SRA Principles

Introduction

The SRA Principles comprise the fundamental tenets of ethical behaviour that we expect all
those that we regulate to uphold. This includes all individuals we authorise to provide legal
services (solicitors, RELs and RFLs), as well as authorised firms and their managers and
employees. For licensed bodies, these apply to those individuals, and the part of the body
(where applicable), involved in delivering the services we regulate in accordance with the
terms of your licence.

Should the Principles come into conflict, those which safeguard the wider public interest
(such as the rule of law, and public confidence in a trustworthy solicitors' profession and a
safe and effective market for regulated legal services) take precedence over an individual
client’s interests. You should, where relevant, inform your client of the circumstances in
which your duty to the Court and other professional obligations will outweigh your duty to
them.

The Principles and Codes are underpinned by our Enforcement Strategy, which explains in
more detail our approach to taking regulatory action in the public interest [Link].

Principles

The principles are as follows:

You act:

1. in a way that upholds the constitutional principle of the rule of law, and the proper
administration of justice.

2. in a way that upholds public trust and confidence in the solicitors' profession and in
legal services provided by authorised persons.

3. with independence.

4. with honesty.

5. with integrity.

6. in a way that encourages equality, diversity and inclusion.

7. in the best interests of each client.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under section 31 of the Solicitors Act 1974, section 9 of the Administration of Justice
Act 1985 and section 83 of the Legal Services Act 2007.

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SRA Code of Conduct for Solicitors, RELs and RFLs
Introduction

The Code of Conduct describes the standards of professionalism that we, the SRA, and the
public expect of individuals (solicitors, registered European lawyers and registered foreign
lawyers) authorised by us to provide legal services.

They apply to conduct and behaviour relating to your practice, and comprise a framework for
ethical and competent practice which applies irrespective of your role or the environment or
organisation in which you work (subject to the Overseas Rules which apply to your practice
overseas); although section 8 applies only when you are providing your services to the
public or a section of the public.

You must exercise your judgement in applying these standards to the situations you are in
and deciding on a course of action, bearing in mind your role and responsibilities, areas of
practice, and the nature of your clients (which in an in house context will generally include
your employer and may include other persons or groups within or outside your employer
organisation).

You are personally accountable for compliance with the Code - and our other regulatory
requirements that apply to you - and must always be prepared to justify your decisions and
actions. A serious failure to meet our standards or a serious breach of our regulatory
requirements may result in our taking regulatory action against you. A failure or breach may
be serious either in isolation or because it comprises a persistent or concerning pattern of
behaviour. In addition to the regulatory requirements set by us in the Code, Principles and
our rules and regulations, we directly monitor and enforce the requirements relating to
referral fees set out in section 56 of the Legal Aid, Sentencing and Punishment of Offenders
Act 2012, and provisions relating to anti money laundering and counter terrorist financing, as
set out in regulations made by the Treasury as in force from time to time [Link].

These requirements are underpinned by our Enforcement Strategy. That strategy explains in
more detail our views about the issues we consider to be serious, and our approach to
taking regulatory action in the public interest.

Maintaining trust and acting fairly

1.1 You do not unfairly discriminate by allowing your personal views to affect your
professional relationships and the way in which you provide your services.

1.2 You do not abuse your position by taking unfair advantage of clients or others.

1.3 You perform all undertakings given by you, and do so within an agreed
timescale or if no timescale has been agreed then within a reasonable amount of
time.

1.4 You do not mislead or attempt to mislead your clients, the court or others,
either by your own acts or omissions or allowing or being complicit in the acts or
omissions of others (including your client).

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Dispute resolution and proceedings before courts, tribunals and inquiries

2.1 You do not misuse or tamper with evidence or attempt to do so.

2.2 You do not seek to influence the substance of evidence, including generating
false evidence or persuading witnesses to change their evidence.

2.3 You do not provide or offer to provide any benefit to witnesses dependent upon
the nature of their evidence or the outcome of the case.

2.4 You only make assertions or put forward statements, representations or

submissions to the court or others which are properly arguable.

2.5 You do not place yourself in contempt of court, and you comply with court
orders which place obligations on you.

2.6 You do not waste the court's time.

2.7 You draw the court's attention to relevant cases and statutory provisions, or
procedural irregularities of which you are aware, and which are likely to have a
material effect on the outcome of the proceedings.

Service and competence

3.1 You only act for clients on instructions from the client, or from someone
properly authorised to provide instructions on their behalf. If you have reason to
suspect that the instructions do not represent your client's wishes, you do not
act unless you have satisfied yourself that they do. However, in circumstances
where you have legal authority to act notwithstanding that it is not possible to
obtain or ascertain the instructions of your client, then you are subject to the
overriding obligation to protect your client's best interests.

3.2 You ensure that the service you provide to clients is competent and delivered in
a timely manner.

3.3 You maintain your competence to carry out your role and keep your professional
knowledge and skills up to date.

3.4 You consider and take account of your client's attributes, needs and
circumstances.

3.5 Where you supervise or manage others providing legal services:

(a) you remain accountable for the work carried out through them; and

(b) you effectively supervise work being done for clients.

3.6 You ensure that the individuals you manage are competent to carry out their role,
and keep their professional knowledge and skills, as well as understanding of
their legal, ethical and regulatory obligations, up to date.

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Client money and assets

4.1 You properly account to clients for any financial benefit you receive as a result
of their instructions, except where they have agreed otherwise.

4.2 You safeguard money and assets entrusted to you by clients and others.

4.3 You do not personally hold client money save as permitted under regulation
10.2(b)(vii) of the Authorisation of Individuals Regulations, unless you work in an
authorised body, or in an organisation of a kind prescribed under this rule on
any terms that may be prescribed accordingly.

Business requirements

Referrals, introductions and separate businesses

5.1 In respect of any referral of a client by you to another person, or of any third
party who introduces business to you or with whom you share your fees, you
ensure that:

(a) clients are informed of any financial or other interest which you or your
business or employer has in referring the client to another person or
which an introducer has in referring the client to you;

(b) clients are informed of any fee sharing arrangement that is relevant to
their matter;

(c) the agreement is in writing;

(d) you do not receive payments relating to a referral or make payments to

an introducer in respect of clients who are the subject of criminal
proceedings; and

(e) any client referred by an introducer has not been acquired in a way
which would breach the SRA's regulatory arrangements if the person
acquiring the client were regulated by the SRA.

5.2 Where it appears to the SRA that you have made or received a referral fee, the
payment will be treated as a referral fee unless you show that the payment was
not made as such.

5.3 You only:

(a) refer, recommend or introduce a client to a separate business; or

(b) divide, or allow to be divided, a client’s matter between you and a

separate business;

where the client has given informed consent to your doing so.

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Other business requirements

5.4 You must not be a manager, employee, member or interest holder of a

business that:

(a) has a name which includes the word "solicitors"; or

(b) describes its work in a way that suggests it is a solicitors’ firm;

unless it is an authorised body.

5.5 If you are a solicitor who holds a practising certificate, an REL or RFL, you must
complete and deliver to the SRA an annual return in the prescribed form.

5.6 If you are a solicitor or an REL carrying on reserved legal activities in a non-
commercial body, you must ensure that the body takes out and maintains
indemnity insurance that provides adequate and appropriate cover in respect of
the services that you provide, whether or not they comprise reserved legal
activities.

Conflict, confidentiality and disclosure

Conflict of interests

6.1 You do not act if there is an own interest conflict or a significant risk of such a
conflict.

6.2 You do not act in relation to a matter or particular aspect of it if you have a
conflict of interest or a significant risk of such a conflict in relation to that matter
or aspect of it, unless:

(a) the clients have a substantially common interest in relation to the

matter or the aspect of it, as appropriate; or

(b) the clients are competing for the same objective,

and the conditions below are met, namely that:

(i) all the clients have given informed consent, given or evidenced
in writing, to you acting;

(ii) where appropriate, you put in place effective safeguards to

protect your clients' confidential information; and

(iii) you are satisfied it is reasonable for you to act for all the
clients.

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Confidentiality and disclosure

6.3 You keep the affairs of current and former clients confidential unless disclosure
is required or permitted by law or the client consents.

6.4 Where you are acting for a client on a matter, you make the client aware of all
information material to the matter of which you have knowledge, except when:

(a) the disclosure of the information is prohibited by legal restrictions

imposed in the interests of national security or the prevention of crime;

(b) your client gives informed consent, given or evidenced in writing, to the
information not being disclosed to them;

(c) you have reason to believe that serious physical or mental injury will be
caused to your client or another if the information is disclosed; or

(d) the information is contained in a privileged document that you have

knowledge of only because it has been mistakenly disclosed.

6.5 You do not act for a client in a matter where that client has an interest adverse
to the interest of another current or former client of you or your business or
employer, for whom you or your business or employer holds confidential
information which is material to that matter, unless:

(a) effective measures have been taken which result in there being no real
risk of disclosure of the confidential information; or

(b) the current or former client whose information your business or

employer holds has given informed consent, given or evidenced in
writing, to you acting, including to any measures taken to protect their
information.

Cooperation and accountability

7.1 You keep up to date with and follow the law and regulation governing the way
you work.

7.2 You are able to justify your decisions and actions in order to demonstrate
compliance with your obligations under the SRA’s regulatory arrangements.

7.3 You cooperate with the SRA, other regulators, ombudsmen, and those bodies
with a role overseeing and supervising the delivery of, or investigating concerns
in relation to, legal services.

7.4 You respond promptly to the SRA and:

(a) provide full and accurate explanations, information and documents in

response to any request or requirement; and

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 (b) ensure that relevant information which is held by you, or by third parties
carrying out functions on your behalf which are critical to the delivery of
your legal services, is available for inspection by the SRA.

7.5 You do not attempt to prevent anyone from providing information to the SRA or
any other body exercising regulatory, supervisory, investigatory or prosecutory
functions in the public interest.

7.6 You notify the SRA promptly if:

(a) you are subject to any criminal charge, conviction or caution, subject to
the Rehabilitation of Offenders Act 1974;

(b) a relevant insolvency event occurs in relation to you; or

(c) if you become aware:

(i) of any material changes to information previously provided to

the SRA, by you or on your behalf, about you or your practice,
including any change to information recorded in the register;
and

(ii) that information provided to the SRA, by you or on your behalf,

about you or your practice is or may be false, misleading,
incomplete or inaccurate.

7.7 You ensure that a prompt report is made to the SRA, or another approved
regulator, as appropriate, of any serious breach of their regulatory
arrangements by any person regulated by them (including you) of which you
are aware. If requested to do so by the SRA you investigate whether there have
been any serious breaches that should be reported to the SRA.

7.8 You act promptly to take any remedial action requested by the SRA.

7.9 You are honest and open with clients if things go wrong, and if a client suffers
loss or harm as a result you put matters right (if possible) and explain fully and
promptly what has happened and the likely impact. If requested to do so by the
SRA you investigate whether anyone may have a claim against you, provide the
SRA with a report on the outcome of your investigation, and notify relevant
persons that they may have such a claim, accordingly.

7.10 Any obligation under this section or otherwise to notify, or provide information to,
the SRA will be satisfied if you provide information to your firm's COLP or COFA,
as and where appropriate, on the understanding that they will do so.

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When you are providing services to the public or a section of the public

Client identification

8.1 You identify who you are acting for in relation to any matter.

Complaints handling

8.2 You ensure that, as appropriate in the circumstances, you either establish and
maintain, or participate in, a procedure for handling complaints in relation to the
legal services you provide.

8.3 You ensure that clients are informed in writing at the time of engagement about:

(a) their right to complain to you about your services and your charges;

(b) how a complaint can be made and to whom; and

(c) any right they have to make a complaint to the Legal Ombudsman and
when they can make any such complaint.

8.4 You ensure that when clients have made a complaint to you, if this has not been
resolved to the client’s satisfaction within 8 weeks following the making of a
complaint they are informed, in writing:

(a) of any right they have to complain to the Legal Ombudsman, the time
frame for doing so and full details of how to contact the Legal
Ombudsman; and

(b) if a complaint has been brought and your complaints procedure has
been exhausted:

(i) that you cannot settle the complaint;

(ii) of the name and website address of an alternative dispute

resolution (ADR) approved body which would be competent to
deal with the complaint; and

(iii) whether you agree to use the scheme operated by that body.

8.5 You ensure that complaints are dealt with promptly, fairly, and free of charge.

Client information and publicity

8.6 You give clients information in a way they can understand. You ensure they are
in a position to make informed decisions about the services they need, how their
matter will be handled and the options available to them.

8.7 You ensure that clients receive the best possible information about how their
matter will be priced and, both at the time of engagement and when appropriate
as their matter progresses, about the likely overall cost of the matter and any
costs incurred.

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8.8 You ensure that any publicity in relation to your practice is accurate and not
misleading, including that relating to your charges and the circumstances in
which interest is payable by or to clients.

8.9 You do not make unsolicited approaches to members of the public, with the
exception of current or former clients, in order to advertise legal services
provided by you, or your business or employer.

8.10 You ensure that clients understand whether and how the services you provide
are regulated. This includes:

(a) explaining which activities will be carried out by you, as an authorised

person;

(b) explaining which services provided by you, your business or employer,

and any separate business are regulated by an approved regulator;
and

(c) ensuring that you do not represent any business or employer which is
not authorised by the SRA, including any separate business, as being
regulated by the SRA.

8.11 You ensure that clients understand the regulatory protections available to them.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 31 and 32 of the Solicitors Act 1974, section 89 of, and paragraphs 2
and 3 of Schedule 14 to, the Courts and Legal Services Act 1990 and section 57(2) and (8)
of the Legal Aid, Sentencing and Punishment of Offenders Act 2012.

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SRA Code of Conduct for Firms

Introduction

This Code of Conduct describes the standards and business controls that we, the SRA, and
the public expect of firms (including sole practices) authorised by us to provide legal
services. These aim to create and maintain the right culture and environment for the delivery
of competent and ethical legal services to clients. These apply in the context of your
practice: the way you run your business and all your professional activities (subject, if you
are a licensed body, to any terms of your licence).

Sections 8 and 9 set out the requirements of managers and compliance officers in those
firms, respectively.

A serious failure to meet our standards or a serious breach of our regulatory requirements
may lead to our taking regulatory action against the firm itself as an entity, or its managers or
compliance officers, who each have responsibilities for ensuring that the standards and
requirements are met. We may also take action against employees working within the firm
for any breaches for which they are responsible. A failure or breach may be serious either in
isolation or because it comprises a persistent or concerning pattern of behaviour.

The Principles and Codes are underpinned by our Enforcement Strategy, which explains in
more detail our views about the issues we consider to be serious, and our approach to
taking regulatory action in the public interest.

Maintaining trust and acting fairly

1.1 You do not unfairly discriminate by allowing your personal views to affect your
professional relationships and the way in which you provide your services.

1.2 You do not abuse your position by taking unfair advantage of clients or others.

1.3 You perform all undertakings given by you and do so within an agreed
timescale or if no timescale has been agreed then within a reasonable amount of
time.

1.4 You do not mislead or attempt to mislead your clients, the court or others,
either by your own acts or omissions or allowing or being complicit in the acts or
omissions of others (including your client).

1.5 You monitor, report and publish workforce diversity data, as prescribed.

Compliance and business systems

2.1 You have effective governance structures, arrangements, systems and controls
in place that ensure:

(a) you comply with all the SRA's regulatory arrangements, as well as with
other regulatory and legislative requirements, which apply to you;

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 (b) your managers and employees comply with the SRA's regulatory
arrangements which apply to them;

(c) your managers and interest holders and those you employ or contract
with do not cause or substantially contribute to a breach of the SRA’s
regulatory arrangements by you or your managers or employees;

(d) your compliance officers are able to discharge their duties under
paragraphs 9.1 and 9.2 below.

2.2 You keep and maintain records to demonstrate compliance with your obligations
under the SRA's regulatory arrangements.

2.3 You remain accountable for compliance with the SRA's regulatory
arrangements where your work is carried out through others, including your
managers and those you employ or contract with.

2.4 You actively monitor your financial stability and business viability. Once you are
aware that you will cease to operate, you effect the orderly wind-down of your
activities.

2.5 You identify, monitor and manage all material risks to your business, including
those which may arise from your connected practices.

Cooperation and information requirements

3.1 You keep up to date with and follow the law and regulation governing the way
you work.

3.2 You cooperate with the SRA, other regulators, ombudsmen and those bodies
with a role overseeing and supervising the delivery of, or investigating concerns
in relation to, legal services.

3.3 You respond promptly to the SRA and:

(a) provide full and accurate explanations, information and documentation in

response to any requests or requirements;

(b) ensure that relevant information which is held by you, or by third parties
carrying out functions on your behalf which are critical to the delivery of
your legal services, is available for inspection by the SRA.

3.4 You act promptly to take any remedial action requested by the SRA.

3.5 You are honest and open with clients if things go wrong, and if a client suffers
loss or harm as a result you put matters right (if possible) and explain fully and
promptly what has happened and the likely impact. If requested to do so by the
SRA you investigate whether anyone may have a claim against you, provide the
SRA with a report on the outcome of your investigation, and notify relevant
persons that they may have such a claim, accordingly.

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3.6 You notify the SRA promptly:

(a) of any indicators of serious financial difficulty relating to you;

(b) if a relevant insolvency event occurs in relation to you;

(c) if you intend to, or become aware that you will, cease operating as a legal
business;

(d) of any change to information recorded in the register.

3.7 You provide to the SRA an information report on an annual basis or such other
period as specified by the SRA in the prescribed form and by the prescribed
date.

3.8 You notify the SRA promptly if you become aware:

(a) of any material changes to information previously provided to the SRA, by

you or on your behalf, about you or your managers, owners or
compliance officers; and

(b) that information provided to the SRA, by you or on your behalf, about you
or your managers, owners or compliance officers is or may be false,
misleading, incomplete or inaccurate.

3.9 You ensure that a prompt report is made to the SRA, or another approved
regulator, as appropriate, of any serious breach of their regulatory
arrangements by any person regulated by them (including you) of which you
are aware. If requested to do so by the SRA, you investigate whether there have
been any serious breaches that should be reported to the SRA.

3.10 You do not attempt to prevent anyone from providing information to the SRA or
any other body exercising regulatory, supervisory, investigatory or prosecutory
functions in the public interest.

Service and competence

4.1 You only act for clients on instructions from the client, or from someone
properly authorised to provide instructions on their behalf. If you have reason to
suspect that the instructions do not represent your client's wishes, you do not
act unless you have satisfied yourself that they do. However, in circumstances
where you have legal authority to act notwithstanding that it is not possible to
obtain or ascertain the instructions of your client, then you are subject to the
overriding obligation to protect your client's best interests.

4.2 You ensure that the service you provide to clients is competent and delivered in
a timely manner, and takes account of your client's attributes, needs and
circumstances.

4.3 You ensure that your managers and employees are competent to carry out their
role, and keep their professional knowledge and skills, as well as understanding
of their legal, ethical and regulatory obligations, up to date.

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4.4 You have an effective system for supervising clients' matters.

Client money and assets

5.1 You properly account to clients for any financial benefit you receive as a result
of their instructions, except where they have agreed otherwise.

5.2 You safeguard money and assets entrusted to you by clients and others.

Conflict and confidentiality

Conflict of interests

6.1 You do not act if there is an own interest conflict or a significant risk of such a
conflict.

6.2 You do not act in relation to a matter or a particular aspect of it if you have a
conflict of interest or a significant risk of such a conflict in relation to that matter
or aspect of it, unless:

(a) the clients have a substantially common interest in relation to the

matter or the aspect of it, as appropriate; or

(b) the clients are competing for the same objective,

and the conditions below are met, namely that:

(i) all the clients have given informed consent, given or

evidenced in writing, to you acting;

(ii) where appropriate, you put in place effective safeguards to

protect your clients' confidential information; and

(iii) you are satisfied it is reasonable for you to act for all the
clients.

Confidentiality and disclosure

6.3 You keep the affairs of current and former clients confidential unless disclosure
is required or permitted by law or the client consents.

6.4 Any individual who is acting for a client on a matter makes the client aware of
all information material to the matter of which the individual has knowledge
except when:

(a) the disclosure of the information is prohibited by legal restrictions

imposed in the interests of national security or the prevention of crime;

(b) the client gives informed consent, given or evidenced in writing, to the
information not being disclosed to them;

(c) the individual has reason to believe that serious physical or mental injury
will be caused to the client or another if the information is disclosed; or

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 (d) the information is contained in a privileged document that the individual
has knowledge of only because it has been mistakenly disclosed.

6.5 You do not act for a client in a matter where that client has an interest adverse
to the interest of another current or former client for whom you hold confidential
information which is material to that matter, unless:

(a) effective measures have been taken which result in there being no real
risk of disclosure of the confidential information; or

(b) the current or former client whose information you hold has given
informed consent, given or evidenced in writing, to you acting, including
to any measures taken to protect their information.

Applicable standards in the SRA Code of Conduct for Solicitors and RELs

7.1 The following paragraphs in the SRA Code of Conduct for Solicitors, RELs and
RFLs apply to you in their entirety as though references to "you" were references
to you as a firm:

(a) dispute resolution and proceedings before courts, tribunals and inquiries
(2.1 to 2.7);

(b) referrals, introductions and separate businesses (5.1 to 5.3); and

(c) standards which apply when providing services to the public or a section
of the public, namely client identification (8.1), complaints handling (8.2
to 8.5), and client information and publicity (8.6 to 8.11).

Managers in SRA authorised firms

8.1 If you are a manager, you are responsible for compliance by your firm with this
Code. This responsibility is joint and several if you share management
responsibility with other managers of the firm.

Compliance officers

9.1 If you are a COLP you take all reasonable steps to:

(a) ensure compliance with the terms and conditions of your firm’s
authorisation;

(b) ensure compliance by your firm and its managers, employees or

interest holders with the SRA's regulatory arrangements which apply
to them;

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 (c) ensure that your firm's managers and interest holders and those they
employ or contract with do not cause or substantially contribute to a
breach of the SRA’s regulatory arrangements;

(d) ensure that a prompt report is made to the SRA of any serious breach of
the terms and conditions of your firm's authorisation, or the SRA's
regulatory arrangements which apply to your firm, managers or
employees,

save in relation to the matters which are the responsibility of the COFA as set
out in paragraph 9.2 below.

9.2 If you are a COFA you take all reasonable steps to:

(a) ensure that your firm and its managers and employees comply with any
obligations imposed upon them under the SRA Accounts Rules;

(b) ensure that a prompt report is made to the SRA of any serious breach of
the SRA Accounts Rules which apply to them.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under section 31 of the Solicitors Act 1974, section 9 of the Administration of Justice
Act 1985, section 83 of the Legal Services Act 2007, and section 57(2) and (8) of the Legal
Aid, Sentencing and Punishment of Offenders Act 2012.

