Standards and Regulations
Rationale behind the Code of Conduct
• Prevent exploitation of members of the public by the legal profession
• Uphold the highest of standards by legal practitioners in their dealings with clients, the court and
each other
SRA Principles
1. Uphold the rule of law and proper administration of justice
2. Uphold public trust and confidence in the solicitor’s profession and in legal services provided by
authorised persons
3. Independence
4. Honesty
5. Integrity
6. Encourage equality, diversity and inclusion
7. Act in the best interests of each client
Where principles conflict, the principles which safeguard the wider public interest (ie. principles 1 and 2)
take precedence over individual client’s interests.
Intro to principles
• Inform client of circumstances where your duty to the court and other professional obligations
outweighs your duty to them
• Principles “comprise the fundamental tenets of ethical behaviour that we expect all those that we
regulate to uphold”
Breach of Principles
• SRA Enforcement Strategy sets out reporting guidance to report solicitors conduct to the SRA
• SRA will take into account harm and impact the conduct has caused the complainant
• Examples given by SRA where they would take disciplinary action over Principle 5: Integrity
1. Wilful or reckless disregards of rules
2. Firm/individual has taken unfair advantage of clients or third parties or allowed others to do so
3. Firm/individual has knowingly or recklessly caused harm of distress to another
4. Clients/third parties have been misled or allowed to be misled (unless this is a simple error that
is rectified as soon as possible)
• Integrity and honesty overlap, but SRA considers integrity to be wider than honesty. One does not
need to be dishonest to act without integrity.
Intro to Codes (CCS)
• Onus on authorised individuals to review standards and decide on course of action
• “you must exercise your judgement in applying these standards to the situations you are in and
deciding on a course of action, bearing in mind your role and responsibilities, areas of practice and
the nature of the clients (which in an in house context will generally include your employer and may
include other persons or groups within or outside your employer organisation)”
• Individual is personally accountable for compliance and must always be prepared to justify decisions
and actions
• Serious failure to meet standards may result in disciplinary action
• May be serious in isolation or because it comprises a persistent and concerning pattern of behaviour
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,Intro to Codes (CCF)
• CCF aims to maintain the right culture and environment for delivery of competent and ethical legal
services to clients
• Regulatory action can be taken against the firm itself, or its managers/compliance officers if there is
a serious failure to meet standards
• May be serious in isolation or because it comprises a persistent and concerning pattern of behaviour
• Many firms have their own practice manuals which can be even more onerous than the CCS/CCF
Structure of CCS and CCF
CCS CCF
1. Maintaining trust and acting fairly 1. Maintaining trust and acting fairly
2. Dispute resolution and proceedings 2. Compliance and business systems
before courts, tribunals and inquiries 3. Cooperation and accountability
3. Service and competence 4. Service and competence
4. Client money and assets 5. Client money and assets
5. Referrals, introductions and separate 6. Conflict, confidentiality and disclosure
businesses 7. Applicable standards of SRA CCS, RELs
6. Conflict, confidentiality and disclosure and RFLs
7. Cooperation and accountability 8. Managers in SRA authorised firms
8. Providing services to the public 9. Compliance officers
Client care
• CCS 8.1 / CCF 7.1(c): you must identify who you are acting for in any particular matter
• When taking on a new client, check if MLR 2017 applies and comply with relevant customer due
diligence
• CCS 3.1/CCF 4.1: only act for clients on instructions from the client, or someone properly authorised
to provide instructions on their behalf
• Example: where director of company wants to give instructions, identify them, check the board
minutes where they were given authority to act, and do a company search to ensure they are
director of the company
Accepting instructions
• Free to decide whether or not to take on a client providing there is no unlawful discrimination
• Must comply with Principle 6: encourage equality, diversity and inclusion
• Must comply with para 1.1 of the Codes, to not unlawfully discriminate
Must NOT accept instructions where…
• The client is asking you to commit and offence or fraud, or asking you to lie
• You suspect money laundering
• You will breach CCS 6 (conflict of own interest or interest with another client)
• You cannot represent the client with competence and diligence under CCF 4.2 – for example the
case is outside your expertise or you are too busy
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,Client care letter/engagement letter
• No obligation to send one in the code, but it is good practice as it helps to evidence meeting the
requirements of the code
• Normally forms basis of contract between solicitor and client
• Ongoing obligation to keep client informed about all aspects of the matter as it progresses
• CCS 8: include complaints procedure
• CCS 8.6: communicate information to clients in a way they can understand so they can make
informed decisions
• CCS 8.7: give best possible information about costs at the time of engagement, and as the matter
progresses. Include overall cost estimates and costs incurred (disbursements)
• CCS 8.10: inform client how you are regulated (what activities are carried out, which services are
regulated, and do not represent business not authorised by SRA)
• SRA Guidance sets out checklist to help solicitors review their client care letters:
▪ Explain what is going to happen
▪ Include how much work will cost
▪ Explain when things will happen
▪ Explain what client needs to do
▪ Include contact details
▪ Show clear purpose
▪ Keep letter concise
▪ Use plain English
▪ Prioritise information
▪ Personalise information
▪ Letter should be easy to read
▪ Highlight key information
▪ Consider needs of vulnerable clients
Repeat clients
• If client is an established client and you are carrying out work on agreed terms, they may not need
costs information repeated each time a new file is opened
• In this case, can send an annual client care letter and shorter letters following instructions on each
new matter
Termination of retainer
• Client can terminate at any time
• Solicitor can only terminate if it has good reason
• Remember CCF 1.1: must treat client fairly
• Remember Principles 4 and 5: act with honesty and integrity, cannot simply change your mind and
decide you do not want to instruct the client
• The following have been considered ‘good reasons’ to terminate:
1. Cannot get clear instructions from the client (ie. they are non-responsive or two people
within the company are giving you conflicting instructions)
2. Following instructions would lead to a breach of the codes or the law
3. Client not paying bills (client care letter often contains a clause to this effect)
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,Service and competence
CCS/CCF Reference Provision
CCS 3.1 / CCF 4.1 Only act for clients on instructions from the client, or from someone
properly authorised to provide instructions on their behalf.
