Money Laundering & Financial Services for SQE2 about:srcdoc
Money Laundering & Financial Services
for SQE2
Aspects of legal practice only a suitably qualified
What is the meaning of reserved legal
legal professional is permitted to do under LSA
activities?
2007
• rights of audience (call/examine witness)
• conduct of litigation (issuing
proceedings, prosecuting/defending)
• reserved instrument activities (lodging
certain instruments like land
What are considered reserved legal activities?
registration)
• probate activities
• notarial activities (can only do if also a
notary)
• power to administer an oath
Any activity not covered in the list.
What are non-reserved activities? Can be provided by unregulated individuals
without a formal requirement for training or
qualifications.
• drafting wills
What is not considered a reserved instrument • drafting agreements not intended to be
activity? executed as a deed
• drafting a letter or power of attorney
• if court has authorised it - rights of
audience / right to conduct litigation
When might a person be exempt from requiring
• statutory provisions
authorisation for reserved legal activities?
• McKenzie Friend
• Party to proceedings
What is the SRA responsible for in its regulatory • licensing individuals and firms to
capacity? practise
• setting the standards of the profession
1 of 30 01/09/2025, 10:08
,Money Laundering & Financial Services for SQE2 about:srcdoc
• enforcing compliance against those
standards
• Admitted to profession from training/
education and character suitability
• Added to the roll
What are the authorisation requirements for a
• Obtains practising certificate (renew
solicitor?
annually)
• Authorised to practice (can carry out
reserved legal activities)
How can a solicitor conduct reserved legal By having a valid practising certificate and
activities? through an authorised firm
• freelance as recognised sole practice
What are the exceptions to the rules around
• freelance if not conducting RLA
conducting reserved legal activities with an
• in-house for employer but not public
authorised firm?
• NFP/charities - can do RLA for public
Can be eligible for SRA authorisation if deemed
to be a legal services body and all managers/
What are recognised bodies? interest holders are legally qualified
Partnerships, LLPs, companies
Non-lawyers may own and manage law
practices
Alternative business structures (ABS) apply
What are licensed bodies?
for authorisation as a licensed body.
Must have one manager authorised by SRA or
approved regulator
Solicitors working on an individual basis in a
What is a recognised sole practice? practice providing RLA to public (freelance).
Must be authorised as RSP.
What are the SRA core principles? 1. uphold constitutional principle of rule of
law and proper administration of justice
2. uphold public trust and confidence in
profession
3. independence
4. honesty
5. integrity
6. encourage EDI
7. best interests of client
2 of 30 01/09/2025, 10:08
,Money Laundering & Financial Services for SQE2 about:srcdoc
1. protect and promote public interest
2. improve access to justice
3. protect and promote consumer interests
4. promote competition in provision of
services
What regulatory objectives must a regulatory
body try to achieve? 5. encourage an independent, strong,
diverse and effective legal profession
6. increase public understanding of
citizen’s rights and duties
7. promote and maintain adherence to
professional principles
RB regulation model assesses risk according to
likely impact and probability of risk
What is risk-based regulation? materialising.
Allows SRA to target its resources at risks it
considers most significant.
Impact: what is at risk?
How does the SRA evaluate risk?
Probability: how likely is it the event will occur?
Proportionate to risk identified
What response should the SRA make to an Requires firms to identify, monitor and manage
identified risk? risks through compliance with risk assessment
regulations.
Provides cover to the insured party (law firm/
solicitor) should they breach a professional duty
What is professional indemnity insurance? that causes financial loss or damage to a client.
Also covers defence costs.
What are the SRA Indemnity Insurance rule 1. All authorised bodies must acquire and
requirements? maintain appropriate PII, must cover
minimum terms and conditions by SRA.
Providing adequate and appropriate
cover for services provided.
2. Each firm must determine level of
coverage needed considering the nature
of work, number/type of clients, any
history of claims against firm, alternative
arrangements to meet liabilities
3. Recognised/licensed bodies must be
insured for at least £3 million (excl
defence) for one claim. In other cases,
3 of 30
01/09/2025, 10:08
Money Laundering & Financial Services
for SQE2
Aspects of legal practice only a suitably qualified
What is the meaning of reserved legal
legal professional is permitted to do under LSA
activities?