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SRA Accounts Rules

Introduction

These rules set out our requirements for when firms (including sole practices) authorised
by us receive or deal with money belonging to clients, including trust money or money
held on behalf of third parties. The rules apply to all firms we regulate, including all those
who manage or work within such firms.

Firms will need to have systems and controls in place to ensure compliance with these
rules and the nature of those systems must be appropriate to the nature and volumes of
client transactions dealt with and the amount of client money held or received.

PART 1: GENERAL

Application section

1.1 These rules apply to authorised bodies, their managers and employees and
references to “you” in these rules should be read accordingly.

1.2 The authorised body’s managers are jointly and severally responsible for
compliance by the authorised body, its managers and employees with the
rules.

1.3 In relation to a licensed body, the rules apply only in respect of activities
regulated by the SRA in accordance with the terms of its licence.

PART 2: CLIENT MONEY AND CLIENT ACCOUNTS

Client money

2.1 “Client money” is money held or received by you:

(a) relating to regulated services delivered by you to a client;

(b) on behalf of a third party in relation to regulated services delivered by

you (such as money held as agent, stakeholder or held to the sender’s
order);

(c) as a trustee or as the holder of a specified office or appointment, such

as donee of a power of attorney, Court of Protection deputy or trustee of
an occupational pension scheme;

(d) in respect of your fees and any unpaid disbursements if held or

received prior to delivery of a bill for the same.

2.2 In circumstances where the only client money you hold or receive falls within
rule 2.1(d) above, and:

(a) any money held for disbursements relates to costs or expenses incurred
by you on behalf of your client and for which you are liable; and

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 (b) you do not for any other reason maintain a client account;

you are not required to hold this money in a client account if you have informed
your client in advance of where and how the money will be held. Rules 2.3, 2.4,
4.1, 7, 8.1(b) and (c) and 12 do not apply to client money held outside of a
client account in accordance with this rule.

2.3 You ensure that client money is paid promptly into a client account unless:

(a) in relation to money falling within 2.1(c), to do so would conflict

with your obligations under rules or regulations relating to your
specified office or appointment;

(b) the client money represents payments received from the Legal
Aid Agency for your costs; or

(c) you agree in the individual circumstances an alternative arrangement in

writing with the client, or the third party, for whom the money is held.

2.4 You ensure that client money is available on demand unless you agree an
alternative arrangement in writing with the client, or the third party for whom the
money is held.

2.5 You ensure that client money is returned promptly to the client, or the third
party for whom the money is held, as soon as there is no longer any proper
reason to hold those funds.

Client account

3.1 You only maintain a client account at a branch (or the head office) of a bank
or a building society in England and Wales.

3.2 You ensure that the name of any client account includes:

(a) the name of the authorised body; and

(b) the word “client” to distinguish it from any other type of account held or
operated by the authorised body.

3.3 You must not use a client account to provide banking facilities to clients or third
parties. Payments into, and transfers or withdrawals from a client account must
be in respect of the delivery by you of regulated services.

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Client money must be kept separate

4.1 You keep client money separate from money belonging to the authorised
body.

4.2 You ensure that you allocate promptly any funds from mixed payments you
receive to the correct client account or business account.

4.3 Where you are holding client money and some or all of that money will be used
to pay your costs:

(a) you must give a bill of costs, or other written notification of the costs
incurred, to the client or the paying party;

(b) this must be done before you transfer any client money from a client
account to make the payment; and

(c) any such payment must be for the specific sum identified in the bill of
costs, or other written notification of the costs incurred, and covered by
the amount held for the particular client or third party.

Withdrawals from client account

5.1 You only withdraw client money from a client account:

(a) for the purpose for which it is being held;

(b) following receipt of instructions from the client, or the third party
for whom the money is held; or

(c) on the SRA’s prior written authorisation or in prescribed circumstances.

5.2 You appropriately authorise and supervise all withdrawals made from a client
account.

5.3 You only withdraw client money from a client account if sufficient funds are
held on behalf of that specific client or third party to make the payment.

Duty to correct breaches upon discovery

6.1 You correct any breaches of these rules promptly upon discovery. Any money
improperly withheld or withdrawn from a client account must be immediately
paid into the account or replaced as appropriate.

Payment of interest

7.1 You account to clients or third parties for a fair sum of interest on any client
money held by you on their behalf.

3
7.2 You may by a written agreement come to a different arrangement with the client
or the third party for whom the money is held as to the payment of interest, but
you must provide sufficient information to enable them to give informed consent.

Client accounting systems and controls

8.1 You keep and maintain accurate, contemporaneous, and chronological records
to:

(a) record in client ledgers identified by the client’s name and an appropriate
description of the matter to which they relate:

(i) all receipts and payments which client money on the client
side of the client ledger account;

(ii) all receipts and payments which are not client money and bills of
costs including transactions through the authorised body’s
accounts on the business side of the client ledger account;

(b) maintain a list of all the balances shown by the client ledger accounts of
the liabilities to clients (and third parties), with a running total of the
balances; and

(c) provide a cash book showing a running total of all transactions through
client accounts held or operated by you.

8.2 You obtain, at least every five weeks, statements from banks, building
societies and other financial institutions for all client accounts and business
accounts held or operated by you.

8.3 You complete at least every five weeks, for all client accounts held or operated
by you, a reconciliation of the bank or building society statement balance with
the cash book balance and the client ledger total, a record of which must be
signed off by the COFA or a manager of the firm. You should promptly
investigate and resolve any differences shown by the reconciliation.

8.4 You keep readily accessible a central record of all bills or other written
notifications of costs given by you.

PART 3: DEALINGS WITH OTHER MONEY BELONGING TO CLIENTS OR THIRD

PARTIES

Operation of joint accounts

9.1 If, when acting in a client's matter, you hold or receive money jointly with the
client or a third party, Part 2 of these rules does not apply save for:

(a) rule 8.2 - statements from banks, building societies and other financial
institutions;

(b) rule 8.4 - bills and notifications of costs.

4
Operation of a client's own account

10.1 If, in the course of practice, you operate a client's own account as signatory,
Part 2 of these rules does not apply save for:

(a) rule 8.2 - statements from banks, building societies and other financial
institutions;

(b) rule 8.3 - reconciliations;

(c) rule 8.4 - bills and notifications of costs.

Third party managed accounts

11.1 You may enter into arrangements with a client to use a third party managed
account for the purpose of receiving payments from or on behalf of, or making
payments to or on behalf of, the client in respect of regulated services
delivered by you to the client, only if:

(a) use of the account does not result in you receiving or holding the
client's money; and

(b) you take reasonable steps to ensure, before accepting instructions, that
the client is informed of and understands:

(i) the terms of the contractual arrangements relating to the use of

the third party managed account, and in particular how any fees
for use of the third party managed account will be paid and who
will bear them; and

(ii) the client’s right to terminate the agreement and dispute payment
requests made by you.

11.2 You obtain regular statements from the provider of the third party managed
account and ensure that these accurately reflect all transactions on the account.

PART 4: ACCOUNTANTS' REPORTS AND STORAGE AND RETENTION OF

ACCOUNTING RECORDS

Obtaining and delivery of accountants' reports

12.1 If you have, at any time during an accounting period, held or received client
money, or operated a joint account or a client's own account as signatory, you
must:

(a) obtain an accountant's report for that accounting period within six
months of the end of the period; and

(b) deliver it to the SRA within six months of the end of the accounting
period if the accountant’s report is qualified to show a failure to comply
with these rules, such that money belonging to clients or third parties is,
or has been, or is likely to be placed, at risk.

5
12.2 You are not required to obtain an accountant’s report if:

(a) all of the client money held or received during an accounting

period is money received from the Legal Aid Agency; or

(b) in the accounting period, the statement or passbook balance of client

money you have held or received does not exceed:

(i) an average of £10,000; and

(ii) a maximum of £250,000,

or the equivalent in foreign currency.

12.3 In rule 12.2 above a "statement or passbook balance" is the total balance of:

(a) all client accounts held or operated by you; and

(b) any joint accounts and clients’ own accounts operated by you,

as shown by the statements obtained under rule 8.2.

12.4 The SRA may require you to obtain or deliver an accountant's report to the SRA
on reasonable notice if you cease to operate as an authorised body and to hold
or operate a client account, or the SRA considers that it is otherwise in the
public interest to do so.

12.5 You ensure that any report obtained under this rule is prepared and signed by an
accountant who is a member of one of the chartered accountancy bodies and
who is, or works for, a registered auditor.

12.6 The SRA may disqualify an accountant from preparing a report for the purposes
of this rule if:

(a) the accountant has been found guilty by their professional body of
professional misconduct or equivalent; or

(b) the SRA is satisfied that the accountant has failed to exercise due care
and skill in the preparation of a report under these rules.

12.7 The SRA may specify from time to time matters that you must ensure are
incorporated into the terms on which an accountant is engaged.

12.8 You must provide to an accountant preparing a report under these rules:

(a) details of all accounts held or operated by you in connection with your
practice at any bank, building society or other financial institution at
any time during the accounting period to which the report relates; and

(b) all other information and documentation that the accountant

requires to enable completion of their report.

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12.9 The accountant must complete and sign their report in the prescribed form.

Storage and retention of accounting records

13.1 You must store all accounting records securely and retain these for at least six
years.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 32, 33A, 34, 37 of the Solicitors Act 1974, section 9 of the
Administration of Justice Act 1985, and section 83(5)(h) of, and paragraph 20 of
Schedule 11 to, the Legal Services Act 2007.

7
SRA Application, Notice, Review and Appeal Rules

Introduction

These rules make provision for all notices given by the SRA and applications made to it under the
SRA's rules and regulatory arrangements. They also make provision for internal reviews and
external appeals against our disciplinary and regulatory decisions.

PART 1: APPLICATIONS AND NOTICES

Applications

1.1 An application made under the SRA’s regulatory arrangements must be made in writing,
where appropriate, in the prescribed form correctly completed, and be accompanied by:

(a) any prescribed fee or charge; and

(b) any information and documents which may be prescribed, or reasonably requested
by the SRA.

1.2 If you make an application to the SRA, you do not need to submit all payments,
information, and documents simultaneously, but the application will only be made once the
SRA has received all of the payments, information and documents relating to it.

1.3 You must ensure that all details provided in connection with any application you make to
the SRA are correct and complete. You must notify the SRA as soon as you become
aware of any changes to any information supplied.

1.4 As soon as reasonably practicable, the SRA shall give notice to the applicant, and any
person to whom the application relates, if different, of any decision made in respect of the
application. If the application is refused, the SRA will provide reasons for the decision and
will inform the applicant and any other person to whom the application relates, of any right
they may have to apply for a review or appeal of the decision.

1.5 If you make an application to the SRA for authorisation under the SRA Authorisation of
Firms Rules, the SRA shall give notice to the applicant of any decision before the end of
the decision period which is 6 months beginning with the day on which the application is
made in accordance with these rules.

1.6 The SRA may, on one occasion, give the applicant a notice (an "extension notice")
extending the decision period in rule 1.5 by a period specified in the notice but:

(a) an extension notice must only be given before the time when the decision period in
rule 1.5 would end, but for the extension notice;

(b) the total decision period must not exceed 9 months; and

1
 (c) the extension notice must set out the reasons for the extension.

1.7 If the SRA has not notified the applicant of its decision within the decision period in rule 1.5
or as extended by rule 1.6, the application is deemed to have been refused and notified to
the applicant on the last day of the decision period in rule 1.5 or as extended in rule 1.6.
This does not prevent the SRA subsequently granting or refusing the application.

Notices

2.1 Any notice under the SRA’s regulatory arrangements must be given in writing by
delivering it, or sending it by post or by electronic mail, to the recipient’s last notified postal
or electronic mail address, as appropriate.

2.2 If the intended recipient of a notice is represented, the notice may instead be given by
sending or delivering it to the representative’s practising or business address, or electronic
mail address.

2.3 The giving of notice will be deemed to have been effected:

(a) if sent by electronic mail or delivered or left at an address, on the day on

which the notice is sent, delivered, or left;

(b) if sent by ordinary post:

(i) in the case of first class post, on the second working day after the day on
which it was posted, and

(ii) in the case of second class post, on the fourth working day after the
day on which it was posted.

PART 2: REVIEWS AND APPEALS OF DECISIONS

Power to conduct a review

3.1 The SRA may:

(a) where an administrative error in, or in relation to any decision comes to the SRA’s
attention, correct the error without the need to undergo a review under this Part;

(b) review all or part of any regulatory decision reached by it, of its own initiative, under
this Part.

3.2 Subject to rule 3.3, the SRA may review all or part of any of the regulatory decisions set out
in annex 1 on the application of the person who is the subject of the decision.

2
3.3 An application cannot be made for a review of:

(a) a decision reached following a review or appeal;

(b) a decision which has been made by agreement under rule 8.2 of the SRA
Regulatory and Disciplinary Procedure Rules.

3.4 The SRA shall not, save in exceptional circumstances, review a decision more than one
year after it was made.

3.5 An application for a review of a decision must be made within 28 days of:

(a) notice being given of the decision, or reasons for the decision (if later); or

(b) any deemed refusal under rule 1.7 or regulation 19 of the European Communities
(Lawyer's Practice) Regulations 2000,

and must explain the grounds of review and provide reasons and any evidence in support.

3.6 If the SRA decides to review a decision on its own initiative, it must give any person who is
the subject of the decision, notice of its decision to conduct a review and an opportunity to
provide written representations on the appropriate outcome under rule 4.2.

Decisions on review

4.1 A review will be determined by an authorised decision maker on consideration of written

evidence alone.

4.2 On a review, the authorised decision maker, as appropriate may, where they consider
the original decision was materially flawed or there is new information which would have
had a material influence on the decision:

(a) uphold the original decision;

(b) overturn the decision in whole or in part;

(c) make any other decision which could have been made by the original
decision maker; or

(d) remit the decision for further investigation or consideration.

Appeals to the High Court or Tribunal

5.1 Unless otherwise provided in the relevant statute, or rules of the Tribunal, court or of the
Legal Services Board, any appeal to the High Court or Tribunal against a decision set out
in annex 2 or 3, as appropriate, must be commenced within the period of 28 days from the
date of notification of the decision that is subject to appeal.

3
Taking effect of decisions subject to review or appeal

6.1 Unless specified otherwise, subject to rule 6.2, a decision takes effect:

(a) if no application for a review or appeal is made, on the expiry of the date for
bringing such an application under these rules; and

(b) if an application for a review or an appeal is made, on the date any review or
appeal has been determined or discontinued.

6.2 The SRA may direct a decision to take immediate effect, where it considers that it is
necessary in the public interest to do so.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 2, 13, 28 and 31 of the Solicitors Act 1974, section 9 of the Administration of
Justice Act 1985, section 89 of, and paragraphs 2 and 3 of Schedule 14 to, the Courts and Legal
Services Act 1990, and section 83 of, and Schedule 11 to, the Legal Services Act 2007.

4
Annex 1: Decisions made by the SRA which are subject to review

Individual authorisation

As set out in the SRA Authorisation of Individuals Regulations:

1. A decision made under regulation 3A.2 not to be satisfied that an individual has completed
all or any part of the academic stage of training or the vocational stage of training by
equivalent means.

2. A decision made under regulation 3B.2(a) to refuse to recognise all or any part of an
apprenticeship.

3. A decision under regulation 3B.2(b) to require further steps or training to be undertaken

including imposing conditions.

4. A decision made under regulation 3E.2(a) to refuse to recognise all or part of a period of
recognised training.

5. A decision made under regulation 3E.2(b) to require further steps or training to be

undertaken including imposing conditions.

6. A decision made under regulation 5.1 to refuse to issue a certificate of satisfaction.

7. A decision made under regulation 5.2 not be satisfied as to an individual’s character and
suitability to be a solicitor.

8. A decision made under regulation 5.3 to refuse to admit an individual as a solicitor after a
certificate of satisfaction has been issued.

9. A decision made under regulation 5.6(a)(ii) to remove a solicitor's name from the roll.

10. A decision made under regulation 5.6(b) to refuse to remove a solicitor's name from the roll.

11. A decision made under regulation 5.9 to refuse to restore a solicitor's name to the roll.

12. A decision made under regulation 7.1(a) to refuse an application for a practising certificate,
or registration or renewal of registration in the register of European lawyers or the register
of foreign lawyers.

13. A failure to make a decision under regulation 6.1 within four months in respect of an
application for initial registration in the register of European lawyers.

14. A decision made under regulation 7.1(b) to impose conditions on a practising certificate or
the registration of a European lawyer or foreign lawyer.

5
15. A decision to refuse approval for the taking of steps specified in conditions under regulation
7.1(b).

16. A decision made under regulation 8.4 to revoke a practising certificate or withdraw
registration in the register of European lawyers or the register of foreign lawyers save
for where 8.4(b) applies.

17. A decision made under regulation 9.10 not to be satisfied in respect of a higher courts
advocacy qualification.

Education, Training and Assessment providers

As set out in the SRA Education, Training and Assessment Provider Regulations:

1. A decision made under regulation 1.4(b) or 2.3(b) to refuse to grant approved education
provider, authorised education provider or authorised training provider status.

2. A decision made under regulation 1.4(a) or 2.3(a) to grant the application for approval or
authorisation subject to such conditions and for such period as the SRA considers
appropriate.

3. A decision made under regulation 1.5(a) or 2.4(a) to revoke approved education provider,
authorised education provider or authorised training provider status.

4. A decision made under regulation 1.5(b) or 2.4(b) to make approval or authorisation subject
to such conditions as the SRA considers appropriate.

5. A decision made under regulation 2.4(c) to require an authorised training provider to

appoint a new training principal.

6. A decision made under regulation 6.3(b) to refuse to approve an organisation to provide

higher rights of audience assessments.

7. A decision made under regulation 6.3(a) to grant the application of approval subject to such
conditions as the SRA considers appropriate.

8. A decision made under regulation 6.5(a) to revoke the approval.

9. A decision made under regulation 6.5(b) to make the approval subject to such conditions as
the SRA considers appropriate.

6
Firm authorisation

As set out in the SRA Authorisation of Firms Rules:

1. A decision made under rule 2.2 to refuse authorisation.

2. A decision made under rule 3.1 to impose conditions on authorisation.

3. A decision to refuse approval for the taking of steps specified in conditions under rule 3.3(c).

4. A decision under rule 4.3 or 4.4 to revoke or suspend a body’s authorisation.

5. A decision made under rule 12.1 to extend, revoke or vary any terms or conditions on a
body’s authorisation or to refuse an application to do so.

6. A decision made under rule 13.1 to refuse approval of a person’s designation as a

manager, owner, or compliance officer.

7. A decision made under rule 13.8 to grant conditional approval of a person’s designation or
the holding of a material interest in a licensed body.

8. A decision made under rule 13.9 to withdraw approval of a person’s designation as a

manager, owner, or compliance officer.

9. A failure to decide an application for authorisation of a licensed body or approval of a

manager, owner, or compliance officer within the decision period.

Regulatory and Disciplinary

As set out in the SRA Regulatory and Disciplinary Procedure Rules:

1. A decision made under rule 3.1, save for a decision to make an application to the Tribunal
under rule 3.1(g).

2. A decision made under rule 3.2(a) to impose interim conditions.

3. A decision made under rule 9.2 to publish a decision.

Miscellaneous

1. A decision made under rule 19.1 of the SRA Compensation Fund Rules not to make a grant
of the whole or part of the amount applied for from the Fund.

2. Any decisions in respect of which there is a right of external appeal as set out in annex 2 or
3, that are not covered above.

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Annex 2: Decisions made by the SRA with a right of appeal to the Tribunal

Firm authorisation

As set out in the SRA Authorisation of Firms Rules:

1. A decision made under rule 2.2 to refuse authorisation as a licensed body.

2. A decision made under rule 3.1 to impose conditions on the authorisation of a licensed
body.

3. A decision in respect of a licensed body to refuse approval for the taking of steps
specified in conditions under rule 3.3(c).

4. A decision made under rule 4.4 to revoke or suspend a licensed body’s authorisation.

5. A decision made under rule 12.1 to extend, revoke or vary any terms or conditions on a
licensed body’s authorisation or to refuse an application to do so.

6. A decision made under rule 13.1 to refuse approval of a person’s designation as a

manager, owner, or compliance officer of a licensed body.

7. A decision made under rule 13.8 to grant approval or conditional approval of the holding of
a material interest in a licensed body.

8. A decision made under rule 13.9 to withdraw approval of a person’s designation as a

manager, owner, or compliance officer of a licensed body.

Regulatory and Disciplinary

As set out in the SRA Regulatory and Disciplinary Procedure Rules:

1. A decision made under rule 3.1(a) to give a written rebuke.

2. A decision made under rule 3.1 (b) to direct the payment of a financial penalty together with
the amount of that penalty.

3. A decision made under rule 3.1(c) to disqualify a person from acting as a HOLP, HOFA,
manager or employee of a licensed body.

4. A decision made under rule 3.1(d) to make an order to control a person’s activities in
connection with legal practice.

5. A decision made under 9.2 to publish a decision.

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Annex 3: Decisions made by the SRA with a right of appeal to the High Court

Individual Authorisation

As set out in the SRA Authorisation of Individuals Regulations:

1. A decision made under regulation 3E.2(a) to refuse to recognise all or part of a period of
recognised training.

2. A decision made under regulation 4.1 to refuse an application for admission as a solicitor
made under legislation implementing the Establishment Directive in the UK.

3. A decision made under regulation 5.1 to refuse to issue a certificate of satisfaction.

4. A decision made under regulation 5.3 to refuse to admit an individual as a solicitor after a
certificate of satisfaction has been issued.

5. A decision made under regulation 5.6(a)(ii) to remove a solicitor’s name from the roll.

6. A decision made under regulation 5.6(b) to refuse to remove a solicitor's name from the
roll.

7. A decision made under regulation 5.9 to refuse to restore a solicitor’s name to the roll.

8. A decision made under regulation 7.1(a) to refuse an application for a practising certificate,
or registration or renewal of registration in the register of European lawyers or the
register of foreign lawyers.

9. A decision made under regulation 7.1(b) to impose conditions on a practising certificate or

the registration of a European lawyer or foreign lawyer.

10. A decision made under regulation 8.4 to revoke a practising certificate or withdraw
registration in the register of European lawyers or the register of foreign lawyers.

