Unit 1: SRA Standards, Ethics, and Professional Conduct

Comprehensive flashcards covering the SQE Ethics and Professional Conduct syllabus, including SRA Principles, client care, costs, confidentiality, conflicts of interest, undertakings, court duties, and SRA compliance rules.

What is the structural and functional difference between the Solicitors Regulation Authority (SRA) and the Law Society?

The SRA is the independent regulator that regulates solicitors, law firms, and their staff in England and Wales by enforcing the SRA Standards and Regulations. The Law Society is the professional representative body that represents and supports solicitors in England and Wales.

When there is a conflict between different SRA Principles, which Principles take precedence?

Principles that safeguard the wider public interest—specifically Principle 1 (upholding the rule of law and the administration of justice) and Principle 2 (upholding public trust and confidence)—take precedence over the individual client's interests under Principle 7.

What key legal principle regarding professional discipline was established in SRA v Farrimond [2018]?

Criminal sentence mitigation does not equal protection from professional sanctions; the criminal justice assessment and the professional regulatory assessment are separate. A solicitor pleading guilty to attempted murder was struck off regardless of depression mitigating his criminal sentence.

What is the two-stage test for professional dishonesty established in Ivey v Genting Casinos (UK) Ltd [2017]?

Stage 1 (subjective): What was the solicitor's genuine knowledge or belief of the facts at the time? Stage 2 (objective): Applying that knowledge or belief, was the conduct dishonest by the standards of ordinary decent people? There is no requirement that the solicitor realised the conduct was dishonest.

How did the Court of Appeal in Wingate v SRA and Malins v SRA [2018] distinguish between honesty (Principle 4) and integrity (Principle 5)?

Integrity is broader than honesty; a solicitor can lack integrity without being dishonest (e.g. misapplying funds in Wingate), but cannot be dishonest without also lacking integrity (e.g. backdating letters in Malins). Integrity represents adherence to the higher ethical standards and scrupulousness expected of the profession.

Under what circumstance does Principle 5 (acting with integrity) apply to a solicitor's private life according to Ryan Beckwith v SRA [2020]?

Principle 5 applies to conduct in private life only where the conduct realistically touches on the solicitor's practice of the profession in a way that is demonstrably relevant.

What specific written complaints information must a solicitor provide to a client at engagement under Paragraph 8.3 of the SRA Code of Conduct?

The solicitor must inform the client in writing of: (a) their right to complain about the service or charges, (b) how and to whom a complaint can be made, and (c) their right to complain to the Legal Ombudsman (LeO) and the timeframe for doing so.

Under Paragraph 8.4 of the SRA Code of Conduct, what must a solicitor do if a client's complaint remains unresolved after $8\,\text{weeks}$?

The solicitor must inform the client in writing of: (a) their right to complain to the Legal Ombudsman, the applicable timeframe, and full contact details; and (b) if the firm's internal procedure is exhausted, that the solicitor cannot settle, the name and website of an approved Alternative Dispute Resolution (ADR) body, and whether the firm agrees to use that body.

What is the maximum financial compensation cap on remedies awarded by the Legal Ombudsman?

The cap is $\pounds 50{,}000$ for compensation plus interest (for loss, inconvenience, or distress), putting right an error or omission, and taking specified action in the complainant's interest combined. Directives to apologise, pay pursuing costs, or limit/refund/remit solicitor's fees are completely uncapped.

What are the primary time limits for bringing a complaint to the Legal Ombudsman?

A complaint must normally be brought within $1\,\text{year}$ from the act or omission complained of, or within $1\,\text{year}$ from when the complainant should reasonably have known there was cause to complain, unless the Legal Ombudsman exercises discretion to extend the deadline.

What are the key functional distinctions between the Legal Ombudsman (LeO) and the Solicitors Regulation Authority (SRA)?

The Legal Ombudsman resolves individual service complaints, serves as the ordinary first point of contact for the public, requires no proof of financial loss, and can award compensation up to $\pounds 50{,}000$. The SRA investigates professional misconduct and regulatory breaches, protects the public, and imposes regulatory or disciplinary sanctions rather than awarding client compensation.

