Legal Practice Course (LPC) Professional Conduct and Regulation Flashcards

24 sample cards from the Professional Conduct and Regulation deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What costs information must a solicitor provide to ensure clients can make informed decisions?

   You must give the best possible information about the likely overall cost of a matter, both at the outset and as the matter progresses — including the basis of charges, disbursements, VAT, and any costs the client may have to pay to a third party. Information must be updated when circumstances change.

2. What is the standard time limit for a client to bring a complaint to the Legal Ombudsman?

   A complaint must normally be brought to the Legal Ombudsman within one year of the act/omission complained of, or within one year of when the complainant should reasonably have known there was cause for complaint. The complaint must also normally be made within six months of the firm's final response (the firm having had up to eight weeks to resolve it first).

3. What is the maximum amount of compensation the Legal Ombudsman can currently award?

   Up to £50,000. The Ombudsman may also direct the firm to apologise, refund or reduce fees, correct errors, and take other remedial steps. (This is distinct from SRA disciplinary sanctions.)

4. Distinguish the roles of the Legal Ombudsman and the SRA in handling complaints.

   The Legal Ombudsman deals with service complaints (poor service, delay, costs) and provides redress to the individual consumer. The SRA deals with conduct/misconduct (breaches of Principles/Codes) and imposes regulatory/disciplinary sanctions in the public interest. Serious misconduct may be referred to the Solicitors Disciplinary Tribunal (SDT).

5. How long must a firm be given to resolve a complaint before the client goes to the Legal Ombudsman?

   Up to eight weeks. The complainant should first use the firm's internal complaints procedure; if it is unresolved after eight weeks (or the firm issues a final response sooner), the client may then refer it to the Legal Ombudsman.

6. Define an 'undertaking' in the SRA context.

   An undertaking is a statement, given orally or in writing, whether or not using the word 'undertake' or 'undertaking', made by or on behalf of you or your firm, to someone who reasonably relies upon it, that you or a third party will do something or cause something to be done, or refrain from doing something.

7. Why must solicitors honour undertakings, and what is the personal consequence of breach?

   Undertakings are the bedrock of commercial and conveyancing transactions because parties rely on them in lieu of other security. Breach is professional misconduct and is enforceable personally against the giver; the court has summary jurisdiction over solicitors to compel performance or order compensation.

8. Are undertakings enforceable by the court, and how, against a solicitor versus a non-solicitor entity?

   Against a solicitor, the court can enforce an undertaking summarily through its supervisory jurisdiction over officers of the court. Following Harcus Sinclair v Your Lawyers (2021), this summary jurisdiction does NOT extend to an incorporated/ABS-type body that is not itself an officer of the court, though the SRA can still take regulatory action.

9. What practical safeguards should a solicitor adopt when giving undertakings?

   Give undertakings only in writing where possible; ensure they are clear, specific and within your control; avoid undertaking to do something dependent on a third party; record and diarise them centrally; obtain authority; and never undertake something you cannot personally fulfil.

10. What additional considerations arise when acting for a vulnerable client?

    You must take extra care to ensure instructions are genuinely the client's own and free from undue influence, communicate clearly and appropriately, make reasonable adjustments, consider capacity, and ensure the client understands the advice. The duty to act in the client's best interests is heightened.

11. What is the statutory test and presumption for mental capacity under the Mental Capacity Act 2005?

    Capacity is presumed unless established otherwise. A person lacks capacity if, at the material time, they are unable to make a decision because of an impairment of, or disturbance in the functioning of, the mind or brain. Inability means being unable to understand, retain, use/weigh the relevant information, or communicate the decision. Capacity is decision- and time-specific.

12. How should a solicitor proceed if they doubt a client's mental capacity to give instructions?

    Apply the presumption of capacity but assess decision-specific capacity; do not act on instructions from someone lacking capacity. Consider whether a person with authority (e.g. attorney under an LPA or a deputy) should give instructions, obtain a capacity assessment if needed (e.g. 'golden rule' for wills), and act in line with the Mental Capacity Act principles.

