STUDYCLOCK
LPC: PROFESSIONAL CONDUCT AND REGULATION LECTURE 2
PROFESSIONAL CONDUCT AND
REGULATION: LECTURE 2
(PART 1) STANDARDS AND
REGULATIONS (PRINCIPLES AND Legal Practice Course
CODES)
(PART 2) REGULATORY REQUIREMENTS
AND LIABILITIES TO CLIENTS IN
RELATION TO RUNNING A LAW FIRM
Learning Outcomes
After Part 1 of PCR Lecture 2 you should be able to:
1. understand the purpose and key features of three parts of the SRA
Standards and Regulations 2019 (the ‘Standards and Regulations’),
namely (1) the SRA Principles (the ‘Principles‘); (2) the SRA Code of
Conduct for Solicitors, Registered European Lawyers (‘RELs’) and
Registered Foreign Lawyers (‘RFLs’) (the ‘Authorised Individuals’)
(‘CCS’), and (3) the SRA Code of Conduct for Firms which applies to
firms (including sole practitioners) authorised by the SRA to provide legal
services (‘Firms’) (‘CCF‘) (together the ‘Codes’) and how to apply them;
2. recognise the pervasive nature of professional conduct issues;
3. be aware of how professional conduct rules relating to conflicts of
interest, the duty of confidentiality and the duty of disclosure might affect
you day-to-day in practice, particularly in relation to handling client
matters; and
4. recognise that you have duties to third parties (in addition to your client)
such as the court and to other solicitors.
After Part 2 of PCR Lecture 2 you should be able to:
1. understand the nature of different legal service providers;
2. appreciate the role of the Compliance Office for Legal Practice and the
Compliance Officer for Finance and Administration;
3. appreciate the nature of different claims which might be made against
solicitors;
4. appreciate the disciplinary action which can be taken against solicitors;
LAW SCHOOL 17/06/2021 16:24:00/
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,LECTURE 2 LPC: PROFESSIONAL CONDUCT AND REGULATION
5. understand and be able to explain the client complaints hierarchy; and
6. appreciate the requirements of the Codes and other regulatory
requirements for running a law firm as a business.
Part 1: The Code of Conduct
1. Professional Conduct and Client Care: Introduction
Professional conduct and client care for solicitors is governed by a number of
rules, regulations and codes, which derive not only from statute but also from
common law and equity.
1.1 Governing and representative bodies
1.1.1 The Law Society represents solicitors in England and Wales. Its key role is to
represent solicitors’ views to the public, the government and the regulators of
the profession. It also supports solicitors both in their careers and in their
practice.
1.1.2 The Solicitors Regulation Authority (‘SRA’) deals with all regulatory and
disciplinary matters relating to solicitors in England and Wales. It sets
standards for solicitors across England and Wales and is responsible for
monitoring and enforcing those standards. As well as solicitors, the SRA also
regulates law firms in England and Wales, non-lawyers such as managers and
employees in firms the SRA regulates, and other types of lawyers such as
Registered Foreign Lawyers (‘RFLs’) and Registered European Lawyers
(‘RELs’).
1.1.3 The Legal Ombudsman is the sole organisation where consumers can file
legal complaints in relation to poor service or a solicitor’s bill and was
established by the Office for Legal Complaints (‘OLC’) under the Legal
Services Act 2007. See Part 2 of this lecture for more detail.
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,LPC: PROFESSIONAL CONDUCT AND REGULATION LECTURE 2
1.2 Regulation of the providers of legal services
1.2.1 Aim of professional conduct regulation
The rules which regulate professional conduct are made principally to prevent
exploitation of members of the public by the legal profession. A further
function of the rules of professional conduct is to uphold the highest of
standards by legal practitioners in their dealings with their clients, the court
and each other.
1.2.2 SRA Handbook 2011
The SRA published a handbook in 2011 (the ‘SRA Handbook 2011‘), which
contained the rules on professional conduct which pre-date the existing
regime. It came into force on 6 October 2011. The SRA Handbook 2011
marked a significant departure from its predecessor, the Solicitors’ Code of
Conduct 2007 (the ‘2007 Code‘), which was prescriptive, rules based
legislation. The SRA Handbook 2011 was an example of ‘Outcomes Focused
Regulation’, commonly referred to as ‘OFR’ which comprised outcomes the
SRA required (the ‘Outcomes‘). The Outcomes were mandatory and helped
ensure compliance with the underlying principles and codes. The Outcomes
were supplemented with indicative behaviours to aid compliance (the
‘Indicative Behaviours‘). The Indicative Behaviours were non-exhaustive as
the Outcomes could be achieved in different ways, and were not mandatory.