Under Paragraph 8.9 of the SRA Code of Conduct, what distinguishes permitted marketing from prohibited unsolicited approaches?

Solicitors cannot make unsolicited, targeted, or intrusive approaches (such as door-knocking or targeted leafleting based on profiling) to individual members of the public. Approaches are permitted if directed at current or former clients, business contacts, or non-targeted mass advertising (such as general television/radio ads or untargeted mail drops).

Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), what referral fees are strictly prohibited?

LASPO prohibits paying or receiving referral fees in connection with claims for damages following personal injury or death, as well as any other linked claims arising out of the same circumstances (such as uninsured loss recovery claims).

What presumption applies under Paragraph 5.2 of the SRA Code of Conduct regarding personal injury referral fees?

If it appears to the SRA that a referral fee has been paid or received in a personal injury matter, it is presumed to be a prohibited referral fee under LASPO unless the solicitor can prove otherwise (a reverse burden of proof).

What principle of liability was demonstrated in Dreamvar (UK) Ltd v Mishcon De Reya [2018] regarding client identity and conveyancing fraud?

A buyer's solicitor is strictly liable in breach of trust for releasing purchase monies where no genuine completion takes place, even if the solicitor was not negligent in conducting client identity checks.

Under Warner v Masefield [2008], what is the consequence if a solicitor issues legal proceedings on behalf of a party without proper authority?

The solicitor breaches their implied warranty of authority and the SRA Code of Conduct, making the solicitor personally liable to pay the costs incurred by the other parties.

Under Law Society guidance, when is a testamentary gift to a solicitor or their firm presumed to be 'significant'?

A gift is presumed significant if it is worth more than $1\%$ of the client's current estimated net estate, if it might become valuable later (especially after death), or if the benefit is more valuable than the recipient's personal relationship with the deceased reasonably justifies.

What is the requirement under Paragraph 6.1 of the Code of Conduct if a client wishes to make a significant gift to their solicitor in a will?

An own interest conflict arises under Paragraph 6.1, preventing the solicitor from acting unless satisfied that the client has received independent legal advice regarding the gift, or the solicitor ceases to act entirely.

What effect did Arthur JS Hall & Co v Simons [2002] have on the liability of solicitors acting as advocates?

The House of Lords abolished advocates' immunity from suit, meaning solicitors acting as advocates can be sued in negligence for breach of their common law duty of care in both contentious and non-contentious court proceedings.

What principle regarding costs estimates was established in Reynolds v Stone Rowe Brewer [2008]?

A costs estimate is not merely loose guidance. Absent a genuine, material change in circumstances, a solicitor is held to their original estimate and cannot unilaterally revise it upward simply to correct an initial underestimate.

What is the legal consequence if a solicitor fails to expressly state whether a fee quote includes Value Added Tax (VAT)?

If VAT is not expressly stated, the quoted price is legally deemed to be inclusive of VAT, forcing the solicitor to absorb the tax shortfall from their own fees.

Under the Consumer Contracts Regulations 2013, what statutory right attaches specifically to off-premises legal retainers?

The client must be informed in writing of a $14\text{-day}$ statutory right to cancel the contract without giving a reason or incurring liability, running from the day after the contract is made. Failure to provide this information constitutes a criminal offence.

Under Section 87 of the Solicitors Act 1974, at what exact point does legal work become 'contentious business'?

Work only becomes contentious business once proceedings have formally commenced or been issued before a court or arbitrator; pre-action advice and negotiations remain non-contentious even if litigation was contemplated.

What are the statutory caps on success fees under Conditional Fee Agreements (CFAs)?

Success fees under a CFA are capped at $100\%$ of the normal hourly rate charges in general litigation, and capped at $25\%$ of general damages and damages for pecuniary loss (excluding future pecuniary loss) in personal injury claims.

What are the maximum statutory fee caps for Damages-Based Agreements (DBAs) under the DBA Regulations 2013?

