Legal Practice Course (LPC) Professional Conduct and Regulation Syllabus

Professional Conduct and Regulation syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Professional Conduct and Regulation in Legal Practice Course (LPC), not a summary of it.

1. 1

   The Regulatory Framework

   4 topics

   • The SRA, the Law Society and the regulatory architecture
   • The SRA Principles and Codes of Conduct
   • Outcomes-focused regulation and professional judgement
   • Authorisation, practising certificates and reserved activities
2. 2

   Core Professional Duties

   4 topics

   • Conflicts of interest
     • Client conflict and own-interest conflict
     • Limited exceptions to acting where conflict exists
   • Confidentiality and disclosure
     • The duty of confidentiality and its limits
     • The conflicting duty of disclosure to a client
   • Duties to the court and to third parties
   • Acting with integrity and maintaining public trust
3. 3

   Client Relationship and Service

   4 topics

   • Client care, costs information and engagement
   • Complaints handling and the Legal Ombudsman
   • Undertakings and their enforceability
   • Vulnerable clients and mental capacity considerations
4. 4

   Compliance and Financial Crime

   4 topics

   • Anti-money laundering and the regulations
     • Customer due diligence and risk assessment
     • Suspicious activity reporting and the MLRO
   • Proceeds of Crime Act offences and tipping off
   • Bribery Act compliance and adequate procedures
   • Equality, diversity and the duty not to discriminate

Professional Conduct and Regulation flashcards for Legal Practice Course (LPC)

24 of 51 cards from the Professional Conduct and Regulation deck — real questions with worked answers.

1. Following the Legal Services Act 2007, what is the relationship between the Law Society and the SRA?

   The Law Society is the approved regulator and representative body for solicitors, but it must delegate its regulatory functions to an independent arm, the Solicitors Regulation Authority (SRA). The SRA carries out day-to-day regulation; the Law Society focuses on representing members' interests.

2. What is the Legal Services Board (LSB) and where does it sit in the regulatory architecture?

   The LSB is the oversight regulator created by the Legal Services Act 2007. It supervises the approved regulators (such as the SRA, BSB, CILEx Regulation) and is itself accountable to Parliament, ensuring regulation serves the regulatory objectives.

3. List the eight regulatory objectives set out in section 1 of the Legal Services Act 2007.

   (1) Protecting and promoting the public interest; (2) supporting the constitutional principle of the rule of law; (3) improving access to justice; (4) protecting and promoting the interests of consumers; (5) promoting competition in legal services; (6) encouraging an independent, strong, diverse and effective legal profession; (7) increasing public understanding of citizens' legal rights and duties; (8) promoting and maintaining adherence to the professional principles.

4. What body handles consumer complaints about legal services, and which body sets standards for that body?

   The Legal Ombudsman handles consumer complaints. It is administered by the Office for Legal Complaints (OLC), which operates under the oversight of the Legal Services Board.

5. How many SRA Principles are there in the current (2019) Standards and Regulations, and what do they represent?

   There are seven Principles. They are the fundamental tenets of ethical behaviour that all those regulated by the SRA must uphold, taking precedence over other rules where they conflict.

6. State the seven SRA Principles (2019).

   Act: (1) in a way that upholds the constitutional principle of the rule of law and the proper administration of justice; (2) in a way that upholds public trust and confidence in the solicitors' profession; (3) with independence; (4) with honesty; (5) with integrity; (6) in a way that encourages equality, diversity and inclusion; (7) in the best interests of each client.

7. When the SRA Principles conflict with one another, which takes precedence?

   The Principle that best serves the wider public interest takes precedence, particularly the public interest in the proper administration of justice. The duty to the court and the public interest can override the duty to act in the best interests of an individual client.

8. Name the two Codes of Conduct in the SRA Standards and Regulations 2019.

   (1) The Code of Conduct for Solicitors, RELs and RFLs (applying to individuals); and (2) the Code of Conduct for Firms (applying to authorised bodies and their managers/employees).

9. What is 'outcomes-focused regulation' (OFR) and how does it differ from rules-based regulation?

   OFR is a principles-based, risk-focused approach that sets high-level outcomes and standards rather than prescriptive detailed rules, leaving solicitors to exercise professional judgement on how to achieve them. It contrasts with a tick-box, rules-based system by focusing on the substantive result for clients and the public.