1.2.3 SRA Standards and Regulations 2019
The outcomes based approach under the 2011 regime has now been replaced
with a new approach under the 2019 regime which is explained further below.
The SRA Standards and Regulations 2019 came into force on 25 November
2019.
The rules and regulations established by the SRA in 2019 that are referred to
in the LPC Professional Conduct course are set out below:
Rules/Regs Referred to Location in your LPC Permitted
on the LPC Materials
as ...
SRA Standards and The BPP PCR Standards and Regulations
Regulations 2019 ‘Standards Handbook
and
Regulations’
SRA Financial Services (Scope) the ‘Scope BPP PCR Handbook
LAW SCHOOL 17/06/2021 16:24:00/
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, LECTURE 2 LPC: PROFESSIONAL CONDUCT AND REGULATION
Rules 2001 Rules’
SRA Financial Services ‘SRACOB’ BPP PCR Handbook
(Conduct of Business) Rules
2001
SRA Accounts Rules 2011 The BPP PCR Standards and Regulations
‘Accounts Handbook
Rules’
The Standards and Regulations, the Scope Rules and SRACOB are dealt with
in the PCR module on the LPC.
Principles and Codes
The three key parts of the Standards and Regulations that we focus on in PCR
are the Principles and the Codes. The Principles set out ethical standards
expected of those who are regulated by the SRA. CCS deals with standards
of professionalism expected of Authorised Individuals (that is solicitors, RFLs
and RELs). CCF sets out standards and business controls expected from
Firms.
The paragraph references from the Codes are referred to in this lecture as
“paragraph number” preceded by CCS or CCF as applicable.
Scope Rules
The Scope Rules outline the scope of regulated financial services activities
that may be undertaken by firms authorised by the SRA and not regulated by
the FCA.
Page 4 of 89 17/06/2021 16:24:00/
. LAW SCHOOL
LPC: PROFESSIONAL CONDUCT AND REGULATION LECTURE 2
PROFESSIONAL CONDUCT AND
REGULATION: LECTURE 2
(PART 1) STANDARDS AND
REGULATIONS (PRINCIPLES AND Legal Practice Course
CODES)
(PART 2) REGULATORY REQUIREMENTS
AND LIABILITIES TO CLIENTS IN
RELATION TO RUNNING A LAW FIRM
Learning Outcomes
After Part 1 of PCR Lecture 2 you should be able to:
1. understand the purpose and key features of three parts of the SRA
Standards and Regulations 2019 (the ‘Standards and Regulations’),
namely (1) the SRA Principles (the ‘Principles‘); (2) the SRA Code of
Conduct for Solicitors, Registered European Lawyers (‘RELs’) and
Registered Foreign Lawyers (‘RFLs’) (the ‘Authorised Individuals’)
(‘CCS’), and (3) the SRA Code of Conduct for Firms which applies to
firms (including sole practitioners) authorised by the SRA to provide legal
services (‘Firms’) (‘CCF‘) (together the ‘Codes’) and how to apply them;
2. recognise the pervasive nature of professional conduct issues;
3. be aware of how professional conduct rules relating to conflicts of
interest, the duty of confidentiality and the duty of disclosure might affect
you day-to-day in practice, particularly in relation to handling client
matters; and
4. recognise that you have duties to third parties (in addition to your client)
such as the court and to other solicitors.
After Part 2 of PCR Lecture 2 you should be able to:
1. understand the nature of different legal service providers;
2. appreciate the role of the Compliance Office for Legal Practice and the
Compliance Officer for Finance and Administration;
3. appreciate the nature of different claims which might be made against
solicitors;
4. appreciate the disciplinary action which can be taken against solicitors;
LAW SCHOOL 17/06/2021 16:24:00/
Page 1 of 89
,LECTURE 2 LPC: PROFESSIONAL CONDUCT AND REGULATION
5. understand and be able to explain the client complaints hierarchy; and
6. appreciate the requirements of the Codes and other regulatory
requirements for running a law firm as a business.