The solicitor's fee is capped at $50\%$ of total sums recovered (inclusive of VAT) in general civil litigation, and capped at $25\%$ of general damages and past pecuniary losses in personal injury claims.

What is the difference between an interim statute bill and a bill on account?

An interim statute bill is a complete, self-contained final demand for payment for the work done in that specific period which the solicitor can sue upon and the client can challenge via court assessment. A bill on account is merely a request for payment toward the final eventual bill, which cannot be sued upon or assessed in court.

What are the primary time limits for a client to apply for court assessment of a solicitor's bill under Section 69 of the Solicitors Act 1974?

The client has an absolute right to assessment within $1\,\text{month}$ of delivery; the court has discretion to allow it between $1\,\text{month}$ and $12\,\text{months}$ (or later under special circumstances); but assessment is completely barred after $12\,\text{months}$ from payment.

How did Oakwood Solicitors Ltd v Menzies [2024] define 'payment' for the purposes of the $12\text{-month}$ statutory bar to challenging a bill?

The Supreme Court clarified that 'payment' requires the client's express or implied agreement and acceptance of the specific amount charged, rather than merely the physical transfer or deduction of funds from money held on account.

What regulatory reporting obligation arises if a costs officer reduces a solicitor's non-contentious bill on assessment?

If the costs officer reduces the non-contentious bill by more than $50\%$, the costs officer must report the solicitor to the Solicitors Regulation Authority for potential overcharging.

Under Paragraph 4.1 of the SRA Code of Conduct, what are the three valid ways a solicitor can account for commission or financial benefits received?

The solicitor must either: (a) pay the financial benefit directly to the client, (b) offset the amount against the solicitor's fees owed by the client, or (c) retain the benefit, but only where the client has given prior informed agreement.

How long does a solicitor's duty of confidentiality under Paragraph 6.3 survive?

The duty survives indefinitely beyond the termination of the retainer and continues after the client's death, at which point the authority to waive confidentiality passes exclusively to the deceased client's personal representatives.

What are the four exceptions where a solicitor is not required to disclose material information to a client under Paragraph 6.4 of the Code of Conduct?

Non-disclosure is permitted where: (a) disclosure is prohibited by law (e.g. national security or anti-money laundering tipping-off rules), (b) the client gives written informed consent to non-disclosure, (c) disclosure would cause serious physical or mental injury to the client or another, or (d) the material is in a privileged document mistakenly disclosed to the solicitor.

What rule was established in Ablitt v Mills & Reeve (1995) regarding privileged documents received by mistake?

Where privileged material belonging to the other side is sent by mistake, the receiving solicitor must immediately return the documents unread without using them, and owes no duty of disclosure regarding that material to their own client.

Under Paragraph 6.5 of the SRA Code of Conduct, what two exceptions allow a firm to act where a client's interest is adverse to another client for whom material confidential information is held?

The firm may only act if either: (1) effective measures (such as an information barrier) are implemented such that there is no real risk of disclosure, or (2) the client whose confidential information is held gives written informed consent to the firm acting.

What key distinction exists between legal advice privilege and litigation privilege?

Legal advice privilege applies strictly to confidential communications directly between a solicitor and client for the purpose of giving or receiving legal advice. Litigation privilege applies to communications with third parties as well, provided the document was created for the dominant purpose of existing or reasonably contemplated adversarial litigation.

What was the rule established in R v Cox and Railton (1884) concerning legal professional privilege?

Legal professional privilege does not attach to any communications or advice undertaken to facilitate or perpetrate a crime or fraud.

Can client consent cure an own interest conflict under Paragraph 6.1 of the SRA Code of Conduct?

No. There are no exceptions to the prohibition against acting where an own interest conflict exists or risks arising; client consent cannot validate acting in an own interest conflict.

What are the two exceptions allowing a solicitor to act despite a conflict of interest between clients under Paragraph 6.2?

A solicitor can only act if: (a) the clients have a 'substantially common interest', or (b) the clients are 'competing for the same objective' (e.g. competing corporate bids in a tender or insolvency auction).