11. A failure to determine within 4 months an application for initial registration or revocation of
registration in the register of European lawyers.

9
Firm authorisation

As set out in the SRA Authorisation of Firms Rules:

1. A decision made under rule 2.2 to refuse authorisation of a recognised body or

recognised sole practice.

2. A decision made under rule 4.3 to revoke or suspend authorisation of a recognised body
or recognised sole practice.

3. A decision made under 3.1 to impose conditions on authorisation of a recognised body or

recognised sole practice.

4. A decision made under rule 13.9 to withdraw approval of a person’s designation as a

COLP, COFA, manager or owner of a recognised body or recognised sole practice.

Miscellaneous

1. A refusal to grant permission to a solicitor to employ or remunerate in connection with their

practice any individual who to their knowledge has been disqualified from practising as a
solicitor as a result of being struck off the roll; or who is suspended from practice as a solicitor;
or whose practising certificate is suspended as a result of being an undischarged bankrupt.

10
SRA Assessment of Character and Suitability Rules

Introduction

All individuals applying for admission or restoration to the roll of solicitors or those applying
for or renewing their registration to be an REL or an RFL must be of satisfactory character
and suitability. Those applying to become an authorised role holder, must be fit and proper
to hold the role, and for ease we use the term “character and suitability” in this context also.

These provisions set out the kind of factors we will take into account when considering your
character and suitability, and the obligations you have, both at the outset and on an ongoing
basis, to provide relevant information to inform the decisions we make.

These requirements are underpinned by our role to act in the public interest. For more
information about the issues we consider to present a risk to the public interest, and our
approach to taking regulatory action, see our Enforcement Strategy [link].

PART 1: CHARACTER AND SUITABILITY REQUIREMENTS

Application

1.1 These rules apply where the SRA is making a decision as to whether it is satisfied
regarding your character and suitability:

(a) on early assessment under regulation 5.2 of the SRA Authorisation of

Individuals Regulations;

(b) at admission or restoration to the roll under regulations 1.1, 3.1, 3A.1,
3F.1, 4.1 and 5.9 of the SRA Authorisation of Individuals
Regulations;

(c) on approval as an authorised role holder under rule 13.1 of the

SRA Authorisation of Firms Rules;

(d) on registration or renewal of registration as an REL or RFL under regulations

6.3 or 6.4 of the SRA Authorisation of Individuals Regulations.

Assessment

2.1 When considering your character and suitability, the SRA will take into account the
overriding need to:

(a) protect the public and the public interest; and

(b) maintain public trust and confidence in the solicitors' profession and in legal
services provided by authorised persons.

1
 In doing so, the SRA will take into account the nature of your role, and your individual
circumstances, on a case by case basis.

2.2 The SRA will therefore consider any information available to it and take into account
all relevant matters. These will include but are not limited to the criminal and other
conduct or behaviour set out in rules 3 and 4 below.

2.3 If you are applying for approval as a compliance officer, in assessing your suitability
the SRA will consider whether you are of sufficient seniority and in a position of
sufficient responsibility to fulfil the requirements of the role.

2.4 If on the information available, the SRA cannot be satisfied you are of good character
and suitable for the role, and it considers that any risk to the public or the public
interest can be addressed by the imposition of conditions on your authorisation or
approval under regulation 7.1(b) of the SRA Authorisation of Individuals Regulations,
or rule 3.1 or 13.8 of the SRA Authorisation of Firms Rules, as appropriate, the SRA
must impose such conditions accordingly.

2.5 Following any decision by the SRA that it is not satisfied as to your character and
suitability, you may only seek a further assessment of your character and
suitability, where there has been a material change in your circumstances relevant
to the SRA's assessment under these rules.

PART 2: CONDUCT AND BEHAVIOUR

Criminal conduct

3.1 The SRA will consider criminal conduct when assessing your character and
suitability, in accordance with Table 1 below, subject to the Rehabilitation of
Offenders Act 1974 and the Rehabilitation of Offenders Act 1974 (Exceptions Order)
1975 and bearing in mind the public interest in supporting the rehabilitation of
offenders. For the avoidance of doubt, Table 1 is a non-exhaustive list.

Table 1: Criminal conduct

Most serious Serious

(A finding in this category is likely to result in (A finding in this category may result in refusal)
refusal)

You have been convicted by a court of a You have accepted a caution for, or been
criminal offence: convicted by a court of, a criminal offence not
• for which you received a custodial or falling within the most serious category (which
suspended sentence; is likely to result in refusal).
• involving dishonesty, fraud, perjury,
and/or bribery; You are currently subject to a conditional
• of a violent or sexual nature; discharge or bind over by a court.

2
 • associated with obstructing the course
of justice;
• which demonstrated behaviour
showing signs of discrimination
towards others; or
• associated with terrorism.

You have been convicted by a court of more

than one criminal offence (these could be less
serious offences when considered in isolation
but taken more seriously because of frequency
and/or repetition).

You have shown a pattern of criminal offences

or criminal behaviours (eg starting from a
caution but moving through to convictions).

You have accepted a caution from the police

for an offence involving dishonesty, violence or
discrimination, or a sexual offence.

You have been included on the Violent and

Sex Offenders register.

Other conduct and behaviour

4.1 Table 2 sets out non-exhaustive examples of the types of conduct or behaviour that
the SRA will take into account when assessing your character and suitability.

Table 2: Other conduct and behaviour

Type of behaviour Examples

Integrity and independence You have behaved in a way:

• which is dishonest;
• which is violent;
• which is threatening or harassing;
• where there is evidence of discrimination towards
others.

You have misused your position to obtain pecuniary

advantage.

3
 You have misused your position of trust in relation to
vulnerable people.

The SRA has evidence reflecting on the honesty and

integrity of a person you are related to, affiliated with, or
act together with where the SRA has reason to believe that
the person may have an influence over the way in which
you will exercise your authorised role.

Assessment offences You have committed and/or have been adjudged by an

education establishment to have committed a deliberate
assessment offence, which amounts to plagiarism or
cheating, in order to gain an advantage for you or others.

Financial conduct/events There is evidence:

• that you have deliberately sought to avoid
responsibility for your debts;
• of dishonesty in relation to the management of your
finances;
• that you have been declared bankrupt, entered into
any individual voluntary arrangements, have a
current County Court Judgment issued against you
or have been made subject to a Debt Relief Order;
• that any company, LLP or partnership of which
you are/were a manager or owner has been the
subject of a winding up order, an administrative
order or an administrative receivership, or has
otherwise been wound up or put into administration
in circumstances of insolvency;
• that you cannot satisfactorily manage your finances
(eg you have fallen behind with six or more
consecutive payments and/or have been registered
with a credit reference agency);
• that you are subject to possession proceedings (eg
for falling behind on mortgage payments) and/or
are subject to a Liability Order (eg for non-payment
of council tax).

Regulatory or disciplinary You have been made the subject of a serious disciplinary
findings or regulatory finding, sanction or action by a regulatory
body and/or any court or other body hearing appeals in
relation to disciplinary or regulatory findings.

4
 You have failed to disclose information to a regulatory body
(including the SRA) when required to do so or have
provided false or misleading information.

You have significantly breached the requirements of a

regulatory body.

You have failed to comply with the reasonable requests of

a regulatory body resulting in a finding against you.

You have been rebuked, reprimanded, or received a

warning about your conduct by a regulatory body.

You are disqualified from being a charity trustee or a

trustee for a charity under section 178(1) of the Charities
Act 2011.

You have been removed and/or disqualified as a company

director.

You are a corporate person and other matters that call into
question your fitness and propriety are disclosed or come
to light.

You have committed an offence under the Companies

Acts.

PART 3: AGGRAVATING AND MITIGATING FACTORS

Aggravating and mitigating factors

5.1 Table 3 sets out a non-exhaustive list of the types of aggravating and mitigating
factors the SRA will take into account where you have disclosed, or it has received,
information which raises a question as to your character and suitability.

Table 3: Aggravating and mitigating factors

Aggravating Factors Mitigating Factors

• No evidence of successful • Evidence of successful rehabilitation.

rehabilitation. • Evidence of steps taken to remedy
• No evidence of steps taken to conduct.
remedy conduct. • Evidence of remorse.
• No (or little) evidence of remorse.

5
 • Repeated behaviour, or a pattern of • One off event, or event occurred
behaviour, or event occurred very some time ago.
recently. • You were in a junior or non-legal role.
• You were in a position of trust. • No evidence of harm being caused to
• You held a senior position. individuals.
• Vulnerability of those impacted by the • Behaviour unlikely to harm public
behaviour. confidence in the profession.
• Behaviour likely to harm public • Credible and cogent supporting
confidence in the profession. references.

PART 4: DISCLOSURE AND EVIDENTIAL REQUIREMENTS

Disclosure and evidential requirements

6.1 Subject to rule 6.3 below, on making an application under any of the provisions set
out in rule 1.1, you must disclose all matters, wherever they have taken place
(including overseas), which are relevant to the SRA's assessment of your character
and suitability, including, where practicable, any information set out in Table 4
which is relevant to the matter in question.

6.2 On making an application under any of the provisions set out in rules 1.1(a) to (c),
you must also provide a certificate from the Disclosure and Barring Service, or
equivalent, which is no more than three months old.

6.3 If you are making an application for:

(a) registration as an REL or RFL; or

(b) approval as a manager or owner of an authorised body, in circumstances

where if approval is granted you will fall within rule 13.2(b) of the
Authorisation of Firms Rules,

you must, and need only, provide a certificate of good standing which is no more
than three months old from any regulatory body with which you are registered or
authorised.

6.4 If the SRA requests any further information in order to assess your character and
suitability, including a certificate from the Disclosure and Barring Service, or
equivalent, you must provide it by the date specified (which will be no less than 14
days from the date of the request).

6
6.5 You have an ongoing obligation to tell the SRA promptly about anything that raises a
question as to your character and suitability, or any change to information
previously disclosed to the SRA in support of your application, after it has been
made. This obligation continues once you have been admitted as a solicitor,
registered as an REL or an RFL, or approved as a role holder.

6.6 The onus is on you to provide any evidence relevant to the SRA’s consideration of
your character and suitability. However, the SRA may undertake any investigation
as it considers appropriate to determine your character and suitability and may
verify any evidence you provide with a third party.

6.7 If you fail to disclose any information relevant to the SRA's assessment of your
character and suitability, the SRA will take this into account when making a
determination as to your character and suitability.

Table 4: Information and evidence relevant to matters disclosed

General evidence

• Credible references, where possible written in the knowledge of the matters reported.
Credible references will generally be written in the knowledge of the matters reported
by an independent person who knows you and your work well, such as a current or
former employer or an academic tutor.

• Evidence of any rehabilitation that shows you have learnt from an experience or
event, such as probation reports, references from employers or tutors.

• Documentary evidence in support of your case and, where possible, an independent

corroboration of your account of the event.

• A statement from you including details of the event leading up to the matter disclosed
and which reflects your attitude towards the event.

• Proof that you have also disclosed the matter to any professional or other body to
which you have an obligation to do so.

Evidence relating to criminal offences

• At least one independent report relating to the event such as a report from the police,
a court, or a solicitor.

• Any sentencing remarks for your case.

• Any Memorandum of an Entry on the Court Register.

7
 • Proof you have paid any penalty or fine imposed or costs ordered for you to pay as a
result of the matter you disclosed.

• In relation to any motoring offence, your online driving licence.

Evidence relating to assessment offences

• Any minutes from any meeting and any transcripts from any hearing relating to the
offence.

• Outcome of any investigation, any decision, sanction or appeal relating to the

offence.

• Details which describe the extent to which you could reasonably have been expected
to realise that the offence did not constitute legitimate academic practice.

Evidence relating to financial conduct/events

• In relation to county court judgments or Individual Voluntary Arrangements, proof that

you have met the creditor's agreement in full or that it continues to be met; a copy of
any judgment; a certificate of satisfaction from the court or a Registry Trust Limited
report; and a credit report of no more than one month old.

• In relation to bankruptcy, a copy of the bankruptcy petition; or if you have been

discharged from bankruptcy, a copy of the Certificate of Discharge; and a credit
report no more than one month old.

• Details of any actions you have taken to clear any debts, satisfy any judgments and
manage your finances.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 28 and 31, of the Solicitors Act 1974, section 9 of the Administration of
Justice Act 1985, section 89 of, and paragraphs 2 and 3 of Schedule 14 to, the Courts and
Legal Services Act 1990 and section 83 of, and Schedule 11 to, the Legal Services Act
2007.

8
SRA Authorisation of Firms Rules

Introduction

These provisions set out the SRA's arrangements for the authorisation of firms. This
includes recognised bodies, licensed bodies and recognised sole practices.

The rules set out our authorisation and application requirements, the effect of authorisation
by the SRA on the legal activities such bodies may provide, and how and when we may
restrict or limit a firm’s authorisation or bring it to an end.

If you are unsure whether you are eligible for authorisation, or need to be authorised, please
see our guidance [link].

PART 1: ELIGIBILITY

Eligibility

1.1 You will be eligible to apply for authorisation:

(a) as a licensed body, if you are a licensable body and have at least one
manager that is an authorised person (other than a licensed body);

(b) as a recognised body, if you are a legal services body in which all of the
managers and interest holders are legally qualified; or

(c) as a recognised sole practice, if you are a solicitor or an REL who is the
sole principal in a practice,

and you intend to deliver legal services, or (if you fall within (b)) the SRA is satisfied
that it is in the public interest for you to be eligible to apply for authorisation
notwithstanding that you do not intend to deliver legal services.

1.2 The eligibility requirements in rule 1.1 are subject to the transitional arrangements set
out in annex 1.

1.3 An authorised body must:

(a) if you are a company:

(i) be incorporated and registered in England and Wales, Scotland or

Northern Ireland under Parts 1 and 2 of the Companies Act 2006;

1
 (ii) be incorporated in an Establishment Directive state and registered
as an overseas company under Part 34 of the Companies Act 2006;
or

(iii) be incorporated and registered in an Establishment Directive

state as a societas Europaea; and

(b) have at least one practising address in the UK or, if you are a licensed
body, in England or Wales.

PART 2: DETERMINATION OF AUTHORISATION APPLICATIONS, DURATION

AND VALIDITY

Authorisation decision

2.1 The SRA may grant an application for authorisation in relation to one or more
reserved legal activity.

2.2 The SRA will refuse an application for authorisation if it is not satisfied that, if
authorisation is granted:

(a) the applicant's managers, interest holders or management and

governance arrangements are suitable to operate or control a business
providing regulated legal services;

(b) the applicant will comply with the SRA's requirements and regulatory
arrangements,

or, if the SRA considers that it would be otherwise against the public interest or
incompatible with the regulatory objectives to grant the application.

2.3 In reaching a decision on the application, the SRA may take into account any person
that the applicant, manager, employee or interest holder is related to, affiliated
with, or acts together with that it has reason to believe may have an influence over
the way in which the applicant, manager, employee or interest holder will exercise
their role.

Conditions

3.1 The SRA may at any time, whether on grant of an application for authorisation or
otherwise, impose such conditions on a body’s authorisation (whether indefinite or for
a specified period), where it considers it appropriate in the public interest to do so
and in accordance with rules 3.2 and 3.3.

2
3.2 The SRA may impose conditions under rule 3.1 if it is satisfied that the authorised
body, or a manager, compliance officer, employee, owner, or interest holder of
the authorised body:

(a) is unsuitable to undertake certain activities or engage in certain business or

practising arrangements;

(b) is putting or is likely to put at risk the interests of clients, third parties or the
public;

(c) will not comply with the SRA’s regulatory arrangements, or requires
monitoring of compliance with the SRA’s regulatory arrangements; or

(d) should take specified steps conducive to the regulatory objectives.

3.3 The conditions imposed by the SRA under rule 3.1 may:

(a) specify certain requirements that must be met or steps that must be taken;

(b) restrict the carrying on of particular activities or holding of particular roles; or

(c) prohibit the taking of specified steps without its approval.

Duration of authorisation

4.1 A body’s authorisation takes effect from the date the certificate of authorisation is
issued to it by the SRA.

4.2 A body’s authorisation shall cease to have effect:

(a) subject to Part 5, if the body ceases to exist; or

(b) if the body is a licensed body and is issued with a licence by another
approved regulator.

4.3 The SRA may revoke or suspend a body's authorisation, if:

(a) it is satisfied that the authorisation was granted as a result of error,

misleading or inaccurate information, or fraud;

(b) the body is or becomes ineligible to be authorised, or the grounds for refusal
of an application under rule 2.2 are met;

(c) the body has failed to provide any information the SRA has reasonably
requested;

(d) the body has failed to pay any prescribed fee to the SRA;

3
 (e) the body makes an application to the SRA for its authorisation to be revoked,
but the SRA may refuse the application if the applicant is subject to any
proceedings, investigation or consideration of their conduct or practice by the
SRA or the Tribunal;

(f) the body has failed to comply with any obligations under the SRA's
regulatory arrangements;

(g) the body, or an owner, interest holder, manager or employee of the body
fails to comply with any duty imposed on them by sections 90 or 176 of the
LSA;

(h) a relevant insolvency event has occurred in relation to the body, or the sole
principal is made the subject of bankruptcy proceedings or makes a
proposal for an individual voluntary arrangement;

(i) the SRA has decided to exercise its powers of intervention in relation to the
body or a solicitor's practice within the body; or

(j) for any other reason, it considers it to be in the public interest to do so.

4.4 In the case of a licensed body, the SRA may revoke or suspend the body's
authorisation:

(a) as a result of a person who holds an interest in the licensed body taking a
step in circumstances where that constitutes an offence under paragraph
24(1) of Schedule 13 to the LSA (whether or not the person is charged with
or convicted of an offence under that paragraph);

(b) where such a person is in breach of conditions imposed under paragraphs

17, 28 or 33 of that Schedule; or

(c) where a person's holding of an interest in the licensed body is subject to

an objection by the SRA under paragraph 31 or 36 of that Schedule.

4.5 The SRA must not revoke or suspend a body’s authorisation other than under rule
4.3(e) unless it has first given the body no less than 28 days' notice of its intention to
revoke or suspend the authorisation, inviting representations regarding the issues
giving rise to the proposed revocation or suspension.

4
PART 3: EFFECT OF AUTHORISATION AND CONDITIONS OF PRACTICE

Effect of authorisation

5.1 If you are a recognised body or a recognised sole practice authorised by the SRA
you are entitled to carry on:

(a) all reserved legal activities except notarial activities; and

(b) immigration work.

5.2 If you are a licensed body you are entitled to carry on the activities set out in rule
5.1, in accordance with the terms of your licence.

5.3 An authorised body may only carry on a reserved legal activity through a person
who is entitled to do so.

General conditions of practice

Restrictions on services provided by a recognised body or recognised sole

practice

6.1 If you are a recognised body or recognised sole practice, your business may
consist only of the provision of:

(a) professional services of the sort provided by individuals practising as

solicitors and/or lawyers of other jurisdictions; and

(b) the services set out in annex 2 (whether or not they are also included in
paragraph (a)),

and if you have a notary public as a manager or employee, then professional

services of the sort provided by notaries public.

Payment of periodical fees

7.1 Every authorised body must pay to the SRA a periodical fee in the amount, and by
the date prescribed.

Compliance officers

8.1 An authorised body must at all times have an individual who is designated as its
COLP and an individual who is designated as its COFA, and whose designations the
SRA has approved.

5
8.2 Subject to rule 8.3, an individual who is designated under rule 8.1 must:

(a) be a manager or employee of the authorised body;

(b) consent to the designation;

(c) not be disqualified from acting as a HOLP or HOFA under section 99 of the
LSA; and

(d) in the case of a COLP, be an individual who is authorised to carry on

reserved legal activities by an approved regulator.

8.3 An authorised body is not required to comply with rule 8.2(a) where an individual
who is designated under rule 8.1:

(a) is currently approved by the SRA as a compliance officer for an

authorised body with a manager or owner in common with the body; and

(b) is a manager or employee of that related authorised body.

Management, control, and supervision

9.1 Subject to rules 9.2 and 9.3, an authorised body must ensure that the SRA has
approved any manager or owner of the authorised body under Part 4.

9.2 A sole principal whose practice has been authorised as a recognised sole practice
is not required to be approved separately as a manager of that practice.

9.3 If the SRA is satisfied that a manager of an authorised body is not involved in any
of the following:

(a) the day to day or strategic management of the authorised body;

(b) compliance by the authorised body with the SRA’s regulatory

arrangements; or

(c) the carrying on of reserved legal activities, or the provision of legal services
in England and Wales,

the SRA may decide that the authorised body is not required to comply with rule 9.1
in respect of that manager.

9.4 An authorised body must have at least one manager or employee, or must procure
the services of an individual, who:

(a) is a lawyer of England and Wales and has practised as such for a minimum
of three years; and

6
 (b) supervises the work undertaken by the authorised body (or, if the body is a
licensed body, the work undertaken by the body that is regulated by the
SRA in accordance with the terms of the body’s licence).

Restrictions on employment and remuneration of certain individuals

10.1 An authorised body must not employ or remunerate, or permit to be a manager,

owner or interest holder of the body, a person:

(a) who is subject to an order under section 43 of the SA, without the SRA's
written permission;

(b) whose name has been struck off the roll, or who is suspended from practising
as a solicitor, without the SRA's written permission;

(c) in respect of whom there is a direction in force under section 47(2)(g) of the
SA, without the SRA's written permission; or

(d) who has been disqualified from the relevant role.

Information return and notification events

11.1 An authorised body must complete and deliver to the SRA an annual return by the
date and in the form prescribed.

Modification of terms and conditions

12.1 The SRA may at any time, extend, revoke or vary any terms or conditions on a
body’s authorisation, imposed in accordance with rule 3 or otherwise, either on the
application of the authorised body or on the SRA’s own initiative.

PART 4: APPROVAL OF ROLE HOLDERS

Approval of role holders

13.1 Subject to rules 13.2 to 13.4, the SRA may approve a person's designation as a
COLP or COFA or to be a manager or owner of an authorised body if it is satisfied
that the individual is fit and proper to undertake the role, in accordance with the SRA
Assessment of Character and Suitability Rules.

13.2 The SRA will deem a person to be fit and proper to be a manager or owner of an
authorised body if the person is:

(a) a solicitor, an REL, RFL or an authorised body; or

(b) a person who has previously been approved by the SRA under rule 13.1 and
is:

7
 (i) authorised and regulated by another approved regulator; or

(ii) authorised and regulated by a regulatory body which operates a

regulatory regime recognised by the SRA as reasonably equivalent to
that of an approved regulator,

and who is not subject to a regulatory or disciplinary investigation, or adverse finding

or decision of the SRA, the Tribunal or another regulatory body.

