
It becomes final and binding, enforceable in court
The LeO’s determination can include various forms of compensation.
15
Q
What is the focus of the SRA’s enforcement strategy?
A
Breaches of the Principles and Code of Conduct deemed serious
The strategy provides guidance on assessing the seriousness of breaches.
16
Q
What must solicitors do if they cannot resolve a complaint within 8 weeks?
A
Inform the client about their rights to escalate the complaint to the LeO
They must provide details on how to contact the LeO.
17
Q
What is the aim of regulating solicitors?
A
To protect the public by ensuring high standards and acting on identified risks
This includes education, entry standards, and ongoing competence.
18
Q
What does the SRA Code of Conduct for Firms primarily address?
A
Expectations around standards and business controls for regulated firms
It also includes obligations for managers and compliance officers.
19
Q
What is the role of the SRA?
A
The SRA is the regulator of solicitors in England and Wales, responsible for protecting the public by establishing and enforcing standards of ethics and professionalism for legal service providers.
SRA stands for Solicitors Regulation Authority.
20
Q
What does the SRA do in response to breaches of the StaRs?
A
The SRA deals with breaches by investigating allegations against individual professionals and firms.
StaRs refers to the Solicitors’ Standards and Regulations.
21
Q
What kind of breaches does the SRA focus on?
A
The SRA focuses on breaches that pose a risk to the public interest and serious breaches, whether isolated or demonstrating a concerning pattern.
This focus aligns with the SRA’s regulatory function.
22
Q
What factors does the SRA consider when determining the seriousness of a breach?
A
The SRA considers:
* Intent or motivation behind the breach
* Harm caused or impact
* Vulnerabilities of the client
* Level of experience of the individual
* Individual’s regulatory history
These factors help the SRA evaluate the appropriate outcome.
23
Q
What types of allegations are considered inherently more serious by the SRA?
A
Inherently more serious allegations include:
* Abuse of trust
* Taking unfair advantage of clients
* Misuse of client money
* Sexual and violent misconduct
* Dishonesty
* Criminal behavior
These types of allegations indicate a significant breach of ethical standards.
24
Q
What is the duty of cooperation under the Code of Conduct for Solicitors?
A
The duty of cooperation includes:
* Responding promptly to the SRA
* Providing full and accurate explanations, information, and documents
* Ensuring relevant information is available for SRA inspection
This duty ensures accountability in the investigation process.
25
What actions can the SRA take if professional misconduct is found?
The SRA may impose sanctions such as:
* Advice or warning
* Rebuke
* Conditions on the individual or firm
* Fines
* Referral to the SDT for suspension or strike off
## Footnote
SDT refers to the Solicitors Disciplinary Tribunal.
26
True or False: The determination made by the LeO is final and binding once accepted by the complainant.
True
## Footnote
The determination can be enforced in the High Court or county court.
27
What is the purpose of publishing decisions of the SRA disciplinary procedure?
To allow the public the opportunity to search for the background and practice record of a solicitor or firm
## Footnote
This reflects the importance of Principle 2, which safeguards public trust and confidence in the profession.
28
What established the Solicitors Disciplinary Tribunal (SDT)?
Section 46 of the Solicitors Act 1974
## Footnote
The SDT is entirely independent from the SRA and the Law Society.
29
Who can make an application to the SDT?
Anyone aggrieved can make a direct application, subject to the provisions of the Solicitors Act
## Footnote
Most applications are made on behalf of the SRA.
30
What is the role of the SDT?
To consider evidence presented by parties and make a determination
## Footnote
The SDT does not have an investigatory capacity.
31
What standard of proof does the SDT use to decide cases?
The civil standard – on the balance of probabilities
## Footnote
This was changed from the criminal standard of proof – beyond reasonable doubt.
32
What powers does the SDT have under Solicitors Act s 47?
