SRA Code of Conduct

Question 1

What is the scope of the SRA Code of Conduct (for Solicitors, RELs and RFLs)?

Answer 1

Conduct and behaviour relating to a solicitor’s practice within the following framework:

• Maintaining trust and acting fairly
• Dispute resolution and proceedings before courts, tribunals and inquiries
• Service and competence
• Client money and assets
• Referrals, introductions and separate businesses
• Other business requirements
• Conflict of interests
• Confidentiality and disclosure
• Cooperation and accountability
• Client identification
• Complaints handling
• Client information and publicity

Question 2

What is the scope of the SRA Code of Conduct (for firms?)

Answer 2

• Maintaining trust and acting fairly
• Compliance and business systems
• Cooperation and accountability
• Service and competence
• Client money and assets
• Conflict of interests
• Confidentiality and disclosure
• Applicable standards in the SRA Code of Conduct for Solicitors, RELs and RFLs
• Managers in SRA authorised firms
• Compliance officers

Question 3

Para 1: Maintaining trust and acting fairly

Name a number of aspects relating to this obligation?

Answer 3

Unfair discrimination

Abuse of position

Undertakings

Duty not to mislead

Under Para 1, a solicitor must maintain trust and act fairly, which includes not unfairly discriminating against each other

Question 4

Para 2: Dispute resolution and proceedings before courts, tribunals and inquiries

Name a number of aspects relating to this obligation?

Answer 4

Interference with evidence

Conduct of litigation

Under Para 2, a solicitor owes a number of obligations in respect of dispute resolution, including drawing the court’s attention to relevant cases, statutory provisions and procedural irregularities which are likely to have a material effect on the outcome of proceedings.

Question 5

Para 3: Service and competence

Name a number of aspects relating to this obligation?

Answer 5

Competence of service

Managing competence

Under Para 3, a solicitor must ensure that the services provided and supervised are competent.

A solicitor must only act for clients on instructions from the client, or from someone properly authorised to provide instructions on their behalf.

Question 6

Para 4: Client money and assets

Name a number of aspects relating to this obligation?

Answer 6

Avoid conflicts of interest

Account of financial benefits - no unauthorised profits

Safeguarding money and assets entrusted to them by clients and others

Under Para 4, a solicitor must safeguard client money and must account for any financial benefit received as a result of their instructions (unless the client has agreed otherwise)

Question 7

Para 5: Referrals, introductions and separate businesses

Name a number of aspects relating to this obligation?

Answer 7

Introductions with third parties

Referral fees

Under Para 5, a solicitor owes obligations in respect of referrals, introductions and separate businesses

Question 8

Para 6: Conflict of Interests

Name a number of aspects relating to this obligation?

Answer 8

Own interest conflict

Conflict of interest

1) ‘Own interest conflict’: A conflict exists between the client’s interests and the interests of the solicitor

2) ‘Conflict of interest’: A conflict exists between two or more clients’ interests

In both cases, a solicitor must not act where there is such a conflict, or a ‘significant risk’ of such conflict.

Question 9

What are some examples of ‘own interests’ conflict that fall under Para 6 of the code?

Answer 9

1. [Financial interests] - A financial interest of yours or someone close to you. E.g. a client asks you to carry out due diligence on a company which you or your spouse / partner own shares in
2. [Personal / Business relationship of yours] E.g. you are asked to advise on a claim against a relative of yours, a friend or someone with whom you are involved in a common financial enterprise
3. [Your employee role] E.g. A client asks for advice in relation to a dispute involving your employer or a fellow employee
4. [Your own conduct (as a firm or an individual)] E.g. the wrong advice has been given to the client or the wrong action taken on their behalf

Question 10

Are there exceptions to the ‘own interests’ conflict rule?

Answer 10

No exceptions

E.g. even where the client consents or obtains independent legal advice, a solicitor must not act where there is, or a significant risk exists of, an own interest conflict

Question 11

What are some examples of ‘conflicts of interests’ that fall under Para 6 of the code?

Answer 11

1. [Two competing clients with differing interests] - Two clients seeking separately to purchase a particular asset or to be awarded a particular contract
2. [Two individuals with differing interests] - Acting for an investor and the scheme in which they will be investing
3. [Acting for buyer and seller] - One client selling or leasing an asset to another client
4. [Two parties in the same contract] - Agreeing a commercial contract between two clients

Question 12

Can a conflict of interest arise with a former client?

