Professional Conduct and Regulation revision
Solicitors Regulation Authority (SRA) and other regulatory mechanisms 2
Requirements of practice 4
SRA Principles 5
SRA Codes 6
Beginning the relationship with a client 6
Conflicts of interest 10
Confidentiality 11
Undertakings 12
Financial Services and Markets Act 2000 13
Criminal property and the Proceeds of Crime Act 2002 17
Page 1 of 21
,Solicitors Regulation Authority (SRA) and other regulatory mechanisms
SRA functions
- Regulates solicitors, firms in which they operate, and all those working in those firms
- Enforces its own rules
- Has the power to investigate firms, impose conditions and rebuke solicitors
- Assessment of Character and Suitability Rules must be adhered to in order to become a
solicitor
- Practicing certificates (authorising solicitors to continue to provide legal services)
- Accounts Rules specifically relate to the handling of money
SRA enforcement strategy1
- Focus on the most serious breaches, with reference to factors including:
o Nature of the allegation
o Intent and motivation
o Harm and impact
o The role, experience and seniority of the individual
- Take account of aggravating or mitigating factors, focussed on any concerns about the
protection of the public interest
- Place an emphasis upon the importance of constructive engagement to support firms and
individuals to achieve compliance. This will in turn require an open and cooperative
approach by the firms and individuals involved
Outcomes of professional misconduct allegations2
- Take no further action with or without issuing advice or a warning about future conduct
- Impose a financial penalty (maximum of £2,000 for solicitors, £250,000,000 for licensed
bodies, and £50,000,000 for managers and employees of licensed bodies)
- Impose a written rebuke
- Control how the firm/regulated person practices (including imposing conditions on or
suspending a practising certificate)
- Refer the matter to the Solicitors Disciplinary Tribunal
- Disqualify a person from acting as a HOLP, HOFA, manager or employee of a licensed body
Who is bound by the SRA rules?
- Recognised sole practice or employee of a recognised sole practice 3
- Recognised body in which all the managers and interest holders are legally qualified 4
o Can be a partnership, LLP, or company
o Once authorised, the body is entitled to carry on all reserved legal activities
o Licensed bodies allow non-lawyers to offer legal services alongside non-legal
services5
- Solicitors working in unregulated entities and freelance solicitors 6
1
100
2
100
3
89
4
89
5
90
6
91
Page 2 of 21
, - Employed (‘in-house’) solicitors7
- Registered European Lawyers (RELSs) and Registered Foreign Lawyers (RFLs) 8
Solicitors Disciplinary Tribunals9
- Deals with professional misconduct
- Has the power to strike solicitors off the roll, suspend a solicitor, or impose unlimited fines
- The Tribunal can also restore a solicitor to the roll
Legal ombudsman10
- Makes sure that solicitors don’t break the law
- Proceeds of Crime Act 2002 and the Financial Services and Markets Act 2000 are the most
relevant, as breaching their provisions is a criminal matter
- Ordinarily cannot be used by complainants unless the solicitor’s complaints procedure has
been used, but can do so if:
o The complaint has not been resolved to the complainant’s satisfaction within eight
weeks of being made to the solicitor
o The Ombudsman considers that there are exceptional reasons to consider the
complaint sooner, or without it having been made first to the solicitor
o The Ombudsman considers that in-house resolution is not possible due to
irretrievable breakdown in the relationship between the solicitor and the
complainant
- The complaint should be brought no later than six years from the act or omission, or three
years from when the complainant should reasonably have known there was cause for
complaint, but the Ombudsman has a discretion to extend the time limits to the extent it
considers fair
- The Ombudsman can direct the lawyer to:
o Apologise
o Pay compensation with interest for any loss suffered and/or inconvenience or
distress caused (limit of £50,000)
o Ensure and pay for the putting right of any error or omission (limit of £50,000)
o Take and pay for any specified action in the interests of the complainant (limit of
£50,000)
o Pay a specified amount for the costs of the complainant in pursuing the complaint
o Limit the solicitor’s fees (including that all or part of any amount paid is refunded,
with or without interest, or that all or part of the fees are remitted)
- If the complainant accepts the determination, it is binding on the parties and final
- Where the Ombudsman receives a complaint which discloses any alleged professional
misconduct on the part of the solicitor, it will inform the SRA
The tort of negligence11
7
92
8
92
9
101
10
