2026
LEGAL SERVICES
SQE 1 Assessment specification: The regulatory role of the SRA
Principles and risk-based regulation: reserved legal activities, professional indemnity
insurance and other regulated providers of legal services:
The SRA:
- Law Society is separate from SRA.
- SRA = regulator
- Law Society = like a trade union for lawyers, representing their interests as a whole
and speaking for them.
Purpose of SRA:
1. Protect the consumers of legal services - people who hire lawyers; and
2. Support the operation of the rule of law and proper administration of justice
Firm authorisation
➔ For sols to carry out RLAs and immigration work to the general public, sols must
work in an authorised firm.
➔ For a firm to be authorised, it must be an eligible type of business
❖ Eligible type of Business:
1. Recognised sole practice = where one sol owns and runs a firm.
That sol may hire other people but only they own the firm itself.
2. Recognised body = where the managers and owners are solicitors.
Coverts partnerships, LLP’s and companies.
3. Licensed body = known as a ABS, these will be companies or LLPs
but they are not owned or run by sols. To be a licensed body:
a. At least one sol must be a manager in the business; and
b. Someone else has an interest in the business or is a manager.
➔ Firm makes an app to the SRA to be authorised. The SRA will then:
● Check the eligibility requirements above are met
● Carry out investigation. Investigation is to make sure the firm is suitable.
Riskier the form looks, the more stringent the invest of title will be.
➔ SRA will grant authorisation if it is confident that:
● Will deliver reserved legal services or immigration work to the required
standard
● Firm will be well managed
● Managers are competent
● Firm is suitable to be authorised and is being run by the right people
➔ Once authorised, a firm must:
● Always have a designated Compliance Officer for Legal Practice (COLP) and
a Compliance Officer for Financial Administration (COFA) who have been
approved by the SRA
● For a licensed body, it must be a Head of Legal Practice (HOLP) and a Head
of Finance Administration (HOFA)
Professional Indemnity insurance
1
, 2026
- All authorised firms must have PII that is:
1. Qualifying insurance; and
2. Adequate and appropriate to the firm’s practice.
- PII compensates C client of a sol any loss they have suffered because of a solicitor’s
negligence. It means that clients can be sure that they will be compensated if a sol is
incompetent, so it maintains confidence in the profession.
- To be qualifying PII, must satisfy SRA’s indemnity insurance Rules:
a. Insurance must be taken out with participating insurers: which means insurers
must be FCA approved and have an agreement with SRA to provide cover.
b. The insurance must meet the minimum requirement:
- £3m cover for any one claim
- £2m for any one claim
- A form cannot exclude liability below the minimum level of cover
- PII must also be adequate and appropriate to the firm’s practice. Means may have to
go beyond minimum requirement if necessary.
- Must be renewed every year. Once it has ended, firm has 90 days to extend or take
out new policy:
➔ Must inform the SRA they are in this period
➔ If after 30 days no policy is found, they can’t take out new work
➔ If they fail to get a new policy after 90 days, they must stop practising.
- Law firm must be open about the amount of cover they have, the insurer and its
geographical cover.
Overriding legal obligations: The Equality Act 2010
Equality Act 2010:
- Why does it matter? Because sols can breach the Act if they unlawfully discriminate
when providing their services, employing people, acting as partners, or
instructing/dealing with barristers.
- Also, any discrimination, incl EA unlawful discrimination, is breach of SRA code of
conduct
How is Equality Act breached?
Step 1: Identify the Protected characteristic
Prohibited conduct must be in relation to a protected characteristic.
1. Race, inc colour, nationality, and other ethnic national origins
2. Religion. Incl having a religion and not having a religion
3. Sex, which is inequality between men and women
4. Sexual Orientation
5. Age, all ages included
6. Disability, can be mental or physical that affects day to day activities
7. Transgender
8. Marriage/CP
9. Pregnancy and Maternity
2
LEGAL SERVICES
SQE 1 Assessment specification: The regulatory role of the SRA
Principles and risk-based regulation: reserved legal activities, professional indemnity
insurance and other regulated providers of legal services:
The SRA:
- Law Society is separate from SRA.
- SRA = regulator
- Law Society = like a trade union for lawyers, representing their interests as a whole
and speaking for them.
Purpose of SRA:
1. Protect the consumers of legal services - people who hire lawyers; and
2. Support the operation of the rule of law and proper administration of justice
Firm authorisation
➔ For sols to carry out RLAs and immigration work to the general public, sols must
work in an authorised firm.
➔ For a firm to be authorised, it must be an eligible type of business
❖ Eligible type of Business:
1. Recognised sole practice = where one sol owns and runs a firm.
That sol may hire other people but only they own the firm itself.
2. Recognised body = where the managers and owners are solicitors.
Coverts partnerships, LLP’s and companies.
3. Licensed body = known as a ABS, these will be companies or LLPs
but they are not owned or run by sols. To be a licensed body:
a. At least one sol must be a manager in the business; and
b. Someone else has an interest in the business or is a manager.
➔ Firm makes an app to the SRA to be authorised. The SRA will then:
● Check the eligibility requirements above are met
● Carry out investigation. Investigation is to make sure the firm is suitable.
Riskier the form looks, the more stringent the invest of title will be.
➔ SRA will grant authorisation if it is confident that:
● Will deliver reserved legal services or immigration work to the required
standard
● Firm will be well managed
● Managers are competent
● Firm is suitable to be authorised and is being run by the right people
➔ Once authorised, a firm must:
● Always have a designated Compliance Officer for Legal Practice (COLP) and
a Compliance Officer for Financial Administration (COFA) who have been
approved by the SRA
● For a licensed body, it must be a Head of Legal Practice (HOLP) and a Head
of Finance Administration (HOFA)
Professional Indemnity insurance
1
, 2026
- All authorised firms must have PII that is:
1. Qualifying insurance; and
2. Adequate and appropriate to the firm’s practice.
- PII compensates C client of a sol any loss they have suffered because of a solicitor’s
negligence. It means that clients can be sure that they will be compensated if a sol is
incompetent, so it maintains confidence in the profession.
- To be qualifying PII, must satisfy SRA’s indemnity insurance Rules:
a. Insurance must be taken out with participating insurers: which means insurers
must be FCA approved and have an agreement with SRA to provide cover.
b. The insurance must meet the minimum requirement:
- £3m cover for any one claim
- £2m for any one claim
- A form cannot exclude liability below the minimum level of cover
- PII must also be adequate and appropriate to the firm’s practice. Means may have to
go beyond minimum requirement if necessary.
- Must be renewed every year. Once it has ended, firm has 90 days to extend or take
out new policy:
➔ Must inform the SRA they are in this period
➔ If after 30 days no policy is found, they can’t take out new work
➔ If they fail to get a new policy after 90 days, they must stop practising.
- Law firm must be open about the amount of cover they have, the insurer and its
geographical cover.
Overriding legal obligations: The Equality Act 2010
Equality Act 2010:
- Why does it matter? Because sols can breach the Act if they unlawfully discriminate
when providing their services, employing people, acting as partners, or
instructing/dealing with barristers.
- Also, any discrimination, incl EA unlawful discrimination, is breach of SRA code of
conduct
How is Equality Act breached?
Step 1: Identify the Protected characteristic
Prohibited conduct must be in relation to a protected characteristic.
1. Race, inc colour, nationality, and other ethnic national origins
2. Religion. Incl having a religion and not having a religion
3. Sex, which is inequality between men and women
4. Sexual Orientation
5. Age, all ages included
6. Disability, can be mental or physical that affects day to day activities
7. Transgender
8. Marriage/CP
9. Pregnancy and Maternity
2