The SDT can order:
* Striking off a solicitor's name
* Suspension from practice
* Payment of a penalty
* Exclusion from criminal legal aid work
* Restoration to the roll
* Directions regarding restoration
* Payment of costs
## Footnote
These orders relate to misconduct of solicitors.
33
Where are appeals against judgments of the SDT made?
To the Administrative Court at the Royal Courts of Justice
## Footnote
Appeals must be lodged within 21 days of the SDT’s judgment.
34
What is the consequence of a solicitor's misconduct in court?
A solicitor may face contempt of court proceedings
## Footnote
Solicitors are officers of the court.
35
What duty does a solicitor owe to their client?
A duty of care to exercise reasonable care and skill
## Footnote
A failure resulting in harm can give rise to a claim in negligence.
36
What is the purpose of the Solicitors Compensation Fund?
To pay grants to people who have suffered financial loss due to a solicitor’s dishonesty or failure to account for client money
## Footnote
This fund is established and maintained by the SRA.
37
Summary of key principles
The SRA is the regulator of solicitors in England and Wales, with the power to publish rules
and requirements for the regulation of the conduct of solicitors.
* The StaRs (the Principles and the Code of Conduct) published by the SRA set high ethical
professional standards.
* The StaRs are enforced by the SRA, which deals with breaches of the rules of conduct,
and the LeO, which deals with complaints about the standard of service received. The SDT
adjudicates allegations of misconduct of solicitors (including RELs and RFLs), law firms
and employees of law firms.
38
What are the seven key principles regulated by the Solicitors Regulation Authority (SRA)?
* Upholding the rule of law and administration of justice
* Upholding public trust and confidence
* Independence
* Honesty
* Integrity
* Encouraging equality, diversity, and inclusion
* Acting in the best interests of each client
## Footnote
These principles apply to all authorised individuals and firms regulated by the SRA.
39
What takes precedence in case of a conflict between SRA principles?
Public interest protection principles take precedence over the protection of interests of individual clients.
40
What is the primary purpose of the regulatory system under the SRA?
To maintain and build public trust and confidence in solicitors.
41
What does Principle 1 require solicitors to uphold?
The constitutional principle of the rule of law and the proper administration of justice.
42
What can lead to an investigation by the SRA regarding a solicitor?
Conviction of a criminal offence.
43
What are some examples of conduct that breaches Principle 1?
* Complicity in criminal conduct
* Misleading the court
* Filing misleading documents without informing the court
## Footnote
Examples include money laundering, terrorism funding, or people trafficking.
44
What does Principle 2 emphasize regarding solicitors' conduct?
It requires solicitors to uphold public trust and confidence in the profession.
45
How can a solicitor's private life affect their professional conduct under Principle 2?
Inappropriate or offensive content on social media may undermine public confidence.
46
What is the SRA's stance on solicitors' honesty?
Solicitors must act with honesty, which is fundamental to the practice of law.
47
What is the two-stage test applied by the SRA to determine dishonesty?
* Assess the individual's genuine knowledge or belief at the time
* Determine if their conduct was dishonest by the standards of ordinary decent people.
48
What actions may be considered dishonest behavior for solicitors?
* Taking or using someone else's money without consent
* Misleading clients about their case
* Filing false cases in court
* Lying on a CV
* Creating false documents
## Footnote
This includes misleading courts, insurers, and partners.
49
What does Principle 4 require solicitors to do?
Act with honesty.
50
How is integrity defined in the context of the SRA Principles?
Integrity is a broader concept than honesty and encompasses higher standards expected from professionals.
51
What actions may demonstrate a lack of integrity?
* Wilful disregard of standards
* Taking unfair advantage of clients
* Causing harm or distress to others
* Misleading clients or third parties
## Footnote
This includes sexual misconduct as an example of behavior lacking integrity.
52
What does Principle 6 focus on?
Encouraging equality, diversity, and inclusion.
53
What are solicitors required to comply with under Principle 6?
Anti-discrimination legislation and the provisions of the Equality Act 2010.
