BLP: SGS 1-12 REVISION SUMMARY
PROFESSIONAL CONDUCT ISSUES WHEN TAKING ON NEW CLIENTS
Approach to Analysing Professional Conduct Issues
(1) Clearly establish the relevant facts and identify the professional conduct issues raised.
(2) Identify relevant professional conduct requirements (e.g. applicable Principles/Chapters/Outcomes/Indicative
Behaviours in the SRA Code of Conduct 2011).
(3) Explain why there is a professional conduct issue on the facts.
(4) Analyse the facts + determine whether the relevant Outcomes have been met using the applicable Indicative
Behaviours as guidance.
(5) If Outcomes not met then what steps are required to avoid a breach of the Code?
(6) If there is a potential/has been an actual breach of the Code then what are the consequences?
SRA Code of Conduct 2011: The Principles
(1) Must uphold the rule of law and the proper administration of justice.
(2) Must act with integrity.
(3) Must not allow independence to be compromised.
(4) Must act in the best interests of each client.
(5) Must provide a proper standard of service.
(6) Must act in manner which preserves public confidence in legal service providers.
(7) Must comply with legal/regulatory requirements and cooperate with regulators/ombudsmen.
(8) Must operate business in accordance with proper governance/risk management practices/principles.
(9) Must operate business in manner which promotes equality of opportunity and respect for diversity.
(10) Must protect client money/assets.
Money Laundering Regulations 2007
- Reg 3: Application – Regulations apply to independent legal professionals providing advice/services relating to
commercial/financial/property transactions and setting up of companies/trusts etc.
- Reg 7: Requirements – When dealing with person to whom MLR applies, relevant person must carry out
CUSTOMER DUE DILIGENCE MEASURES (CDD) – different levels of CDD measures
(simplified/standard/enhanced) depending on level of risk.
- Generally must be conducted before the establishment of relationship/provision of services to the client (except
where there is a low risk and it is necessary to avoid delay).
- Requires person to whom MLR apply to implement means of identifying + verifying the identity of their clients +
carry out ongoing monitoring of their clients.
SRA CODEOF CONDUCT
(1) SRA Code of Conduct 2011: Chapter 1: Client Care
- Identifying Client – Identify/verify identity of client + determine whether the MLR 2007 apply and if so, what do
they require?
- Accepting Instructions – Solicitors generally free to refuse/accept instructions but must not act in a discriminatory
manner.
- Must NOT accept instructions where you would lack competence OR would breach the law OR would have
insufficient resources.
- Must be confident that any 3rd party instructing you on behalf of another has authority to do so (IB (1.25)).
- Client Care Letter – Aims to ensure that clients are treated fairly + allow clients to make informed decisions about
services they require/how case will be handled/options available to them – generally includes information relating to:
(a) retainer/acceptance of instructions;
(b) persons responsible for dealing with client’s case;
(c) services offered by the firm;
(d) arrangements for exchange of documents/correspondence;
(e) statements of truth and disclosure of documents in relation to any litigation which may be conducted on behalf
of client;
(f) summary of fee arrangements and different payment options available to the client + how fees may change in
light of certain circumstances (e.g. premature termination of retainer);
(g) summary of additional costs (e.g. court fees/potential liability for other side’s costs if unsuccessful in litigation);
(h) overall estimate of costs of legal services;
(i) details/arrangements for payment of legal fees;
(j) recovery of costs if retainer terminated;
(k) possibility of legal costs insurance;
(l) solicitor’s duty of care + duty of confidentiality/disclosure + money laundering issues + other regulatory
requirements;
(m) firm’s policy on records/storing copies of documents; and
(n) firm’s complaints procedure.
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PROFESSIONAL CONDUCT ISSUES WHEN TAKING ON NEW CLIENTS
Approach to Analysing Professional Conduct Issues
(1) Clearly establish the relevant facts and identify the professional conduct issues raised.
(2) Identify relevant professional conduct requirements (e.g. applicable Principles/Chapters/Outcomes/Indicative
Behaviours in the SRA Code of Conduct 2011).
(3) Explain why there is a professional conduct issue on the facts.
(4) Analyse the facts + determine whether the relevant Outcomes have been met using the applicable Indicative
Behaviours as guidance.
(5) If Outcomes not met then what steps are required to avoid a breach of the Code?
(6) If there is a potential/has been an actual breach of the Code then what are the consequences?
SRA Code of Conduct 2011: The Principles
(1) Must uphold the rule of law and the proper administration of justice.
(2) Must act with integrity.
(3) Must not allow independence to be compromised.
(4) Must act in the best interests of each client.
(5) Must provide a proper standard of service.
(6) Must act in manner which preserves public confidence in legal service providers.
(7) Must comply with legal/regulatory requirements and cooperate with regulators/ombudsmen.
(8) Must operate business in accordance with proper governance/risk management practices/principles.
(9) Must operate business in manner which promotes equality of opportunity and respect for diversity.
(10) Must protect client money/assets.
Money Laundering Regulations 2007
- Reg 3: Application – Regulations apply to independent legal professionals providing advice/services relating to
commercial/financial/property transactions and setting up of companies/trusts etc.
- Reg 7: Requirements – When dealing with person to whom MLR applies, relevant person must carry out
CUSTOMER DUE DILIGENCE MEASURES (CDD) – different levels of CDD measures
(simplified/standard/enhanced) depending on level of risk.
- Generally must be conducted before the establishment of relationship/provision of services to the client (except
where there is a low risk and it is necessary to avoid delay).
- Requires person to whom MLR apply to implement means of identifying + verifying the identity of their clients +
carry out ongoing monitoring of their clients.
SRA CODEOF CONDUCT
(1) SRA Code of Conduct 2011: Chapter 1: Client Care
- Identifying Client – Identify/verify identity of client + determine whether the MLR 2007 apply and if so, what do
they require?
- Accepting Instructions – Solicitors generally free to refuse/accept instructions but must not act in a discriminatory
manner.
- Must NOT accept instructions where you would lack competence OR would breach the law OR would have
insufficient resources.
- Must be confident that any 3rd party instructing you on behalf of another has authority to do so (IB (1.25)).
- Client Care Letter – Aims to ensure that clients are treated fairly + allow clients to make informed decisions about
services they require/how case will be handled/options available to them – generally includes information relating to:
(a) retainer/acceptance of instructions;
(b) persons responsible for dealing with client’s case;
(c) services offered by the firm;
(d) arrangements for exchange of documents/correspondence;
(e) statements of truth and disclosure of documents in relation to any litigation which may be conducted on behalf
of client;
(f) summary of fee arrangements and different payment options available to the client + how fees may change in
light of certain circumstances (e.g. premature termination of retainer);
(g) summary of additional costs (e.g. court fees/potential liability for other side’s costs if unsuccessful in litigation);
(h) overall estimate of costs of legal services;
(i) details/arrangements for payment of legal fees;
(j) recovery of costs if retainer terminated;
(k) possibility of legal costs insurance;
(l) solicitor’s duty of care + duty of confidentiality/disclosure + money laundering issues + other regulatory
requirements;
(m) firm’s policy on records/storing copies of documents; and
(n) firm’s complaints procedure.
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