2007
• rights of audience (call/examine witness)
• conduct of litigation (issuing
proceedings, prosecuting/defending)
• reserved instrument activities (lodging
certain instruments like land
What are considered reserved legal activities?
registration)
• probate activities
• notarial activities (can only do if also a
notary)
• power to administer an oath
Any activity not covered in the list.
What are non-reserved activities? Can be provided by unregulated individuals
without a formal requirement for training or
qualifications.
• drafting wills
What is not considered a reserved instrument • drafting agreements not intended to be
activity? executed as a deed
• drafting a letter or power of attorney
• if court has authorised it - rights of
audience / right to conduct litigation
When might a person be exempt from requiring
• statutory provisions
authorisation for reserved legal activities?
• McKenzie Friend
• Party to proceedings
What is the SRA responsible for in its regulatory • licensing individuals and firms to
capacity? practise
• setting the standards of the profession
1 of 30 01/09/2025, 10:08
,Money Laundering & Financial Services for SQE2 about:srcdoc
• enforcing compliance against those
standards
• Admitted to profession from training/
education and character suitability
• Added to the roll
What are the authorisation requirements for a
• Obtains practising certificate (renew
solicitor?
annually)
• Authorised to practice (can carry out
reserved legal activities)
How can a solicitor conduct reserved legal By having a valid practising certificate and
activities? through an authorised firm
• freelance as recognised sole practice
What are the exceptions to the rules around
• freelance if not conducting RLA
conducting reserved legal activities with an
• in-house for employer but not public
authorised firm?
• NFP/charities - can do RLA for public
Can be eligible for SRA authorisation if deemed
to be a legal services body and all managers/
What are recognised bodies? interest holders are legally qualified
Partnerships, LLPs, companies
Non-lawyers may own and manage law
practices
Alternative business structures (ABS) apply
What are licensed bodies?
for authorisation as a licensed body.
Must have one manager authorised by SRA or
approved regulator
Solicitors working on an individual basis in a
What is a recognised sole practice? practice providing RLA to public (freelance).
Must be authorised as RSP.
What are the SRA core principles? 1. uphold constitutional principle of rule of
law and proper administration of justice
2. uphold public trust and confidence in
profession
3. independence
4. honesty
5. integrity
6. encourage EDI
7. best interests of client
2 of 30 01/09/2025, 10:08
,Money Laundering & Financial Services for SQE2 about:srcdoc
1. protect and promote public interest
2. improve access to justice
3. protect and promote consumer interests
4. promote competition in provision of
services
What regulatory objectives must a regulatory
body try to achieve? 5. encourage an independent, strong,
diverse and effective legal profession
6. increase public understanding of
citizen’s rights and duties
7. promote and maintain adherence to
professional principles
RB regulation model assesses risk according to
likely impact and probability of risk
What is risk-based regulation? materialising.
Allows SRA to target its resources at risks it
considers most significant.
Impact: what is at risk?
How does the SRA evaluate risk?
Probability: how likely is it the event will occur?
Proportionate to risk identified
What response should the SRA make to an Requires firms to identify, monitor and manage
identified risk? risks through compliance with risk assessment
regulations.
Provides cover to the insured party (law firm/
solicitor) should they breach a professional duty
What is professional indemnity insurance? that causes financial loss or damage to a client.
Also covers defence costs.
What are the SRA Indemnity Insurance rule 1. All authorised bodies must acquire and
requirements? maintain appropriate PII, must cover
minimum terms and conditions by SRA.
Providing adequate and appropriate
cover for services provided.
2. Each firm must determine level of
coverage needed considering the nature
of work, number/type of clients, any
history of claims against firm, alternative
arrangements to meet liabilities
3. Recognised/licensed bodies must be
insured for at least £3 million (excl
defence) for one claim. In other cases,
3 of 30
01/09/2025, 10:08
