STEP Ethical Standards & Professional Conduct 2 — Questions and Answers
Question 1: Under STEP's Code of Professional Conduct, what must a practitioner do when they discover a conflict of interest mid-engagement?
- Continue acting as long as both parties are informed
- Immediately cease acting for all affected parties without exception
- Disclose the conflict and obtain informed consent from all parties, or withdraw (Correct answer)
- Refer the matter to a senior partner and continue acting
Correct answer: Disclose the conflict and obtain informed consent from all parties, or withdraw
STEP's Code requires disclosure of conflicts and obtaining informed consent, or withdrawal if consent cannot be obtained or the conflict is unresolvable.
Question 2: A STEP member is asked to act as both trustee and solicitor for the same trust. Which ethical principle is most at risk?
- Confidentiality
- Independence and objectivity (Correct answer)
- Competence
- Timeliness
Correct answer: Independence and objectivity
Acting in dual roles as trustee and legal adviser creates a conflict that directly threatens the practitioner's independence and objectivity.
Question 3: Which of the following best describes the STEP principle of 'integrity' as applied to client communications?
- Using legally correct language in all documents
- Being honest, straightforward, and not misleading clients even by omission (Correct answer)
- Disclosing all firm fee structures upfront
- Maintaining regular contact with clients throughout an engagement
Correct answer: Being honest, straightforward, and not misleading clients even by omission
Integrity in client communications means being truthful and not creating false impressions, including through selective omission of relevant facts.
Question 4: A client instructs a STEP practitioner to structure an estate plan in a way the practitioner believes is lawful but clearly designed to defeat a dependent's reasonable claims. The practitioner should:
- Follow the client's instructions without question as client autonomy is paramount
- Advise the client of the legal and ethical implications, then decide whether to proceed (Correct answer)
- Immediately report the matter to the relevant authority
- Refuse all instructions from this client going forward
Correct answer: Advise the client of the legal and ethical implications, then decide whether to proceed
STEP ethics require practitioners to advise clients on legal and ethical implications of instructions before deciding whether the engagement can continue.
Question 5: STEP's CPD requirements primarily serve which ethical objective?
- Demonstrating membership status to clients
- Ensuring practitioners maintain and develop competence over time (Correct answer)
- Satisfying regulatory requirements for practicing certificates
- Generating revenue for the professional body
Correct answer: Ensuring practitioners maintain and develop competence over time
CPD is an ethical obligation under STEP's framework to ensure members maintain the competence needed to serve clients effectively as law and practice evolve.
Question 6: When a STEP member is uncertain whether a client has testamentary capacity, what is the most appropriate initial action?
- Proceed if the client appears to understand the conversation
- Obtain a formal medical assessment of capacity before taking instructions (Correct answer)
- Ask a family member to confirm the client's mental state
- Draft the will and note the uncertainty in the file
Correct answer: Obtain a formal medical assessment of capacity before taking instructions
Where capacity is genuinely in doubt, best practice under STEP guidance requires a formal medical assessment to protect both the client and the practitioner.
Question 7: A STEP member receives a generous gift from a grateful client whose estate administration has just concluded. What should the member do?
- Accept it as compensation for exceptional service
- Decline it as all gifts from clients are prohibited by STEP rules
- Consider the gift's size, timing, and whether it creates a perception problem, and seek guidance if uncertain (Correct answer)
- Report the offer to the firm's compliance officer and refuse unconditionally
Correct answer: Consider the gift's size, timing, and whether it creates a perception problem, and seek guidance if uncertain
STEP guidance requires members to assess whether accepting a gift could impair independence or create a perception of impropriety, seeking guidance where any doubt exists.
STEP Ethical Standards & Professional Conduct 2
Under STEP's Code of Professional Conduct, what must a practitioner do when they discover a conflict of interest mid-engagement?