CCS 3.2 / CCF 4.2 Ensure service you provide to clients is competent and delivered in a timely
manner
CCS 3.3 Maintain competence to carry out role and keep professional knowledge
and skills up to date
CCS 3.6 / CCF 4.3 Ensure managers and employees are competent to carry out their role, and
keep their professional knowledge and skills, as well as understanding of
their legal, ethical and regulatory obligations up to date
CCF 4.4 Have an effective system for supervising clients' matters
CCS 3.4 / CCF 4.2 Consider and take account of client's needs, attributes and circumstances
CCS 3.5 Where you supervise/manage others providing legal services,
a) you remain accountable for work carried out through them,
b) you effectively supervise work being done for clients.
Client information and publicity
CCS/CCF Reference Provision
CCF 7.1(c) Rules which govern provision of information to clients apply equally to firms
CCS 8.6 Give clients information in a way they can understand. Ensure they are in a
position to make informed decisions about the services they need, how
their matter will be handled and the options available to them.
CCS 8.10 Ensure clients understand whether and how the services you provide are
regulated by
a) explaining which activities are carries out by you as an authorised person,
b) explaining which services provided by you, your business/employer and
any separate businesses are regulated by an approved regulator, and
c) ensuring you do not represent any business or employer which is not
authorised by the SRA, including any separate business as being regulated
by the SRA
CCS 8.11 Ensure clients understand regulatory protections available to them
Costs information
CCS/CCF Reference Provision
CCF 7.1(c) Rules which govern costs information apply equally to firms
CCS 8.7 Ensure clients receive best possible information about how their matter will
be priced at time of engagement and where appropriate as their matter
progresses, about likely overall cost of matter and costs incurred
CCS 8.9 Ensure any publicity in relation to your practice is accurate and not
misleading, including that relating to your charges and the circumstances in
which interest is payable to clients
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, Complaints, regulation and standards
CCS/CCF Reference Provision
CCF 7.1(c) Rules which govern complaints, regulation and standards apply equally to
firms
CCS 8.2 Ensure you either establish and maintain or participate in a procedure for
handling complaints in relation to the legal services you provide
CCS 8.3 Ensure clients are informed in writing at the time of engagement about
a) their right to complain to you about your services and your charges,
b) how a complaint can be made and to whom, and
c) any right they have to make such a complaint to the Legal Ombudsman
CCS 8.4 Ensure when clients have made a complaint to you, if it has not been
resolved to their satisfaction within 8 weeks, they are informed in writing of
a) any right they have to complain to the Legal Ombudsman and the time
frame for doing so with details of how to contact the ombudsman,
b) if your complaints procedure has been exhausted, that you cannot settle
the complaint, and the name and address of ADR approved body which
would be competent to deal with the complaint and
c) whether you agree to use the scheme operated by that body
CCS 8.5 Ensure complaints are dealt with properly, fairly and free of charge
Conflicts of interest
Generally prohibited from acting for a client where:
• CCS 6.1 / CCF 6.1: ‘own interest conflict’ – cannot act where there is an own interest conflict or a
significant risk of such a conflict
• Glossary definition of ‘own interest conflict: “Any situation where your duty to act in the best
interests of any client in relation to a matter conflicts, of there is a significant risk that it may conflict,
with your own interests in relation to that or a related matter”
• CCS 6.2 / CCF 6.2: ‘conflict of interest’ - do not act in relation to a matter or particular aspect of it if
you have a conflict of interest or a significant risk of such a conflict
• Glossary definition of ‘conflict of interest’: “A situation where your separate duties to act in the best
interests of two or more clients in the same or a related matter conflict.”
(Client) conflict of interest – exceptions
• CCS 6.2(a): substantially common interest exception - the clients have a substantially common
interest in relation to the matter or the aspect of it, as appropriate
• Glossary definition of ‘substantially common interest’: “A situation where there is a clear common
purpose between the clients and a strong consensus on how this is to be achieved.”
▪ Clear common purpose: eg. Buyer and seller of asset have clear common purpose, the sale of
the asset
▪ Strong consensus: parties should have already agreed how the deal is going to go ahead, with
key terms agreed. Should be very little, if any, negotiation. If there is lots of negotiation
involved, the parties best interests will differ and you cannot act in both of their best interests
▪ Example: two clients advising a solicitor on the purchase or setting up of a business as partners,
or taking out a lease as joint tenants
• CCS 6.2(b): the client’s are competing for the same objective
• Glossary definition of ‘competing for the same objective’: “Two or more clients are competing for an
‘objective’ which, if attained by one client, will make the objective unattainable to the other client or
clients.”
▪ Example: acting for more than one creditor on insolvency of a company, acting for competing bidders
for a business being sold at an auction, acting for different tenderers tendering for the same contract
▪ Cannot apply where clients are on the opposite side of a transaction
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