54
In what contexts must solicitors uphold the Principles?
In both their professional and private lives.
55
What is the role of the SRA in relation to public trust?
To protect consumers, set and enforce high professional standards, and support access to legal services.
56
What is required of solicitors in their interactions with clients and colleagues?
Solicitors must be fair and inclusive in their interactions
## Footnote
This includes relationships with clients, colleagues, courts, barristers, medical experts, and others they procure services from.
57
What does the Equality Act 2010 require solicitors to comply with?
Anti-discrimination legislation
## Footnote
This is part of the broader duty to uphold human rights and advance human dignity.
58
What must firms implement regarding equality, diversity, and inclusion?
Appropriate policies and procedures that are proportionate to the size of the firm
## Footnote
This is considered good practice according to SRA guidance.
59
What type of complaints procedures are solicitors required to have?
Complaints procedures that are prompt, fair, transparent, and effective
## Footnote
This includes handling complaints of discrimination, harassment, and victimisation.
60
What is the broad requirement imposed on solicitors regarding client treatment?
To treat clients fairly, with dignity and respect
## Footnote
This goes beyond passive non-discrimination to impose positive duties.
61
What adjustments are solicitors required to make for disabled clients?
Reasonable adjustments to assist disabled clients in accessing services
## Footnote
This also applies to employees for fair access to opportunities.
62
List the categories that the SRA expects firms to monitor diversity data on solicitors.
* Age
* Gender
* Ethnicity
* Disability
* Sexual orientation
* Religion
* Education background (state/private school and university)
## Footnote
Monitoring diversity data is part of the commitment to equality and inclusion.
63
What should the approach to equality, diversity, and inclusion include?
Everyone, including those facing disadvantages due to socio-economic background or caring responsibilities
## Footnote
This underscores the importance of inclusivity in policy implementation.
64
What is one of the core duties of a solicitor regarding their client?
To act in the best interests of their client
## Footnote
This includes acting in good faith, maintaining confidentiality, and avoiding conflicts of interest.
65
What is the nature of the relationship between a solicitor and a client?
A fiduciary relationship
## Footnote
This imposes a duty on the solicitor to act in the best interests of the client.
66
What takes precedence when there is a conflict between Principles?
The Principles that uphold the public interest
## Footnote
Especially those serving the proper administration of justice.
67
What does the SRA Code of Conduct for Solicitors establish?
The conduct, behaviour and responsibility required of solicitors and their businesses
## Footnote
It includes the Code of Conduct for Solicitors and the SRA Code of Conduct for Firms.
68
What is the duty of solicitors regarding breaches of conduct rules?
To promptly report any breaches of the conduct rules
## Footnote
Solicitors are personally responsible for compliance with the regulations.
69
What are the requirements for individuals to be admitted as solicitors?
Set out in the SRA Authorisation of Individuals Regulations
## Footnote
These requirements must be met before admission.
70
Who does the SRA Code of Conduct apply to?
Solicitors operating beyond traditional law firms, including freelancers and in-house counsel
## Footnote
Applies regardless of the individual's role or environment.
71
What is the first obligation under the Code of Conduct for Solicitors?
Non-discrimination in professional relationships
## Footnote
Solicitors must not allow personal views to affect how they treat clients.
72
What is the second obligation in the Code of Conduct regarding client relationships?
Not to take unfair advantage of clients or others
## Footnote
Clients should be the beneficiaries in the relationship.
73
What must solicitors ensure regarding their service to clients?
They must act in the best interests of the client and provide competent service
## Footnote
This includes timely advice and up-to-date skills.
74
What should a solicitor do if they cannot act on a client's instructions?
They must ensure the client's best interests are protected
## Footnote
They should not act if they believe instructions do not represent the client's wishes.
75
What is an 'undertaking' in legal practice?
A statement given to someone who relies on it to do or refrain from doing something
## Footnote
It can be oral or written and binds the solicitor and their firm.
76
What are the SMART principles in drafting undertakings?
