Professional Conduct CRYPT SHEET
Contents
1. Regulatory and Legal Environment
2. Managing Client Relationships: The 3 Cs
3. Regulation of Firms
4. Money Laundering
5. Regulation of Financial Services
6. Solicitors Accounts: SRA Accounts Rules
7. Solicitors Accounts: Double Entry Book Keeping
8. Legal System of England and Wales
, 1. Regulatory and Legal Environment
Regulatory environment – Intro
Professionalism requires knowledge, skill, expertise + high level of education & training
It also requires trust, ethics, morality and integrity
Trust and morality are important because legal professionals owe a duty to promote the
public good, not just the interests of their clients
**These principles apply to you as lawyers in your personal as well as professional life**
As a lawyer you must comply with LEGAL, REGULATORY + ETHICAL requirements
Regulators
Regulator
Legal Services Board All lawyers in England and Wales
Solicitors Regulation Authority Solicitors, law firms and individuals who
(‘SRA’) work for businesses authorised by the SRA
Bar Standards Board Barristers
Chartered Institute of Legal Legal executives
Executive (‘CILEx)
Council for Licensed Licensed conveyancers
Conveyancers
Costs Lawyers Standards Board Costs lawyers
To whom can a client complain? SRA requires that every law firm has a
complaints procedure – Step (1) = to follow it
If a firm’s internal complaints procedure =
exhausted, individuals, small businesses,
charities, clubs & trusts can refer complaints to
the LO. LO can require solicitor to:
apologise
pay compensation
correct/put right an error or omission
take specific action in interests of
complainant
If a client has a complaint concerning pay for costs of complainant
misconduct, dishonesty or breaches of the SRA’s limit the firm’s fees
rules, they can complain to the SRA. SRA can: KEY: LO has no power to discipline or fine a
issue a warning to the firm lawyer – their function is to resolve complaints!
impose a disciplinary sanction (e.g. fine)
reprimand the solicitor for professional Solicitors Disciplinary Tribunal = an independent statutory
misconduct body that deals w/ serious breaches of SRA rules. It can:
order the solicitor to repay/refund the strike a solicitor off the roll
whole or part of the costs to the client suspend a solicitor from practice for a fixed or
impose restrictions on a lawyer’s ability indefinite period
to practise reprimand a solicitor
institute disciplinary proceedings before impose a fine
Solicitor’s Disciplinary Tribunal award costs against a party to proceedings
SRArecognition
revoke Standards and
of aRegulations
firm; and 2019 make a restrict order – i.e. restrict area in which a
close down a firm solicitor can practice
**It cannot award compensation**
, All solicitors must follow certain rules and meet high ethical standards – key docs:
o The SRA principles
The principles relate to a lawyers relationship with their client, the court,
other professionals and the public
The principles which safeguard the wider public interest take precedence
over the interest of an individual client (for example, the rule of law)
Applies to both personal and professional lives
o Code of Conduct for Solicitors, Registered European Lawyers (RELs) and
Registered Foreign Lawyers (RFLs) (CCS)
Includes solicitors, paralegals and apprentices
Must exercise your own judgement in applying the standards to your
situation and deciding on a course of action
You are personally responsible for compliance with CCS
CCS 7.3 requires you to co-operate w/ SRA and other regulators when
they investigate concerns
o Code of Conduct for Firms (CCF)
Contains all standards set in CCS plus additional standards for firms:
Systems and controls firms must have in place to comply with SRA's rules
The responsibilities of managers of a firm
The requirement to have a Compliance Office for Legal Practice (COLP)
and a Compliance Officer for Finance and Administration (COFA)
o SRA Accounts Rules
Regulates how law firms hold and manage clients’ money
Maintaining trust and acting fairly
Principle 7: acting in the best interest of the client – overridden by the duty to act with
independence, honesty & integrity cannot help a client do something dishonest or illegal
*Integrity is BROADER than honesty – must be scrupulous, careful and accurate
CCS 1.1 Do not unfairly discriminate by allowing your personal views to affect your
professional relationships & way in which you provide your services
CCS 1.2 Do not take unfair advantage – e.g. if the opposition party has no legal
representation, you should not take advantage of their lack of legal knowledge
CCS 1.4 Do not mislead your clients, the court or others
Misleading a client: telling a prospective client they have a strong case in order
to get work; telling them a case is going well when it’s not
Misleading the court: not disclosing a case or stat. provision against your arg.
