SQE 1 - 4
The study materials on Ethics and Professional Conduct delineate the functions of the Solicitors Regulation Authority (‘SRA’) along with the mandatory Codes of Conduct for solicitors.
This section aims to delve into additional rules and regulations that solicitors in England and Wales are obligated to adhere to. We will explore the SRA's position within the broader regulatory landscape for legal practitioners, comprehend the financing of legal services, and also examine overarching legal mandates that influence solicitors' daily operations.
These include obligations under the Equality Act 2010, anti-money laundering directives, and the Financial Services and Markets Act 2000.
In the legal landscape of England and Wales, the Legal Services Board is at the helm of supervising all legal professionals. This board encompasses seven distinct regulatory entities, each responsible for crafting their own regulations for various segments of the legal profession.
The Solicitors Regulation Authority, tasked with overseeing solicitors, law practices in England and Wales, non-legal professionals in managerial or employment roles within these practices, along with registered foreign lawyers (‘RFLs’), and registered European lawyers (‘RELs’).
The Bar Standards Board, which is responsible for the regulation of barristers.
CILEx (Chartered Institute of Legal Executives), overseeing legal executives – lawyers with a focus on specialised legal fields.
The Intellectual Property Regulation Board, governing the practice of patent and trademark attorneys.
The Council of Licensed Conveyancers, responsible for regulating both individuals and entities specialising in property/probate law.
The Costs Lawyer Standards Board, which supervises lawyers dedicated to the drafting of legal bills and cost schedules.
The Master of the Faculties, charged with the regulation of notarial professionals.
The activities listed below, known as exclusive legal tasks, are permissible only for those who have received authorisation from the aforementioned regulatory bodies:
Right of Audience Exercise – the privilege to represent and speak in court, including the authority to summon and question witnesses.
Litigation Conduct – initiating legal action, defending against legal claims.
Reserved Instrument Activities – drafting deeds of transfer or mortgage, submitting and registering documents as per the Land Registration Act, or composing any other legal document related to real or personal property, including land sale contracts.
Probate Activities – crafting documents for probate applications or court-related probate documents.
Notarial Activities – preparing, attesting, and validating legal documents, and handling non-disputed legal matters such as wills and estate administration.
Oath Administration – the act of officiating an oath or affirmations.
It's important to note that certain individuals may be exempt from these requirements, enabling them to engage in exclusive legal activities without formal authorisation. For instance, a person directly involved in legal proceedings may be permitted to conduct litigation related to that case in their role as a party to the proceedings.
The Solicitors Regulation Authority (SRA) mandates that all regulated firms maintain professional indemnity insurance when offering legal services. The SRA Professional Indemnity Rules outline the minimum insurance coverage required, yet it's incumbent on firms to ensure their insurance is sufficiently comprehensive and suitable for their specific operations, as this can vary significantly between firms.
For instance, a boutique firm specialising in intellectual property might engage in complex, high-stakes litigation, necessitating a higher level of coverage due to the potential risks involved. This contrasts with a family law practice, which might deal with more routine legal matters, thus requiring a lesser extent of coverage to be considered adequate and appropriate for its specific field.
When evaluating what constitutes suitable and sufficient insurance coverage, firms must consider various elements. These include the nature of their clientele, the monetary value of cases handled annually, the clarity of information conveyed to clients regarding insurance protection, and the firm's history of insurance claims. Demonstrating a thorough consideration of these aspects can generally assure that the Solicitors Regulation Authority (SRA) will not find grounds for intervention.
Insurance obligations for solicitors outside traditional firms:
Freelance solicitors are individuals who practise independently, without employees, under their own name rather than a company or trade name, and whose clients directly engage and remunerate them. Such solicitors, when not engaging in reserved legal activities, are not required to be authorised as a sole practitioner firm by the SRA and hence are not obligated to maintain indemnity insurance.
Insurance Requirement for Reserved Legal Activities. Freelance solicitors may conduct reserved legal activities under specific conditions without needing to be authorised as a sole practitioner firm by the SRA. These conditions include having at least three years of post-qualification experience, not handling client money (with few exceptions), and securing adequate and appropriate insurance coverage. They are not bound to the SRA's minimum insurance terms but must inform the SRA of their freelance status.
A solicitor with five years of experience opts to independently provide legal services, particularly in drafting documents for land registration. Operating under their own name, without employees, and billing clients directly, this solicitor is required to inform the SRA of their freelance work involving reserved legal activities and ensure they have suitable insurance coverage.
Solicitors working within non-commercial bodies, such as not-for-profit organisations, independent trade unions, or community interest companies, and providing reserved legal activities to the public, also have specific insurance responsibilities. They must ascertain that the entity they are working for has adequate and appropriate professional indemnity insurance.
A solicitor employed by a non-profit organisation specialising in providing legal advice on housing rights needs to ensure that the organisation holds professional indemnity insurance that is both adequate for the nature of the advice given and appropriate for the scale of its operations.
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