13.3 A person who meets the conditions under rule 13.2, shall be deemed to be approved
to be designated as a manager or owner of any authorised body.

13.4 An authorised body must notify the SRA promptly in the prescribed form of the
designation as a manager or owner of that body of a person who has been deemed
to be approved under rule 13.3.

13.5 The SRA will deem an individual to be fit and proper to be a compliance officer of
an authorised body if:

(a) that individual is a lawyer and a manager of the authorised body;

(b) the authorised body has an annual turnover of no more than £600,000;

(c) they are not a compliance officer of any other authorised body; and

(d) they are not subject to a regulatory or disciplinary investigation, or adverse

finding or decision of the SRA, the Tribunal or another regulatory body.

13.6 An authorised body must notify the SRA promptly, in the prescribed form, of the
identity of a compliance officer whose fitness and propriety has been deemed
under rule 13.5, and the SRA shall approve their designation to undertake the role in
that body accordingly.

13.7 Approval of a person’s designation under rule 13.1 or 13.6:

(a) takes effect from the date of the decision unless otherwise stated;

(b) remains effective only if the person takes up the designated role within the
period specified in the notice of approval, or the period of one year if no
period is specified; and

(c) expires when the person ceases to carry out the designated role.

13.8 The SRA may at any time, on granting approval for the designation of a person
under this Part, or otherwise, make the holding of a material interest in a licensed
body subject to conditions in accordance with paragraphs 17, 28 or 33 of Schedule
13 to the LSA.

8
13.9 The SRA may at any time withdraw approval of a person’s designation under rule
13.1, 13.3 or 13.6 if it is not satisfied that the person is fit and proper to undertake
the designated role.

13.10 A person whose designation has been approved under rule 13.1, 13.3 or 13.6, must
notify the SRA promptly of any information in relation to them which would be
relevant to an assessment of their fitness and propriety under the SRA Assessment
of Character and Suitability Rules, and may be required to provide a self-declaration
of their fitness and propriety on request by the SRA.

13.11 In respect of a person whose designation has been approved under rule 13.3, the
obligation to notify under rule 13.10 applies when the person is holding an approved
post and extends to information relating to matters taking place at any time, following
their approval, irrespective of whether they were holding an approved post at the
time.

13.12 Where the SRA withdraws approval for the designation of a person who is the
director of a company, the SRA may set separate dates for the individual ceasing
to be a director and disposing of their shares.

PART 5: SUCCESSION, LOSS OF ELIGIBILITY AND TEMPORARY

EMERGENCY AUTHORISATION

Loss of eligibility

14.1 If the last remaining legally qualified manager of an authorised body whose role
ensures the body’s compliance with the eligibility requirements for its authorisation
under rule 1:

(a) is sentenced to imprisonment;

(b) becomes unable to carry on their role because of incapacity;

(c) abandons the business;

(d) is made subject to a restriction, condition or other regulatory decision by the

SRA or another regulatory body which would prevent or restrict them acting
as a manager,

the body must inform the SRA within seven days of becoming aware of the relevant
event and, within 28 days of becoming aware of the event, must either become
eligible for authorisation (without reference to the manager in question), or cease to
carry on reserved legal activities and to hold themselves out as an authorised
body.

9
14.2 Subject to any prescribed application requirements, the SRA may:

(a) transfer a body’s authorisation to another body where the first body ceases to
exist and the second body succeeds to the whole or substantially the whole of
its business;

(b) substitute a body’s authorisation for another type of authorisation where it is

satisfied that the body is materially carrying on the same practice,
notwithstanding a change in its management or control; and

(c) permit any person previously approved as a manager, owner, or

compliance officer of the body to continue to act in their designated role,
notwithstanding the transfer or substitution.

Temporary emergency authorisation or approval

15.1 An application for temporary emergency authorisation may be made:

(a) within seven days of any change in the management or control of an

authorised body which brings into being a new unauthorised body or
practice;

(b) within 28 days of the death or incapacity of a sole practitioner by a solicitor

or an REL who is:

(i) the sole practitioner’s executor, personal representative, attorney

under a lasting power of attorney, or Court of Protection deputy (as
appropriate);

(ii) a practice manager appointed by the sole practitioner’s executor,

personal representative, attorney under a lasting power of attorney, or
Court of Protection deputy (as appropriate); or

(iii) an employee of the practice.

15.2 An application for temporary emergency approval of a compliance officer may be

made within seven days of an authorised body ceasing to have a COLP or COFA
whose designation is approved under Part 4.

15.3 The SRA will only grant an application under rule 15.1(a) or 15.2 if it is satisfied that:

(a) the body or its managers could not reasonably have commenced a
substantive application for authorisation under Part 2 in advance of the events
giving rise to the application;

10
 (b) in relation to an application under rule 15.1(a) the body meets the eligibility
requirements under rule 1.1 and will comply with our regulatory
arrangements as they apply to authorised bodies; or

(c) in relation to an application under rule 15.2, it has no reason to believe that
the individual to which the application relates is not fit and proper to be a
compliance officer of the authorised body.

15.4 Temporary emergency authorisation or approval:

(a) shall be granted for an initial period of 28 days from the date specified;

(b) may be extended for such period as the SRA thinks fit;

(c) shall be extended, if a substantive application for authorisation or approval is

made during the period of temporary emergency authorisation or approval,
pending determination of the substantive application;

(d) may be revoked, withdrawn, or made subject to such conditions as the SRA
considers appropriate, in the public interest,

save that, if the SRA grants temporary emergency authorisation under rule 15.1(b),
the authorisation will be deemed to run from the date of death or incapacity and will
cease to have effect on the earliest of the date of the winding up of the estate or 12
months from the date of death or incapacity.

Apportionment of periodical fees on succession

16.1 An authorised body which:

(a) has taken over the whole or a part of one or more authorised bodies; or

(b) has split or ceded part of its practice to another authorised body and wishes
the SRA to take this into account in determining its periodical fee,

must within 28 days of the change taking place deliver to the SRA a notice in the
prescribed form.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 31 of the Solicitors Act 1974, sections 9 and 9A of the Administration
of Justice Act 1985, and section 83 of, and Schedule 11 to, the Legal Services Act 2007.

11
Annex 1: Transitional arrangements under paragraph 7(3) of Schedule 5 to the
LSA

1 A licensable body will be eligible to be a recognised body if as at 6 October 2011,

it has been recognised by the SRA under section 9 of the AJA but has an interest
holder or manager that is not a lawyer or a legally qualified body. It shall continue to
be treated as a recognised body for the purposes of these rules and the SRA's
regulatory arrangements until:

(a) such time as it ceases to comply with the management and control
requirements set out in paragraph 2 below; or

(b) the end of the transitional period under Part 2 of Schedule 5 to the LSA, or
such earlier time as the body may elect,

at which time it must apply for authorisation as a licensed body.

2 The management and control requirements are:

(a) at least 75% of the body's managers must be:

(i) individuals who are, and are entitled to practise as, lawyers of
England and Wales, lawyers of Establishment Directive
professions or RFLs; or

(ii) bodies corporate which are legally qualified bodies,

although a legally qualified body cannot be a director of a body which is a

company;

(b) individuals who are, and are entitled to practise as, lawyers of England
and Wales, lawyers of Establishment Directive professions or RFLs
must make up at least 75% of the ultimate beneficial ownership of the body;
and

(c) individuals who are, and are entitled to practise as, lawyers of England
and Wales, lawyers of Establishment Directive professions or RFLs,
and/or legally qualified bodies, must:

(i) exercise or control the exercise of at least 75% of the voting rights
in the body; and

(ii) if the body is a company with shares, hold (as registered members
of the company) at least 75% of the shares.

(d) every interest holder of the recognised body, and every person who
exercises or controls the exercise of any voting rights in the body, must be:

(i) an individual who is, and is entitled to practise as, a lawyer of

England and Wales, a lawyer of an Establishment Directive
profession or an RFL;

12
 (ii) a legally qualified body; or

(iii) an individual who is approved by the SRA, and is a manager of the

body;

(e) an individual who is not entitled under paragraph 2(d)(i) may be an interest
holder of a recognised body without being a manager of the body if:

(i) the recognised body is a company which is wholly or partly owned

by a partnership or LLP which is a legally qualified body;

(ii) the individual is approved by the SRA and is a manager of the

partnership or LLP; and

(iii) the individual is precluded under the partnership agreement or

members' agreement from exercising or authorising any vote in
relation to the company.

For the purposes of this annex, "legally qualified body" means a body which is:

(A) a recognised body;

(B) an authorised non-SRA firm of which individuals who are,

and are entitled to practise as, lawyers of England and
Wales, lawyers of Establishment Directive professions
or RFLs make up at least 75% of the ultimate beneficial
ownership; or

(C) a European corporate practice which is a lawyers' practice

and is a body incorporated in an Establishment Directive
state, or a partnership with separate legal identity formed
under the law of an Establishment Directive state:

(I) which has an office in an Establishment Directive

state but does not have an office in England and
Wales;

(II) whose ultimate beneficial owners include at least

one individual who is not a lawyer of England and
Wales but is, and is entitled to practise as, a
lawyer of an Establishment Directive profession;

(III) whose managers include at least one such

individual, or at least one body corporate whose
managers include at least one such individual;

(IV) 75% of whose ultimate beneficial ownership is in

the hands of individuals who are, and are entitled to
practise as, lawyers of Establishment Directive
professions, lawyers of England and Wales,
and/or RFLs; and

13
(V) 75% of whose managers comprise such
individuals, and/or bodies corporate 75% of whose
managers comprise such individuals.

14
Annex 2: Professional services

The professional services referred to in rule 6.1(b) are:

1. Alternative dispute resolution.

2. Financial services.

3. Estate agency.

4. Management consultancy.

5. Company secretarial services.

6. Other professional and specialist business support services including human

resources, recruitment, systems support, outsourcing, transcription and translating.

7. Acting as a parliamentary agent.

8. Practising as a lawyer of another jurisdiction.

9. Acting as a bailiff.

10. Accountancy services.

11. Education and training activities.

12. Authorship, journalism and publishing.

15
SRA Authorisation of Individuals (Amendment) Regulations

Regulations made by the Solicitors Regulation Authority Board on 30 May 2018.

Made under sections 2, 13, 28, 31, 79, and 80 of the Solicitors Act 1974, and
paragraphs 2 and 3 of Schedule 14 to the Courts and Legal Services Act 1990.

Regulation 1

The SRA Authorisation of Individuals Regulations 2018 shall be amended as follows:

(a) delete regulation 4.1; and

(b) after regulation 3.3, insert regulations 3A.1 to 11 as set out in the Schedule to
these regulations.

Regulation 2

These amendment regulations come into force on a date to be determined by the

SRA Board.

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 Schedule

Eligibility requirements

3A.1 You will be eligible for admission as a solicitor if the SRA is satisfied:

(a) you have successfully and satisfactorily completed:

(i) an apprenticeship leading to qualification as a solicitor; or

(ii) the academic stage of training and the vocational stage of

training; and

(b) as to your character and suitability to be a solicitor.

3A.2 The SRA may decide that it is satisfied that you have completed all or any
part of the academic stage of training or the vocational stage of training
by equivalent means.

Apprenticeships

3B.1 To complete an apprenticeship for the purposes of regulation 3A.1(a)(i), you

must meet the requirements set out in the assessment plan for the
Apprenticeship Standard for a Solicitor (England) approved by the
Department for Business, Innovation and Skills, or set out in the
Apprenticeship Framework specified in the Level 7 Higher Apprenticeship in
Legal Practice (Wales). This must include successfully passing an
assessment, which the SRA either conducts or approves as suitable for the
purpose of admission as a solicitor.

3B.2 If at any time the SRA is not satisfied that you have successfully and
satisfactorily completed an apprenticeship it may:

(a) refuse to recognise all or any part of that apprenticeship; or

(b) require you to take certain steps or undertake further training, subject
to such conditions as it considers appropriate.

Academic stage

3C.1 Your eligibility to commence the academic stage of training will be

determined according to the requirements, which may be approved by the
SRA, of the relevant approved education provider.

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3C.2 You may be entitled to credit for prior certified or experiential learning, which
may entitle you to exemption from assessment in some subjects required by
the Joint Statement. You must make any application for credit for prior
learning to the approved education provider.

Vocational stage

3D.1 Your eligibility to commence the Legal Practice Course will be determined
according to the requirements, approved by the SRA, of the relevant
authorised education provider.

3D.2 Subject to regulation 3A.2, to complete the vocational stage of training you
must complete:

(a) the Legal Practice Course;

(b) a period of recognised training; and

(c) the Professional Skills Course.

Recognised training

3E.1 In order to satisfactorily complete your period of recognised training, you

must maintain a record of training which:

(a) contains details of the work you have performed;

(b) records how you have applied and developed the skills, as set out in
the Practice Skills Standards;

(c) records your reflections on, and your training principal's appraisal of,
your performance and development against, and your attainment of
the skills set out in the Practice Skills Standards; and

(d) is verified by the individual supervising you.

3E.2 If at any time the SRA is not satisfied that you have received, or are receiving,
training that meets regulation 3E.1 above and regulation 4.1 of the SRA
Education, Training and Assessment Provider Regulations, the SRA may:

(a) refuse to recognise all or any part of that training; or

(b) require you to take certain steps or undertake further training, subject
to such conditions as it considers appropriate.

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Admission of qualified lawyers

3F.1 Subject to regulation 4.1, you will be eligible for admission as a solicitor if the
SRA is satisfied that you are:

(a) (i) a barrister; or

(ii) a qualified lawyer in a recognised jurisdiction and you:

(A) have followed the full route to qualification in the

recognised jurisdiction; and

(B) are entitled to practise as a qualified lawyer of the

recognised jurisdiction;

(b) of the character and suitability to be admitted as a solicitor; and

(c) have passed all relevant Qualified Lawyers Transfer Scheme

assessments in accordance with this regulation.

3F.2 Unless regulation 3F.3 or 3F.4 applies, you must pass all the Qualified
Lawyers Transfer Scheme assessments.

3F.3 If you are:

(a) applying for admission pursuant to European Communities Directive

2005/36/EC or any legislation implementing the Directive in the UK;

(b) a solicitor or barrister qualified in Northern Ireland;

(c) a solicitor or advocate qualified in Scotland; or

(d) a barrister,

you will be required to pass such of the Qualified Lawyers Transfer Scheme
assessments as may be specified by the SRA.

3F.4 If you have passed the Legal Practice Course, the SRA may grant you an
exemption from the multiple-choice test of the Qualified Lawyers Transfer
Scheme assessments.

Establishment Directive

4.1 If you are an REL, you will be eligible for admission as a solicitor under Part
V of the European Communities (Lawyer’s Practice) Regulations 2000, or any
equivalent legislation implementing the Establishment Directive in the UK,
if:

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 (a) you satisfy the requirements of those regulations or that legislation;
and

(b) the SRA is satisfied as to your character and suitability to be a

solicitor.

Admission, retention, removal, and restoration to the roll

Application for admission

5.1 You may apply for admission in writing in the prescribed form. Following an
application for admission, the SRA will issue you with a certificate of
satisfaction if it is satisfied that you have met the eligibility requirements for
admission as a solicitor set out in this Part.

5.2 At any time before making an application for admission, you may apply to the
SRA for an early assessment of your character and suitability to be a
solicitor. The SRA is not bound, in any subsequent application for
admission, by any decision it makes as to your character and suitability to
be a solicitor as a result of an early assessment.

5.3 As soon as reasonably practicable after the SRA has issued a certificate of
satisfaction, you will be admitted as a solicitor and your name entered on the
roll, unless the SRA receives information in writing that it is satisfied
demonstrates that you should not be admitted. If so, the SRA will give you
written notice, providing you with the information it has received, and the
opportunity to provide written representations within the period of 28 days
from the date of the notice, following which it may decide not to admit you as
a solicitor.

Retention

5.4 If you are a solicitor, the SRA will write to you at the last notified version of
your postal or email address, to ask you whether you wish your name to
remain on the roll, at appropriate intervals as prescribed if you do not hold a
practising certificate.

5.5 If, following an enquiry under regulation 5.4, you wish your name to remain on
the roll, you shall be required to pay such fee as may be prescribed in
regulations.

Removal from and restoration to the roll

5.6 The SRA may remove your name from the roll if:

(a) following an enquiry made by the SRA under regulation 5.4:

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 (i) you tell the SRA that you do not wish to remain on the roll;

(ii) you do not, within eight weeks from the date of the notice,
reply to the SRA and pay the fee specified under regulation
5.5, or

(b) you apply to have your name removed from the roll.

5.7 Where regulation 5.6(a)(ii) applies, the SRA must not remove your name from
the roll until it has given notice to you that it intends to do so.

5.8 The SRA shall remove your name from the roll on your death.

5.9 If your name has been removed from the roll, you may apply to the SRA for
your name to be restored to the roll and the SRA may, if it considers it
appropriate to do so in reaching a decision on an application made under this
regulation, assess your character and suitability to be a solicitor.

5.10 The SRA may decide not to remove your name from, or restore your name to,
the roll under this regulation if you are subject to any proceedings,
investigation, or consideration of your conduct or practice by the SRA. The
SRA must not remove your name from, or restore your name to, the roll if you
are the subject of disciplinary proceedings (either in progress or pending)
before the senior courts or the Tribunal.

PART 2 – PRACTISING CERTIFICATES FOR SOLICITORS AND

REGISTRATION AS A EUROPEAN OR FOREIGN LAWYER

Eligibility requirements

6.1 The SRA shall only grant an application for a practising certificate, or
registration in the register of European lawyers or the register of foreign
lawyers if you meet the eligibility requirements in this regulation.

6.2 You will be eligible to apply for a practising certificate if:

(a) your name is on the roll;

(b) you have sufficient knowledge of written and spoken English or

Welsh; and

(c) you are not suspended from practice as a solicitor.

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6.3 You will be eligible for registration in the register of European lawyers if:

(a) you are a European lawyer as defined in the European Communities

(Lawyer's Practice) Regulations 2000, who is not a barrister of the
Republic of Ireland;

(b) you intend to commence practice under your home professional title
on a permanent basis in England and Wales or Northern Ireland, and
are legally entitled to do so;

(c) you have provided the SRA with a certificate which is no more than
three months old, confirming your registration with the competent
authority in your home Member State under whose home professional
title you intend to practise;

(d) you are not struck off or suspended from the register, or subject to a
direction from the Tribunal prohibiting your restoration to the register;
and

(e) the SRA is satisfied as to your character and suitability to be

an REL.

6.4 You will be eligible for registration in the register of foreign lawyers if:

(a) you are a foreign lawyer of a legal profession which the SRA is
satisfied is so regulated as to make it appropriate for members of that
profession to be managers of recognised bodies;

(b) you are not struck off or suspended from the register, or subject to a
direction from the Tribunal prohibiting your restoration to the register;
and

(c) the SRA is satisfied as to your character and suitability to be

an RFL.

Determination of applications

7.1 If the SRA considers it to be in the public interest to do so, it must:

(a) refuse your application for a practising certificate, or your application

for registration or renewal of registration, in the register of European
lawyers or the register of foreign lawyers; or

(b) at any time, whether on grant of such an application or at the end of a

period of suspension of a practising certificate or registration, or
otherwise, impose such conditions on your certificate or registration as
it thinks fit in accordance with regulations 7.2 and 7.3.

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7.2 The SRA may impose conditions under regulation 7.1(b) if it is satisfied that
you:

(a) are unsuitable to undertake certain activities or engage in certain

business or practising arrangements;

(b) are putting, or are likely to put, at risk the interests of clients, third
parties or the public;

(c) will not comply with the SRA’s regulatory arrangements or require
monitoring of compliance with the SRA's regulatory arrangements;
or

(d) should take specified steps conducive to the regulatory objectives.

7.3 The conditions imposed by the SRA under regulation 7.1(b) may:

(a) specify certain requirements that must be met or steps that must be
taken;

(b) restrict the carrying on of particular activities or holding of particular

roles; or

(c) prohibit the taking of specified steps without its approval.

7.4 The SRA may vary or revoke any conditions on your practising certificate or
registration.

7.5 Before imposing or varying any conditions on your practising certificate or

registration, the SRA shall give you no less than 28 days' notice of its
intention to do so, inviting representations regarding the issues giving rise to
the proposed conditions.

7.6 The SRA may shorten or dispense with the 28 days’ notice under regulation
7.5 where conditions are imposed on grant of your practising certificate or
registration, or otherwise if it is satisfied that it is in the public interest to do so.

7.7 If the SRA issues you with a practising certificate or registers you, or renews
your registration, in the register of European lawyers or the register of
foreign lawyers, you must pay the prescribed fee.

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Commencement, replacement, and renewal

8.1 The commencement date for a practising certificate or for registration in the
register of European lawyers or register of foreign lawyers shall be the
date specified by the SRA on the practising certificate or the register.

8.2 The replacement date for a practising certificate is 31 October following the
issue of the certificate.

8.3 The renewal date for registration in the register of European lawyers or
register of foreign lawyers is the first 31 October following initial
registration, and 31 October in each successive year.

Revocation and expiry

8.4 The SRA may revoke a practising certificate, or withdraw registration in the
register of European lawyers or the register of foreign lawyers, at any
time, if the SRA is satisfied:

(a) that the practising certificate or registration was granted or renewed as

a result of error, misleading or inaccurate information, or fraud;

(b) that the replacement or renewal date has passed and an application
has not been made for replacement of the practising certificate or
renewal of the registration;

(c) that a solicitor, an REL or RFL has failed to pay the prescribed fee
required under regulation 7.7; or

(d) subject to regulation 8.7(c), in the case of an REL or RFL that the
eligibility requirements under regulations 6.3 and 6.4 are no longer
met.

8.5 The SRA must not revoke a practising certificate or withdraw registration
under regulation 8.4(a), (c) or (d) unless it has first given the person no less
than 28 days' notice of its intention to do so, inviting representations
regarding the issues giving rise to the proposed revocation or withdrawal of
registration.

8.6 The SRA shall revoke a practising certificate or withdraw registration on the
application of the person concerned, unless the applicant is subject to any
proceedings, investigation, or consideration of their conduct or practice by the
SRA or the Tribunal.

