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Summary Legal Services - SQE1 (FLK 1)
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Summary Legal Services for SQE1, solicitors qualifying exam. FLK 1.
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LEGAL SERVICESCHAPTER 1: PROVIDERS OF LEGAL SERVICES
There is no fixed definition of ‘legal services’. At its widest, the term embraces all manner of advice,
assistance and representation relating to the law. Reserved legal activities can only be conducted by
people authorized to do so and who will be subject to regulation. These are services where the risk
to the public are the greatest. Not authorized? = contempt of court!
These are:
1. The exercise of a right of audience. Appear before + address a court.
2. The conduct of litigation. Issuing, commencing, prosecuting and defending proceedings before a
court.
3. Reserved instrument activities. Preparing and lodging a formal legal document dealing with the
transfer or charge of land, relating to real or personal estate or an instrument relating to court
proceedings.
4. Probate activities. Preparing documents needed to obtain a grant of probate.
5. Notarial activities: certifying and authenticating certain documents.
6. The administration of oaths. Such as sworn affidavit.
The Legal Services Board (LSB) overseas the regulation of all lawyers in England and Wales.
Legal Service provider What does it do Regulatory Authority
Solicitor Are the largest group of the Law Society, carried out by
providers of legal services. the Solicitors Regulation
Authority (SRA).
Barrister Advocates in the criminal and Bar Standards Board
civil courts.
Chartered legal executives: The work carried out by is CILEx Regulation.
chartered legal executives is
similar to that carried out by
solicitors.
Licensed conveyancer Deal with property Council for Licensed
transactions. Conveyancers.
Patent attorneys Specialists in patent and Intellectual property Regulation
intellectual property. Board.
Trademark attorneys specialists in trademark and Intellectual property regulation
practice board.
Costs lawyers specialist in legal fees and Costs Lawyers Standards Board.
costs
Notaries Appointed by the Archbishop Master of the Faculties
of Canterbury. Notaries
authenticate and certify
signatures and documents,
often where there is a foreign
element.
Chartered Accountants carry out probate activities. Institute of Chartered
Accountants in England and
Wales.
, LEGAL SERVICES
Chapter 2: THE REGULATORY ROLE OF THE SRA
The SRA has taken the regulatory role from the Law Society. The SRA takes a risk-based approach to
regulation. This means that in exercising its regulatory functions the SRA assesses the risk to the SRA
achieving its regulatory objectives Risk is a combination of the impact of a certain event occurring
(the potential harm that could be caused) and the probability that the event will occur (the
likelihood of the event occurring). This combination enables the SRA to measure to the risk posed in
any given situation, set its priorities and select a response. As an approved regulator the SRA is able
to authorise firms as well as individuals.
Eligible businesses: Under the SRA Authorisation of Firms Rules only certain types of businesses are
eligible for authorisation. These are as follows:
- Recognized sole practice. Solicitor who works for themself.
- Recognized body. Where at least 75% of the body’s managers are legally qualified, the
proportion of shares and voting rights held by legally qualified persons is at least 75% and
managers who are not legally qualified are approved by the SRA + at least 1 manager must be a
solicitor. Can be:
o Partnership
o Limited liability partnerships (LLP). Incorporated, so instead of partners, they have
members.
o Companies
- Licensed bodies: alternative business structure.
For a body to be eligible to apply for authorisation as a licensed body, there must be at least one
manager who is authorised by the SRA (eg a solicitor) or another approved regulator
(eg the Council of Licensed Conveyancers (see 1.5.4)). It also has to be a ‘licensable body’.
A body (‘B’) will be a ‘licensable body’ if a non-authorised person (ie someone not authorised by the
SRA or another approved regulator):
1. is a manager of B; or
2. is an interest holder of B (eg a person who holds shares in it or is entitled to exercise any voting
rights).
Alternatively (or in addition to the above), a body (‘B’) will be a licensable body if:
1. nother body (‘A’) is a manager of B, or is an interest holder of B; and
2. non-authorised persons are entitled to exercise, or control the exercise of, at least 10% of the
voting rights in A.
Once authorised (and unless the SRA specifies otherwise) a recognised body is entitled
to carry on all reserved legal activities (except notarial activities). This term is defined
in s 12 of the Legal Services Act 2007 and includes conducting court proceedings, the
, LEGAL SERVICES
preparation/lodging of documents relating to the transfer or charging of land and the preparation of
probate documents (see 1.3). Authorisation also enables the firm to carry out immigration work.
Once authorised, a licensed body is entitled to carry out the same range of activities as a recognised
body in accordance with the terms of the licence granted by the SRA. As with recognised bodies, it
must at all times have individuals designated as compliance officers, but for licensed bodies these
are termed a Head of Finance and Administration (HOFA) and a Head of Legal Practice (HOLP).
For individuals the character and suitability will be tested to become a solicitor.
A freelance solicitor is one who works on their own. Ordinarily such a solicitor would have to be
authorised as a recognised sole practice. In some circumstances, however, such authorisation is not
required. Under the SRA Authorisation of Individuals Regulations, a freelance solicitor is not required
to be authorised as a recognised sole practice if:
1. their practice consists entirely of carrying on activities which are not ‘reserved legal activities’
(for example, family, employment or personal injury work and general legal advice);
2. any reserved legal activities are provided through an authorised body; or
3. certain requirements are met. For example, the solicitor must have practised as a solicitor for a
minimum of three years since admission, be self-employed and practise in their own name, take
out indemnity insurance in respect of all the services they provide, does not employ anyone in
connection with those services and only holds limited categories of client money.
An in-house solicitor is employed by, say, a company or a local authority to provide that
employer with legal advice etc. An in-house solicitor is able to deliver reserved legal activities to
their employer, but not to the general public.
‘Non-commercial organisation’ is defined in s 23(2) Legal Services Act 2007 and includes not-for-
profit bodies, charities, community interest groups and independent trade unions. Such
organisations are generally exempt from the need to be authorised (see 1.3.2). Solicitors
working directly within non-commercial organisations are allowed, on behalf of the organisation,
to provide reserved legal activities to the public.
Professional indemnity insurance is a necessary requirement for many professions, including
solicitors. Professional indemnity insurance caters for the possibility that the insured may be
guilty of a breach of professional duty which gives rise to financial loss or damage to a third
party. In such circumstances the effect of the insurance policy is that the insurer will indemnify
the insured in respect of the loss or damage.
For solicitors, professional indemnity insurance covers civil claims made against a solicitor in the
course of their practice. Such claims usually arise as a result of negligence on the part
of the solicitor. In simple terms, if a solicitor has been negligent in the conduct of a client’s case the
insurer will pay the amount necessary to compensate the client for the loss suffered. The insurance
does not absolve the solicitor from liability; it merely provides a fund from which such liability can be
met.
For recognised and licensed bodies, the sum insured for any one claim (exclusive of defence costs)
must be at least £3 million and at least £2 million in all other cases. The firm must not exclude or
attempt to exclude liability below this minimum level of cover.
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