LPC - Professional Conduct
and Regulation -
EXAM QUESTIONS AND
VERIFIED CORRECT
ANSWERS GRADE A+
[LATEST]
Which TWO or MORE of the following statements are WRONG?
A. An undertaking must be in writing to be binding.
B. When a partner in a firm of solicitors gives an undertaking in the course of practice, it will
be binding on the firm as well as the solicitor personally.
C. A statement made by a secretary or paralegal in the course of practice cannot bind the firm
as an undertaking.
D. A statement must use the word "undertake" to be binding as an undertaking. This is to
prevent a solicitor accidentally giving an undertaking when, for example, simply stating that a
letter will be posted in answer to a routine query.
WRONG:
A and B.
A, B and C.
A and D only.
,A, C and D. - CORRECT ANSWER-A, C and D are all wrong.
There is no requirement for an undertaking to be in writing. It can be given orally.
A firm will be bound by an undertaking given on behalf of the firm to someone who
reasonably places reliance on it. 'Was it reasonable to rely on it?'.
You do not need to use the word 'undertake' to be bound by a statement made to a third
party.
The only true statement is B - an undertaking given by a partner will bind both the solicitor
personally AND the firm.
See Para 1.3 of the Codes.
Which ONE of the following statements about POCA is CORRECT?
A. An authorised disclosure to the nominated officer is a complete defence to any prosecution
under s.328 of POCA.
B. The duty of confidentiality in Para 6.3 of the Codes means that a firm of solicitors is
prevented from giving information about possible money laundering to the authorities if that
information relates to a client's affairs.
C. Litigation does not amount to an arrange for the purposes of s.328 of POCA.
D. POCA only applies to the proceeds of crimes committed in the UK. - CORRECT ANSWER-C is
the correct statement. A solicitor engaged in litigation, even if any damages ultimately
awarded might be paid from the proceeds of crime, will not commit an offence under s.238 of
the POCA.
, A. is wrong as an authorised disclosure is not necessarily a complete defence. For example., if
the authorised disclosure is made before the act takes place, but the solicitor carries on and
does the act before receiving consent from the nominated officer or NCA, then an offence will
still be committed.
B. is wrong because pOCA is an example of the law requiring disclosure not withstanding the
basic duty of confidentiality (see Para 6.3).
D. is wrong because POCA also applies where the criminal conduct took place outside the UK,
even if the conduct in question was not illegal under the local law.
Which TWO or MORE of the following are CORRECT?
A. Unit trusts are a specified investment for the purposes of FSMA.
B. National Savings certificates are a specified investment for the purposes of the FSMA and
introducing a client to a stockbroker authorised by the FCA so that the client can invest in
quoted shares is a regulated activity.
C. Arranging the purchase of government securities (known as 'gilts') is a specified activity for
the purposes of the FSMA.
D. A mortgage for the purchase of a family's home, secured by a first charge, is a specified
investment but recommending that another family find a bank account with a good rate of
interest for the proceeds from the sale of their property is not a specified activity.
CORRECT:
A and B.
A, B and C.
A, C and D.
A and D. - CORRECT ANSWER-A, C and D are correct.
and Regulation -
EXAM QUESTIONS AND
VERIFIED CORRECT
ANSWERS GRADE A+
[LATEST]
Which TWO or MORE of the following statements are WRONG?
A. An undertaking must be in writing to be binding.
B. When a partner in a firm of solicitors gives an undertaking in the course of practice, it will
be binding on the firm as well as the solicitor personally.
C. A statement made by a secretary or paralegal in the course of practice cannot bind the firm
as an undertaking.
D. A statement must use the word "undertake" to be binding as an undertaking. This is to
prevent a solicitor accidentally giving an undertaking when, for example, simply stating that a
letter will be posted in answer to a routine query.
WRONG:
A and B.
A, B and C.
A and D only.
,A, C and D. - CORRECT ANSWER-A, C and D are all wrong.
There is no requirement for an undertaking to be in writing. It can be given orally.
A firm will be bound by an undertaking given on behalf of the firm to someone who
reasonably places reliance on it. 'Was it reasonable to rely on it?'.
You do not need to use the word 'undertake' to be bound by a statement made to a third
party.
The only true statement is B - an undertaking given by a partner will bind both the solicitor
personally AND the firm.
See Para 1.3 of the Codes.
Which ONE of the following statements about POCA is CORRECT?
A. An authorised disclosure to the nominated officer is a complete defence to any prosecution
under s.328 of POCA.
B. The duty of confidentiality in Para 6.3 of the Codes means that a firm of solicitors is
prevented from giving information about possible money laundering to the authorities if that
information relates to a client's affairs.
C. Litigation does not amount to an arrange for the purposes of s.328 of POCA.
D. POCA only applies to the proceeds of crimes committed in the UK. - CORRECT ANSWER-C is
the correct statement. A solicitor engaged in litigation, even if any damages ultimately
awarded might be paid from the proceeds of crime, will not commit an offence under s.238 of
the POCA.
, A. is wrong as an authorised disclosure is not necessarily a complete defence. For example., if
the authorised disclosure is made before the act takes place, but the solicitor carries on and
does the act before receiving consent from the nominated officer or NCA, then an offence will
still be committed.
B. is wrong because pOCA is an example of the law requiring disclosure not withstanding the
basic duty of confidentiality (see Para 6.3).
D. is wrong because POCA also applies where the criminal conduct took place outside the UK,
even if the conduct in question was not illegal under the local law.
Which TWO or MORE of the following are CORRECT?
A. Unit trusts are a specified investment for the purposes of FSMA.
B. National Savings certificates are a specified investment for the purposes of the FSMA and
introducing a client to a stockbroker authorised by the FCA so that the client can invest in
quoted shares is a regulated activity.
C. Arranging the purchase of government securities (known as 'gilts') is a specified activity for
the purposes of the FSMA.
D. A mortgage for the purchase of a family's home, secured by a first charge, is a specified
investment but recommending that another family find a bank account with a good rate of
interest for the proceeds from the sale of their property is not a specified activity.
CORRECT:
A and B.
A, B and C.
A, C and D.
A and D. - CORRECT ANSWER-A, C and D are correct.