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8.7 A practising certificate or registration will expire:

(a) on the death of the solicitor, REL or RFL;

(b) if a solicitor, an REL or RFL is removed from, or struck off, the roll or
register or their registration is withdrawn;

(c) if an REL or RFL is no longer eligible for registration under 6.3(a) or

6.4(a) respectively;

(d) in the case of a practising certificate, when the SRA issues a

replacement certificate;

(e) in the case of a practising certificate which is suspended, on its

replacement date, or if the replacement date has passed, 14 days
after the suspension took effect; or

(f) in the case of a registration which is suspended, on its next renewal

date, or if a suspension takes effect after a renewal date but before
renewal has been granted in respect of that renewal date, 14 days
after the suspension took effect.

What authorisation entitles you to do

Reserved legal activities

9.1 Subject to regulations 9.2, 9.3, 9.5 to 9.10 and 10.2(b), if you are a solicitor
with a current practising certificate, or an REL, you are entitled to carry on all
reserved legal activities except notarial activities.

9.2 If you are an REL you may only exercise a right of audience before a court,
conduct litigation or prepare court documents, in conjunction with a solicitor
or barrister who is authorised to do so.

9.3 If you are an REL you may only:

(a) prepare instruments for remuneration creating or transferring an

interest in land, and lodge documents relating to a transfer or charge
of land, if you have a home professional title listed under Regulation
12 of the European Communities (Lawyer’s Practice) Regulations
2000;

(b) carry on probate activities for remuneration if you have a home

professional title listed under Regulation 13 of the European
Communities (Lawyer’s Practice) Regulations 2000.

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9.4 If you are an RFL you may only:

(a) undertake advocacy in chambers in England and Wales under

instructions given by a person who is authorised to do so;

(b) under the direction and supervision of a person qualified to supervise:

(i) prepare court documents;

(ii) prepare instruments and the lodging of documents relating to

the transfer or charge of land;

(iii) prepare papers on which to found or oppose a grant of

probate, or a grant of letters of administration;

(iv) prepare trust deeds disposing of capital if you also are eligible
to act as a lawyer of England and Wales;

(c) in relation to immigration work:

(i) undertake advocacy before immigration tribunals;

(ii) have conduct of, and prepare documents for, immigration

tribunal proceedings.

Immigration work

9.5 If you are a solicitor, an REL or RFL you may undertake immigration work,
provided that such work is undertaken through:

(a) an authorised body;

(b) an authorised non-SRA firm that is a qualified person under the

Immigration and Asylum Act 1999; or

(c) a body regulated by the Office of the Immigration Services

Commissioner.

9.6 Subject to regulation 9.7, if you are a solicitor, an REL or RFL you may only
undertake immigration work for the public, or a section of the public, that
comprises reserved legal activities if such work is undertaken through a
body that is entitled to carry on reserved legal activities under the LSA.

9.7 Regulations 9.5 and 9.6 do not restrict you from undertaking immigration
work if you fall within section 84(6) of the Immigration and Asylum Act 1999.

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Claims management services

9.8 If you are a solicitor, an REL or RFL you may provide claims management
services, provided that such work is undertaken through a body authorised to
carry on reserved legal activities, or, if the work does not comprise
reserved legal activities:

(a) through a body which is regulated by the Claims Management

Regulator or which is exempt under the Compensation Act 2006 other
than under paragraph 4 of the Compensation (Exemptions) Order
2007; or

(b) as otherwise permitted under section 4 of the Compensation Act 2006.

Financial services activities

9.9 If you are a solicitor, an REL or RFL you may carry on regulated financial
services activities under the SRA Financial Services (Scope) Rules,
provided that such activities are undertaken through an authorised body.

Higher rights of audience

9.10 If you are a solicitor or an REL you may exercise civil or criminal advocacy in
the higher courts if the SRA is satisfied you have successfully and
satisfactorily completed the appropriate higher courts advocacy
qualification, or you are:

(a) an REL or lawyer to whom Directive 2005/36 applies and you have
applied for a qualification to exercise rights of audience in the higher
courts, and you have undertaken any further steps as the SRA
specifies in order to gain the qualification; or

(b) authorised by another approved regulator to exercise civil or criminal

advocacy in the higher courts.

Practising on your own

10.1 Subject to regulation 10.2, if you are a solicitor or an REL you must not act
as a sole practitioner unless your practice is authorised as a recognised
sole practice.

10.2 If you otherwise would be, you will not be regarded as acting as a sole
practitioner and you will not therefore need to be authorised as a
recognised sole practice if:

(a) your practice consists entirely of carrying on activities which are not
reserved legal activities; or

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 (b) any reserved legal activities you carry on are provided through an
authorised body or an authorised non-SRA firm, or in
circumstances in which you:

(i) have practised as a solicitor or an REL for a minimum of

three years since admission or registration;

(ii) are self-employed and practise in your own name, and not
through a trading name or service company;

(iii) do not employ anyone in connection with the services that

you provide;

(iv) are engaged directly by the client with your fees payable
directly to you;

(v) have a practising address in the UK;

(vi) take out and maintain indemnity insurance that provides

adequate and appropriate cover in respect of the services
that you provide, whether or not they comprise reserved
legal activities; and

(vii) do not hold client money, save that you may hold money
which falls within the category of client money set out in rule
2.1(d) of the SRA Accounts Rules so long as:

(A) any money held for disbursements relates to costs or

expenses incurred by you on behalf of your client and
for which you are liable; and

(B) you have informed your client in advance of where and

how the money will be held,

and you choose for your practice not to be authorised as a recognised sole
practice.

Commencement, revocation, and transitional provisions

11.1 Regulations 1.1 to 3.3 come into force on a date to be determined in an order
made by the SRA Board.

11.2 Subject to regulations 11.3 to 11.7, regulations 3A.1 to 3F.4 shall be revoked
on the date determined in accordance with regulation 11.1.

11.3 Regulations 3A.1 to 3E.2 shall continue to have effect, in respect of those
individuals falling within regulation 11.5, and for the purposes of regulation

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 11.6, until 31 December in the year of the eleventh anniversary of the date
determined in accordance with regulation 11.1.

11.4 Regulation 3F shall continue to have effect, in respect of those individuals

who have passed the multiple-choice test of the Qualified Lawyers Transfer
Scheme assessments at the date determined in accordance with regulation
11.1, until the first anniversary of that date.

11.5 Regulation 11.3 applies to any individual who has, at the date determined in
accordance with regulation 11.1, started, or who has entered into a
contractual agreement or made a non-refundable financial commitment to
start, any of the following:

(a) a Qualifying Law Degree;

(b) a CPE;

(c) an Exempting Law Degree;

(d) an Integrated Course;

(e) the Legal Practice Course; or

(f) a period of recognised training,

and has not yet been admitted as a solicitor.

11.6 An individual who falls within regulation 11.5 will be eligible to be admitted as
a solicitor under either regulations 3A.1 to 3E.2, or under regulations 1.1 to
3.3.

11.7 Where an individual has made an application for admission on the basis of
eligibility under either regulation 3A or regulation 3F, and it has not been
determined at the point those regulations are revoked (and any continuation
under regulation 11.3 has come to an end), then the application shall continue
to be determined under those regulations as if they were still in force.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 2, 13, 28 and 31 of the Solicitors Act 1974, section 9 of the
Administration of Justice Act 1985, and section 89 of, and paragraphs 2 and 3 of
Schedule 14 to, the Courts and Legal Services Act 1990.

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SRA Education, Training and Assessment Provider Regulations

Introduction

These regulations set out the requirements governing organisations which are providing or
intending to provide education and training, and the delivery of assessments to those
seeking to be admitted as solicitors.

PART 1: REQUIREMENTS FOR EDUCATION PROVIDERS

Education providers

1.1 Only an approved education provider may provide and assess:

(a) a Qualifying Law Degree;

(b) a CPE;

(c) an Exempting Law Degree; or

(d) an Integrated Course.

1.2 Only an authorised education provider may provide and assess the Legal
Practice Course or the Professional Skills Course.

1.3 An organisation may apply to the SRA in such manner as may be prescribed to be
an approved education provider or an authorised education provider.

1.4 The SRA may, in relation to an application for approval or authorisation:

(a) grant the application, subject to such conditions and for such period as it
considers appropriate; or

(b) refuse the application.

1.5 If the SRA considers that an approved education provider or an authorised

education provider has failed to comply with any obligation placed on it under these
regulations, the SRA may:

(a) revoke the organisation’s approval or authorisation, as appropriate; or

(b) make the approval or authorisation subject to such conditions as it considers

appropriate.

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PART 2: REQUIREMENTS FOR AUTHORISED TRAINING PROVIDERS

Authorised training providers

2.1 Only an authorised training provider may provide a period of recognised training
to trainees.

2.2 An organisation may apply for authorisation as an authorised training provider and
its application must demonstrate that it will meet the requirements of regulations 3 to
5 below.

2.3 The SRA may, in relation to an application for approval or authorisation:

(a) grant the application, subject to such conditions and for such period as it
considers appropriate; or

(b) refuse the application.

2.4 If the SRA considers that an authorised training provider or a training principal
has failed to comply with any obligation placed on it under these regulations, the
SRA may:

(a) revoke the organisation’s authorisation;

(b) make the authorisation subject to such conditions as it considers appropriate;

or

(c) require the authorised training provider to appoint a new training

principal.

Requirements for authorised training providers

3.1 An authorised training provider must:

(a) have in place a training principal for the whole duration of any period of
recognised training, who meets the requirements of regulation 5 and whose
identity has been notified to the SRA in the prescribed form; and

(b) pay the fees and expenses for each trainee's first attempt at the Professional
Skills Course.

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Requirements for recognised training

4.1 A period of recognised training must:

(a) unless regulation 4.2 applies, be of a duration of a total of at least two years
full time, or equivalent;

(b) ensure that the trainee has applied and developed the skills as set out in the
Practice Skills Standards;

(c) be appropriately supervised by solicitors and other individuals who

have adequate legal knowledge and experience in the practice area they are
supervising and the necessary skills to provide effective supervision; and

(d) include regular appraisal of the trainee's performance and development, and
review of the trainee's record of training.

4.2 An authorised training provider may recognise previous work-based experience

the trainee has undertaken as satisfying up to six months of the required period of
recognised training, provided:

(a) the experience was gained in the three years preceding the commencement
of the period of recognised training;

(b) the experience enabled the trainee to apply and develop one or more of the
skills as set out in the Practice Skills Standards; and

(c) the trainee was supervised, and was subject to an appraisal of their
performance and development, during the period of work-based experience.

Training principals

5.1 The training principal for an authorised training provider must:

(a) be a solicitor holding a current practising certificate or be a practising

barrister;

(b) notify the SRA in the prescribed form before any individual commences a
period of recognised training or if this is not possible then as soon as
practicable thereafter;

(c) ensure that the training provided meets the requirements of regulation 4;

(d) ensure that the trainee maintains a record of training which will meet the
requirements set out at regulation 3E.1 of the SRA Authorisation of
Individuals Regulations; and

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 (e) certify to the authorised training provider in the prescribed form at the end
of any period of recognised training whether, in their opinion, the trainee:

(i) is of the proper character and suitability to be admitted as a

solicitor; and

(ii) has completed training which complies with regulation 4 of these

regulations,

and inform the SRA of any previous experience recognised under regulation
4.2.

PART 3: REQUIREMENTS FOR HIGHER RIGHTS OF AUDIENCE ASSESSMENT

PROVIDERS

Higher rights of audience assessment providers

6.1 Only an organisation approved by the SRA may provide assessments in higher
courts civil advocacy and higher courts criminal advocacy conferring a higher
courts advocacy qualification.

6.2 An organisation may apply to the SRA in such manner as may be prescribed to be
approved to provide such assessments.

6.3 The SRA may, in relation to an application for approval:

(a) grant the application, subject to such conditions as it considers appropriate; or

(b) refuse the application.

6.4 The SRA shall issue guidelines and standards for the provision of competence
assessments against which the competence of those applying for a higher court
advocacy qualification must be assessed.

6.5 If the SRA considers that an assessment provider has failed to comply with any
obligation placed on it under these regulations, the SRA may:

(a) revoke the provider’s approval; or

(b) make the approval subject to such conditions and for such period as it
considers appropriate.

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PART 4: MONITORING AND INSPECTION

Monitoring and inspection

7.1 In order to protect and promote the standards of legal education and training, the
SRA may:

(a) monitor the relevant programmes of study provided by an approved

education provider and an authorised education provider, the training
provided by an authorised training provider or the assessments provided
by an assessment provider approved under regulation 6;

(b) visit the provider's premises, at such intervals and on such grounds as it may
consider appropriate;

(c) require the provider to respond promptly, fully and accurately to any request
by the SRA for explanations, information or documents;

(d) require the provider to ensure that relevant information or documents it holds,
or that a third party holds on its behalf are available for inspection.

PART 5: TRANSITIONAL PROVISIONS

Transitional provisions

8.1 Any approval, authorisation or recognition granted under the Monitoring of Courses
Regulations 1991, the SRA Training Regulations 2011, the SRA Higher Rights of
Audience Regulations 2011 or the SRA Training Regulations 2014 - Qualification and
Provider Regulations, will continue as if granted under these regulations.

8.2 A period of recognised training entered into before these regulations come into
force will continue to be governed by the SRA Training Regulations 2014 -
Qualification and Provider Regulations.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under section 2 of the Solicitors Act 1974.

5
SRA Financial Services (Conduct of Business) Rules

Introduction

The SRA, through the Law Society, is a designated professional body under Part 20 of
FSMA. This means that firms (including sole practices) authorised by us may carry on
certain regulated financial services activities without being regulated by the FCA if they can
meet the conditions in section 327 of FSMA.

The SRA Financial Services (Scope) Rules set out the scope of the regulated financial
services activities that may be undertaken by firms authorised by us and not regulated by the
FCA. These rules regulate the way in which firms carry on such exempt regulated financial
services activities and the way in which firms that are dually regulated by us and the FCA
carry on their non-mainstream regulated activities.

These rules do not apply to solicitors, RELs and RFLs practising outside firms that are
authorised by us.

PART 1: APPLICATION

Application

1.1 Apart from rule 2 (Status Disclosure), these rules apply to:

(a) authorised bodies which are not regulated by the FCA;

(b) authorised bodies which are regulated by the FCA, but only in respect of
their non-mainstream regulated activities; and

(c) the managers and employees of authorised bodies in (a) and (b) above,

and references to "you" in these rules should be read accordingly.

1.2 Where an authorised body is a licensed body, these rules apply only in relation to
the activities regulated by the SRA in accordance with the terms of the body’s
licence.

1.3 Rule 2 applies only to authorised bodies which are not regulated by the FCA.

PART 2: RULES

Status disclosure

2.1 Notwithstanding the wider information obligations in the SRA Codes of Conduct,
you must give the client the following information in writing in a manner that is clear,
fair and not misleading before providing a service which includes the carrying on of a
regulated financial services activity and in good time before the conclusion of a
contract of insurance:

1
 (a) a statement that you are not authorised by the FCA;

(b) your name and practising address;

(c) the nature of the regulated financial services activities carried on by you,
and the fact that they are limited in scope;

(d) a statement that you are authorised and regulated by the SRA; and

(e) a statement explaining that complaints and redress mechanisms are provided
through the SRA and the Legal Ombudsman.

2.2 Before you provide a service, which includes the carrying on of an insurance
distribution activity with or for a client and in good time before the conclusion of a
contract of insurance, you must state that you are an ancillary insurance
intermediary and make the following statement in writing to the client in a way that
is clear, fair and not misleading:

"[This firm is]/[We are] not authorised by the Financial Conduct Authority. However,
we are included on the register maintained by the Financial Conduct Authority so that
we can carry on insurance distribution activity, which is broadly the advising on,
selling and administration of insurance contracts. This part of our business, including
arrangements for complaints or redress if something goes wrong, is regulated by the
Solicitors Regulation Authority. The register can be accessed via the Financial
Conduct Authority website at www.fca.org.uk/firms/financial-services-register."

Execution of transactions

3.1 You must ensure that where you have agreed or decided in your discretion to effect a
transaction, you must do so as soon as possible, unless you reasonably believe that
it is in the client's best interests not to.

Records of transactions

4.1 Where you receive instructions from a client to effect a transaction, or make a
decision to effect a transaction in your discretion, you must keep a record of:

(a) the name of the client;

(b) the terms of the instructions or decision; and

(c) in the case of instructions, the date on which they were received.

4.2 Where you give instructions to another person to effect a transaction, you must
keep a record of:

(a) the name of the client;

(b) the terms of the instructions;

2
 (c) the date on which the instructions were given; and

(d) the name of the other person instructed.

Record of commissions

5.1 Where you receive commission which is attributable to your regulated financial
services activities, you must keep a record of:

(a) the amount of the commission; and

(b) how you have accounted to the client.

Safekeeping of clients' investments

6.1 Where you undertake the regulated financial services activity of safeguarding and
administering investments, you must operate appropriate systems, including the
keeping of appropriate records, which provide for the safekeeping of assets
entrusted to you by clients and others.

6.2 Where such assets are passed to a third party:

(a) you should obtain an acknowledgement of receipt of the property; and

(b) if they have been passed to a third party on the client's instructions, you
should obtain such instructions in writing.

Execution-only business

7.1 If you arrange for a client on an execution-only basis any transaction involving a
retail investment product, you must send the client written confirmation to the
effect that:

(a) the client had not sought and was not given any advice from you in
connection with the transaction; or

(b) the client was given advice from you in connection with that transaction but
nevertheless persisted in wishing the transaction to be effected,

and in either case the transaction is effected on the client's explicit instructions.

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Retention of records

8.1 Each record which is made under these rules shall be kept for at least six years from
the date it is made.

PART 3: INSURANCE DISTRIBUTION ACTIVITIES

Communication and disclosure

9.1 You must ensure that, in relation to insurance distribution:

(a) you communicate all information, including marketing communications, in a

way that is clear, fair and not misleading.

(b) your marketing communications are always clearly identifiable as such.

General information to be provided

10.1 In good time before the conclusion of a contract of insurance, you must disclose the
following information to clients:

(a) whether you provide a personal recommendation about the insurance

products offered;

(b) the procedures allowing clients and other interested parties to register
complaints about you and information about the out-of-court complaint and
redress procedures available for the settlement of disputes between you and
your clients;

(c) whether you are representing the client or acting for and on behalf of the
insurer;

(d) whether you have a direct or indirect holding representing 10% or more of the
voting rights or capital in a relevant insurance undertaking;

(e) whether a given insurance undertaking or its parent undertaking has a

direct or indirect holding representing 10% or more of the voting rights or
capital in the authorised body.

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Scope of service

11.1 Where you propose, or give a client a personal recommendation for, a contract of
insurance, then in good time before the conclusion of an initial contract of
insurance and if necessary on its amendment or renewal, you must provide the
client with information on whether you:

(a) give a personal recommendation on the basis of a fair and personal

analysis;

(b) are under a contractual obligation to conduct insurance distribution

exclusively with one or more insurance undertakings, in which case you
must provide the names of those insurance undertakings; or
(c) are not under a contractual obligation to conduct insurance distribution
exclusively with one or more insurance undertakings and do not give advice
on the basis of a fair and personal analysis, in which case you must provide
the names of the insurance undertakings with which you may and do
conduct business.

11.2 If you inform a client that you give a personal recommendation on the basis of a
fair and personal analysis:

(a) you must give that personal recommendation on the basis of an analysis of a
sufficiently large number of insurance contracts available on the market to
enable it to make that recommendation; and

(b) that personal recommendation must be in accordance with professional

criteria regarding which contract of insurance would be adequate to meet the
client’s needs.

Demands and needs

12.1 Prior to the conclusion of a contract of insurance, you must specify on the basis of
information obtained from the client, the demands and needs of that client.

12.2 The details must be adapted according to the complexity of the contract of insurance
proposed and the individual circumstances of the client.

12.3 You must give the client a statement of the client’s demands and needs prior to the
conclusion of a contract of insurance.

12.4 Any contract of insurance proposed by you must be consistent with the client's
demands and needs and where you have given a personal recommendation to the
client, you must, in addition to the statement of the demands and needs, provide the
client with a personalised explanation of why a particular contract of insurance
would best meet the client’s demands and needs.

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Use of intermediaries

13.1 You must not use, or propose to use, the services of another person consisting of:

(a) insurance distribution;

(b) reinsurance distribution;

(c) insurance distribution activity; or

(d) home finance mediation activity,

unless the person in relation to the activity is:

(i) registered in an EEA State for the purposes of the IDD; or

(ii) in relation to insurance distribution activity, is not carrying this activity

on in the EEA.

13.2 Before using the services of the intermediary, you must check:

(a) the Financial Services Register; or

(b) in relation to insurance distribution or reinsurance distribution carried on

by an EEA firm, the register of its home state regulator,

and use the services of that person only if the relevant register indicates that the
person is registered for that purpose.

Treating complaints fairly

14.1 Notwithstanding your complaints handling obligations in the SRA Code of Conduct
for Firms, you must have in place and operate appropriate and effective procedures
for registering and responding to complaints from a person who is not a client.

Remuneration and the client's best interests

15.1 You must not:

(a) be remunerated; or

(b) remunerate or assess the performance of the firm’s employees,

in a way that conflicts with their duty to act in each client's best interest.

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15.2 In particular, you must not make any arrangement by way of remuneration, sales
target or otherwise that could provide an incentive to the firm or its employees to
recommend a particular contract of insurance to a client when it could offer a
different contract of insurance which would better meet its client's needs.

Remuneration disclosure

16.1 In good time before the conclusion of the initial contract of insurance and if
necessary, on its amendment or renewal, you must provide the client with information:

(a) on the nature of the remuneration received in relation to the contract of

insurance;

(b) about whether in relation to the contract you work on the basis of:

(i) a fee, that is remuneration paid directly by the client;

(ii) a commission of any kind, that is remuneration included in the

premium;

(iii) any other type of remuneration, including an economic benefit of any

kind offered or given in connection with the contract; or

(iv) a combination of any type of remuneration set out above in (i), (ii) and
(iii).

Fee disclosure: additional requirements

17.1 Where a fee is payable, you must inform the client of the amount of the fee before the
client incurs liability to pay the fee, or before conclusion of the contract of insurance,
whichever is earlier.

17.2 To the extent that it is not possible for the amount in rule 17.1 to be given, you must
give the client the basis for its calculation.

