ETHICS AND PROFESSIONAL CONDUCT (FLK1 & FLK2)
(1) SRA Principles: The purpose, scope and content of the SRA Principles.
(2) SRA Code of Conduct: The purpose, scope and content of the SRA Code of Conduct for
Solicitors, RELs and RFLs as well as the SRA Code of Conduct for Firms in relation to
Managers in authorised firms and Compliance Officers.
[See the Statement of Solicitor Competence (SoSC) at Annex 1 of the SQE1 Assessment
Specification]
SOLICITORS ACCOUNTS (FLK2)
(1) Client money: Definition, the requirement to pay client money into a client account,
circumstances in which client money may be withheld from a client account, repayment,
accounting entries required and the requirement to keep client money separate from money
belonging to the authorised body.
(2) Client account: Meaning and name of the account, obligation not to use client account to
provide banking facilities, withdrawals and accounting entries required.
(3) Interest: Requirement to pay interest on client money and accounting entries required.
(4) Breach of the SRA Accounts Rules: Duty to correct breaches of SRA Accounts Rules
promptly on discovery and accounting entries required.
(5) Requirement to keep and maintain accurate records in client ledgers, including the
requirement to carry out reconciliation of client accounts and to keep a record of bills to include
disbursements using the agency and principal methods, transfers, submission, reduction and
payment of bills including the VAT element, and accounting entries required.
(6) Operation of joint account and a client’s own account.
(7) Third-party managed accounts.
(8) Obtaining and delivery of accountants’ reports; storage and retention of accounting records.
, PROPERTY PRACTICE (FLK2)
(1) Investigation of a registered and unregistered freehold title: Key elements and structure of
freehold property transactions, the process of analysing Land Registry official copy entries, the
process of analysing an epitome of title and deducing ownership, issues that could arise from
an investigation of title and further action required, and purpose and process of reporting to the
client.
(2) Pre-contract searches and enquiries: Range and purpose of making searches and raising
enquiries, who would make the searches and raise enquiries, and the results of searches and
enquiries.
(3) Law Society Conveyancing Protocol
(4) Finance: Sources of finance for a property transaction and types of mortgage.
(5) Acting for a lender: Lender’s requirements and purpose of a certificate of title.
(6) Preparation for and exchange of contracts: Key conditions contained in the Standard
Conditions of Sale and Standard Commercial Property Conditions, the purpose of, and matters
covered by, special conditions, methods of holding a deposit (stakeholder or agent), insurance
and risk, basics of VAT in a contract, the timing for issuing a certificate of title to a lender, the
practice, method and authority to exchange and consequences of exchange.
(7) Pre-completion: Form of transfer deed and formalities for execution, pre-completion
searches and pre-completion steps.
(8) Completion and post-completion: Methods and effect of completion and post-completion
steps.
(9) Remedies for delayed completion: Common law damages, contractual compensation, notice
to complete, rescission and rescission.
(10) Structure and content of a lease: Repair, insurance, alterations, user and planning, rent and
rent review, alienation, options for the term of a lease, and Code for Leasing Business Premises.
(11) Grant of a commercial lease and/or underlease: Drafting the lease, purpose of an agreement
for lease, deduction of title, pre-contract enquiries and searches, pre-completion formalities,
and completion and post-completion steps.
(12) Assignment of a commercial lease and/or underlease: Deduction of title, pre-contract
enquiries and searches, landlord’s consent, deed of assignment and covenants for title, pre-
completion formalities, authorised guarantee agreement, and completion and post-completion
steps.
(13) Licence to assign and licence to underlet: Purpose of and who prepares the draft, privity of
contract and how the licence deals with this, and key provisions in the licence.
(14) Key lease covenants in a commercial lease: Liability on covenants in leases (leases granted
before 1 January 1996 and leases granted on or after 1 January 1996).
(15) Remedies for breach of a leasehold covenant: Action in debt, forfeiture, Commercial Rent
Arrears Recovery, pursue guarantors and/or rent deposit, specific performance, damages, and
self-help/Jervis v Harris clause.
(16) Termination of a lease: Effluxion of time, notice to quit, surrender and merger.
(17) Security of tenure of a business lease under the Landlord and Tenant Act 1954 Part
II: Application of 1954 Act, renewal lease by the tenant, termination by the landlord, landlord’s
grounds of opposition, terms of a new lease, and availability of compensation.
