SQE Ethics and Professional Conduct 2

Question 1

Under the SRA Accounts Rules, what is the key principle governing the handling of client money?

Accepted Answer

Client money must be kept separate from the firm's own money in a designated client account

Answer

The SRA Accounts Rules require that client money is promptly placed in a separate client account and never mixed with office money, to protect clients.

Question 2

What is a solicitor's duty of 'candour' to the court?

Accepted Answer

A duty not to deceive or mislead the court, even if this conflicts with the client's interests

Answer

Candour requires that solicitors do not make false or misleading statements to the court, and must correct any accidental misleading statement — this duty overrides client interests.

Question 3

Under what circumstances may a solicitor act for both buyer and seller in a conveyancing transaction?

Accepted Answer

Only in limited circumstances, such as where the parties are established clients and the transaction is not at arm's length

Answer

The SRA Code permits acting for both parties in limited situations (e.g., related parties, same lender, standard form contract) but not where there is a conflict or risk of one.

Question 4

What is the purpose of the SRA's 'Transparency Rules'?

Accepted Answer

To require law firms to publish price and service information so clients can make informed choices

Answer

The SRA Transparency Rules require firms to publish information about their prices, service, and regulatory status to help consumers compare and choose legal services.

Question 5

What is 'tipping off' in the context of money laundering regulations?

Accepted Answer

Alerting a suspect that they are under investigation for money laundering, which is a criminal offence

Answer

Under the Proceeds of Crime Act 2002, tipping off (alerting a person under investigation that a Suspicious Activity Report has been made) is itself a criminal offence.

SQE - Solicitors Qualifying Examination Practice Test

SQE - Solicitors Qualifying Examination Practice Test

SQE Ethics and Professional Conduct 2