LEGAL SERVICES NOTES
Providers of Legal Services ...................................................................................................................................2
The Regulatory Role of the Solicitors Regulation Authority .............................................................................4
Equality Act 2010 ...................................................................................................................................................7
Financial Services ...................................................................................................................................................9
Money Laundering ...............................................................................................................................................19
Proceeds of Crime Act 2002 ................................................................................................................................26
Funding Options ...................................................................................................................................................33
Legal Aid ...............................................................................................................................................................40
,Providers of Legal Services
• Expansion of the market from solely solicitors and barristers
• This expansion is a result of several factors, including:
o Globalisation of the economy
o The incorporation of EU law
o Increasing affluence
o The internet age
o A political desire to increase competition
Overview of legal services
• No formal definition of "legal services".
o Broadly encompasses all forms of advice, assistance, and representation related to the law
• Legal Services Act 2007 – regulatory framework for legal services
• The Act separates "reserved legal activities" and non-reserved legal services
• Regardless of legal services regulation, all providers are subject to the general law
o E.g., Equality Act 2010 and AML legislation
Reserved Activities
• Can only be provided by individuals or firms that are authorised and regulated
• Based on risk – where most vulnerable
• S 12 LSA 2007, six types of reserved legal activities
o Exercising a right of audience: The right to appear before a court/address it/examine witnesses
o The conduct of litigation: This includes issuing court proceedings in England and Wales, as well as
commencing, prosecuting, and defending them
§ Media Protection Services Ltd v Crawford, laying information before a magistrates' court
constituted "the commencing of the proceedings" – cannot do if unauthorised
§ JK v MK and E-Negotiation Ltd, helping to draft documents, not conducting litigation if
parties themselves lodge at court
• E.g., putting together a court bundle, not reserved
o Reserved instrument activities: This involves preparing and lodging formal legal documents
related to the transfer or charge of land, or documents concerning court proceedings.
§ BUT certain documents like wills and powers of attorney are excluded
o Probate activities: Preparing documents to obtain a grant of probate/letters of administration.
o Notarial activities: These are activities traditionally carried out by notaries under the Public
Notaries Act 1801
§ Primarily involve certifying and authenticating documents
o The administration of oaths: The power to administer an oath for documents such as an affidavit.
Authorisation
• S 13 LSA 2007, only individuals/entities authorised/exempt can carry out reserved legal activities
• S 18 LSA 2007, authorisation must be granted by a relevant approved regulator
• Authorised persons are subject to their regulator’s rule for all legal services provided, not solely reserved
activities
• SRA authorises solicitors for all reserved legal activities except notarial activities
o Carries out the regulatory function of the Law Society (the representative body)
Exemptions and Offences
• S 19 LSA 2007, circumstances where exempt from needing authorisation
o E.g., court granting a right of audience to a "McKenzie friend"
o E.g., employee performing probate activities under the supervision of an authorised person
• S 14 LSA 2007, criminal offence for person neither authorised/exempt to carry on a reserved legal activity
o Penalty up to two years' imprisonment
o In rights of audience and conducting litigation, also constitutes contempt of court
o Re Balli, struck-off solicitor continued conducting litigation, six months in prison for contempt of
court, deception of the court and other legal representative
The Legal Services Board
• Legal Services Board (LSB) was created by LSA 2007
• Responsible for overseeing the regulation of all lawyers in England and Wales
,• Coordinates and oversees the work of eight separate day-to-day regulators
• Body can only act as a regulator for legal services if it is approved by the LSB
• S 1 LSA 2007, duty to promote a series of regulatory objectives, including:
o Protecting and promoting the public interest and the interests of consumers
o Supporting the constitutional principle of the rule of law
o Improving access to justice
o Promoting competition in the legal sector
o Encouraging an independent, strong, diverse, and effective legal profession
• Holds individual regulators accountable for meeting these objectives
• Has power to impose penalties or withdraw approval if they fail to do so
Regulated providers
• Regulation intends to protect the public – ensures regulated legal service providers meet professional
standards for education, training, and conduct
• Firms have responsibility of compliance
• Individuals responsible for their own conduct
• Regulated professionals include:
o Solicitors: The largest group of providers, regulated by the SRA
o Barristers: Primarily advocates, regulated by the Bar Standards Board
o Chartered legal executives: Perform work similar to solicitors and are regulated by CILEx
Regulation
o Licensed conveyancers: Specialise in property transactions and are regulated by the Council for
Licensed Conveyancers
o Patent and Trade mark attorneys: Specialists in intellectual property, regulated by the Intellectual
Property Regulation Board
o Costs lawyers: Specialise in legal fees and costs, regulated by the Costs Lawyers Standards Board
o Notaries: Authenticate documents, regulated by the Master of the Faculties
o Chartered accountants: Can be authorised by the Institute of Chartered Accountants in England and
Wales to carry out probate activities
Regulation outside LSA 2007
• Some legal service providers are subject to specific statutory regulation outside of LSA 2007
• Claims management companies: Regulated by the Financial Conduct Authority.
