Professional Conduct and Regulation
Q:
For a number of years you acted for Ben, an actor. Ben has recently died, and you are now acting for
the executors (Ben’s son and daughter) in the administration of Ben’s estate.
You have been contacted by a writer who is carrying out research for a biography of Ben. The writer
requests an interview with you to talk about Ben’s will. The writer tells you that "there should be no
problem speaking to me, as I have permission from Ben’s wife to contact you".
Answer: You must refuse the writer’s request because you owe your deceased client a duty of
confidentiality and should not disclose the contents of the will unless the personal representatives'
consent.
Q:
You have received instructions to act for Ian in connection with a litigation matter against Jane.
Susan, another solicitor in your firm's litigation department, already acts for Jane in the same matter.
Answer: Your firm cannot act for both Ian and Jane.
Para 6.2 conflict of interest.
Q:
Which ONE of the following statements about the Proceeds of Crime Act 2002 is CORRECT?
Answer: Litigation does not amount to an arrangement for the purposes of s328.
Q:
You work at a firm of solicitors that is not authorised by the Financial Conduct Authority to carry out
regulated activities under the Financial Services and Markets Act 2000.
Which ONE of the following statements is WRONG.
Answer: The introducing exclusion allows you to obtain a recommendation for a suitable mortgage
from an independent mortgage broker then arrange the mortgage alongside the purchase of your
client's new home and to keep a 'thank you' payment from the broker if the client consents.
The statement is wrong because the introducing exclusion is not available if you will continue to
make arrangements in connection with the specified investment. The Authorised Third Person
exclusion allows this but you must not keep any payment from the advisor resulting from the activity.
Q:
An activity will not be regulated for the purposes of the Financial Services and Markets Act 2000 if an
exclusion applies. Which ONE of the following is NOT covered by such an exclusion?
Answer: Acting for trustees or personal representatives.
The solicitor would actually have to be the trustee or personal representative for this to be an
exclusion; simply acting for such a party is not enough.
Q:
You are a partner in a firm of solicitors. Which ONE of the following statements about undertakings
is CORRECT?
Answer: You must perform all undertakings given by you in writing.
Q:
You have acted for Raoul Febrier, a successful businessman, for many years. Raoul is selling one of his
many properties to his daughter, Colette, at a substantial undervalue to help her get a start on the
property ladder.
Raoul and Colette ask you to act for them both.
Which ONE of the following statements is CORRECT
, Answer:
There may be no conflict of interests between Raoul and his daughter.
Q:
Blythe & Co are acting for the Norwich Pie Emporium Limited ("NPE") on the sale of its business to
East Anglian Foods Limited ("EAF") for £500,000. Chichester & Partners ("Chichesters") act for EAF.
NPE need to complete the sale before the end of Tuesday.
The purchase will be funded by a bank loan but early on Tuesday it has become clear that completion
cannot be achieved before the lender’s and Chichesters’ banking facilities close on Tuesday. On
Tuesday, Chichesters need to provide an undertaking to transfer the money on Wednesday.
Answer: At 3pm on Tuesday, EAF's bank transfers £500,000 to Chichesters' client account. At
11.45pm on Tuesday the Chichesters' partner checks the funds have arrived then signs and hands
over to a director of NPE an unqualified undertaking to “pay the funds into NPE's account on
Wednesday morning once banking facilities are available”.
Q:
Archie, your client, and David (who is separately represented) have pleaded not guilty to charges that
they both stole goods from their former employer.
Archie admits he took some lighting and speakers but claims his employer allowed him to borrow the
speakers from the shop display as he was having a party. He says David suggested he also take some
lighting and David kept it.
David's solicitor asks for a copy of your client's defence statement.
Which ONE of the following statements is WRONG
Answer: You cannot give the information requested to a co-defendant's solicitor in any
circumstances.
You should only, and can, pass on confidential information in these circumstances with your client's
consent. See Paragraph 6.3 of the Codes.
Q:
Which ONE of the following is a specified investment for the purposes of the Financial Services and
Markets Act 2000?
Answer: An endowment insurance policy.
Q:
You are a trainee solicitor in your firm’s Real Estate department. Your supervising solicitor is acting
for a client who is buying a house. In your supervising solicitor’s absence you receive an email from
the seller’s solicitor which makes it clear that the seller is becoming increasingly frustrated at the
delay in the sale. In the email the solicitor says that the seller will pull out of the sale unless you
“promise to pay the deposit of £20,000 by 10am tomorrow”.
Answer: If you comply with the solicitor’s request your firm will have pay the £20,000 even if it is
holding insufficient funds on behalf of the client.
Undertaking is binding even if given by trainee.
Q:
You are instructed by ABC Co Ltd whose directors are Bill and Charlie. There are 500 issued shares in
the company divided as follows:
Fred: 200 shares
George: 150 shares
Ron: 50 shares
Ginny: 100 shares
Q:
For a number of years you acted for Ben, an actor. Ben has recently died, and you are now acting for
the executors (Ben’s son and daughter) in the administration of Ben’s estate.