17.3 This rule applies to all such fees that may be charged during the life of the policy.

Means of communication to clients

18.1 Rule 18 applies to all information required to be provided to a client in this Part.

18.2 You must communicate information to the client on paper or using any of the
following means:

(a) a durable medium other than paper where the following conditions are
satisfied:

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 (i) the use of a durable medium other than paper is appropriate in the
context of the business conducted between the firm and the client;
and

(ii) the client has been given the choice between information on paper
and on a durable medium other than paper and has chosen a
durable medium other than paper; or

(b) on a website (where it does not constitute a durable medium) where the
following conditions are satisfied:

(i) the provision of that information by means of a website is appropriate

in the context of the business conducted between you and the client;
(ii) the client has consented to the provision of that information by means
of a website;

(iii) the client has been notified electronically of the address of the
website, and the place on the website where that information can be
accessed; and

(iv) you ensure that the information remains accessible on the website for
such period of time as the client may reasonably need to consult it.

18.3 For the purposes of rules 18.2(a)(i) and (b)(i), the provision of information using a
durable medium other than paper or by means of a website shall be regarded as
appropriate in the context of the business conducted between you and the client if
there is evidence that the client has regular access to the internet. The provision by
the client of an e-mail address for the purposes of that business is sufficient
evidence.

18.4 You must communicate the information:

(a) in a clear and accurate manner, comprehensible to the client;

(b) in an official language of the Member State in which the insured risk, or
proposed insured risk, is situated or in any other language agreed upon by the
parties; and

(c) free of charge.

18.5 Where you communicate the information using a durable medium other than paper
or by means of a website, you must, upon request and free of charge, send the client
a paper copy of the information.

18.6 You must ensure that a client's choice or consent to receive the information by means
of a website (whether a durable medium or where the conditions under rule 18.2(b)
are satisfied) is an active and informed choice or consent.

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18.7 In the case of services supplied to the client by telephone that are subject to the
Financial Services (Distance Marketing) Regulations 2004:

(a) the information must be given in accordance with those regulations; and

(b) if prior to the conclusion of the contract of insurance the information is

provided:

(i) orally; or

(ii) on a durable medium other than paper,

you must also provide the information to the client in accordance with rule 18.2
immediately after the conclusion of the contract of insurance.

Cross-selling requirements where insurance is the ancillary product

19.1 When you offer a non-insurance ancillary product or service as part of a package or
in the same agreement with an insurance product, you must:

(a) inform the client whether it is possible to buy the components separately and,
if so must provide the client with an adequate description of:

(i) the different components;

(ii) where applicable, any way in which the risk or insurance coverage
resulting from the agreement or package differs from that associated
with taking the components separately; and

(b) provide the client with separate evidence of the charges and costs of each
component.

19.2 When you offer an insurance product ancillary to and as part of a package or in the
same agreement with a non-insurance product or service, you must offer the client
the option of buying the non-insurance goods or services separately.

19.3 Rule 19.2 does not apply where the non-insurance product or service is any of the
following:

(a) investment service or activities;

(b) a credit agreement as defined in point 3 of article 4 of the MCD which is:

(i) an MCD credit agreement;

(ii) an exempt MCD credit agreement;

(iii) a CBTL credit agreement; or

9
 (iv) a credit agreement referred to in articles 72G(3B) and (4) of the
Regulated Activities Order; or

(c) a payment account as defined in point 3 of Article 2 of Directive 2014/92/EU.

19.4 Rule 19 shall not prevent the distribution of insurance products which provide
coverage for various types of risks (multi-risk insurance policies).

19.5 In the cases referred to in rules 19.1 and 19.2, you must still comply with other
provisions in this Part relating to the offer and sale of insurance products that form
part of the package or agreement, including specifying the demands and needs of
the client in accordance with rule 12.

Professional and organisational requirements

20.1 You must ensure that:

(a) the firm and each relevant employee possesses appropriate knowledge and
ability in order to complete their tasks and perform duties adequately; and

(b) that all the persons in its management structure and any staff directly involved
in insurance distribution activities are of good repute.

20.2 In considering a person's good repute, you must as a minimum ensure that the
person:

(a) has a clean criminal record or any other national equivalent in relation to
serious criminal offences linked to crimes against property or other crimes
related to financial activities; and

(b) has not previously been declared bankrupt,

unless they have been rehabilitated in accordance with national law.

Insurance Product Information Document and appropriate information

21.1 You must ensure that the client is given objective and relevant information about a
policy in good time prior to the conclusion of the policy, so that the client can make
an informed decision.

21.2 You must provide the information in rule 21.1 to the client:

(a) whether or not you give a personal recommendation; and

(b) irrespective of the fact that the policy is offered as part of a package with:

10
 (i) a non-insurance product or service; or

(ii) another policy.

21.3 You must ensure that the level of information provided takes into account the
complexity of the policy and the individual circumstances of the client.

21.4 When dealing with a client who is an individual and who is acting for purposes which
are outside his trade or profession the information provided under rule 21.1 must
include an Insurance Product Information Document.

21.5 You must provide the information required in rule 21.4 by way of an Insurance
Product Information Document for each policy (other than a pure protection
contract).

21.6 Where you distribute contracts of insurance, you must have in place adequate
arrangements to:

(a) obtain from the manufacturer of the contract of insurance:

(i) all appropriate information on the contract of insurance and the

product approval process; and

(ii) the identified target market of the contract of insurance; and

(b) understand the characteristics and the identified target market of each
contract of insurance.

Exclusions for large risks

22.1 Only rules 9, 13, 14, 18, 19, 20 and 22 apply where you carry on insurance
distribution activities for commercial clients in relation to contracts of insurance
covering risks within the following categories:

(a) railway rolling stock, aircraft, ships (sea, lake, river and canal vessels), goods
in transit, aircraft liability and liability of ships (sea, lake, river and canal
vessels);

(b) credit and suretyship, where the policyholder is engaged professionally in an

industrial or commercial activity or in one of the liberal professions, and the
risks relate to such activity;

(c) land vehicles (other than railway rolling stock), fire and natural forces, other
damage to property, motor vehicle liability, general liability, and miscellaneous
financial loss, in so far as the policyholder exceeds the limits of at least two of
the following three criteria:

(i) balance sheet total: €6.2 million;

11
 (ii) net turnover: €12.8 million;

(iii) average number of employees during the financial year: 250.

PART 4: CREDIT–RELATED REGULATED FINANCIAL SERVICES ACTIVITIES

Disclosure of information

23.1 Where you undertake credit-related regulated financial services activities for a
client, you must ensure that information in connection with such activities and any
agreements to which they relate are communicated to the client in a way that is
clear, fair and not misleading.

23.2 Where you carry on the activity of credit broking, you must indicate in any
advertising and documentation intended for consumers or clients the extent and
scope of your credit broking activities, in particular whether you work exclusively
with one or more lenders or as an independent broker.

Regulated credit agreements

24.1 Where you carry on a credit-related regulated financial services activity involving
a proposed regulated credit agreement, you must:

(a) provide adequate explanations to the client in order to enable the client to
assess whether the proposed regulated credit agreement is suitable to the
client's needs and financial situation; and

(b) when providing such explanations, comply with the requirements of Article
5(6) of the Directive 2008/48/EC on credit agreements for consumers.

24.2 Before entering into a regulated credit agreement as lender, you must assess the
client's creditworthiness on the basis of sufficient information to enable you to make
the assessment, where appropriate such information will be obtained from the client
and, where necessary, from a credit reference agency.

24.3 After entering into a regulated credit agreement where you are the lender, if the
parties agree to change the total amount of credit, you must update the financial
information you hold concerning the client and assess the client's creditworthiness
before any significant increase in the total amount of credit.

24.4 In the event of you assigning to a third party your rights as lender in relation to a
regulated credit agreement, you must inform the client of the assignment.

12
Appropriation of payments

25.1 Where you are entitled to payments from the same client in respect of two or more
regulated credit agreements, you must allow the client to put any payments made,
in respect of those agreements, towards the satisfaction of the sum due under any
one or more of the agreements in such proportions as the client thinks fit.

Consumer credit guidance

26.1 Where you undertake credit-related regulated financial services activities, you
must have regard to any guidance issued by the SRA from time to time relating to
such activities.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under section 31 of the Solicitors Act 1974, section 9 of the Administration of Justice
Act 1985, section 83 of the Legal Services Act 2007 and section 332 of the Financial
Services and Markets Act 2000.

13
SRA Financial Services (Scope) Rules

Introduction

The SRA, through the Law Society, is a designated professional body under Part 20 of FSMA.
This means that firms (including sole practices) authorised by us may carry on certain
regulated financial services activities without being regulated by the FCA if they can meet the
conditions in section 327 of FSMA. The purpose of these rules is to set out the scope of the
regulated financial services activities that may be undertaken by firms authorised by us and
not regulated by the FCA.

These rules do not apply to solicitors, RELs or RFLs practising outside firms authorised by us.

Application

1.1 These rules apply to authorised bodies that are not regulated by the FCA, their
managers and employees and references to “you” in these rules should be read
accordingly.

1.2 Where an authorised body is a licensed body, these rules apply only in relation to
the activities regulated by the SRA in accordance with the terms of the body’s
licence.

Basic conditions

2.1 If you carry on any regulated financial services activities you must ensure that:

(a) you satisfy the conditions in section 327(2) to (5) of FSMA;

(b) the activities arise out of, or are complementary to, the provision of a
particular professional service to a particular client;

(c) there is not in force any order or direction of the FCA under sections 328 or
329 of FSMA which prevents you from carrying on the activities; and

(d) the activities are not otherwise prohibited by these rules.

Prohibited activities

3.1 You must not carry on, or agree to carry on, any of the following activities:

(a) an activity that is specified in an order made under section 327(6) of FSMA;

(b) an activity that relates to an investment that is specified in an order made

under section 327(6) of FSMA;

1
 (c) entering into a regulated credit agreement as lender except where the
regulated credit agreement relates exclusively to the payment of
disbursements or professional fees due to you;

(d) exercising, or having the right to exercise, the lender’s rights and duties under
a regulated credit agreement except where the regulated credit
agreement relates exclusively to the payment of disbursements or
professional fees due to you;

(e) entering into a regulated consumer hire agreement as owner;

(f) exercising, or having the right to exercise, the owner’s rights and duties under
a regulated consumer hire agreement;

(g) operating an electronic system in relation to lending within the meaning of

article 36H of the Regulated Activities Order;

(h) providing credit references within the meaning of article 89B of the Regulated
Activities Order;

(i) insurance distribution activities in relation to insurance-based

investment products; or

(j) creating, developing, designing or underwriting a contract of insurance.

Corporate finance

4.1 You must not act as any of the following:

(a) sponsor to an issue in respect of securities to be admitted for dealing on the

London Stock Exchange;

(b) nominated adviser to an issue in respect of securities to be admitted for

dealing on the Alternative Investment Market of the London Stock Exchange;
or

(c) corporate adviser to an issue in respect of securities to be admitted for

dealing on the ICAP Securities and Derivatives Exchange or any similar
exchange.

Insurance distribution activities

5.1 You may only carry on insurance distribution activities as an ancillary insurance
intermediary.

5.2 You must not carry on any insurance distribution activities unless you:

(a) are registered in the Financial Services Register; and

(b) have appointed an insurance distribution officer who will be responsible for
your insurance distribution activities.

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5.3 If you are carrying on, or proposing to carry on, insurance distribution activities
you must notify the SRA in the prescribed form.

5.4 The SRA may give the FCA any of the information collected on the prescribed form
and you must notify the SRA without undue delay of any changes to this information
or to any information about you that appears on the Financial Services Register.

5.5 Rule 5.3 does not apply to you if you have been registered in the Financial
Services Register and are able to carry on insurance mediation activities before 1
October 2018.

Credit-related regulated financial services activities

6.1 You must not enter into any transaction with a client in which you:

(a) provide the client with credit card cheques, a credit or store card, credit
tokens, running account credit, a current account or high-cost short-term
credit;

(b) hold a continuous payment authority over the client’s account; or

(c) take any article from the client in pledge or pawn as security for the
transaction.

6.2 You must not:

(a) enter into a regulated credit agreement as lender; or

(b) exercise, or have the right to exercise, the lender's rights and duties under a
regulated credit agreement,

which is secured on land by a legal or equitable mortgage.

6.3 You must not:

(a) enter into a regulated credit agreement as lender; or

(b) exercise, or have the right to exercise, the lender's rights and duties under a
regulated credit agreement,

which includes a variable rate of interest.

6.4 You must not provide a debt management plan to a client.

6.5 You must not charge a separate fee for, or attribute any element of your fees to,
credit broking services.

3
Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 31 of the Solicitors Act 1974, section 9 of the Administration of Justice
Act 1985, section 83 of the Legal Services Act 2007 and section 332 of the Financial
Services and Markets Act 2000.

4
SRA Overseas and Cross-border Practice Rules
Introduction

Part A of these rules sets out provisions for those who have established to provide legal
services outside of England and Wales, for example as an overseas representative, or a
branch office or subsidiary of an authorised firm. The rules set out in Part A are a modified
version of the SRA Principles, together with key standards relating to client money and
assets, and information and reporting requirements.

Authorised firms are required to ensure that those overseas practices for which they are
responsible, and those who manage and own those overseas practices, meet the principles
and standards set out in Part A of these rules. Regulated individuals who are established
overseas must also meet the principles and standards set out in Part A of these rules, in
place of the SRA Principles and Code of Conduct for Individuals. These rules do not apply to
those who are providing services on a temporary basis from outside the jurisdiction; instead,
the SRA Principles and Code of Conduct for Individuals will apply to them.

This reflects the fact that detailed regulatory requirements are less appropriate in a situation
where the services are being provided from outside the jurisdiction, and where there will be
different legal, regulatory and cultural practices. However, authorised firms will themselves
be required to meet the full requirements of our regulatory arrangements and individuals
established overseas will need to meet those requirements of our other rules and regulations
which apply to them as solicitors or RELs (for example in respect of their character and
suitability, and authorisation requirements).

The Cross-border Practice Rules set out in Part B of these rules apply to those who are
engaged in professional activities in another State that is a member of the Council of the
Bars and Law Societies of Europe (CCBE) and those who are in professional contact with a
lawyer of another CCBE State whether or not they are physically present in that State.

PART A: OVERSEAS RULES

Application

1.1 The Overseas Rules apply to you:

(a) as a regulated individual who is practising overseas, in place of the SRA

Principles and the SRA Code of Conduct for Individuals; or

(b) as a responsible authorised body in that you must ensure that your
overseas practice and the individual managers, members and owners
that are involved in the day to day or strategic management of your
overseas practice, comply with the Overseas Rules. Your overseas
practice and these individual managers, and members and owners of
your overseas practice are together referred to as those “for whom you are
responsible” for the purposes of these rules.

1
1.2 In the event of any conflict between the Overseas Rules and any requirements
placed on you or on those for whom you are responsible by local law or regulation,
then local law or regulation must prevail, with the exception of Overseas Principle 2
which must be observed at all times.

1.3 Notwithstanding rule 1.1, the SRA Principles and the SRA Code of Conduct for
Individuals will apply instead of the Overseas Rules if you are a solicitor or an
REL, and your practice predominantly comprises the provision of legal services to
clients within England and Wales, or in relation to assets located in England and
Wales.

Overseas Principles

2.1 You act:

1. in a way that upholds the rule of the law and the proper administration of
justice in England and Wales.

2. in a way that upholds public interest and confidence in the solicitors’

profession of England and Wales and in legal services provided by authorised
persons.

3. with independence.

4. with honesty.

5. with integrity.

6. in a way that encourages equality, diversity and inclusion having regard to the
legal, regulatory and cultural context in which you are practising overseas.

7. in the best interests of each client.

Dealings with client money

3.1 In all dealings you have with client money (overseas) you must:

(a) safeguard client money and assets entrusted to you;

(b) keep client money (overseas), separate from money which belongs to you;

(c) on receipt, pay client money (overseas) promptly into, and hold it in, an
overseas client account, unless:

(i) to do so would conflict with your obligations under local law or

regulation or with any obligation relating to any specified office or
appointment you hold; or

(ii) you agree in the individual circumstances an alternative arrangement

in writing with your client or the third party for whom the money is
held;

(d) only withdraw client money (overseas) from an overseas client account:

2
 (i) for the purposes for which it is being held; or

(ii) following receipt of instructions from the client, or the third party for
whom the money is held.

(e) return client money (overseas) promptly to the client or third party for whom
money is held as soon as there is no longer any proper reason to retain those
funds;

(f) have effective accounting systems and proper controls over those systems in
order to ensure compliance with these rules;

(g) keep and maintain for at least six years accurate, contemporaneous and
chronological accounting records in order to provide details of all money
received and paid from all overseas client accounts and to show a running
balance of all client money (overseas) held in those accounts; and

(h) account to clients or third parties for a fair sum of interest on any client
money (overseas) held by you on their behalf, as required by local law and
customs of the jurisdiction in which you are practising and otherwise when it is
fair and reasonable to do so in all circumstances. You may by a written
agreement come to a different arrangement with the client or the third party
for whom the money is held as to the payment of interest, but you must
provide sufficient information to enable them to give informed consent.

Reporting, cooperation and accountability

4.1 You must cooperate with the SRA, other regulators, ombudsmen and those bodies in
England and Wales, with a role overseeing and supervising the delivery of, or
investigating in relation to, legal services.

4.2 You must monitor compliance with these rules, and report any serious breach to the
SRA when this occurs, or as soon as reasonably practicable thereafter.

4.3 You must notify the SRA promptly if:

(a) you become aware that you or anyone for whom you are responsible is
convicted by any court of a criminal offence or becomes subject to
disciplinary action by another regulator; or

(b) you have grounds to believe that you or anyone for whom you are responsible
is in serious financial difficulty.

4.4 You must respond promptly to the SRA and:

(a) provide full and accurate explanations, information and documentation in

response to any requests or requirement; and

(b) ensure that relevant information which is held by you, or by third parties
carrying out functions on your behalf which are critical to the delivery of your
legal services, is available for inspection by the SRA.

3
4.5 If you are a responsible authorised body, the SRA may, on reasonable notice,
require you to obtain an accountant's report in respect of your overseas practice.
The report must:

(a) confirm whether the report should be qualified on the basis of a failure to
comply with these rules, such that money belonging to clients or third parties
is, or has been, or is likely to be placed, at risk; and

(b) be signed by a qualified accountant approved by the SRA.

4.6 Any obligation under this section to notify or provide information to the SRA will be
satisfied if you provide information to your firm's COLP or COFA, as and where
appropriate, on the understanding that they will do so.

PART B: CROSS-BORDER PRACTICE RULES

Cross-Border Practice Rules

5.1 This Part applies to European cross-border practice from any office by:

(a) solicitors;

(b) managers of authorised bodies who are not authorised by an approved

regulator (other than the SRA) under the LSA; and

(c) authorised bodies.

5.2 These rules apply to European cross-border practice from an office in England and
Wales by:

(a) RELs; and

(b) RFLs who are managers or employees of an authorised body.

5.3 When engaged in European cross-border practice you must ensure that you
comply with any applicable provisions of the Council of the Bars and Law Societies of
Europe's Code of Conduct for European lawyers.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Rules made under sections 31, 32, 33A and 34 of the Solicitors Act 1974, section 9 of the
Administration of Justice Act 1985 and section 83 of, and paragraph 20 of Schedule 11 to,
the Legal Services Act 2007.

4
SRA Regulatory and Disciplinary Procedure Rules

Introduction

These rules set out how we investigate and take disciplinary and regulatory action, for
breaches of our rules and regulatory requirements. They apply to solicitors, RELs, and RFLs
as well as the firms we authorise and those who work for them.

The sanctions and controls we can impose as a result of our investigation will depend on the
scope of our statutory powers and will be determined in accordance with our Enforcement
Strategy [link].

Assessing reports

1.1 The SRA shall assess any allegation which comes to, or is brought to, its attention in
respect of a relevant person to decide if it should be considered under rule 3.

1.2 A matter is an allegation in respect of a person for the purpose of these rules if it
raises a question that the person:

(a) is a solicitor, an REL or RFL and has committed professional misconduct;

(b) has committed or is responsible for a serious breach of any regulatory

obligation placed on them by the SRA’s regulatory arrangements, section
56 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, or
the Money Laundering, Terrorist Financing and Transfer of Funds
Regulations 2017, the Financial Guidance and Claims Act 2018 or
any equivalent legislative requirements that may succeed the same;

(c) is a manager or employee of an authorised body and is responsible for

a serious breach by the body of any regulatory obligation placed on it by
the SRA's regulatory arrangements;

(d) is not a solicitor and has been convicted of a criminal offence, or been
involved in conduct related to the provision of legal services, of a nature that
indicates it would be undesirable for them to be involved in legal practice;

(e) in relation to a licensed body, has committed or substantially contributed to a

serious breach of any regulatory obligation of a nature that indicates it is
undesirable for them to carry out activities as a HOLP, HOFA, manager or
employee of an authorised body;

(f) has otherwise engaged in conduct that indicates they should be made subject
to a decision under rule 3.1.

1
The investigation process

2.1 The SRA may carry out such investigations, and in doing so may exercise any of its
investigative powers, as it considers appropriate:

(a) to identify whether a matter comprises an allegation under rule 1.2, or

(b) to the consideration of an allegation under rule 3.

2.2 As soon as reasonably practicable after commencing an investigation under rule

2.1(b), the SRA will inform the relevant person accordingly and their employer,
unless and to the extent that it considers that it would not be in the public interest to
do so.

2.3 Before making a decision under rule 3, the SRA shall give notice to the relevant
person:

(a) setting out the allegation and the facts in support;

(b) summarising any regulatory or other history relating to the relevant

person, or any associated person, which is relevant to the allegation,
including to the question of propensity;

(c) where appropriate, making a recommendation as to the decision to be made

under rule 3, regarding publication under rule 9, and costs under rule 10;
and

(d) accompanied by any evidence or documentation that the SRA considers to

be relevant to the allegation, and

inviting the person to respond with written representations within such period as the
SRA may specify (which must be no less than 14 days from the date of the notice).

2.4 At any stage, an authorised decision maker may decide to take no further action in
respect of an allegation and to close the matter. If so, the authorised decision
maker may decide to issue advice to the relevant person, or a warning regarding
their future conduct or behaviour, but it must give notice under rule 2.3 before doing
so.

2.5 The SRA may dispense with the giving of notice under rule 2.3 or 2.4 where:

(a) it intends to include a further allegation in a matter already subject to an

application or ongoing proceedings before the Tribunal;

(b) it intends to make an application to the Tribunal in a case in which it is

exercising its powers of intervention as a matter of urgency; or

(c) it is otherwise in the public interest to do so.

2.6 The SRA must inform the relevant person, their employer (where they were
informed of the investigation under rule 2.2) and, where practicable, any person who
reported the allegation to the SRA, of any decision to close a matter under rule 2.4,
together with reasons.
2
2.7 At any stage the SRA may decide to exercise its powers of intervention or to take
action in relation to the approval of a person or the holding of an interest in
accordance with rule 13.8 or 13.9 of the SRA Authorisation of Firms Rules or
Schedule 13 to the LSA.