10. Under OFR, what is expected of a solicitor when the Codes do not give a precise rule?

    The solicitor must exercise professional judgement, applying the Principles and the spirit of the Codes to the specific circumstances, and be able to justify their decisions to the SRA if challenged.

11. Which body grants authorisation to practise as a solicitor and issues practising certificates?

    The SRA. It authorises individuals (admitting solicitors and issuing practising certificates) and authorises bodies (firms) to provide regulated legal services.

12. What is a practising certificate and when must a solicitor hold one?

    A practising certificate is the annual authorisation issued by the SRA permitting a person on the roll of solicitors to practise. It is required whenever a solicitor is practising as a solicitor, including carrying out reserved legal activities or holding themselves out as a solicitor.

13. List the six 'reserved legal activities' under the Legal Services Act 2007.

    (1) The exercise of a right of audience; (2) the conduct of litigation; (3) reserved instrument activities (e.g. land conveyancing/registration); (4) probate activities; (5) notarial activities; (6) the administration of oaths.

14. What is the consequence of carrying on a reserved legal activity without being authorised or exempt?

    It is a criminal offence under the Legal Services Act 2007, punishable by fine and/or imprisonment, in addition to potential regulatory action.

15. Under the SRA Code, when may you NOT act where there is a conflict of interest between two current clients (an 'own-client conflict')?

    You must not act where there is an own-client conflict or a significant risk of one, unless one of two exceptions applies: (a) the clients have a substantially common interest, or (b) the clients are competing for the same objective. In both cases strict safeguards (informed written consent, safeguards, and reasonableness) must be satisfied.

16. Define a 'conflict of interest' under the SRA Glossary.

    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 (a 'client conflict'), or where your duty to act in the best interests of a client conflicts with your own interests in that matter (an 'own interest conflict').

17. Can you ever act despite an 'own interest conflict'?

    No. There is no exception permitting a solicitor to act where there is an own interest conflict or a significant risk of one. You must decline or cease to act.

18. What are the two exceptions allowing a solicitor to act despite a client conflict?

    (1) 'Substantially common interest' exception — the clients have a clear common purpose and strong consensus on how to achieve it; and (2) 'Competing for the same objective' exception — the clients are competing for an objective which, if attained by one, makes it unattainable to the others (e.g. bidding for the same asset). Both require informed written consent, effective safeguards, and that it is reasonable to act.

19. State the solicitor's duty of confidentiality and how long it lasts.

    You must keep the affairs of current and former clients confidential unless disclosure is required or permitted by law or the client consents. The duty continues after the retainer ends and indeed after the client's death (passing to personal representatives).

20. How does the duty of disclosure to a client differ from the duty of confidentiality?

    The duty of disclosure requires you to make a client aware of all information material to their matter of which you have knowledge. The duty of confidentiality protects another client's information. Confidentiality always trumps disclosure: you may not use confidential information of client A for the benefit of client B.

21. What must a firm do when it holds confidential information of one client that is material to another client (the 'confidentiality vs disclosure' clash)?

    The firm should not act for the second client unless effective measures (information barriers/safeguards) are in place and the affected client gives informed consent, or the firm declines to act for one of the clients. Confidentiality must be protected even at the expense of the duty of disclosure.

22. What is a solicitor's overriding duty when acting as an advocate or conducting litigation?

    The duty to the court and the proper administration of justice overrides the duty to the client. A solicitor must not knowingly or recklessly mislead the court, must not waste the court's time, and must draw the court's attention to relevant adverse case law/procedural irregularities.

23. If a client admits guilt to their solicitor but wishes to plead not guilty, what may the solicitor do?

    The solicitor may continue to act and put the prosecution to proof (test the evidence), but must NOT assert a positive case inconsistent with the confession (e.g. cannot call evidence or suggest someone else did it, nor allow the client to give evidence denying guilt). To do so would mislead the court.

24. What duties does a solicitor owe to third parties under the Code?

    You must not take unfair advantage of third parties; you must not mislead or attempt to mislead them (whether by your own acts or omissions or allowing others); and you must perform any undertakings given. You must treat them fairly and with respect.

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