Ethics and Regulation
Principle = SRA Principles; Paragraph = Code of Conduct.
The Solicitors Regulation Authority (SRA)
The Solicitors Regulation Authority regulates solicitors, the bodies in which they
operate and all those working with those bodies.
The rules governing how solicitors behave and conduct their business are contained
in the SRA Standards and Regulations. Including:
a) The SRA Principles
• Sets out the fundamental requirements of ethical behaviour which
must be upheld by all those regulated by the SRA.
b) The SRA Code of Conduct for Solicitors, RELs and RFLs
• Sets out the standards of professionalism required from the individuals
authorised by the SRA to provide legal services.
• Individuals are personally accountable for compliance with the code.
• Individuals must exercise their own judgment and in deciding their course
of action, consider factors such as their roles and responsibilities, areas
of practice, and nature of their clients.
c) The SRA Code of Conduct for Firms
• Sets out the standards and business controls expected of firms
authorised by the SRA to provide legal services.
• Failure to meet its standards may lead to the SRA taking regulatory action
against the body itself as an entity, its managers, compliance offices, and
employees.
d) The SRA Account Rules
• Detail specific requirements placed on solicitors in financial matters.
e) The SRA Glossary
• Contains all the defined terms from the Codes, Rules, and Regulations.
Complaints
Paragraph 8.2: A solicitor must either establish and maintain, or participate in, a
procedure for handling complaints in relation to the legal services provided.
Paragraph 8.3: A solicitor must ensure that clients are informed in writing, at the
time of engagement about:
a) Their right to complain about the solicitor’s services and charges.
b) How complaints may be made and to whom.
c) Any right they have to make a complain to the Legal Ombudsman and when
they can make such a complaint.
Paragraph 8.4: If the complaint has been made and not resolved to just
satisfaction within 8 weeks, the solicitors must ensure that the client is informed
in writing:
, a) Their right to complain to the Legal Ombudsman, the timeframe for doing
so and full details for contacting.
b) If a complainant has been brought and the complaints procedure has been
exhausted:
a. That the solicitor cannot settle the complaint;
b. The name and website address of an alternative dispute resolution
approved body which would be competent to deal with the complaint;
and
c. Whether the solicitor agrees to use the scheme operated by that
body.
Paragraph 8.5: Client’s complaints must be dealt with promptly, fairly, and free of
charge.
The Legal Ombudsman (LeO)
• The LeO deals with complaints made against solicitors, barristers, legal
executives, licensed conveyancers, notaries, and patent attorneys, amongst
others.
• LeO will usually be the first point of contact for client.
• The client does not have to suffer any loss for the LeO to make a determination
against the solicitor arising from a complaint about the services provided.
• It is enough for a solicitor to not provide services of reasonable quality.
• Complaint must relate to an act or omission by the solicitor and must relate to
services they have provided, offered, or refused to provide.
Who?
According to the Scheme Rules only certain clients can complain to LeO.:
• Individuals.
• Micro-enterprises (enterprise with fewer than 10 staff and a turnover of not
exceeding £2 million).
• Charities, Club, and Associations (less than £1 million).
• Personal representative or beneficiaries of a person’s estate.
When?
Usually, the solicitor’s own complaint procedure will be used first, unless the LeO
considers that:
a) The complaint has not been resolved to the complainant’s satisfaction within
8 weeks of being made.
b) There are exceptional reasons to consider the complaint sooner or without
it being made to the solicitor.
c) In-house resolution is not possible due to irretrievable breakdown between
the solicitor and the complainant.
Timing
The complaint should be brought no later than:
,• One year from the act or omission.
• One year from when the complainant should reasonably have known there was
cause for complaint.
The LeO has the discretion to extend the time limit if it thinks it is fair.
Remedies
The LeO aims to resolve it by whatever means it considers appropriate:
• If they believe an investigation is necessary, both parties will be given an
opportunity to make representations.
• Hearing is only held where the LeO considers that the complaint can’t be
determined fairly without one.
• Once the complainant accepts or rejects the determination, the solicitors and
SRA will be notified of the outcome.
Determination
Determination may direct the solicitor or their firm to:
a) Apologise.
b) Pay compensation with interest for any loss suffered and/or inconvenience or
distress caused.
c) Ensure and pay for any specified action in the interest of the complainant.
d) Pay specific amount for costs of the complainant in pursuing the complaint.
e) Limit the solicitor’s fee.
There is a limit of £50,000 on the total value that may be awarded in respect of
compensation. If the complainant rejects the determination, both parties are free
to pursue other legal remedies.
Breach of Professional Conduct
Professional misconduct: Breach of the SRA’s Principles and/or the Code of
Conduct.