13. Which regulations govern anti-money laundering compliance for solicitors in the UK?

    The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLR 2017, as amended), supplemented by the SRA's AML rules and the Legal Sector Affinity Group (LSAG) guidance.

14. What are the three core elements of customer due diligence (CDD) under the MLR 2017?

    (1) Identifying the client and verifying their identity from reliable, independent sources; (2) identifying any beneficial owner and taking reasonable measures to verify their identity; (3) obtaining information on, and ongoing monitoring of, the purpose and intended nature of the business relationship.

15. When must Enhanced Due Diligence (EDD) be applied under the MLR 2017?

    EDD is required where there is a higher risk of money laundering/terrorist financing — e.g. where the client or transaction involves a politically exposed person (PEP), a high-risk third country, unusual or complex transactions with no apparent economic purpose, or where the business relationship is conducted non-face-to-face in higher-risk circumstances.

16. Which firms/work fall within the regulated sector for AML purposes, requiring a written practice-wide risk assessment and MLRO/MLCO?

    Firms carrying on relevant 'independent legal professional' activities — e.g. conveyancing, company/trust formation and management, managing client money/assets, and financial/real property transactions. Such firms must appoint a Money Laundering Reporting Officer (MLRO) and a Money Laundering Compliance Officer (MLCO) and maintain a documented risk assessment, policies, controls and training.

17. List the principal money laundering offences under the Proceeds of Crime Act 2002 (POCA).

    Section 327 — concealing, disguising, converting, transferring or removing criminal property; Section 328 — entering into or becoming concerned in an arrangement to facilitate the acquisition/retention/use/control of criminal property; Section 329 — acquiring, using or possessing criminal property.

18. What is a SAR and to whom is it made under POCA?

    A Suspicious Activity Report. Where a solicitor knows or suspects (or has reasonable grounds to know/suspect) money laundering, they must make an authorised disclosure (usually to the firm's MLRO, who reports to the National Crime Agency / NCA) to obtain a defence (formerly 'consent') before proceeding with a prohibited act.

19. What is the 'tipping off' offence under section 333A POCA, and which firms does it apply to?

    It is an offence (applicable to those in the regulated sector) to disclose to a third party that a SAR/disclosure has been made, or that a money laundering investigation is being contemplated or carried out, where that disclosure is likely to prejudice any investigation. Maximum penalty on indictment is two years' imprisonment and/or a fine.

20. Does legal professional privilege exempt a solicitor from making a disclosure under POCA?

    There is a 'privileged circumstances' / legal adviser exemption: a professional legal adviser is not required to disclose information received in privileged circumstances. However, the exemption does NOT apply where the information is communicated with the intention of furthering a criminal purpose (the crime/fraud exception).

21. List the four offences created by the Bribery Act 2010.

    (1) Section 1 — offering, promising or giving a bribe (active bribery); (2) Section 2 — requesting, agreeing to receive or accepting a bribe (passive bribery); (3) Section 6 — bribery of a foreign public official; (4) Section 7 — failure of a commercial organisation to prevent bribery (corporate offence).

22. What is the only defence to the section 7 Bribery Act 2010 corporate offence, and what are the six guiding principles?

    The defence is that the organisation had 'adequate procedures' in place to prevent bribery. The MOJ's six guiding principles are: (1) proportionate procedures; (2) top-level commitment; (3) risk assessment; (4) due diligence; (5) communication (including training); (6) monitoring and review.

23. Under the Equality Act 2010, what are the nine protected characteristics?

    Age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; and sexual orientation.

24. What forms of prohibited conduct does the Equality Act 2010 cover, and what does the SRA require of solicitors regarding equality and diversity?

    Prohibited conduct includes direct discrimination, indirect discrimination, harassment, victimisation, and (for disability) failure to make reasonable adjustments / discrimination arising from disability. SRA Principle 6 requires solicitors to act in a way that encourages equality, diversity and inclusion, and the Codes require firms not to discriminate unlawfully and to make reasonable adjustments for disabled clients/employees.

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