What three conditions must all be satisfied to rely on an exception under Paragraph 6.2 for a client conflict of interest?

All three conditions must be met: (a) all clients give informed consent in writing or evidenced in writing, (b) effective safeguards are put in place to protect confidential information where appropriate, and (c) the solicitor is satisfied that it is reasonable to act for all clients.

How does a solicitor's duty change when an act or omission occurs that gives rise to a potential negligence claim by the client?

The potential negligence claim introduces an own interest conflict under Paragraph 6.1 because the solicitor's interest conflicts with the client's. The solicitor cannot advise on the error, must be open and honest under Paragraph 7.11, and must advise the client to obtain independent legal advice.

What constitutes an 'undertaking' under the SRA Glossary, and is the formal word 'undertake' required?

An undertaking is any oral or written statement given to someone who reasonably places reliance on it, promising that the solicitor, firm, or a third party will do, cause to be done, or refrain from doing something. The word 'undertake' is not required, and an unperformed undertaking binds the individual solicitor personally.

What did Harcus Sinclair v Your Lawyers [2021] decide regarding the court's inherent jurisdiction over solicitors' undertakings?

The Supreme Court held that the court's inherent summary jurisdiction under Section 50 of the Solicitors Act 1974 cannot enforce an undertaking given by an incorporated law practice (such as a limited company or LLP) because an incorporated body is a separate legal entity from an individual officer of the court.

What must a solicitor do if a client admits to committing perjury during proceedings but refuses to allow the court to be informed?

Under Paragraph 1.4, the solicitor cannot mislead the court, but under Paragraph 6.3 they cannot reveal the client's confidential admission without consent. The solicitor must therefore cease acting for the client immediately without informing the court of the specific reason.

Under Paragraph 2.7 of the Code of Conduct, what must an advocate disclose even if it damages their client's case?

An advocate must draw the court's attention to any relevant adverse case law, statutory provision, or procedural irregularity of which they are aware that is likely to have a material effect on the outcome of the proceedings.

What personal events trigger an automatic notification duty to the SRA under Paragraph 7.6 of the Code of Conduct?

A solicitor must automatically notify the SRA of: any criminal charge, criminal conviction, criminal caution, bankruptcy, Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO), material change in information previously given, or discovery that previously supplied information was false, misleading, incomplete, or inaccurate.

What factors determine whether a regulatory breach is 'serious' and must be promptly reported to the SRA under Paragraph 7.7?

Seriousness is assessed by: (1) nature of the conduct (dishonesty, criminality, misuse of client money, abuse of trust), (2) intent (deliberate, premeditated, repeated, or reckless), (3) extent and foreseeability of harm, and (4) whether vulnerable people were affected.

Under SRA rules, how is ultimate compliance responsibility divided among firm Managers, the COLP, and the COFA?

Firm Managers (partners, members, directors) hold ultimate responsibility for firm compliance under Paragraph 8.1 of the Code for Firms. The COLP is responsible for systems ensuring legal and regulatory compliance, while the COFA is responsible for systems ensuring compliance with the SRA Accounts Rules.

If a solicitor reports a serious regulatory breach to their firm's COLP, is the solicitor's duty to report to the SRA completely discharged?

Usually reporting to the COLP satisfies Paragraph 7.12, but if the solicitor knows or has reason to believe that the COLP will not report the serious breach to the SRA, the individual solicitor remains personally obligated to report it directly to the SRA.

In Prepare Task 3 (the Khan boating accident claim), what four key matters concerning client care and costs must be discussed in the first appointment?

The solicitor must discuss: (1) the complaints procedure, right to complain, and access to the Legal Ombudsman in writing (Paras 8.2–8.5); (2) best possible costs information, fee basis, disbursements, ranges, review dates, and explicit VAT (Para 8.7); (3) information enabling informed decisions, including risks versus outcomes and potential adverse cost liability (Para 8.6); and (4) alternative funding options such as trade union backing or legal expenses insurance.