Three-step test for opening an investigation (the Assessment Threshold Test):
1) Has there been a potential breach of the SRA Standards and Regulations based
on the allegations made?
2) Is that potential breach sufficiently serious that, if proved, is capable of regulatory
action?
3) Is the breach capable of proof?
s.44B Solicitors Act 1974: The SRA has the power to serve a notice on a solicitor
requiring the delivery of a file or documents in the possession of the solicitor to
the SRA.
Paragraph 7.4: Imposes an obligation to respond promptly to the SRA and
provide information and documents in response to any such request.
, Remedies
The more serious the misconduct, the more severe the sanction. The SRA
Enforcement Strategy sets out action that could be taken by the SRA.:
a) Take no further action with or without issuing advise or a warning about future
conduct.
b) Impose a financial penalty (max £25,000).
c) Control how the solicitor practices.
d) Refer the matter to the Solicitors Disciplinary Tribunal.
a. May be the case when the SRA does not have sufficient power to deal
with certain matter. E.g., sanction of striking the solicitor off the roll.
The Solicitors Disciplinary Tribunal
• The Solicitors Disciplinary Tribunal (SDT) hears and determines applications
relating to allegations of unbefitting conduct and breaches of the requirements
of professional conduct.
• Typically, these applications are made by the SRA when it is satisfied that there’s
a realistic prospect of the SDT making an order and it is in the public interest
to make the application.
• Any person may make an application directly to the SDT, without first making
a complaint to the SRA.
Procedure
• The SRA maintains a panel of solicitors in private practice who prosecute
applications before the SDT on its behalf.
• The SDT does not have powers of investigation and it will not collect
evidence itself.
• An application must be made in the prescribed form supported by evidence.
If satisfied there is a case to answer, will fix a hearing date.
• If a hearing is called, either party may be represented at the hearing by a
solicitor or counsel.
• Decisions of the SDT are referred to as Judgements and Orders.
• Orders take effect once they are filed with the Law Society.
• SDT may refer a matter to the SRA for investigation before proceeding with an
application and the SRA may take over the application.
Powers of the SDT
The SDT has the power to make such orders as in its discretion if it thinks fit,
including:
a) Striking a solicitor off the roll.
b) Suspending a solicitor from practice / imposing restrictions upon them.
c) Imposing an unlimited fine payable to HM Treasury.
d) Reprimanding (disapprove) the solicitor.
e) Requiring the payment by any party of costs or a contribution towards costs.
Principle = SRA Principles; Paragraph = Code of Conduct.
The Solicitors Regulation Authority (SRA)
The Solicitors Regulation Authority regulates solicitors, the bodies in which they
operate and all those working with those bodies.
The rules governing how solicitors behave and conduct their business are contained
in the SRA Standards and Regulations. Including:
a) The SRA Principles
• Sets out the fundamental requirements of ethical behaviour which
must be upheld by all those regulated by the SRA.
b) The SRA Code of Conduct for Solicitors, RELs and RFLs
• Sets out the standards of professionalism required from the individuals
authorised by the SRA to provide legal services.
• Individuals are personally accountable for compliance with the code.
• Individuals must exercise their own judgment and in deciding their course
of action, consider factors such as their roles and responsibilities, areas
of practice, and nature of their clients.
c) The SRA Code of Conduct for Firms
• Sets out the standards and business controls expected of firms
authorised by the SRA to provide legal services.
• Failure to meet its standards may lead to the SRA taking regulatory action
against the body itself as an entity, its managers, compliance offices, and
employees.
d) The SRA Account Rules
• Detail specific requirements placed on solicitors in financial matters.
e) The SRA Glossary
• Contains all the defined terms from the Codes, Rules, and Regulations.
Complaints
Paragraph 8.2: A solicitor must either establish and maintain, or participate in, a
procedure for handling complaints in relation to the legal services provided.
Paragraph 8.3: A solicitor must ensure that clients are informed in writing, at the
time of engagement about:
a) Their right to complain about the solicitor’s services and charges.
b) How complaints may be made and to whom.
c) Any right they have to make a complain to the Legal Ombudsman and when
they can make such a complaint.
Paragraph 8.4: If the complaint has been made and not resolved to just
satisfaction within 8 weeks, the solicitors must ensure that the client is informed
in writing:
, a) Their right to complain to the Legal Ombudsman, the timeframe for doing
so and full details for contacting.
b) If a complainant has been brought and the complaints procedure has been
exhausted:
a. That the solicitor cannot settle the complaint;
b. The name and website address of an alternative dispute resolution
approved body which would be competent to deal with the complaint;
and
c. Whether the solicitor agrees to use the scheme operated by that
body.
Paragraph 8.5: Client’s complaints must be dealt with promptly, fairly, and free of
charge.