• Immigration advisers: Regulated by the Office of the Immigration Services Commissioner.
• Insolvency practitioners: Regulated by the Insolvency Practitioners Association.
Non-reserved Activities (Unregulated providers)
• Can be provided by anyone without any specific legal regulation
• E.g., will writing, family law advice, and employment law advice
• Able to engage in voluntary self-regulation that often includes codes of conduct and complaints processes
o E.g., will-writers and mediators
, The Regulatory Role of the Solicitors Regulation Authority
The Solicitors Regulation Authority (SRA)
• Solicitors Regulation Authority (SRA) regulates à solicitors, firms, non-lawyer employees of firms,
registered European and foreign lawyers
• Role as approved regulator under LSA 2007 is to authorise individuals and firms to provide legal services
• Purpose: to protect the public by ensuring solicitors and firms meet high standards and by taking action
against those who fail to follow the rules
o 2015 policy statement clarification, protecting consumers and supporting the rule of law and the
administration of justice
• Is governed by a board of four solicitors and six lay members
• Is funded from the practising certificate fees paid by solicitors
• SRA Principles, seven principles of ethical behaviour that require regulated individuals and firms to act:
o 1. in a way that upholds the rule of law and the administration of justice
o 2. in a way that upholds public trust and confidence in the profession
o 3. with independence
o 4. with honesty
o 5. with integrity
o 6. in a way that encourages equality, diversity, and inclusion; and
o 7. in the best interests of each client.
• Functions:
o Controlling training
o Controlling admission
o Setting professional standards (e.g., the SRA Code of Conduct for Solicitors, RELs and RFLs)
o Framing rules for client money
o Supervising firms
o Taking enforcement action
• Overseen by LSB
• Act compatibly with the regulatory objectives set out in s 1 LSA 2007 (above)
Risk-based regulation
• Resources are focussed on misconduct most likely to harm the public interest
• Risk is assessed by combining the potential impact of an event with the probability of it occurring
• Potential sources of risk include: a firm's structure, involvement in dishonesty, internal processes, or
external factors like economic changes
o SRA identifies and assesses risk at the individual, firm, and profession-wide levels
• SRA publishes an annual Risk Outlook, highlights significant risks
o Requires firms to manage their own risks, Para 2.5 CoC for Firms, firms must identify, monitor,
and manage all material risks to their business
Firm-based authorisation
• SRA Authorisation of Firms Rules specify which types of businesses are eligible for authorisation:
o Recognised sole practice: A solicitor practising alone who owns and is responsible for entire firm
o Recognised body: A firm recognised under s 9 Access to Justice Act 1985, where all managers and
interest holders are legally qualified.
§ Can be a partnership, a limited liability partnership (LLP), or a company registered under
the Companies Act 2006
o Licensed bodies: Also known as Alternative Business Structures (ABSs), introduced by LSA 2007,
non-lawyers can have an ownership or management role
• Once authorised, firm can carry out all reserved legal activities (in s 12 LSA 2007) except notarial activities
and immigration work
• Authorised firms must appoint compliance officers – a Compliance Officer for Legal Practice (COLP) and a
Compliance Officer for Finance and Administration (COFA)
o Licensed bodies must have a Head of Legal Practice (HOLP) and a Head of Finance and
Administration (HOFA)
• Process for authorisation: apply to SRA, which investigates their suitability using a risk-based approach
before granting, refusing, or limiting authorisation
Authorisation of individuals
• Individual authorisation is governed by the SRA Authorisation of Individuals Regulations
Providers of Legal Services ...................................................................................................................................2
The Regulatory Role of the Solicitors Regulation Authority .............................................................................4
Equality Act 2010 ...................................................................................................................................................7
Financial Services ...................................................................................................................................................9
Money Laundering ...............................................................................................................................................19
Proceeds of Crime Act 2002 ................................................................................................................................26
Funding Options ...................................................................................................................................................33
Legal Aid ...............................................................................................................................................................40
,Providers of Legal Services
• Expansion of the market from solely solicitors and barristers
• This expansion is a result of several factors, including:
o Globalisation of the economy
o The incorporation of EU law
o Increasing affluence
o The internet age
o A political desire to increase competition
Overview of legal services
• No formal definition of "legal services".