(1) SRA Principles: The purpose, scope and content of the SRA Principles.
(2) SRA Code of Conduct: The purpose, scope and content of the SRA Code of Conduct for
Solicitors, RELs and RFLs as well as the SRA Code of Conduct for Firms in relation to
Managers in authorised firms and Compliance Officers.
[See the Statement of Solicitor Competence (SoSC) at Annex 1 of the SQE1 Assessment
Specification]
SOLICITORS ACCOUNTS (FLK2)
(1) Client money: Definition, the requirement to pay client money into a client account,
circumstances in which client money may be withheld from a client account, repayment,
accounting entries required and the requirement to keep client money separate from money
belonging to the authorised body.
(2) Client account: Meaning and name of the account, obligation not to use client account to
provide banking facilities, withdrawals and accounting entries required.
(3) Interest: Requirement to pay interest on client money and accounting entries required.
(4) Breach of the SRA Accounts Rules: Duty to correct breaches of SRA Accounts Rules
promptly on discovery and accounting entries required.
(5) Requirement to keep and maintain accurate records in client ledgers, including the
requirement to carry out reconciliation of client accounts and to keep a record of bills to include
disbursements using the agency and principal methods, transfers, submission, reduction and
payment of bills including the VAT element, and accounting entries required.
(6) Operation of joint account and a client’s own account.
(7) Third-party managed accounts.
(8) Obtaining and delivery of accountants’ reports; storage and retention of accounting records.
, PROPERTY PRACTICE (FLK2)
(1) Investigation of a registered and unregistered freehold title: Key elements and structure of
freehold property transactions, the process of analysing Land Registry official copy entries, the
process of analysing an epitome of title and deducing ownership, issues that could arise from
an investigation of title and further action required, and purpose and process of reporting to the
client.
(2) Pre-contract searches and enquiries: Range and purpose of making searches and raising
enquiries, who would make the searches and raise enquiries, and the results of searches and
enquiries.
(3) Law Society Conveyancing Protocol
(4) Finance: Sources of finance for a property transaction and types of mortgage.
(5) Acting for a lender: Lender’s requirements and purpose of a certificate of title.
(6) Preparation for and exchange of contracts: Key conditions contained in the Standard
Conditions of Sale and Standard Commercial Property Conditions, the purpose of, and matters
covered by, special conditions, methods of holding a deposit (stakeholder or agent), insurance
and risk, basics of VAT in a contract, the timing for issuing a certificate of title to a lender, the
practice, method and authority to exchange and consequences of exchange.
(7) Pre-completion: Form of transfer deed and formalities for execution, pre-completion
searches and pre-completion steps.
(8) Completion and post-completion: Methods and effect of completion and post-completion
steps.
(9) Remedies for delayed completion: Common law damages, contractual compensation, notice
to complete, rescission and rescission.
(10) Structure and content of a lease: Repair, insurance, alterations, user and planning, rent and
rent review, alienation, options for the term of a lease, and Code for Leasing Business Premises.
(11) Grant of a commercial lease and/or underlease: Drafting the lease, purpose of an agreement
for lease, deduction of title, pre-contract enquiries and searches, pre-completion formalities,
and completion and post-completion steps.
(12) Assignment of a commercial lease and/or underlease: Deduction of title, pre-contract
enquiries and searches, landlord’s consent, deed of assignment and covenants for title, pre-
completion formalities, authorised guarantee agreement, and completion and post-completion
steps.
(13) Licence to assign and licence to underlet: Purpose of and who prepares the draft, privity of
contract and how the licence deals with this, and key provisions in the licence.
(14) Key lease covenants in a commercial lease: Liability on covenants in leases (leases granted
before 1 January 1996 and leases granted on or after 1 January 1996).
(15) Remedies for breach of a leasehold covenant: Action in debt, forfeiture, Commercial Rent
Arrears Recovery, pursue guarantors and/or rent deposit, specific performance, damages, and
self-help/Jervis v Harris clause.
(16) Termination of a lease: Effluxion of time, notice to quit, surrender and merger.
(17) Security of tenure of a business lease under the Landlord and Tenant Act 1954 Part
II: Application of 1954 Act, renewal lease by the tenant, termination by the landlord, landlord’s
grounds of opposition, terms of a new lease, and availability of compensation.