The Legal Ombudsman (LeO)
• The LeO deals with complaints made against solicitors, barristers, legal
executives, licensed conveyancers, notaries, and patent attorneys, amongst
others.
• LeO will usually be the first point of contact for client.
• The client does not have to suffer any loss for the LeO to make a determination
against the solicitor arising from a complaint about the services provided.
• It is enough for a solicitor to not provide services of reasonable quality.
• Complaint must relate to an act or omission by the solicitor and must relate to
services they have provided, offered, or refused to provide.
Who?
According to the Scheme Rules only certain clients can complain to LeO.:
• Individuals.
• Micro-enterprises (enterprise with fewer than 10 staff and a turnover of not
exceeding £2 million).
• Charities, Club, and Associations (less than £1 million).
• Personal representative or beneficiaries of a person’s estate.
When?
Usually, the solicitor’s own complaint procedure will be used first, unless the LeO
considers that:
a) The complaint has not been resolved to the complainant’s satisfaction within
8 weeks of being made.
b) There are exceptional reasons to consider the complaint sooner or without
it being made to the solicitor.
c) In-house resolution is not possible due to irretrievable breakdown between
the solicitor and the complainant.
Timing
The complaint should be brought no later than:
,• One year from the act or omission.
• One year from when the complainant should reasonably have known there was
cause for complaint.
The LeO has the discretion to extend the time limit if it thinks it is fair.
Remedies
The LeO aims to resolve it by whatever means it considers appropriate:
• If they believe an investigation is necessary, both parties will be given an
opportunity to make representations.
• Hearing is only held where the LeO considers that the complaint can’t be
determined fairly without one.
• Once the complainant accepts or rejects the determination, the solicitors and
SRA will be notified of the outcome.
Determination
Determination may direct the solicitor or their firm to:
a) Apologise.
b) Pay compensation with interest for any loss suffered and/or inconvenience or
distress caused.
c) Ensure and pay for any specified action in the interest of the complainant.
d) Pay specific amount for costs of the complainant in pursuing the complaint.
e) Limit the solicitor’s fee.
There is a limit of £50,000 on the total value that may be awarded in respect of
compensation. If the complainant rejects the determination, both parties are free
to pursue other legal remedies.
Breach of Professional Conduct
Professional misconduct: Breach of the SRA’s Principles and/or the Code of
Conduct.
Three-step test for opening an investigation (the Assessment Threshold Test):
1) Has there been a potential breach of the SRA Standards and Regulations based
on the allegations made?
2) Is that potential breach sufficiently serious that, if proved, is capable of regulatory
action?
3) Is the breach capable of proof?
s.44B Solicitors Act 1974: The SRA has the power to serve a notice on a solicitor
requiring the delivery of a file or documents in the possession of the solicitor to
the SRA.
Paragraph 7.4: Imposes an obligation to respond promptly to the SRA and
provide information and documents in response to any such request.
, Remedies
The more serious the misconduct, the more severe the sanction. The SRA
Enforcement Strategy sets out action that could be taken by the SRA.:
a) Take no further action with or without issuing advise or a warning about future
conduct.
b) Impose a financial penalty (max £25,000).
c) Control how the solicitor practices.
d) Refer the matter to the Solicitors Disciplinary Tribunal.
a. May be the case when the SRA does not have sufficient power to deal
with certain matter. E.g., sanction of striking the solicitor off the roll.
The Solicitors Disciplinary Tribunal
• The Solicitors Disciplinary Tribunal (SDT) hears and determines applications
relating to allegations of unbefitting conduct and breaches of the requirements
of professional conduct.
• Typically, these applications are made by the SRA when it is satisfied that there’s
a realistic prospect of the SDT making an order and it is in the public interest
to make the application.
• Any person may make an application directly to the SDT, without first making
a complaint to the SRA.
Procedure
• The SRA maintains a panel of solicitors in private practice who prosecute
applications before the SDT on its behalf.
• The SDT does not have powers of investigation and it will not collect
evidence itself.
• An application must be made in the prescribed form supported by evidence.
If satisfied there is a case to answer, will fix a hearing date.
• If a hearing is called, either party may be represented at the hearing by a
solicitor or counsel.
• Decisions of the SDT are referred to as Judgements and Orders.
• Orders take effect once they are filed with the Law Society.
• SDT may refer a matter to the SRA for investigation before proceeding with an
application and the SRA may take over the application.
Powers of the SDT
The SDT has the power to make such orders as in its discretion if it thinks fit,
including:
a) Striking a solicitor off the roll.
b) Suspending a solicitor from practice / imposing restrictions upon them.
c) Imposing an unlimited fine payable to HM Treasury.
d) Reprimanding (disapprove) the solicitor.
e) Requiring the payment by any party of costs or a contribution towards costs.