Specific, Measurable, Agreed, Realistic, Timed
## Footnote
These principles help avoid ambiguity in undertakings.
77
What does the second paragraph of the Code of Conduct address?
Dispute resolution and proceedings before courts, tribunals and inquiries
## Footnote
It sets rules for solicitors' conduct in these contexts.
78
What must solicitors not do regarding evidence in legal proceedings?
Misuse or tamper with evidence
## Footnote
This includes not seeking to influence the substance of evidence.
79
What is required of solicitors regarding client identification?
Satisfactory evidence of who the client is
## Footnote
This is crucial under anti-money laundering legislation.
80
What must solicitors provide information about to their clients?
The terms of engagement and costs
## Footnote
Clients must understand the nature of the work and the associated costs.
81
What is the overarching obligation of a solicitor when given instructions from a third party?
To ensure the instructions represent the client's wishes
## Footnote
They must not act if they suspect undue influence.
82
What is the relationship between a solicitor and a client based on?
The instructions given by the client or an authorized person
## Footnote
This relationship imposes duties to act in the client's best interests.
83
What consequences can arise from failing to adhere to court timelines?
Complaints may be made to the Legal Ombudsman
## Footnote
This reflects the importance of timely and competent service.
84
What does the SRA enforcement strategy address?
Regulatory action against serious breaches of conduct rules
## Footnote
A serious failure may lead to enforcement action.
85
What is the primary purpose of SRA regulation?
To ensure competent and effective service to clients
## Footnote
This includes providing timely and effective legal services.
86
What is required of a solicitor to ensure competent service?
Act with reasonable care and skill, in the best interests of the client
## Footnote
This includes not taking advantage of the client for personal gain.
87
What must solicitors engage in to maintain competence?
Continuing professional development
## Footnote
This helps keep skills and knowledge up to date.
88
What happens if a solicitor fails to adhere to court timelines?
It may lead to a complaint to the Legal Ombudsman
## Footnote
This is in addition to enforcement by the SRA.
89
What are the two types of conflict of interest?
* Own-interest conflict
* Client conflict
## Footnote
Own-interest conflict arises when a solicitor's duty to a client conflicts with their own interests.
90
When must a solicitor not act due to a conflict of interest?
If there is an own-interest conflict or significant risk of such a conflict
## Footnote
Exceptions apply only under specific conditions.
91
What conditions must be met to act in a conflict situation?
* Clients have a substantially common interest
* Clients are competing for the same objective
* Informed consent is obtained in writing
* Effective safeguards are in place
## Footnote
These conditions help mitigate risks associated with conflicts.
92
What does 'substantially common interest' mean?
A clear common purpose between clients and strong consensus on how to achieve it
## Footnote
This can occur in situations where clients work together on a matter.
93
What does 'competing for the same objective' refer to?
Clients competing for an objective that, if attained by one, will be unattainable for others
## Footnote
An example includes clients bidding in a structured auction.
94
What is the duty of confidentiality?
To keep the affairs of current and former clients confidential unless exceptions apply
## Footnote
These exceptions include legal requirements or client consent.
95
What must a solicitor disclose to a client?
All information relevant to the client's case unless exceptions apply
## Footnote
Exceptions may include national security concerns or privileged documents.
96
What is the difference between confidentiality and professional privilege?
Confidentiality covers client-related information; professional privilege protects communications between client and solicitor
## Footnote
Professional privilege is narrower and may not be disclosed under a court order.
97
What is required of solicitors regarding cooperation and accountability?
Understand and comply with SRA regulations, justify decisions, and report shortcomings
## Footnote
This includes notifying the SRA of any criminal charges or insolvency.
98
What must solicitors do if they receive confidential information in error?
They must not read or use it and should not disclose it
## Footnote
This is to maintain the integrity of confidentiality.
99
When can a solicitor act for a client with an adverse interest?
If effective measures prevent disclosure or if the former client gives informed consent in writing
## Footnote
This is to protect confidential information.