Consideration by authorised decision makers

3.1 On finding that an allegation is proved (save for sub-paragraph (g)), an authorised
decision maker may decide as appropriate in respect of a relevant person to:

(a) give a written rebuke, in accordance with section 44D(2)(a) of the SA or

paragraph 14B(2)(a), Schedule 2 to the AJA;

(b) direct the payment of a financial penalty in accordance with section 44D(2)(b)
of the SA, paragraph 14B(2)(b) of Schedule 2 to the AJA or section 95 of the
LSA, together with the amount of any penalty;

(c) disqualify a person from acting as a HOLP or HOFA, manager or

employee of a body licensed under the LSA in accordance with section
99 of the LSA;

(d) make an order to control the person’s activities in connection with legal
practice, in accordance with section 43(2) of the SA;

(e) impose a condition on the practising certificate of a solicitor, the registration

of an REL or RFL or the authorisation of a body for such period as may be
specified, in accordance with section 13A(1) of the SA, paragraph 2A(1) of
Schedule 14 to the Courts and Legal Services Act 1990, section 9(2F) of the
AJA or section 85 of the LSA and regulation 19 of The European
Communities (Lawyer’s Practice) Regulations 2000;

(f) revoke or suspend authorisation to practise under the SRA Authorisation of

Firms Rules;

(g) make an application to the Tribunal under section 47 of the SA for the
allegation to be considered.

3.2 At any stage, an authorised decision maker may:

(a) pending a final decision under rule 3.1 or by the Tribunal, impose
interim conditions on the practising certificate of a solicitor, the registration of
an REL or RFL or the authorisation of a body, where satisfied it is necessary
for the protection of the public or in the public interest to do so; or

(b) following an application to the Tribunal under section 47 of the SA in

circumstances in which the solicitor, REL or RFL has been convicted of an
indictable offence or an offence involving dishonesty or deception, suspend or
continue a suspension of their practising certificate or registration in
accordance with section 13B of the SA.

3
3.3 As soon as reasonably practicable, the SRA shall give notice to the relevant person
of any decision made under this rule, together with reasons, and will inform the
person of any right they may have to apply for a review or appeal of the decision.

3.4 A decision is made on the date notice of it is given under rule 3.3.

3.5 Conditions imposed under rule 3.2(a) shall take effect immediately or on such other
date as may be specified by the authorised decision maker.

Decisions to impose a financial penalty

4.1 An authorised decision maker may decide to direct the payment of a financial
penalty under rule 3.1(b), where this is appropriate to:

(a) remove any financial or other benefit arising from the conduct;

(b) maintain professional standards; or

(c) uphold public confidence in the solicitors' profession and in legal

services provided by authorised persons.

4.2 Where the SRA recommends the imposition of a financial penalty on a relevant
person, it may, by notice, require the person to provide a statement as to their
financial means which includes a statement of truth, within such period as the SRA
may specify (which must be no less than 14 days from the date of the notice).

4.3 Where an authorised decision maker has directed a person to pay a financial
penalty:

(a) such penalty shall be paid within a time and in the manner prescribed;

(b) the SRA may direct that the payment of all or part of the penalty be
suspended on such terms as prescribed.

Decisions to disqualify a person

5.1 An authorised decision maker may decide to disqualify a person under rule 3.1(c)
only where they are satisfied that it is undesirable for the person to engage in the
relevant activity or activities.

Applications to the Tribunal

6.1 An authorised decision maker may decide to make an application to the Tribunal
in respect of a firm or an individual under rule 3.1(g) only where they are satisfied
that:

(a) there is a realistic prospect of the Tribunal making an order in respect of the
allegation; and

(b) it is in the public interest to make the application.

4
6.2 Where an authorised decision maker has made an application to the Tribunal, the
SRA may carry out such further investigations, and in doing so may exercise any of
its investigative powers, as it considers appropriate.

Applications for termination of certain orders

7.1 Where a person has been:

(a) disqualified from acting as a HOLP or HOFA, or a manager or employee of a

body licensed under the LSA;

(b) made subject by the SRA to an order under section 43(2) of the SA; or

(c) made subject by the SRA to an order suspending their practising certificate or
registration in the register of European lawyers or the register of foreign
lawyers,

where there has been a material change in circumstances, the relevant person may
apply to the SRA seeking a decision that the disqualification or order should cease to
be in force.

7.2 An authorised decision maker may decide that a disqualification should cease to
be in force if they are satisfied that it is no longer undesirable for the disqualified
person to engage in the relevant activity or activities.

Evidential and procedural matters

8.1 The SRA may vary the procedure set out in these rules where it considers that it is in
the interests of justice, or in the overriding public interest, to do so.

8.2 A decision under rule 3 may be made by agreement between the relevant person
and the SRA.

8.3 Before reaching a decision under rule 3, an authorised decision maker or

adjudication panel may give directions for the fair and effective disposal of the matter.

8.4 Decisions of an adjudication panel are made by simple majority.

8.5 Where an allegation is being considered by an adjudication panel, the proceedings

will generally be conducted in private by way of a meeting. However, the panel may
decide to conduct a hearing, which it may decide should be held in public, if it
considers it in the interests of justice to do so.

8.6 Where an adjudication panel have decided to consider an allegation at a hearing:

(a) the SRA shall send a notice informing the relevant person of the date, time
and venue of the hearing, no less than 28 days before the date fixed for the
hearing;

(b) the relevant person and the SRA shall have the right to attend and be
represented; and

5
 (c) the panel may, at any time, whether of its own initiative or on the application
of a party, adjourn the hearing until such time and date as it thinks fit.

8.7 The civil standard of proof applies to all decisions made under these rules.

8.8 An authorised decision maker may admit any evidence they consider fair and
relevant to the case before them, whether or not such evidence would be admissible
in a court. This may include regulatory or other history relating to the relevant
person, or any associated person, which is relevant to the allegation, including to
the question of propensity.

8.9 A certificate of conviction, or a finding by a court or disciplinary or regulatory body,

certified by a competent officer of the court, or relevant body in the UK or overseas,
shall be conclusive evidence of the offence committed or finding reached, and the
facts relied upon.

Disclosure and publication

9.1 The SRA may disclose or publish any information arising from or relating to an
investigation, either in an individual case or a class of case, where it considers it to
be in the public interest to do so.

9.2 The SRA shall publish any decision under rule 3.1 or 3.2, when the decision takes
effect or at such later date as it may consider appropriate, unless it considers the
particular circumstances outweigh the public interest in publication.

9.3 The SRA shall notify the Legal Services Board as soon as reasonably practicable:

(a) of any decision to disqualify a person under rule 3.1(c);

(b) of the results of any review of any decision to disqualify a person under
rule 7; and

(c) of any decision that a person’s disqualification should cease to be in

force.

Costs

10.1 An authorised decision maker may require a person who is the subject of a
decision under rule 3.1(a) to (f) to pay a charge in accordance with Schedule 1 to
these rules.

10.2 The authorised decision maker may decide to charge less than the amount that
would be payable in accordance with Schedule 1 if they consider that it would be just
in all the circumstances to do so.

10.3 Any charge must be paid by the person in such time and manner as may be
specified by the authorised decision maker.

6
Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under sections 31, 44C and 44D of the Solicitors Act 1974, section 9 of, and
paragraphs 14A and 14B of Schedule 2 to, the Administration of Justice Act 1985, section 83
of, and paragraph 20 of Schedule 11 to, the Legal Services Act 2007 and the Legal Services
Act 2007 (The Law Society and the Council of Licensed Conveyancers) (Modification of
Functions) Order 2011.

7
Schedule 1

1. This schedule sets out the basis for calculating the charges payable under rule 10.

2. The SRA will record the amount of time spent by the SRA or its agents in
investigating the matter, including time spent on correspondence, evidence gathering
and analysis, and report writing.

3. The standard charges are as follows:

Number of hours spent investigating matter Standard Charge

Under 2 hours £300.00

2 hours or more but under 8 hours £600.00

8 to 16 hours £1350.00

4. In addition to the fixed charge of £1350, where the time recorded under paragraph 2
above amounts to more than 16 hours, an extra charge of £75.00 for every additional
hour spent will be applied (rounded up or down to the nearest half hour).

8
SRA Statutory Trust Rules
Introduction

These rules set out what the SRA does with money it takes possession of following an
intervention into a firm’s and/or an individual’s practice. We hold this money on trust for the
people it belongs to. This type of trust is called a statutory trust. The people that the money
belongs to are beneficiaries of the trust. We have produced guidance on the way that we
deal with this money [link to decision making guidance].

PART 1: GENERAL

Holding statutory trust monies

1.1 The SRA shall place all statutory trust monies in an identifiable statutory trust
account.

1.2 All interest earned on the funds held in any statutory trust account shall be paid
into that account.

Identifying beneficial entitlements

2.1 The SRA will create a reconciled list or a best list in respect of statutory trust
monies held, using the information which it has available.

2.2 In creating a reconciled list or a best list, any sums of money which are identified
within a statutory trust account as being payments on account of fees or unpaid
disbursements, or which are equivalent to the costs incurred in a matter to which
the funds relate, will be treated as due to the client rather than the intervened
practitioner, unless there is sufficient evidence of a bill or other written notification of
costs having been sent to the client.

2.3 The SRA will attempt to contact all persons identified as having a potential beneficial
interest in the statutory trust monies and invite them to submit a claim in
accordance with rule 4.

Minimum level of funds

3.1 The SRA may set a minimum level of funds to which a beneficiary may be entitled
within a statutory trust account below which it will not attempt to identify or locate
potential beneficiaries on the basis that, in the opinion of the SRA, it would be
unreasonable or disproportionate to do so.

3.2 The level in rule 3.1 applies to the sum identified as relating to a particular
beneficiary, after the application of any pro-rata adjustment which may be made
under rule 6.2 but without including any interest under rule 7.3.

1
PART 2: CLAIMS

Claimants to money

4.1 Unless the SRA agrees otherwise, every claimant must submit to the SRA a claim in
the prescribed form accompanied by any documentation and other evidence as may
be required by the SRA, and which must include, if requested by the SRA, a
statement of truth.

Verification of claims

5.1 The SRA may verify the individual potential beneficial entitlements claimed under
rule 4 by examining all available evidence.

Shortfall in statutory trust account

6.1 In cases where a shortfall is revealed between statutory trust monies held, and the
beneficial entitlements shown in a reconciled list or best list, the SRA may rectify
the position, in whole or in part, by the use of other monies taken into its possession
in consequence of the intervention to which that list relates.

6.2 Where, having applied additional funds under rule 6.1, a shortfall still exists on a
statutory trust account, the SRA will decide on the method for calculating how to
distribute the funds that are available in the account to beneficiaries.

Distribution of beneficial entitlements

7.1 In a case where the accounting records of the intervened practitioner are
reconciled accounts, payments to beneficiaries will be made on the basis of the
reconciled list.

7.2 In a case where the accounting records of the intervened practitioner are not
reconciled accounts, payments to beneficiaries will be made on the basis of the
best list.

7.3 Any interest which has accrued on a statutory trust account under rule 1.2, will be
distributed to beneficiaries on a pro-rata basis in proportion to the payments made
to them under rule 7.1 or 7.2.

Residual balances

8.1 The SRA may use any funds which remain in a statutory trust account following
the distribution to beneficiaries under rule 7 to reimburse any costs, charges, or
other expenses, which it has incurred in establishing the beneficial entitlements to
the statutory trust monies and in distributing the monies accordingly.

8.2 If funds remain in a statutory trust account after payment to beneficiaries and the
reimbursement of costs, charges and expenses in accordance with rule 8.1, the
SRA may transfer such remaining funds into the compensation fund held by the
SRA and any claim to such funds under these rules shall be extinguished.

2
Interim payments

9.1 The SRA may make an interim payment to a beneficiary before the full distribution
of funds in a statutory trust account takes place provided that the SRA is satisfied
that the payment can be made without prejudicing other claims to those funds.

Supplemental notes

Made by the SRA Board on 30 May 2018.

Made under paragraph 6B of Schedule 1 to the Solicitors Act 1974, paragraphs 32 to 34 of

Schedule 2 to the Administration of Justice Act 1985, and paragraph 6 of Schedule 14 to the
Legal Services Act 2007, governing the treatment of sums vested in the Law Society under
paragraphs 6 or 6A of Schedule 1 to the Solicitors Act 1974 and under paragraphs 3 or 4 of
Schedule 14 to the Legal Services Act 2007

3
SRA Transparency Rules

4.3 A solicitor, an REL or RFL who is providing legal services to the public or a section
of the public other than through a firm that is regulated by the SRA:

(a) where they are not required to meet the MTC, must before engagement
inform all clients of this fact and specify that alternative insurance
arrangements are in place if this is the case (together with information about
the cover this provides, if requested); and

(b) where applicable, must inform all clients that they will not be eligible to apply
for a grant from the SRA Compensation Fund.

4.4 Rule 4.3 does not apply to a solicitor, an REL or RFL that is working in an
authorised non-SRA firm or a non-commercial body.

1
SRA Glossary

Defined Term Definition

academic stage of training means the undertaking by an individual of the

following programmes of study which satisfy
the requirements of the Joint Statement:

(a) a Qualifying Law Degree;

(b) a CPE;

(c) an Exempting Law Degree; or

(d) an Integrated Course;

at an approved education provider

accounting period means the period for which your accounts are
made up, and that:

(a) begins at the end of the previous

accounting period; and

(b) comprises a period of 12 months unless

you change the period for which your
accounts are ordinarily made up or the
accounting period covers your first report or
a report after a break from practice in which
case the accounting period may be for a
period of less than 12 months or for more
than 12 months, up to a maximum period of
18 months

accounting records means all reconciliations, bank and building

society statements (paper or electronic),
original passbooks, signed letters of
engagement with reporting accountants, the
accountants' reports (whether qualified or not),
any client's written instructions to hold client
money other than in accordance with these
rules, records and documents, including
electronic records, relating to any third party
managed accounts and any other records or

1
 documents necessary to show compliance with
the SRA Accounts Rules

AJA means the Administration of Justice Act 1985

ancillary insurance has the meaning given in article 2(1)(4) of the

intermediary IDD

approved education means a provider recognised by the SRA as

provider providing a Qualifying Law Degree, CPE,
Exempting Law Degree, or an Integrated
Course

approved regulator means any body listed as an approved

regulator in paragraph 1 of Schedule 4 to the
LSA or designated as an approved regulator
by an order under paragraph 17 of that
Schedule

asset includes money, documents, wills, deeds,

instruments and other property

authorised body means:

(a) a body that has been authorised by the

SRA to practise as a licensed body or a
recognised body; or

(b) a sole practitioner's practice that has

been authorised by the SRA as a
recognised sole practice

authorised decision maker in relation to a decision, means a person

authorised to make that decision by the SRA
under a schedule of delegation

authorised education means a provider recognised by the SRA as

provider providing the Legal Practice Course or the
Professional Skills Course

authorised non-SRA firm means a firm which is authorised to carry on

legal activities as defined in section 12 of the
LSA by an approved regulator other than the
SRA

authorised person (a) subject to sub-paragraph (b) below, means

a person who is authorised by the SRA or

2
 another approved regulator to carry on a
legal activity as defined under s12 of the
LSA and the term "non-authorised person"
shall be construed accordingly; and

(b) in the SRA Financial Services (Scope)

Rules, has the meaning given in section 31
of the FSMA

authorised training means a person authorised by the SRA under

provider the SRA Education, Training and Assessment
Provider Regulations to take on and train a
trainee

bank has the meaning given in section 87(1) of the

SA

barrister means a person called to the Bar by one of the

Inns of Court and who has completed pupillage
and is authorised by the General Council of the
Bar to practise as a barrister

beneficiary means a person with a beneficial entitlement

to funds held by the Law Society on statutory
trust

best list means a list of potential beneficial entitlements

to statutory trust monies which, in cases
where it is not possible to create a reconciled
list, is, in the view of the SRA, the most
reliable that can be achieved with a reasonable
and proportionate level of work taking into
account the circumstances of the intervention
and the nature of the evidence available

building society means a building society within the meaning of

the Building Societies Act 1986

CBTL credit agreement has the meaning given in the FCA Handbook

character and suitability includes fitness and propriety under rule 14.1
of the SRA Authorisation of Firms Rules

3
charity has the meaning given in section 1 of the
Charities Act 2011

chartered accountancy means the Institute of Chartered Accountants

bodies in England and Wales; the Institute of
Chartered Accountants of Scotland; the
Association of Chartered Certified Accountants;
or the Institute of Chartered Accountants in
Ireland

claimant means a person making a claim to statutory

trust monies

claims management has the meaning given in section 4(2) of the

services Compensation Act 2006

client means the person for whom you act and,

where the context permits, includes
prospective and former clients

in the SRA Financial Services (Scope) Rules,

in relation to any regulated financial services
activities carried on by an authorised body
for a trust or the estate of a deceased person
(including a controlled trust), means the
trustees or personal representatives in their
capacity as such and not any person who is a
beneficiary under the trust or interested in the
estate

client account has the meaning given to it in the SRA

Accounts Rules

client money has the meaning given in rule 2.1 of the SRA
Accounts Rules

client money (overseas) means money held or received by your

overseas practice:

(a) relating to services delivered by your

overseas practice to a client;

(b) on behalf of a third party in relation to

services delivered by your overseas
practice (such as money held as agent,
stakeholder or held to the sender’s order);

4
 (c) as a trustee or as the holder of a specified
office or appointment;

(d) in respect of fees and any unpaid

disbursements if held or received prior to
delivery of a bill for the same

COFA means a compliance officer for finance and

administration and in relation to a licensable
body is a reference to its HOFA

COLP means compliance officer for legal practice and

in relation to a licensable body is a reference
to its HOLP

Companies Acts means the Companies Act 1985 and the

Companies Act 2006

company means a company incorporated in a state to

which the Establishment of Lawyers Directive
98/5/EC applies and registered under the
Companies Acts or a societas Europaea

competing for the same means any situation in which two or more
objective clients are competing for an "objective" which,
if attained by one client, will make that
"objective" unattainable to the other client or
clients, and "objective" means an asset,
contract or business opportunity which two or
more clients are seeking to acquire or recover
through a liquidation (or some other form of
insolvency process) or by means of an auction
or tender process or a bid or offer, but not a
public takeover

compliance officer is a reference to a body's COLP or its COFA

conflict of interest means a situation where your separate duties

to act in the best interests of two or more
clients conflict

connected practices means a body providing legal services,

established outside England and Wales which
is not an overseas practice or an excluded
body but is otherwise connected to an
authorised body in England and Wales, by
virtue of:

5
(a) being a parent undertaking, within the
meaning of section 1162 of the Companies
Act 2006, of the authorised body;

(b) being jointly managed or owned, or having

a partner, member or owner in common,
or controlled by or, with the authorised
body;

(c) participating in a joint enterprise or across

its practice generally, sharing costs,
revenue or profits related to the provision of
legal services with the authorised body; or

(d) common branding,

and in this definition:

(i) a "body" means a natural person or

company, LLP or partnership or other
body corporate or unincorporated
association or business entity; and

(ii) an "excluded body" means a body

which is part of:

(A) a Verein or similar group structure

involving more than one body
providing legal services in respect of
which the authorised body in
England and Wales connected to it
is not regarded as being the body
which is the headquarters of that
Verein or similar group structure or
a significant part of it;

(B) a joint practice, alliance or

association or association with the
authorised body in England and
Wales connected to it which is
controlled by a body providing legal
services outside England and
Wales; or

(C) a group of affiliated bodies providing

legal services which is not managed

6
 or controlled by an authorised
body in England and Wales

(iii) A "joint enterprise" means any

contractual arrangements between two
or more independent bodies which
provide legal services, for profit and/or
other defined purpose or goal which
apply generally between them, not just
agreed on a matter by matter basis

(iv) "Common branding" means the use of a

name, term, design, symbol, words or a
combination of these that identifies two
or more legal practices as distinct from
other legal practices or an express
statement that a legal practice is
practising in association with one or
more other named firms

continuous payment means consent given to a client for a firm to

authority make one or more requests to a payment
service provider for one or more payments
from the client's payment account, but
excluding:

(a) a direct debit to which the direct debit

guarantee applies; and

(b) separate consent given by a client to a

firm, following the making of the regulated
credit agreement, for the firm to make a
single request to a payment service
provider for one payment of a specified
amount from the client's payment account
on the same day as the consent is given or
on a specified day

contract of insurance means (in accordance with article 3(1) of the

Regulated Activities Order) any contract of
insurance which is a long-term insurance
contract or a general insurance contract

costs means your fees and disbursements

7
court means any court, tribunal or inquiry of England
and Wales, or a British court martial, or any
court of another jurisdiction

CPE means the Common Professional Examination,

namely, a course, including assessments and
examinations, approved by the SRA on behalf of
the SRA and Bar Standards Board for the
purposes of completing the academic stage of
training for those who have not satisfactorily
completed a Qualifying Law Degree

credit agreement has the meaning given by article 60B(3) of the

Regulated Activities Order

credit broking means an activity of the kind specified in article

36A of the Regulated Activities Order

credit tokens means a card, check, voucher, coupon, stamp,

form, booklet or other document or thing given
to a client by a person carrying on a credit-
related regulated financial services activity
("the provider"), who undertakes that:

(a) on production of it (whether or not some

other action is also required) the provider
will supply cash, goods or services (or any
of them) on credit; or

(b) where, on the production of it to a third

party (whether or not any other action is
also required), the third party supplies cash,
goods and services (or any of them), the
provider will pay the third party for them
(whether or not deducting any discount or
commission), in return for payment to the
provider by the client and the provider
shall, without prejudice to the definition of
credit, be taken to provide credit drawn on
whenever a third party supplies the client
with cash, goods or services, and

the use of an object to operate a machine

provided by the person giving the object or a
third party shall be treated as the production of
the object to that person or third party

8
credit-related regulated means any of the following activities specified
financial services activities in Part 2 or 3A of the Regulated Activities
Order:

(a) entering into a regulated credit agreement

as lender (article 60B(1));

(b) exercising, or having the right to exercise,

the lender's rights and duties under a
regulated credit agreement (article 60B(2));

(c) credit broking (article 36A);

(d) debt adjusting (article 39D(1) and (2));

(e) debt counselling (article 39E(1) and (2));

(f) debt collecting (article 39F(1) and (2));

(g) debt administration (article 39G(1) and (2));