98
11
103
Page 3 of 21
Solicitors Regulation Authority (SRA) and other regulatory mechanisms 2
Requirements of practice 4
SRA Principles 5
SRA Codes 6
Beginning the relationship with a client 6
Conflicts of interest 10
Confidentiality 11
Undertakings 12
Financial Services and Markets Act 2000 13
Criminal property and the Proceeds of Crime Act 2002 17
Page 1 of 21
,Solicitors Regulation Authority (SRA) and other regulatory mechanisms
SRA functions
- Regulates solicitors, firms in which they operate, and all those working in those firms
- Enforces its own rules
- Has the power to investigate firms, impose conditions and rebuke solicitors
- Assessment of Character and Suitability Rules must be adhered to in order to become a
solicitor
- Practicing certificates (authorising solicitors to continue to provide legal services)
- Accounts Rules specifically relate to the handling of money
SRA enforcement strategy1
- Focus on the most serious breaches, with reference to factors including:
o Nature of the allegation
o Intent and motivation
o Harm and impact
o The role, experience and seniority of the individual
- Take account of aggravating or mitigating factors, focussed on any concerns about the
protection of the public interest
- Place an emphasis upon the importance of constructive engagement to support firms and
individuals to achieve compliance. This will in turn require an open and cooperative
approach by the firms and individuals involved
Outcomes of professional misconduct allegations2
- Take no further action with or without issuing advice or a warning about future conduct
- Impose a financial penalty (maximum of £2,000 for solicitors, £250,000,000 for licensed
bodies, and £50,000,000 for managers and employees of licensed bodies)
- Impose a written rebuke
- Control how the firm/regulated person practices (including imposing conditions on or
suspending a practising certificate)
- Refer the matter to the Solicitors Disciplinary Tribunal
- Disqualify a person from acting as a HOLP, HOFA, manager or employee of a licensed body
Who is bound by the SRA rules?
- Recognised sole practice or employee of a recognised sole practice 3
- Recognised body in which all the managers and interest holders are legally qualified 4
o Can be a partnership, LLP, or company
o Once authorised, the body is entitled to carry on all reserved legal activities
o Licensed bodies allow non-lawyers to offer legal services alongside non-legal
services5
- Solicitors working in unregulated entities and freelance solicitors 6
1
100
2
100
3
89
4
89
5
90
6
91
Page 2 of 21
, - Employed (‘in-house’) solicitors7
- Registered European Lawyers (RELSs) and Registered Foreign Lawyers (RFLs) 8
Solicitors Disciplinary Tribunals9
- Deals with professional misconduct
- Has the power to strike solicitors off the roll, suspend a solicitor, or impose unlimited fines
- The Tribunal can also restore a solicitor to the roll
Legal ombudsman10
- Makes sure that solicitors don’t break the law
- Proceeds of Crime Act 2002 and the Financial Services and Markets Act 2000 are the most
relevant, as breaching their provisions is a criminal matter
- Ordinarily cannot be used by complainants unless the solicitor’s complaints procedure has
been used, but can do so if:
o The complaint has not been resolved to the complainant’s satisfaction within eight
weeks of being made to the solicitor
o The Ombudsman considers that there are exceptional reasons to consider the
complaint sooner, or without it having been made first to the solicitor
o The Ombudsman considers that in-house resolution is not possible due to
irretrievable breakdown in the relationship between the solicitor and the
complainant
- The complaint should be brought no later than six years from the act or omission, or three
years from when the complainant should reasonably have known there was cause for
complaint, but the Ombudsman has a discretion to extend the time limits to the extent it
considers fair
- The Ombudsman can direct the lawyer to:
o Apologise
o Pay compensation with interest for any loss suffered and/or inconvenience or
distress caused (limit of £50,000)
o Ensure and pay for the putting right of any error or omission (limit of £50,000)
o Take and pay for any specified action in the interests of the complainant (limit of
£50,000)
o Pay a specified amount for the costs of the complainant in pursuing the complaint
o Limit the solicitor’s fees (including that all or part of any amount paid is refunded,
with or without interest, or that all or part of the fees are remitted)
- If the complainant accepts the determination, it is binding on the parties and final
- Where the Ombudsman receives a complaint which discloses any alleged professional
misconduct on the part of the solicitor, it will inform the SRA
The tort of negligence11
7
92
8
92
9
101
10
98
11
103
Page 3 of 21