100
What actions may lead to disciplinary action by the SRA?
Breach of confidentiality or failure to comply with professional conduct rules
## Footnote
This includes not disclosing required information under anti-money laundering legislation.
101
What is the importance of transparency in the Code of Conduct?
Solicitors must justify their decisions and cooperate with investigations by the SRA
## Footnote
This is essential for maintaining public trust in the legal profession.
102
What should be considered when deciding to act for multiple clients?
* Knowledge and bargaining power of the clients
* Extent of negotiations needed
* Benefits of acting for both
* Risk of inappropriate disclosure
## Footnote
These factors help assess the reasonableness of acting for multiple clients.
103
What must be reported to the SRA if you are subject to any criminal charges, convictions, or cautions?
You must notify the SRA if you become insolvent or if information previously supplied to them becomes inaccurate.
## Footnote
Reference: para 7.6.
104
What is required if there are serious breaches of regulatory arrangements?
You must report any facts or matters capable of being a serious breach to the SRA and inform them of any facts for investigation.
## Footnote
Reference: paras 7.7 and 7.8.
105
True or False: You can subject someone to detrimental treatment for reporting a serious breach to the SRA.
False.
## Footnote
Reference: para 7.9.
106
What should you do if the SRA requests remedial action?
Act promptly to take any remedial action requested and investigate any serious breaches that should be reported.
## Footnote
Reference: para 7.10.
107
What is the duty of solicitors if something goes wrong and the client suffers loss?
Be honest and open with clients, explain what has happened, its impact, and the possibility of a claim.
## Footnote
Reference: para 7.11.
108
How can the obligation to notify or provide information to the SRA be satisfied?
By providing the information to either of your firm’s compliance officers.
## Footnote
Reference: para 7.12.
109
What is the purpose of identifying clients in legal practice?
To reduce the risk of being caught up in fraud and comply with anti-money laundering regulations.
## Footnote
Reference: Legal Services manual.
110
What must solicitors establish regarding complaints handling?
An appropriate complaints handling mechanism to protect the public and the reputation of the profession.
## Footnote
Reference: Code of Conduct for Solicitors.
111
What must clients be advised about at the time of engagement?
Their rights to complain, the complaints mechanism, and their right to complain to the Legal Ombudsman.
## Footnote
Reference: paras 8.2–8.3.
112
What must be done if a complaint is unresolved within 8 weeks?
Clients must be informed in writing about their right to complain to the Legal Ombudsman and provided with contact details.
## Footnote
Reference: para 8.4.
113
True or False: Complaints must be dealt with promptly, fairly, and free of charge.
True.
## Footnote
Reference: para 8.5.
114
What is required regarding the information provided to clients?
Clients must receive information in a way that they can understand to make informed decisions about their matters.
## Footnote
Reference: paras 8.6–8.7.
115
What must be accurate and not misleading in solicitors' publicity?
Information about charges and interest payable by or to clients.
## Footnote
Reference: para 8.8.
116
Solicitors cannot make unsolicited approaches to which group?
The public, except for current or former clients.
## Footnote
Reference: para 8.9.
117
What must clients understand regarding the services provided by solicitors?
Which activities are carried out by an authorised person and the regulatory protections available to them.
## Footnote
Reference: paras 8.10–8.11.
118
What must solicitors adhere to when attracting new clients?
SRA Principles and the Code of Conduct for Solicitors, especially Principle 3 and Principle 7.
## Footnote
Reference: SRA Principles.
119
What do solicitors need to safeguard according to the Code of Conduct?
Money and assets entrusted by clients or others.
## Footnote
Reference: para 4.2.
120
What is required when referring clients to another person or business?
Clients must be informed in writing of any financial or other interest involved in the referral.
## Footnote
Reference: para 5.1.
121
Fill in the blank: A referral fee will be treated as such unless it can be shown it was not made as a _______.
referral fee.