You have been contacted by a writer who is carrying out research for a biography of Ben. The writer
requests an interview with you to talk about Ben’s will. The writer tells you that "there should be no
problem speaking to me, as I have permission from Ben’s wife to contact you".
Answer: You must refuse the writer’s request because you owe your deceased client a duty of
confidentiality and should not disclose the contents of the will unless the personal representatives'
consent.
Q:
You have received instructions to act for Ian in connection with a litigation matter against Jane.
Susan, another solicitor in your firm's litigation department, already acts for Jane in the same matter.
Answer: Your firm cannot act for both Ian and Jane.
Para 6.2 conflict of interest.
Q:
Which ONE of the following statements about the Proceeds of Crime Act 2002 is CORRECT?
Answer: Litigation does not amount to an arrangement for the purposes of s328.
Q:
You work at a firm of solicitors that is not authorised by the Financial Conduct Authority to carry out
regulated activities under the Financial Services and Markets Act 2000.
Which ONE of the following statements is WRONG.
Answer: The introducing exclusion allows you to obtain a recommendation for a suitable mortgage
from an independent mortgage broker then arrange the mortgage alongside the purchase of your
client's new home and to keep a 'thank you' payment from the broker if the client consents.
The statement is wrong because the introducing exclusion is not available if you will continue to
make arrangements in connection with the specified investment. The Authorised Third Person
exclusion allows this but you must not keep any payment from the advisor resulting from the activity.
Q:
An activity will not be regulated for the purposes of the Financial Services and Markets Act 2000 if an
exclusion applies. Which ONE of the following is NOT covered by such an exclusion?
Answer: Acting for trustees or personal representatives.
The solicitor would actually have to be the trustee or personal representative for this to be an
exclusion; simply acting for such a party is not enough.
Q:
You are a partner in a firm of solicitors. Which ONE of the following statements about undertakings
is CORRECT?
Answer: You must perform all undertakings given by you in writing.
Q:
You have acted for Raoul Febrier, a successful businessman, for many years. Raoul is selling one of his
many properties to his daughter, Colette, at a substantial undervalue to help her get a start on the
property ladder.
Raoul and Colette ask you to act for them both.
Which ONE of the following statements is CORRECT
, Answer:
There may be no conflict of interests between Raoul and his daughter.
Q:
Blythe & Co are acting for the Norwich Pie Emporium Limited ("NPE") on the sale of its business to
East Anglian Foods Limited ("EAF") for £500,000. Chichester & Partners ("Chichesters") act for EAF.
NPE need to complete the sale before the end of Tuesday.
The purchase will be funded by a bank loan but early on Tuesday it has become clear that completion
cannot be achieved before the lender’s and Chichesters’ banking facilities close on Tuesday. On
Tuesday, Chichesters need to provide an undertaking to transfer the money on Wednesday.
Answer: At 3pm on Tuesday, EAF's bank transfers £500,000 to Chichesters' client account. At
11.45pm on Tuesday the Chichesters' partner checks the funds have arrived then signs and hands
over to a director of NPE an unqualified undertaking to “pay the funds into NPE's account on
Wednesday morning once banking facilities are available”.
Q:
Archie, your client, and David (who is separately represented) have pleaded not guilty to charges that
they both stole goods from their former employer.
Archie admits he took some lighting and speakers but claims his employer allowed him to borrow the
speakers from the shop display as he was having a party. He says David suggested he also take some
lighting and David kept it.
David's solicitor asks for a copy of your client's defence statement.
Which ONE of the following statements is WRONG
Answer: You cannot give the information requested to a co-defendant's solicitor in any
circumstances.
You should only, and can, pass on confidential information in these circumstances with your client's
consent. See Paragraph 6.3 of the Codes.
Q:
Which ONE of the following is a specified investment for the purposes of the Financial Services and
Markets Act 2000?
Answer: An endowment insurance policy.
Q:
You are a trainee solicitor in your firm’s Real Estate department. Your supervising solicitor is acting
for a client who is buying a house. In your supervising solicitor’s absence you receive an email from
the seller’s solicitor which makes it clear that the seller is becoming increasingly frustrated at the
delay in the sale. In the email the solicitor says that the seller will pull out of the sale unless you
“promise to pay the deposit of £20,000 by 10am tomorrow”.
Answer: If you comply with the solicitor’s request your firm will have pay the £20,000 even if it is
holding insufficient funds on behalf of the client.
Undertaking is binding even if given by trainee.
Q:
You are instructed by ABC Co Ltd whose directors are Bill and Charlie. There are 500 issued shares in
the company divided as follows:
Fred: 200 shares
George: 150 shares
Ron: 50 shares
Ginny: 100 shares
