SQE1 Legal Services 2

Question 1

Under the SRA Code of Conduct, what must a solicitor do if they identify a conflict of interest between two clients?

Accepted Answer

Not act for both clients unless a specific exception applies and both clients give informed consent

Answer

Continue to act for both clients with their consent

Answer

Act for the client who is paying higher fees

Answer

Refer both clients to the court for a decision

Question 2

What is a conditional fee agreement (CFA) commonly known as, and how does it work?

Accepted Answer

A 'no win, no fee' arrangement where the solicitor charges a success fee if the case is won

Answer

A fixed fee arrangement where the solicitor charges a set amount regardless of outcome

Answer

A legal aid arrangement funded by the government

Answer

An hourly rate arrangement with a cap on total fees

Question 3

What is the role of the Legal Ombudsman in the UK legal services framework?

Accepted Answer

To investigate and resolve complaints about the service provided by lawyers

Answer

To prosecute solicitors for criminal conduct

Answer

To set the training requirements for solicitors

Answer

To approve new law firms for practice

Question 4

Under anti-money laundering regulations, what are the three key obligations on solicitors?

Accepted Answer

Customer due diligence, suspicious activity reporting, and maintaining appropriate policies and controls

Answer

Client identification, record keeping, and fee disclosure

Answer

Legal advice privilege, confidentiality, and conflict checks

Answer

Registration with HMRC, annual audits, and staff training only

Question 5

What is the SRA's power to intervene in a law firm?

Accepted Answer

The SRA can intervene to close a firm, take control of client files, and redirect client money to protect the public

Answer

The SRA can only issue fines up to £500

Answer

The SRA can only issue written warnings

Answer

The SRA can only refer matters to the police

Question 6

A solicitor acting as an advocate in court has a duty to:

Accepted Answer

Not mislead the court and disclose adverse authorities of which they are aware

Answer

Win the case at all costs for their client

Answer

Only present evidence favourable to their client

Answer

Object to all prosecution evidence regardless of its validity