## Footnote
Reference: para 5.2.
122
What is necessary for a client to be referred to a separate business?
The client must give informed consent.
## Footnote
Reference: para 5.3.
123
Summary of key principles
A solicitor must ensure that all information provided to clients whether prospective or
current is accurate.
* Solicitors should maintain independence in the provision of services to clients.
* Solicitors should maintain trust and act fairly in dealing with clients and others, including
colleagues and the court.
* Services should be provided with competence.
* A solicitor is personally responsible for the performance of an undertaking they have given.
* Undertakings may be enforced by court in some circumstances.
* Breach of the conduct rules may lead to disciplinary action being taken against a solicitor.
* A solicitor should identify the person they are acting for in a matter.
* A solicitor must not act for a client where there is a conflict or significant risk of a conflict
between the interests of the client and the solicitor.
* Where there is a conflict between the interests of two or more clients in the same matter or
significant part of it, the solicitor can only act if they can satisfy the requirements of the
substantially common interest or the competing for the same objective exceptions and it is
reasonable to act.
* A client’s information must be kept confidential.
* Confidentiality continues after the retainer has been terminated and survives the death of
the client.
* The Code of Conduct for Solicitors provides exceptions to the rule of confidentiality if
certain criteria are met.
* Relevant information should be disclosed to the client where appropriate.
* Where professional privilege arises, a solicitor may decline to make disclosures.
* There should be a complaints handling procedure in place and information about making a
complaint should be made available to the client.
* Promotional materials should not be misleading.
* Financial arrangements with introducers and third parties should comply with SRA
regulations.
124
What does the SRA Code of Conduct for Firms aim to create and maintain?
The right culture and environment for the delivery of competent and ethical legal services to clients.
125
Who does the SRA Code of Conduct for Firms apply to?
Any firm authorized to provide legal services.
126
What can the SRA take regulatory action against for a serious breach?
The firm itself, its managers or compliance officers, or employees responsible for compliance.
127
How does the SRA define a 'serious breach'?
As a single event or a pattern of behavior.
128
What accountability do managers have under the Code of Conduct for Firms?
They are held accountable for failing to prevent breaches of standards and for enforcing discipline.
129
What is required by the Code of Conduct for Firms regarding workforce diversity?
Monitoring, reporting, and publishing of workforce diversity data.
130
According to paragraphs 1.1 and 1.2 of the Code of Conduct for Firms, what must firms avoid?
Unfair discrimination and abusing their position to take unfair advantage of others.
131
True or False: Personal views should interfere with the provision of legal services according to the Code of Conduct for Firms.
False
132
Fill in the blank: The Code of Conduct for Firms imposes standards that echo those in the ______.
SRA Code of Conduct for Solicitors
133
What is the date of the SRA Code of Conduct for Firms?
6 April 2023
134
What are the paragraphs that set out the requirements of managers in the Code of Conduct for Firms?
Paragraphs 8.1 and 9.1–9.2
135
What are managers and compliance officers in a firm held accountable for?
Expressing discriminatory views, including on social media.
136
What should firms avoid to ensure they do not take unfair advantage of clients?
Firms should avoid overcharging, inappropriate referrals, and putting their interests above the client's interests.
## Footnote
SRA guidance warns against allowing third parties to make unsolicited calls to clients or taking referrals without ensuring they originate from the client.
137
What is an undertaking as defined by the Solicitors Regulation Authority?
An undertaking is a legally enforceable promise to do, or refrain from doing, something, made by or on behalf of a lawyer or law firm.
## Footnote
An undertaking can be given orally or in writing and does not need to include the word 'undertake' or 'undertaking'.
138
What is the duty of a firm regarding undertakings given to clients?
A firm must ensure all undertakings made to clients are performed within an agreed timescale or a reasonable amount of time.
## Footnote
This is similar to the duty in the Code of Conduct for Solicitors.
139
Who can give a binding undertaking?
A binding undertaking can be given by a qualified solicitor or a trainee solicitor.