o Broadly encompasses all forms of advice, assistance, and representation related to the law
• Legal Services Act 2007 – regulatory framework for legal services
• The Act separates "reserved legal activities" and non-reserved legal services
• Regardless of legal services regulation, all providers are subject to the general law
o E.g., Equality Act 2010 and AML legislation
Reserved Activities
• Can only be provided by individuals or firms that are authorised and regulated
• Based on risk – where most vulnerable
• S 12 LSA 2007, six types of reserved legal activities
o Exercising a right of audience: The right to appear before a court/address it/examine witnesses
o The conduct of litigation: This includes issuing court proceedings in England and Wales, as well as
commencing, prosecuting, and defending them
§ Media Protection Services Ltd v Crawford, laying information before a magistrates' court
constituted "the commencing of the proceedings" – cannot do if unauthorised
§ JK v MK and E-Negotiation Ltd, helping to draft documents, not conducting litigation if
parties themselves lodge at court
• E.g., putting together a court bundle, not reserved
o Reserved instrument activities: This involves preparing and lodging formal legal documents
related to the transfer or charge of land, or documents concerning court proceedings.
§ BUT certain documents like wills and powers of attorney are excluded
o Probate activities: Preparing documents to obtain a grant of probate/letters of administration.
o Notarial activities: These are activities traditionally carried out by notaries under the Public
Notaries Act 1801
§ Primarily involve certifying and authenticating documents
o The administration of oaths: The power to administer an oath for documents such as an affidavit.
Authorisation
• S 13 LSA 2007, only individuals/entities authorised/exempt can carry out reserved legal activities
• S 18 LSA 2007, authorisation must be granted by a relevant approved regulator
• Authorised persons are subject to their regulator’s rule for all legal services provided, not solely reserved
activities
• SRA authorises solicitors for all reserved legal activities except notarial activities
o Carries out the regulatory function of the Law Society (the representative body)
Exemptions and Offences
• S 19 LSA 2007, circumstances where exempt from needing authorisation
o E.g., court granting a right of audience to a "McKenzie friend"
o E.g., employee performing probate activities under the supervision of an authorised person
• S 14 LSA 2007, criminal offence for person neither authorised/exempt to carry on a reserved legal activity
o Penalty up to two years' imprisonment
o In rights of audience and conducting litigation, also constitutes contempt of court
o Re Balli, struck-off solicitor continued conducting litigation, six months in prison for contempt of
court, deception of the court and other legal representative
The Legal Services Board
• Legal Services Board (LSB) was created by LSA 2007
• Responsible for overseeing the regulation of all lawyers in England and Wales
,• Coordinates and oversees the work of eight separate day-to-day regulators
• Body can only act as a regulator for legal services if it is approved by the LSB
• S 1 LSA 2007, duty to promote a series of regulatory objectives, including:
o Protecting and promoting the public interest and the interests of consumers
o Supporting the constitutional principle of the rule of law
o Improving access to justice
o Promoting competition in the legal sector
o Encouraging an independent, strong, diverse, and effective legal profession
• Holds individual regulators accountable for meeting these objectives
• Has power to impose penalties or withdraw approval if they fail to do so
Regulated providers
• Regulation intends to protect the public – ensures regulated legal service providers meet professional
standards for education, training, and conduct
• Firms have responsibility of compliance
• Individuals responsible for their own conduct
• Regulated professionals include:
o Solicitors: The largest group of providers, regulated by the SRA
o Barristers: Primarily advocates, regulated by the Bar Standards Board
o Chartered legal executives: Perform work similar to solicitors and are regulated by CILEx
Regulation
o Licensed conveyancers: Specialise in property transactions and are regulated by the Council for
Licensed Conveyancers
o Patent and Trade mark attorneys: Specialists in intellectual property, regulated by the Intellectual
Property Regulation Board
o Costs lawyers: Specialise in legal fees and costs, regulated by the Costs Lawyers Standards Board
o Notaries: Authenticate documents, regulated by the Master of the Faculties
o Chartered accountants: Can be authorised by the Institute of Chartered Accountants in England and
Wales to carry out probate activities
Regulation outside LSA 2007
• Some legal service providers are subject to specific statutory regulation outside of LSA 2007
• Claims management companies: Regulated by the Financial Conduct Authority.
• Immigration advisers: Regulated by the Office of the Immigration Services Commissioner.
• Insolvency practitioners: Regulated by the Insolvency Practitioners Association.
Non-reserved Activities (Unregulated providers)
• Can be provided by anyone without any specific legal regulation
• E.g., will writing, family law advice, and employment law advice
• Able to engage in voluntary self-regulation that often includes codes of conduct and complaints processes
o E.g., will-writers and mediators
, The Regulatory Role of the Solicitors Regulation Authority
The Solicitors Regulation Authority (SRA)
• Solicitors Regulation Authority (SRA) regulates à solicitors, firms, non-lawyer employees of firms,
registered European and foreign lawyers
• Role as approved regulator under LSA 2007 is to authorise individuals and firms to provide legal services
• Purpose: to protect the public by ensuring solicitors and firms meet high standards and by taking action
against those who fail to follow the rules
o 2015 policy statement clarification, protecting consumers and supporting the rule of law and the
administration of justice
• Is governed by a board of four solicitors and six lay members
• Is funded from the practising certificate fees paid by solicitors
• SRA Principles, seven principles of ethical behaviour that require regulated individuals and firms to act:
o 1. in a way that upholds the rule of law and the administration of justice
o 2. in a way that upholds public trust and confidence in the profession
o 3. with independence
o 4. with honesty
o 5. with integrity
o 6. in a way that encourages equality, diversity, and inclusion; and
o 7. in the best interests of each client.
• Functions:
o Controlling training
o Controlling admission
o Setting professional standards (e.g., the SRA Code of Conduct for Solicitors, RELs and RFLs)
o Framing rules for client money
o Supervising firms
o Taking enforcement action
• Overseen by LSB
• Act compatibly with the regulatory objectives set out in s 1 LSA 2007 (above)
Risk-based regulation
• Resources are focussed on misconduct most likely to harm the public interest
• Risk is assessed by combining the potential impact of an event with the probability of it occurring
• Potential sources of risk include: a firm's structure, involvement in dishonesty, internal processes, or
external factors like economic changes
o SRA identifies and assesses risk at the individual, firm, and profession-wide levels
• SRA publishes an annual Risk Outlook, highlights significant risks
o Requires firms to manage their own risks, Para 2.5 CoC for Firms, firms must identify, monitor,
and manage all material risks to their business
Firm-based authorisation
• SRA Authorisation of Firms Rules specify which types of businesses are eligible for authorisation:
o Recognised sole practice: A solicitor practising alone who owns and is responsible for entire firm
o Recognised body: A firm recognised under s 9 Access to Justice Act 1985, where all managers and
interest holders are legally qualified.
§ Can be a partnership, a limited liability partnership (LLP), or a company registered under
the Companies Act 2006
o Licensed bodies: Also known as Alternative Business Structures (ABSs), introduced by LSA 2007,
non-lawyers can have an ownership or management role
• Once authorised, firm can carry out all reserved legal activities (in s 12 LSA 2007) except notarial activities
and immigration work
• Authorised firms must appoint compliance officers – a Compliance Officer for Legal Practice (COLP) and a
Compliance Officer for Finance and Administration (COFA)
o Licensed bodies must have a Head of Legal Practice (HOLP) and a Head of Finance and
Administration (HOFA)
• Process for authorisation: apply to SRA, which investigates their suitability using a risk-based approach
before granting, refusing, or limiting authorisation
Authorisation of individuals
• Individual authorisation is governed by the SRA Authorisation of Individuals Regulations
