Ethics and Professional Conduct Flashcards
6 cards from real SQE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethics and Professional Conduct flashcards as text
What is a 'Suspicious Activity Report' (SAR) and when must one be filed?
Answer: A report to the National Crime Agency when a solicitor knows or suspects a client is engaged in money laundering or terrorist financing
Under the Proceeds of Crime Act 2002 and Terrorism Act 2000, solicitors must file a SAR with the NCA's UK Financial Intelligence Unit when they know or suspect their client is involved in money laundering.
What does 'client due diligence' (CDD) require under the Money Laundering Regulations 2017?
Answer: Verifying the identity of the client and the beneficial owner and understanding the purpose of the matter
CDD under the MLR 2017 requires firms to identify and verify the client and any beneficial owner and to understand the nature and purpose of the business relationship.
In what situation does the 'litigation privilege' apply?
Answer: To confidential communications made for the dominant purpose of litigation that is reasonably contemplated or in progress
Litigation privilege protects confidential communications between lawyers, clients, and third parties where the dominant purpose is to prepare for litigation that is reasonably anticipated.
What is the SRA's approach to 'undertakings' given by solicitors?
Answer: An undertaking is a binding professional obligation that must be performed regardless of the client's instructions
A solicitor's undertaking is a solemn promise that creates a personal professional obligation; failure to honour it is a serious breach of conduct regardless of the client's subsequent instructions.
What obligation does a solicitor owe when they discover a mistake in their own work that has caused loss to the client?
Answer: To inform the client promptly, advise them to seek independent advice, and notify their insurer
When a solicitor's error causes loss, they must promptly tell the client, advise them to seek independent legal advice about any claim, and notify their professional indemnity insurer.
Under the SRA Principles, which Principle requires that solicitors only act within the bounds of their competence?
Answer: Principle 4 — acting with competence and skill
SRA Principle 4 requires solicitors to act with honesty and competence, and solicitors must only take on matters within their knowledge and skill, referring clients elsewhere when appropriate.