## Footnote
Even a promise to later give an undertaking can itself be considered an undertaking.
140
What happens if an undertaking is breached?
The SRA may take disciplinary action, such as a fine or sanctions against the individual who failed to perform the undertaking.
## Footnote
Undertakings can also be enforced by the courts.
141
What is the significance of openness, transparency, and honesty according to the Code of Conduct for Firms?
It is necessary to protect the public and avoid misleading clients, the court, or others.
## Footnote
This includes not concealing errors made by the firm or its employees.
142
What does Paragraph 1.5 of the Code of Conduct for Firms require firms to do?
Firms must monitor, report, and publish prescribed workforce diversity data.
## Footnote
This duty aims to encourage equality, diversity, and inclusion within the profession.
143
What are the compliance obligations of a solicitor linked to?
The compliance obligations are linked to the business organization in which they work.
## Footnote
Solicitors must ensure that those they work with uphold the standards and regulations.
144
What must firms maintain to demonstrate compliance with regulatory arrangements?
Firms must maintain records demonstrating compliance with SRA's regulatory arrangements.
## Footnote
This includes compliance with the Solicitors Act 1974 and other relevant regulations.
145
What is the role of a compliance officer for legal practice (COLP)?
The COLP ensures compliance with the duties imposed by the SRA within the firm.
## Footnote
Every firm must have a COLP and a compliance officer for finance and administration (COFA).
146
Fill in the blank: An undertaking can be enforced by both the _______ and the courts.
SRA
147
True or False: An incorporated practice can be compelled by the court to perform an undertaking.
False
148
What is the primary responsibility of the Compliance Officer for Legal Practice (COLP)?
To ensure compliance with all obligations under the STaRs, authorisations, and relevant statutory provisions
## Footnote
The role is outlined in the Code of Conduct for Firms.
149
List the key duties of the COLP as stated in the Code of Conduct for Firms.
* Ensure compliance with the firm's authorisation terms and conditions
* Ensure compliance by firm managers, employees, and interest holders with SRA regulatory arrangements
* Prevent breaches of SRA regulatory arrangements
* Promptly report serious breaches to the SRA
* Inform the SRA of relevant facts for investigation
## Footnote
These duties are detailed in Paragraph 9.1 of the Code of Conduct for Firms.
150
What is the role of the Compliance Officer for Finance and Administration (COFA)?
To ensure the firm's compliance with the SRA Accounts Rules
## Footnote
The duties are outlined in Paragraph 9.2.
151
What are the responsibilities of the COFA according to the SRA Accounts Rules?
* Ensure compliance with SRA Accounts Rules
* Promptly report serious breaches to the SRA
* Inform the SRA of relevant facts for investigation
## Footnote
These responsibilities are specified in Paragraph 9.2 of the Code of Conduct for Firms.
152
True or False: Compliance officers (COLP or COFA) can be interfered with while discharging their duties.
False
## Footnote
Compliance officers must discharge their duties without interference.
153
What must firms maintain to demonstrate compliance with regulatory arrangements?
Records of compliance
## Footnote
Evidence is key for demonstrating compliance and supporting SRA investigations.
154
What is the importance of keeping records of decision-making in legal practice?
To guide decision-making and support compliance with regulatory arrangements
## Footnote
This includes documenting risk assessments, compliance reviews, and incident reports.
155
What obligations do solicitors have regarding co-operation with regulatory bodies?
* Keep up to date with law and regulations
* Co-operate with the SRA and other regulators
* Be open and honest with clients
* Promptly report financial difficulties and serious breaches
* Not prevent information from being provided to regulators
* Not subject individuals to detrimental treatment for reporting
## Footnote
These obligations are outlined in the Code of Conduct for Firms.
156
What standards of service and competence apply at the firm level?
* Acting on client instructions
* Providing competent service
* Timely work considering client needs
* Ensuring staff competence
* Effective supervision of staff
## Footnote
These standards are meant to enable enforcement action by the SRA.