Part 1: The Code of Conduct
1. Professional Conduct and Client Care: Introduction
Professional conduct and client care for solicitors is governed by a number of
rules, regulations and codes, which derive not only from statute but also from
common law and equity.
1.1 Governing and representative bodies
1.1.1 The Law Society represents solicitors in England and Wales. Its key role is to
represent solicitors’ views to the public, the government and the regulators of
the profession. It also supports solicitors both in their careers and in their
practice.
1.1.2 The Solicitors Regulation Authority (‘SRA’) deals with all regulatory and
disciplinary matters relating to solicitors in England and Wales. It sets
standards for solicitors across England and Wales and is responsible for
monitoring and enforcing those standards. As well as solicitors, the SRA also
regulates law firms in England and Wales, non-lawyers such as managers and
employees in firms the SRA regulates, and other types of lawyers such as
Registered Foreign Lawyers (‘RFLs’) and Registered European Lawyers
(‘RELs’).
1.1.3 The Legal Ombudsman is the sole organisation where consumers can file
legal complaints in relation to poor service or a solicitor’s bill and was
established by the Office for Legal Complaints (‘OLC’) under the Legal
Services Act 2007. See Part 2 of this lecture for more detail.
Page 2 of 89 17/06/2021 16:24:00/
. LAW SCHOOL
,LPC: PROFESSIONAL CONDUCT AND REGULATION LECTURE 2
1.2 Regulation of the providers of legal services
1.2.1 Aim of professional conduct regulation
The rules which regulate professional conduct are made principally to prevent
exploitation of members of the public by the legal profession. A further
function of the rules of professional conduct is to uphold the highest of
standards by legal practitioners in their dealings with their clients, the court
and each other.
1.2.2 SRA Handbook 2011
The SRA published a handbook in 2011 (the ‘SRA Handbook 2011‘), which
contained the rules on professional conduct which pre-date the existing
regime. It came into force on 6 October 2011. The SRA Handbook 2011
marked a significant departure from its predecessor, the Solicitors’ Code of
Conduct 2007 (the ‘2007 Code‘), which was prescriptive, rules based
legislation. The SRA Handbook 2011 was an example of ‘Outcomes Focused
Regulation’, commonly referred to as ‘OFR’ which comprised outcomes the
SRA required (the ‘Outcomes‘). The Outcomes were mandatory and helped
ensure compliance with the underlying principles and codes. The Outcomes
were supplemented with indicative behaviours to aid compliance (the
‘Indicative Behaviours‘). The Indicative Behaviours were non-exhaustive as
the Outcomes could be achieved in different ways, and were not mandatory.
1.2.3 SRA Standards and Regulations 2019
The outcomes based approach under the 2011 regime has now been replaced
with a new approach under the 2019 regime which is explained further below.
The SRA Standards and Regulations 2019 came into force on 25 November
2019.
The rules and regulations established by the SRA in 2019 that are referred to
in the LPC Professional Conduct course are set out below:
Rules/Regs Referred to Location in your LPC Permitted
on the LPC Materials
as ...
SRA Standards and The BPP PCR Standards and Regulations
Regulations 2019 ‘Standards Handbook
and
Regulations’
SRA Financial Services (Scope) the ‘Scope BPP PCR Handbook
LAW SCHOOL 17/06/2021 16:24:00/
Page 3 of 89
, LECTURE 2 LPC: PROFESSIONAL CONDUCT AND REGULATION
Rules 2001 Rules’
SRA Financial Services ‘SRACOB’ BPP PCR Handbook
(Conduct of Business) Rules
2001
SRA Accounts Rules 2011 The BPP PCR Standards and Regulations
‘Accounts Handbook
Rules’
The Standards and Regulations, the Scope Rules and SRACOB are dealt with
in the PCR module on the LPC.
Principles and Codes
The three key parts of the Standards and Regulations that we focus on in PCR
are the Principles and the Codes. The Principles set out ethical standards
expected of those who are regulated by the SRA. CCS deals with standards
of professionalism expected of Authorised Individuals (that is solicitors, RFLs
and RELs). CCF sets out standards and business controls expected from
Firms.
The paragraph references from the Codes are referred to in this lecture as
“paragraph number” preceded by CCS or CCF as applicable.
Scope Rules
The Scope Rules outline the scope of regulated financial services activities
that may be undertaken by firms authorised by the SRA and not regulated by
the FCA.
Page 4 of 89 17/06/2021 16:24:00/
. LAW SCHOOL