Misleading others: making false representations on behalf of client to third party
Equality, Diversity and Inclusion
, EDI applies to everyone – what does it mean?
Equality: making sure there is a level playing field & people are treated fairly
Diversity: encouraging & valuing people with a broad range of different backgrounds,
knowledge, skills and experiences
Inclusion: accepting people for who they are + encouraging everyone to participate &
contribute
EDI is important in the legal profession for 1) the effective administration of justice; 2)
improving access to services and 3) to maintain high standards by allowing the most talented
people to become solicitors!
SRA’s requirements on EDI extend beyond the law (i.e. EA 2010), requiring:
Principle 6 Must act in a way that encourages equality, diversity, and inclusion
CCS 1.1 Do not unfairly discriminate by allowing your personal views to affect
CCS 1.2 Do not take unfair advantage
CCS 3.4 You consider & take account of your client’s attributes, needs & circumstances
How must firms and individuals act to comply w/ their obligations on EDI (SRA Guidance):
© Provide reasonable adjustments to disabled clients & employees to make sure they are not
at a substantial disadvantage + must not pass on the costs of providing these adjustments
© Encourage diversity at all levels of the workforce
© Collect, report and publish data about the diversity of your workforce
© Uphold the reputation of the profession in your professional & personal life + treat people
fairly and with dignity & respect
© Be fair and inclusive in your interactions with people
KEY: Firms must have a complaints procedure + ensure complaints are dealt w/ promptly,
fairly & effectively
Firms & other employers may also wish to:
- Produce a statement about EDI for their workforce, clients etc.
- Monitor & analyse the diversity of their staff & clients
- Draft & implement an EDI policy outlining their approach to recruitment, retention
and progression
- Attract the best staff: have a recruitment policy and fair process for promotion to
maximise chances of getting & retaining the best people for each role
The Equality Act 2010
Age Marriage and civil Race
Disability partnership Religion or belief
Gender Pregnancy and Sex
reassignment maternity Sexual orientation
Contents
1. Regulatory and Legal Environment
2. Managing Client Relationships: The 3 Cs
3. Regulation of Firms
4. Money Laundering
5. Regulation of Financial Services
6. Solicitors Accounts: SRA Accounts Rules
7. Solicitors Accounts: Double Entry Book Keeping
8. Legal System of England and Wales
, 1. Regulatory and Legal Environment
Regulatory environment – Intro
Professionalism requires knowledge, skill, expertise + high level of education & training
It also requires trust, ethics, morality and integrity
Trust and morality are important because legal professionals owe a duty to promote the
public good, not just the interests of their clients
**These principles apply to you as lawyers in your personal as well as professional life**
As a lawyer you must comply with LEGAL, REGULATORY + ETHICAL requirements
Regulators
Regulator
Legal Services Board All lawyers in England and Wales
Solicitors Regulation Authority Solicitors, law firms and individuals who
(‘SRA’) work for businesses authorised by the SRA
Bar Standards Board Barristers
Chartered Institute of Legal Legal executives
Executive (‘CILEx)
Council for Licensed Licensed conveyancers
Conveyancers
Costs Lawyers Standards Board Costs lawyers
To whom can a client complain? SRA requires that every law firm has a
complaints procedure – Step (1) = to follow it
If a firm’s internal complaints procedure =
exhausted, individuals, small businesses,
charities, clubs & trusts can refer complaints to
the LO. LO can require solicitor to:
apologise
pay compensation
correct/put right an error or omission
take specific action in interests of
complainant
If a client has a complaint concerning pay for costs of complainant
misconduct, dishonesty or breaches of the SRA’s limit the firm’s fees
rules, they can complain to the SRA. SRA can: KEY: LO has no power to discipline or fine a
issue a warning to the firm lawyer – their function is to resolve complaints!