157
What must firms do to protect client money and assets?
* Properly account for financial benefits received from acting for the client unless agreed otherwise
## Footnote
This is detailed in Paragraph 5 of the Code of Conduct for Firms.
158
What must be safeguarded according to paragraph 5.2?
Client money and assets entrusted to the firm
## Footnote
This includes proper accounting for financial benefits received from client instructions unless agreed otherwise.
159
What information must be provided to clients to help them make informed decisions?
Information in a way they can understand, pricing details, and overall costs of their matters
## Footnote
This is outlined in paragraph 8.6 and 8.7 of the Code of Conduct for Solicitors.
160
What does paragraph 8.8 state regarding publicity?
Publicity must be accurate and not misleading, including charges and interest circumstances
## Footnote
This is part of the Code of Conduct for Solicitors.
161
What does paragraph 6 of the Code of Conduct for Firms address?
Conflict, confidentiality, and disclosure
## Footnote
It mirrors the rules for individual solicitors and regulated lawyers.
162
Which paragraphs of the Code of Conduct for Solicitors apply to firms?
* Dispute resolution and proceedings before courts, tribunals, and inquiries: para 7.1(a)
* Referrals, introductions, and separate businesses: para 7.1(b)
* Client identification, complaints handling, and publicity: para 7.1(c)
## Footnote
Details can be found in 3.3.3, 3.3.8, 3.3.9, and 3.3.11.
163
Who is held personally accountable under paragraphs 8 and 9 of the Code of Conduct for Firms?
Managers and compliance officers (COLPs and COFAs)
## Footnote
The term 'managers' includes various roles such as sole principals, LLP members, company directors, and partners.
164
What does the SRA enforcement strategy focus on?
* Maintaining public trust and confidence in solicitors
* Protecting consumers
* Setting and enforcing high professional standards
* Supporting access to affordable legal services
* Upholding the rule of law and administration of justice
## Footnote
This strategy was outlined on 15 February 2023.
165
What must regulated law firms display according to the SRA Transparency Rules?
Prices and service information in a clear and easy to understand format
## Footnote
This applies if they work in specified legal areas such as conveyancing and immigration.
166
What price information must be provided to clients?
* Full cost or average range of costs
* Explanation of charging basis
* Likely disbursements and costs
* VAT inclusion details
## Footnote
This is important to reduce confusion and complaints.
167
What must service information include according to the SRA Transparency Rules?
* Clarity on included/excluded services
* Qualification and experience levels of personnel
* Key stages and typical timeframes
* Simple explanations of technical terms
## Footnote
This helps clients understand the services being offered.
168
What does the SRA badge signify?
It indicates that a website belongs to a genuine SRA regulated firm
## Footnote
The badge must be displayed prominently on law firms' websites.
169
Summary of key principles
The Code of Conduct for Firms regulates the culture and environment in the organisations
regulated by the SRA.
* Firms must maintain trust and act fairly towards others.
* Firms must operate with openness, transparency and honesty in their dealings and
undertakings.
* Firms must monitor, report and publish prescribed workforce diversity data.
* The Code of Conduct for Firms links the compliance obligations of a solicitor to the
business organisation in which they work.
* The Code of Conduct for Firms includes the same obligations imposed on solicitors under
the Code of Conduct for Solicitors to co-operate with the regulatory bodies in the
enforcement of the rules and regulations.
* The standards of service and competence that apply to individual solicitors under the Code
of Conduct for Solicitors also apply at firm level.
* Other requirements in respect of dispute resolution, client information and publicity, client
identification and complaints handling set out in the Code of Conduct for Solicitors also
apply to firms.
* Paragraph 5 of the Code of Conduct for Firms sets out how a firm must protect its client’s
money and assets and you will look at the rules around client money further in the solicitors
accounts sub-unit.
* The Transparency Rules set out details around prices and the service to be provided by
firms.
