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

The SRA Code of Conduct requires solicitors not to act where there is a conflict of interest between clients, unless a specific exception applies (such as the substantially common interest exception or competing for the same objective) and both clients give informed written consent.

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 conditional fee agreement (CFA) is commonly known as a 'no win, no fee' agreement. Under a CFA, the solicitor agrees not to charge fees if the case is lost, but may charge a success fee (capped at 100% of the base costs) if the case is won.

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

The Legal Ombudsman investigates and resolves complaints from consumers about the service they have received from regulated legal service providers. It focuses on service complaints rather than conduct issues, which are handled by the relevant regulator.

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

Under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, solicitors must conduct customer due diligence (CDD), report suspicious activity to the NCA, and maintain appropriate internal policies, controls, and procedures.

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 has extensive intervention powers including the ability to close a firm, freeze client accounts, take possession of documents and files, and redirect clients' matters to other firms. These powers are used to protect clients and the public interest.

SQE1 Practice Test

SQE1 Practice Test

SQE1 Legal Services 2