impose a disciplinary sanction (e.g. fine)
reprimand the solicitor for professional Solicitors Disciplinary Tribunal = an independent statutory
misconduct body that deals w/ serious breaches of SRA rules. It can:
order the solicitor to repay/refund the strike a solicitor off the roll
whole or part of the costs to the client suspend a solicitor from practice for a fixed or
impose restrictions on a lawyer’s ability indefinite period
to practise reprimand a solicitor
institute disciplinary proceedings before impose a fine
Solicitor’s Disciplinary Tribunal award costs against a party to proceedings
SRArecognition
revoke Standards and
of aRegulations
firm; and 2019 make a restrict order – i.e. restrict area in which a
close down a firm solicitor can practice
**It cannot award compensation**
, All solicitors must follow certain rules and meet high ethical standards – key docs:
o The SRA principles
The principles relate to a lawyers relationship with their client, the court,
other professionals and the public
The principles which safeguard the wider public interest take precedence
over the interest of an individual client (for example, the rule of law)
Applies to both personal and professional lives
o Code of Conduct for Solicitors, Registered European Lawyers (RELs) and
Registered Foreign Lawyers (RFLs) (CCS)
Includes solicitors, paralegals and apprentices
Must exercise your own judgement in applying the standards to your
situation and deciding on a course of action
You are personally responsible for compliance with CCS
CCS 7.3 requires you to co-operate w/ SRA and other regulators when
they investigate concerns
o Code of Conduct for Firms (CCF)
Contains all standards set in CCS plus additional standards for firms:
Systems and controls firms must have in place to comply with SRA's rules
The responsibilities of managers of a firm
The requirement to have a Compliance Office for Legal Practice (COLP)
and a Compliance Officer for Finance and Administration (COFA)
o SRA Accounts Rules
Regulates how law firms hold and manage clients’ money
Maintaining trust and acting fairly
Principle 7: acting in the best interest of the client – overridden by the duty to act with
independence, honesty & integrity cannot help a client do something dishonest or illegal
*Integrity is BROADER than honesty – must be scrupulous, careful and accurate
CCS 1.1 Do not unfairly discriminate by allowing your personal views to affect your
professional relationships & way in which you provide your services
CCS 1.2 Do not take unfair advantage – e.g. if the opposition party has no legal
representation, you should not take advantage of their lack of legal knowledge
CCS 1.4 Do not mislead your clients, the court or others
Misleading a client: telling a prospective client they have a strong case in order
to get work; telling them a case is going well when it’s not
Misleading the court: not disclosing a case or stat. provision against your arg.
Misleading others: making false representations on behalf of client to third party
Equality, Diversity and Inclusion
, EDI applies to everyone – what does it mean?
Equality: making sure there is a level playing field & people are treated fairly
Diversity: encouraging & valuing people with a broad range of different backgrounds,
knowledge, skills and experiences
Inclusion: accepting people for who they are + encouraging everyone to participate &
contribute
EDI is important in the legal profession for 1) the effective administration of justice; 2)
improving access to services and 3) to maintain high standards by allowing the most talented
people to become solicitors!
SRA’s requirements on EDI extend beyond the law (i.e. EA 2010), requiring:
Principle 6 Must act in a way that encourages equality, diversity, and inclusion
CCS 1.1 Do not unfairly discriminate by allowing your personal views to affect
CCS 1.2 Do not take unfair advantage
CCS 3.4 You consider & take account of your client’s attributes, needs & circumstances
How must firms and individuals act to comply w/ their obligations on EDI (SRA Guidance):
© Provide reasonable adjustments to disabled clients & employees to make sure they are not
at a substantial disadvantage + must not pass on the costs of providing these adjustments
© Encourage diversity at all levels of the workforce
© Collect, report and publish data about the diversity of your workforce
© Uphold the reputation of the profession in your professional & personal life + treat people
fairly and with dignity & respect
© Be fair and inclusive in your interactions with people
KEY: Firms must have a complaints procedure + ensure complaints are dealt w/ promptly,
fairly & effectively
Firms & other employers may also wish to:
- Produce a statement about EDI for their workforce, clients etc.
- Monitor & analyse the diversity of their staff & clients
- Draft & implement an EDI policy outlining their approach to recruitment, retention
and progression
- Attract the best staff: have a recruitment policy and fair process for promotion to
maximise chances of getting & retaining the best people for each role
The Equality Act 2010
Age Marriage and civil Race
Disability partnership Religion or belief
Gender Pregnancy and Sex
reassignment maternity Sexual orientation