Answer 12

No

A conflict can only arise where the solicitor acts, or intends to act, on behalf of two or more CURRENT clients.

A conflict does not arise where you are dealing with a former client (although note the continuing duty of confidentiality owed to former clients in Para 6)

Question 13

Are there exceptions to the ‘conflict of interest’ rule?

Answer 13

Yes - two exceptions

1) Substantial common interest

The clients have a substantially common interest in relation to the matter or the aspect of it, as appropriate

OR

2) Competing for same objective

The clients are competing for the same objective

Question 14

What conditions should be met if either of the exceptions to a conflict of interest are present?

Answer 14

The following 3 conditions should be met:

• [Consent] All the clients have given informed consent, given or evidenced in writing, to the solicitor acting;
• [Safeguards in place]
  Where appropriate, the solicitor puts in place effective safeguards to protect their clients’ confidential information; and
• [Reasonable to act] The solicitor is satisfied that it is reasonable for them to act for all the clients

Question 15

Para 6: Duty of confidentiality

Name a number of aspects relating to this obligation?

Answer 15

Keeping the affairs of current and former clients confidential

Duty not to communicate the information to a third party

Duty not to misuse the information

Duty not to disclose confirmation information as a way of advertising their services, or the services of their firm

Question 16

Are there exceptions to the ‘duty of confidentiality’ rule?

Answer 16

Yes - disclosure of client information may be permitted in two circumstances.

1) Disclosure is required or permitted by law

2) Client consents

Before either of these circumstances are considered, a solicitor must question whether disclosure is necessary to proceed with a specific matter.

Question 17

Para 6: Duty of disclosure

What is meant by this duty?

Answer 17

Where a solicitor is acting for a client on a matter, the solicitor must make the client aware of all information material to the matter of which they have knowledge.

Question 18

Are there exceptions to the ‘duty of disclosure’ rule?

Answer 18

There are a number of exceptions to this duty.

1) Disclosure of the information is prohibited by legal restrictions imposed in the interests of national security or the prevention of crime;

2) The solicitor’s client gives informed consent, given or evidenced in writing to the information not being disclosed to them

3) The solicitor has reason to believe that serious physical or mental injury will be caused to their client or another if the information is disclosed, or

4) The information is contained in a privileged document that the solicitor knows of only because it has been mistakenly disclosed

Question 19

Para 7: Cooperation and Accountability

Name a number of aspects relating to this obligation?

Answer 19

A solicitor should maintain cooperation and accountability to retain their independence and professionalism:

Keeping up to date with the relevant law and regulations

Justifying decisions and actions through compliance and record keeping

Cooperation with relevant bodies (SRA etc.)

Notification and reporting requirements

Honesty and openness with clients

Question 20

Para 8: Client identification

What is meant by this principle?

Answer 20

A solicitor must identify who they are acting for in relation to a matter (through AML due diligence processes etc.)

Question 21

Para 8: Complaints handling

What is meant by this principle?

Answer 21

A solicitor must advise clients at the time of engagement about their rights to complain, the complaints mechanism and their right to complain to the Legal Ombudsman

Procedures for managing both internal and external complaints must be established.

Question 22

Para 8: Client information

What is meant by this principle?

Answer 22

Clients have to be given information in a way they can understand, so they can make informed decisions about the handling of their matter. They should be aware of the options available to them, costs, any interest which might be payable

Question 23

Para 8: Client publicity

What is meant by this principle?

Answer 23

Publicity about the practice has to be accurate and not misleading

Solicitors cannot make unsolicited approaches to the public, with the exception of current or former clients where advertisement of services is permitted

Question 24

What are the SRA’s STAR principles?

Answer 24

You act:

1. In a way that upholds the constitutional principle of the rule of law, and the proper administration of justice.
2. In a way that upholds public trust and confidence in the solicitors’ profession and in legal services provided by authorised persons.
3. with independence.
4. with honesty.
5. with integrity.
6. in a way that encourages equality, diversity and inclusion.
7. in the best interests of each client.

Question 25

What is the rule regarding conflicting STAR principles?

Answer 25

Should the Principles come into conflict, those which **safeguard the wider public interest** (such as the rule of law, and public confidence in a trustworthy solicitors' profession and a safe and effective market for regulated legal services) **take precedence over an individual client's interests.** You should, where relevant, inform your client of the circumstances in which your duty to the Court and other professional obligations will outweigh your duty to them.