Legal Services
SRA regulation:
6 reserved legal activities:
o Notarial
o Litigation
o Privileged documents- eg land transfers
o Rights of audience
o Probate
o Taking oaths
To do these reserved legal activities you need authorisation, or be
exempt.
o SO- Key trap here is that you don’t always necessarily need to
be regulated- eg charities, pro bono…
Note in these instances the individual still needs to be a
solicitor.
You need professional indemnity insurance fit to your firm-
‘adequate and appropriate’ and in all instances at least giving cover
of £3 million.
o Compulsory even if not doing reserved legal activities.
o Policies need to be renewed every year.
o If you run out of insurance, you have 30 days extended cover
to get new policy. You must notify the SRA within 5 days if you
enter this extended period.
Freelance solicitors do not need to be authorised to carry out
reserved legal activities so long as they have been practicing over 3
years, have insurance, and do not hire anyone.
All people working in an SRA authorised firm are subject to the
codes of conduct etc…
Direct discrimination- a policy clearly disadvantages a certain group
with a protected characteristic when compared with a hypothetical
‘comparator’
o Only age can be justified where there is direct discrimination.
o Objective test
Indirect discrimination: a policy indirectly impacts a certain group
with a protected characteristic, even if it may not have intended to
o Can justify this if for a legitimate aim and a reasonable
measure.
o Discrimination for maternity reasons can never be justified.
This will always class as direct discrimination.
, Victimisation: If engaged in litigation for example, and then they
miss out of job opportunities for going against the firm.
Harassment: Unsolicited ridicule, intimidation, violation of dignity
Costs lawyers will only be subject to regulation of the Costs Lawyer
Standards Boards.
If there has been a harassment or serious breach of SRA Conduct,
the best thing to do is report this to both the SRA and the nominated
officer.
Financial services:
Firms are regulated by the Financial Conduct Authority
The Prudential Regulation Authority regulate those with significant
financial risks
o EG- Banks, insurers…
The rule: Cannot carry out regulated activities unless authorised or
exempt
Reserved activities will be in the court of business, a specified
investment, and a specified activity, without an exception.
Specified investment: Shares, bonds etc…
o NOT land or national savings products.
BUT- Insurance contracts that relate to land are still
specified.
Consumer credit activities are also a regulated activity
o EG- Lending money, debt counselling, credit broking…
Exceptions- no longer class as a reserved activity at all:
o Introducing to an authorised third party
o Arranging
o Third party - acting on advice of third party
o Execution only- not giving advice
Must send a letter to the client confirming they are not
relying on the advice of the solicitor.
o Takeover- where there is a sale of 50% or more shares.
Even if the transfer is only of 30%, if this combines with
the clients existing shares to make 50%, the exclusion
applies.
o Acting as a trustee/PR
Exemption- still classes as a reserved activity, but you are able to do
it without authorisation:
SRA regulation:
6 reserved legal activities:
o Notarial
o Litigation
o Privileged documents- eg land transfers
o Rights of audience
o Probate
o Taking oaths
To do these reserved legal activities you need authorisation, or be
exempt.
o SO- Key trap here is that you don’t always necessarily need to
be regulated- eg charities, pro bono…
Note in these instances the individual still needs to be a
solicitor.
You need professional indemnity insurance fit to your firm-
‘adequate and appropriate’ and in all instances at least giving cover
of £3 million.
o Compulsory even if not doing reserved legal activities.
o Policies need to be renewed every year.
o If you run out of insurance, you have 30 days extended cover
to get new policy. You must notify the SRA within 5 days if you
enter this extended period.
Freelance solicitors do not need to be authorised to carry out
reserved legal activities so long as they have been practicing over 3
years, have insurance, and do not hire anyone.
All people working in an SRA authorised firm are subject to the
codes of conduct etc…
Direct discrimination- a policy clearly disadvantages a certain group
with a protected characteristic when compared with a hypothetical
‘comparator’
o Only age can be justified where there is direct discrimination.
o Objective test
Indirect discrimination: a policy indirectly impacts a certain group
with a protected characteristic, even if it may not have intended to
o Can justify this if for a legitimate aim and a reasonable
measure.
o Discrimination for maternity reasons can never be justified.
This will always class as direct discrimination.
, Victimisation: If engaged in litigation for example, and then they
miss out of job opportunities for going against the firm.
Harassment: Unsolicited ridicule, intimidation, violation of dignity
Costs lawyers will only be subject to regulation of the Costs Lawyer
Standards Boards.
If there has been a harassment or serious breach of SRA Conduct,
the best thing to do is report this to both the SRA and the nominated
officer.
Financial services:
Firms are regulated by the Financial Conduct Authority
The Prudential Regulation Authority regulate those with significant
financial risks
o EG- Banks, insurers…
The rule: Cannot carry out regulated activities unless authorised or
exempt
Reserved activities will be in the court of business, a specified
investment, and a specified activity, without an exception.
Specified investment: Shares, bonds etc…
o NOT land or national savings products.
BUT- Insurance contracts that relate to land are still
specified.
Consumer credit activities are also a regulated activity
o EG- Lending money, debt counselling, credit broking…
Exceptions- no longer class as a reserved activity at all:
o Introducing to an authorised third party
o Arranging
o Third party - acting on advice of third party
o Execution only- not giving advice
Must send a letter to the client confirming they are not
relying on the advice of the solicitor.
o Takeover- where there is a sale of 50% or more shares.
Even if the transfer is only of 30%, if this combines with
the clients existing shares to make 50%, the exclusion
applies.
o Acting as a trustee/PR
Exemption- still classes as a reserved activity, but you are able to do
it without authorisation:
