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ADMISSION EXAMINATION I TOELATINGSEKSAMEN
ATTORNEYS' PRACTICE I PROKUREURSPRAKTYK
PART 3 I DEEL 3
11 FEBRUARY I FEBRUARIE 2015
ANSWERS/ANTWOORDE
PLEASE NOTE THAT THE GUIDELINE ANSWERS TO PREVIOUS PAPERS MAY NOT BE A
CORRECT REFLECTION OF THE LAW AND/OR PRACTICE AT THE MOMENT OF
READING.
NOTE TO EXAMINER: Tltis guideline records tlle views of tlle drafters. Tllere may be
justifiable variations in practice wlticlt are brougllt 0111 in tlte
answers. WIien t!,is ltappens Ille examiner sl1ould apply llis
discretion in marking tlte answer.
QUESTION 1 ( 141
1.1 The appointment of such a person is normal practice. However the practitioner
must supervise the work and remains ultimately responsible for whatever is
done. (3)
1.2 Clients may be seen and new matters accepted only in the field of expertise of
the non-professional. (2)
1.3 These activities fall within the normal duties of a collection assistant but the
practitioner must supervise the results and give guidance on what should be
done. (2)
1.4 Legal advice is a professional activity and may not be given by support staff.
(2)
1.5 High Court matters are always specialised and professional work and must be
attended to by professionals. (3)
1.6 No. This entails abandoning control of trust funds. At most he/she can be a co-
signatory. (2)
QUESTION 2 (61
It is normal that the attorney will not be familiar with accounting systems or computer
programmes. This does not mean that trust books must be written up by hand if that
is what the attorney knows. Attorneys must find out enough to ensure that the
computer systems entail compliance with the Act and Rules and must be able to check
that the system is being adhered to.
QUESTION 3 (121
Candidates must show insight into the applicable Law Society's rules on marketing as
opposed to touting.
LEGAL EDUCATION AND DEVELOPMENT {L.E.A.DJTM 1
, ..
. •'
3.1 It is acceptable to reduce fees in the case of large volumes of work. The fee
must still be reasonable. (3)
3.2 Attorneys may not share fees with non-professionals. Paying for mandates is
an extreme form of touting. (3)
3.3 Supporting a client is in order if it is done in good taste. Neither the publicity,
nor the prizes may be excessive or extravagant. (3)
3.4 Accepting secret commissions is against common law rules and could also
constitute touting and sharing of fees. Declare commission. (3)
QUESTION 4 (8)
The practitioner should feel free to accept the mandate. It is a fairly routine matter and
will assist in gaining experience. It is not wrong to seek help from an experienced
colleague and to ask for precedents but own research is essential. Inform the client
that you wish to study the legal position and procedure.
Firstly study a text book on the topic and available authority (e.g. previous
judgements) which clarify the rules. If you experience problems, use further
assistance in a good library such as a noter-up. As guide to the drafting of the
relevant documents consult practice guides (Forms and Precedents, etc.). The most
important requirement is that the documents are thoroughly and carefully drafted and
that the attorney properly prepares and qualifies himself. Be careful of negligence.
QUESTION 5 [81
The introduction of FICA impinges upon the traditional role and independence of the
attorneys' profession and upon the confidentiality of all communications between
attorneys and their clients. Apart from having the duty to establish and verify the
identity of clients and of their authority, they are obliged to keep detailed records of
clients, business relationships and of transactions for a specified period; they are also
under an obligation:
5.1 to make such records available to the Financial Intelligence Centre on the
strength of a warrant;
5.2 to inform the centre on request of the existence of a current or past mandate;
5.3 to report cash transactions above a prescribed amount to the Centre; and;
5.4 to report to the Centre the conveyancer in terms of a transaction with a client of
cash above a prescribed amount to or through a specified account or institution.
QUESTION 6 [15)
There will be a number of ways of answering this question. The appended list is not
necessarily comprehensive. There may also be others that are raised and may be
accepted. The additional 3 marks go for style, clarity, comprehension and
presentation.
6.1 Benefits of partnership (six of)
- Cost of procedure
- Simplicity to arrange
- Quicker to establish
LEGAL EDUCATION AND DEVELOPMENT {L.E.A.D,tn' 2
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ADMISSION EXAMINATION I TOELATINGSEKSAMEN
ATTORNEYS' PRACTICE I PROKUREURSPRAKTYK
PART 3 I DEEL 3
11 FEBRUARY I FEBRUARIE 2015
ANSWERS/ANTWOORDE
PLEASE NOTE THAT THE GUIDELINE ANSWERS TO PREVIOUS PAPERS MAY NOT BE A
CORRECT REFLECTION OF THE LAW AND/OR PRACTICE AT THE MOMENT OF
READING.
NOTE TO EXAMINER: Tltis guideline records tlle views of tlle drafters. Tllere may be
justifiable variations in practice wlticlt are brougllt 0111 in tlte
answers. WIien t!,is ltappens Ille examiner sl1ould apply llis
discretion in marking tlte answer.
QUESTION 1 ( 141
1.1 The appointment of such a person is normal practice. However the practitioner
must supervise the work and remains ultimately responsible for whatever is
done. (3)
1.2 Clients may be seen and new matters accepted only in the field of expertise of
the non-professional. (2)
1.3 These activities fall within the normal duties of a collection assistant but the
practitioner must supervise the results and give guidance on what should be
done. (2)
1.4 Legal advice is a professional activity and may not be given by support staff.
(2)
1.5 High Court matters are always specialised and professional work and must be
attended to by professionals. (3)
1.6 No. This entails abandoning control of trust funds. At most he/she can be a co-
signatory. (2)
QUESTION 2 (61
It is normal that the attorney will not be familiar with accounting systems or computer
programmes. This does not mean that trust books must be written up by hand if that
is what the attorney knows. Attorneys must find out enough to ensure that the
computer systems entail compliance with the Act and Rules and must be able to check
that the system is being adhered to.
QUESTION 3 (121
Candidates must show insight into the applicable Law Society's rules on marketing as
opposed to touting.
LEGAL EDUCATION AND DEVELOPMENT {L.E.A.DJTM 1
, ..
. •'
3.1 It is acceptable to reduce fees in the case of large volumes of work. The fee
must still be reasonable. (3)
3.2 Attorneys may not share fees with non-professionals. Paying for mandates is
an extreme form of touting. (3)
3.3 Supporting a client is in order if it is done in good taste. Neither the publicity,
nor the prizes may be excessive or extravagant. (3)
3.4 Accepting secret commissions is against common law rules and could also
constitute touting and sharing of fees. Declare commission. (3)
QUESTION 4 (8)
The practitioner should feel free to accept the mandate. It is a fairly routine matter and
will assist in gaining experience. It is not wrong to seek help from an experienced
colleague and to ask for precedents but own research is essential. Inform the client
that you wish to study the legal position and procedure.
Firstly study a text book on the topic and available authority (e.g. previous
judgements) which clarify the rules. If you experience problems, use further
assistance in a good library such as a noter-up. As guide to the drafting of the
relevant documents consult practice guides (Forms and Precedents, etc.). The most
important requirement is that the documents are thoroughly and carefully drafted and
that the attorney properly prepares and qualifies himself. Be careful of negligence.
QUESTION 5 [81
The introduction of FICA impinges upon the traditional role and independence of the
attorneys' profession and upon the confidentiality of all communications between
attorneys and their clients. Apart from having the duty to establish and verify the
identity of clients and of their authority, they are obliged to keep detailed records of
clients, business relationships and of transactions for a specified period; they are also
under an obligation:
5.1 to make such records available to the Financial Intelligence Centre on the
strength of a warrant;
5.2 to inform the centre on request of the existence of a current or past mandate;
5.3 to report cash transactions above a prescribed amount to the Centre; and;
5.4 to report to the Centre the conveyancer in terms of a transaction with a client of
cash above a prescribed amount to or through a specified account or institution.
QUESTION 6 [15)
There will be a number of ways of answering this question. The appended list is not
necessarily comprehensive. There may also be others that are raised and may be
accepted. The additional 3 marks go for style, clarity, comprehension and
presentation.
6.1 Benefits of partnership (six of)
- Cost of procedure
- Simplicity to arrange
- Quicker to establish
LEGAL EDUCATION AND DEVELOPMENT {L.E.A.D,tn' 2