(h) entering into a regulated consumer hire

agreement as owner (article 60N(1));

(i) exercising, or having the right to exercise,

the owner's rights and duties under a
regulated consumer hire agreement (article
60N(2));

(j) providing credit information services (article

89A);

(k) providing credit references (article 89B);

(l) operating an electronic system in relation to

lending (article 36H);

(m) agreeing to carry on a regulated activity

(article 64) so far as relevant to any of the
activities (a) to (l),

which is carried on by way of business and

relates to a specified investment applicable to
that activity or, in the case of (j) and (k), relates
to information about a person's financial
standing

9
D

debt management plan means a non-statutory agreement between a

client and one or more of the client's lenders
the aim of which is to discharge or liquidate the
client's debts, by making regular payments to
a third party which administers the plan and
distributes the money to the lenders

degree means a UK degree, awarded at level 6 (or

above) of the Framework for Higher Education
Qualifications, by a recognised degree-
awarding body

director means a director of a company; and in relation

to a societas Europaea includes:

(a) in a two-tier system, a member of the

management organ and a member of the
supervisory organ; and

(b) in a one-tier system, a member of the

administrative organ

disbursement means any costs or expenses paid or to be

paid to a third party on behalf of the client or
trust (including any VAT element) save for
office expenses such as postage and courier
fees

discrimination has the meaning given in the Equality Act 2010

durable medium means any instrument which:

(a) enables the recipient to store information

personally addressed to them in a way
accessible for future reference and for a
period of time adequate for the purposes of
the information; and

(b) allows the unchanged reproduction of the

information stored

EEA means European Economic Area

10
employee means an individual who is:

(a) engaged under a contract of service by a

person, firm or organisation or its wholly
owned service company;

(b) engaged under a contract for services,

made between a firm or organisation and:

(i) that individual;

(ii) an employment agency; or

(iii) a company which is not held out to the

public as providing legal services and is
wholly owned and directed by that
individual, or

under which the person, firm or organisation

has exclusive control over the individual's time
for all or part of the individual's working week,
save that:

(A) for the purposes of the SRA

Financial Services (Scope) Rules,
means an individual who is
employed in connection with the
firm's regulated financial services
activities under a contract of
service or under a contract for
services such that he or she is held
out as an employee or consultant of
the firm

and the term "employer" is to be construed

accordingly

Establishment Directive means the Establishment of Lawyers Directive

98/5/EC

Establishment Directive means any profession listed in article 1.2(a) of

profession the Establishment Directive, including a
solicitor, barrister or advocate of the UK

Establishment Directive means a state to which the Establishment

state Directive applies

11
European corporate means a lawyers' practice which is a body
practice incorporated in an Establishment Directive
state, or a partnership with separate legal
identity formed under the law of an
Establishment Directive state and which is
regulated as a lawyers' practice:

(a) which has an office in an Establishment

Directive state but does not have an office
in England and Wales;

(b) whose ultimate beneficial owners include at

least one individual who is not a lawyer of
England and Wales but is, and is entitled
to practise as, a lawyer of an
Establishment Directive profession;

(c) whose managers include at least one such

individual, or at least one body corporate
whose managers include at least one such
individual; and

(d) of which lawyers are entitled to exercise, or

control the exercise of, more than 90% of
the voting rights

European cross-border means:

practice
(a) professional activity regulated by the SRA
in a CCBE state other than the UK, whether
or not you are physically present in
that CCBE state; and

(b) any professional contact regulated by the

SRA with a lawyer of a CCBE state other
than the UK,

excluding professional contacts

and professional activities taking place within
a firm or in-house legal department

execution-only means a transaction which is effected by an

authorised body for a client where the
authorised body assumes on reasonable
grounds that the client is not relying on the
authorised body as to the merits or suitability
of that transaction

12
exempt person in the SRA Financial Services (Scope) Rules
means a person who is exempt from the
general prohibition as a result of an exemption
order made under section 38(1) or as a result
of section 39(1) or 285(2) or (3) of the FSMA
and who, in engaging in the activity in question,
is acting in the course of business in respect of
which that person is exempt

Exempting Law Degree means a Qualifying Law Degree incorporating

a Legal Practice Course, approved by the
SRA

FCA means the Financial Conduct Authority

fees means your own charges or profit costs

(including any VAT element)

financial benefit includes any commission, discount or rebate,

but does not include your fees or interest
earned on any client account

Financial Services Register means the record maintained by the FCA as

required by section 347 of the FSMA and
including those persons who carry on, or are
proposing to carry on, insurance distribution
activities

foreign lawyer has the meaning given in section 89(9) of the

Courts and Legal Services Act 1990

FSMA means the Financial Services and Markets Act

2000

general insurance contract means any contract of insurance within Part I

of Schedule 1 to the Regulated Activities
Order

high-cost short-term credit means a regulated credit agreement:

13
 (a) which is a borrower-lender agreement or a
P2P agreement;

(b) in relation to which the APR is equal to or

exceeds 100%;

(c) either:

(i) in relation to which a financial

promotion indicates (by express words
or otherwise) that the credit is to be
provided for any period up to a
maximum of 12 months or otherwise
indicates (by express words or
otherwise) that the credit is to be
provided for a short term; or

(ii) under which the credit is due to be

repaid or substantially repaid within a
maximum of 12 months of the date on
which the credit is advanced;

(d) which is not secured by a mortgage, charge

or pledge; and

(e) which is not:

(i) a credit agreement in relation to which

the lender is a community finance
organisation; or

(ii) a home credit loan agreement, a bill of

sale loan agreement or a borrower-
lender agreement enabling a borrower
to overdraw on a current account or
arising where the holder of a current
account overdraws on the account
without a pre-arranged overdraft or
exceeds a pre-arranged overdraft limit

higher courts means the Crown Court, High Court, Court of

Appeal and Supreme Court in England and
Wales

higher courts advocacy means either:

qualification

14
 (a) Higher Courts (Civil Advocacy) Qualification
which entitles the solicitor or REL to
exercise rights of audience in all civil
proceedings in the higher courts, including
judicial review proceedings in any court
arising from any criminal cause; or

(b) Higher Courts (Criminal Advocacy)

Qualification which entitles the solicitor or
REL to exercise rights of audience in all
criminal proceedings in the higher courts
and judicial review proceedings in any
court arising from any criminal cause

HOFA means a Head of Finance and Administration

within the meaning of paragraph 13(2) of
Schedule 11 to the LSA

HOLP means a Head of Legal Practice within the

meaning of paragraph 11(2) of Schedule 11 to
the LSA

home finance mediation has the meaning given in the FCA Handbook
activity
I

IDD means Directive (EU) 2016/97 on insurance

distribution

immigration work means the provision of immigration advice and

immigration services, as defined in section 82
of the Immigration and Asylum Act 1999

insurance-based has the meaning given in article 2(1)(17) of the

investment product IDD

insurance distribution has the meaning given in the FCA Handbook

insurance distribution means any of the following regulated activities

activity as specified in the Regulated Activities Order
which are carried on in relation to a contract of
insurance or rights to or interests in a life
policy:

(a) dealing in investments as agent (article 21)

15
 (b) arranging (bringing about) deals in
investments (article 25(1))

(c) making arrangements with a view to

transactions in investments (article 25(2))

(d) assisting in the administration and

performance of a contract of insurance
(article 39A)

(e) advising on investments (except peer to

peer agreements) (article 53(1))

(f) agreeing to carry on a regulated activity in

(a) to (e) above (article 64).

insurance distribution means the individual within the management

officer structure of the firm who is responsible for
insurance distribution activity

insurance intermediary has the meaning given in article 2(1)(3) of the

IDD

Insurance Product means a document that meets the

Information Document requirements of article 20(5) to article 20(8) of
the IDD and the Commission Implementing
Regulation (EU) 2017/1469

insurer means a firm with permission to effect or carry

out contracts of insurance (other than a
bank)

Integrated Course means a course incorporating the foundations

of legal knowledge as set out in the Academic
Stage Handbook and the Legal Practice
Course

interest includes a sum in lieu of interest

interest holder means a person who has an interest or an

indirect interest, or holds a material interest,
in a body (and "indirect interest" and "interest"
have the same meaning as in the LSA), and
references to "holds an interest" shall be
construed accordingly

16
intervened practitioner means the solicitor, recognised body,
licensed body, REL or RFL whose practice or
practices are the subject of an intervention

intervention means the exercise of the powers specified in

section 35 of and Schedule 1 to the SA, or
section 9 of and paragraphs 32 to 35 of
Schedule 2 to the AJA, or section 89 of and
paragraph 5 of Schedule 14 to the Courts and
Legal Services Act 1990, or section 102 of and
Schedule 14 to the LSA

introducer means any person, business or organisation

who or that introduces or refers clients to your
business, or recommends your business to
clients or otherwise puts you and clients in
touch with each other

insurance undertaking has the meaning given in article 2(1)(6) of the

IDD

Joint Statement means the Joint Statement on Qualifying Law

Degrees, prepared jointly by the SRA and the
Bar Standards Board, setting out the conditions
a law degree course must meet in order to be
recognised by the SRA as a Qualifying Law
Degree

lawyer means a member of one of the following

professions, entitled to practise as such:

(a) the profession of solicitor, barrister or

advocate of the UK;

(b) an authorised person other than one

authorised by the SRA;

(c) an Establishment Directive profession

other than a UK profession; and

(d) any other regulated legal profession

specified by the SRA for the purpose of this
definition

17
lawyer of England and means:
Wales
(a) a solicitor; or

(b) an individual who is authorised to carry on

legal activities in England and Wales by an
approved regulator other than the SRA,
but excludes a member of an
Establishment Directive profession
registered with the Bar Standards Board
under the Establishment Directive

Legal Ombudsman means the scheme administered by the Office

for Legal Complaints under Part 6 of the LSA

legal or equitable includes a legal or equitable charge and, in

mortgage Scotland, a heritable security

Legal Practice Course means a course provided by an authorised

education provider which meets the
prescribed requirements

legal services body has the meaning given in section 9A of the

AJA

legally qualified has the meaning given in section 9A(6) of the

AJA but to include the following bodies who
will meet the management and control
requirements for legally qualified bodies for the
purposes of section 9A(6C) of the AJA:

(a) a recognised body;

(b) a licensed body in which lawyers are

entitled to exercise, or control the exercise
of more than 90 percent of the voting
rights of that licensed body;

(c) an authorised non-SRA firm in which

lawyers are entitled to exercise, or control
the exercise of more than 90 percent of the
voting rights of that authorised non-SRA
firm

licensable body has the meaning given in section 72 of the LSA

18
licensed body means a body licensed by the SRA under
section 71(2) of the LSA in accordance with
the SRA Authorisation of Firms Rules

life office means a person with permission to effect or

carry out long-term insurance contracts

life policy means a long-term insurance contract other

than a pure protection contract or a
reinsurance contract, but including a pension
policy

LLP means a limited liability partnership

incorporated under the Limited Liability
Partnerships Act 2000

long-term insurance has the meaning given in Part II of Schedule 1

contract to the Regulated Activities Order

LSA means the Legal Services Act 2007

manager means:

(a) the sole principal in a recognised sole

practice;

(b) a member of a LLP;

(c) a director of a company;

(d) a partner in a partnership; or

(e) in relation to any other body, a member of

its governing body

material interest has the meaning given to it in Schedule 13 to

the LSA

MCD means the Mortgage Credit Directive

2014/17/EU on credit agreements for
consumers relating to residential immovable
property

MCD credit agreement has the meaning given in the FCA Handbook

19
member means:

(a) in relation to a company, a person who has

agreed to be a member of the company
and whose name is entered in the
company's register of members; and

(b) in relation to an LLP, a member of that LLP

mixed payments means a payment that includes both client

money and non-client money

MTC means the minimum terms and conditions with

which a policy of qualifying insurance is
required by the SRA Indemnity Insurance
Rules to comply, a copy of which is annexed as
Appendix 1 to those Rules.

non-commercial body means a body that falls within section 23(2) of

the LSA

non-mainstream regulated means a regulated financial services activity

activities of an authorised body regulated by the FCA
in relation to which the conditions in the
Professional Firms' Sourcebook (5.2.1R) are
satisfied

occupational pension means any scheme or arrangement which is

scheme comprised in one or more documents or
agreements and which has, or is capable of
having, effect in relation to one or more
descriptions or categories of employment so as
to provide benefits, in the form of pensions or
otherwise, payable on termination of service, or
on death or retirement, to or in respect of
earners with qualifying service in an
employment of any such description or
category

overseas means outside England and Wales

overseas client account means an account at a bank or similar

institution, subject to supervision by a public

20
 authority, which is used only for the purpose of
holding client money and the title, designation
or account detail allow the account to be
identified as belonging to the client or clients
of a solicitor or REL, or that they are being
held subject to a trust

overseas practice means:

(a) a branch office of an authorised body;

(b) a subsidiary company of an authorised

body;

(c) a subsidiary undertaking, within the

meaning of section 1162 of the Companies
Act 2006, of an authorised body;

(d) an entity whose business, management or

ownership are otherwise in fact or law
controlled by an authorised body;

(e) an individual acting as a representative

(whether as an employee or agent) of an
authorised body; or

(f) a sole principal whose business,

management or ownership are otherwise in
fact or law controlled by an authorised
body,

established outside England and Wales and

providing legal services

own interest conflict means any situation where your duty to act in
the best interests of any client in relation to a
matter conflicts, or there is a significant risk
that it may conflict, with your own interests in
relation to that or a related matter

owner means, in relation to a body, a person with any

interest in the body, save that:

(a) in the SRA Authorisation of Firms Rules,

and the SRA Authorisation of Individuals
Regulations, owner means any person who
holds a material interest in an authorised

21
 body, and in the case of a partnership,
any partner regardless of whether they hold
a material interest in the partnership; and

(b) for the purposes of the SRA Principles and

the SRA Code of Conduct for Firms means
a person who holds a material interest in
the body; and

(c) for the purposes of the SRA Assessment of

Character and Suitability Rules includes
owners who have no active role in the
running of the business as well as owners
who do,

and "own" and "owned" shall be construed

accordingly

partner means a person who is or is held out as a

partner in a partnership

partnership means a body that is not a body corporate in

which persons are, or are held out as, partners

pawn means any article subject to a pledge

pawnee means a person who takes any article in pawn

and includes any person to whom the rights
and duties of the original pawnee have passed
by assignment or operation of law

payment includes any form of consideration whether any

benefit is received by you or by a third party
(but does not include the provision of
hospitality that is reasonable in the
circumstances) and "pay" and "paid" shall be
construed accordingly

pension policy means a right to benefits obtained by the

making of contributions to an occupational
pension scheme or to a personal pension
scheme, where the contributions are paid to a
life office

22
period of recognised means training required under the SRA
training Authorisation of Individuals Regulations

person includes a body of persons (corporate or

unincorporated)

personal pension scheme means any scheme or arrangement which is

not an occupational pension scheme or a
stakeholder pension scheme and which is
comprised in one or more instruments or
agreements, having or capable of having effect
so as to provide benefits to or in respect of
people on retirement, or on having reached a
particular age, or on termination of service in
an employment

personal recommendation means a recommendation that is presented as

suitable for the person to whom it is made, or is
based on a consideration of the circumstances
of that person

pledge means a pawnee's rights over an article taken

in pawn

policy has the meaning given in the FCA Handbook

Practice Skills Standards means the standards published by the SRA

which set out the practice skills trainees will
develop during the period of recognised
training and use when qualified

practising overseas means the conduct of a practice:

(a) of an overseas practice;

(b) of a manager, member or owner of an

overseas practice in that capacity;

(c) of a solicitor established outside England

and Wales for the purpose of providing
legal services in an overseas jurisdiction;
and

(d) of an REL established in Scotland or

Northern Ireland for the purpose of
providing legal services in those
jurisdictions

23
prescribed means prescribed by the SRA from time to
time

professional service means, for the purposes of the SRA Financial

Services (Scope) Rules, services provided by
an authorised body in the course of its
practice and which do not constitute carrying
on a regulated financial services activity

publicity includes all promotional material and activity,

including the name or description of your firm,
stationery, advertisements, brochures,
websites, directory entries, media
appearances, promotional press releases, and
direct approaches to potential clients and
other persons, whether conducted in person,
in writing, or in electronic form, but does not
include press releases prepared on behalf of a
client

pure protection contract means:

(a) a long-term insurance contract:

(i) under which the benefits are payable

only in respect of death or of incapacity
due to injury, sickness or infirmity;

(ii) which has no surrender value or the

consideration consists of a single
premium and the surrender value does
not exceed that premium; and

(iii) which makes no provision for its

conversion or extension in a manner
which would result in its ceasing to
comply with (a) or (b); or

(b) a reinsurance contract covering all or part

of a risk to which a person is exposed
under a long-term insurance contract

qualifying insurance means a policy that provides professional

indemnity insurance cover in accordance with

24
 the MTC but only to the extent required by the
MTC

Qualifying Law Degree means a degree which meets the requirements

of the Joint Statement
R

recognised body means a body recognised by the SRA under

section 9 of the AJA

recognised jurisdiction means a jurisdiction we have recognised

against prescribed criteria

recognised sole practice means the practice of a sole solicitor or REL

which is recognised by the SRA under section
9 of the AJA

reconciled accounts means that all elements of the accounting

records of an intervened practitioner's
practice are consistent with each other

reconciled list means a list of beneficial entitlements to

statutory trust monies created from a set of
reconciled accounts

record of training means a record created and maintained by a

trainee, which contains details of the work they
have performed as a trainee, how the trainee
has acquired, applied and developed their skills
by reference to the Practice Skills Standards
and the trainee's reflections on their
performance and development plans

referral fee means a referral fee as defined within section

57(7) of the Legal Aid, Sentencing and
Punishment of Offenders Act 2012

register includes:

(a) the roll and the register of solicitors with

practising certificates kept under Part I of
the SA,

(b) the register of European lawyers;

(c) the register of foreign lawyers; and

25
 (d) the register of authorised bodies kept
under the AJA and the LSA

register of European means the register of European lawyers

lawyers maintained by the SRA under regulation 15 of
the European Communities (Lawyer's Practice)
Regulations 2000 (SI 2000/1119)
register of foreign lawyers means the register of foreign lawyers
maintained by the SRA under section 89 of the
Courts and Legal Services Act 1990

Regulated Activities Order means the Financial Services and Markets Act
2000 (Regulated Activities) Order 2001

regulated consumer hire has the meaning given by article 60N(3) of the
agreement Regulated Activities Order

regulated credit agreement has the meaning given by article 60B(3) of the
Regulated Activities Order
regulated financial means an activity which is specified in the
services activities Regulated Activities Order

regulated individual means:

(a) a solicitor,

(b) an REL; and

(c) a manager, member or owner of an

overseas practice

regulated services means the legal and other professional

services that you provide that are regulated by
the SRA and includes, where appropriate,
acting as a trustee or as the holder of a
specified office or appointment

regulatory arrangements has the meaning given to it by section 21 of the

LSA

regulatory objectives has the meaning given to it by section 1 of the

LSA

reinsurance contract means a contract of insurance covering all or

part of a risk to which a person is exposed
under a contract of insurance

26
reinsurance distribution has the meaning given in article 2(1)(2) and
article 2(2) of the IDD

REL means a European lawyer registered in the

register of European lawyers

relevant insolvency event occurs in relation to a body if:

(a) a resolution for a voluntary winding up of

the body is passed without a declaration of
solvency under section 89 of the Insolvency
Act 1986;

(b) the body enters administration within the

meaning of paragraph 1(2)(b) of Schedule
B1 to that Act;

(c) an administrative receiver within the

meaning of section 251 of that Act is
appointed;

(d) a meeting of creditors is held in relation to

the body under section 95 of that Act
(creditors' meeting which has the effect of
converting a members' voluntary winding
up into a creditors' voluntary winding up);
(e) an order for the winding up of the body is
made;

(f) all of the managers in a body which is

unincorporated have been adjudicated
bankrupt; or

(g) the body is an overseas company or a

societas Europaea registered outside
England, Wales, Scotland and Northern
Ireland and the body is subject to an event
in its country of incorporation analogous to
an event as set out in paragraphs (a) to (f)
above

remuneration means any commission, fee, charge or other

payment, including an economic benefit of any
kind or any other financial or non-financial
advantage or incentive offered or given in
respect of insurance distribution activities

27
 and references to “remunerate” and
“remunerated” shall be construed accordingly

reserved legal activity has the meaning given in section 12 of the LSA

responsible authorised in respect of an overseas practice means the

body authorised body referred to in whichever of
paragraph (a) to (f) of the definition of
"overseas practice" is applicable to that
practice

retail investment product has the meaning given in the FCA Handbook

RFL means a foreign lawyer registered in the

register of foreign lawyers

running account credit means a facility under a credit agreement

under which the borrower or another person is
enabled to receive from time to time from the
lender, or a third party, cash, goods or services
to an amount or value such that, taking into
account payments made by or to the credit of
the borrower, the credit limit (if any) is not at
any time exceeded

SA means the Solicitors Act 1974

security has the meaning given by article 3(1) of the

Regulated Activities Order but does not
include an investment which falls within the
definition of a packaged product

separate business means, where you own, manage or are

employed by an authorised body:

a separate business which either:

(a) you own,

(b) you are owned by,
(c) you actively participate in the provision of
its services, including any direct control
over the business or any indirect control
through another person, or
(d) you are connected with,

28
 and which is not an authorised body, an
authorised non-SRA firm, or an overseas
practice

societas Europaea means a European public limited liability

company within the meaning of article 1 of
Council Regulation 2157/2001/EC

sole practitioner means a solicitor or a REL who is the sole

principal in a practice (other than an
incorporated practice)

solicitor means a person who has been admitted as a

solicitor of the Senior Courts of England and
Wales and whose name is on the roll

SRA means the Solicitors Regulation Authority

SRA Code of Conduct for means SRA Code of Conduct for Solicitors,
Individuals RELs and RFLs

SRA Codes of Conduct means the SRA Code of Conduct for Solicitors,
RELs and RFLs and the SRA Code of Conduct
for Firms

stakeholder pension means a scheme established in accordance

scheme with Part I of the Welfare and Pensions Reform
Act 1999 and the Stakeholder Pension Scheme
Regulations 2000

statutory trust means the trust created by Schedule 1 of the

SA, or Schedule 14 of the LSA, over monies
vesting in the Law Society following an
intervention

statutory trust account means an account in which statutory trust

monies are held by the Law Society following
an intervention

statutory trust monies means the monies vested in the Law Society
under the statutory trust

substantially common means a situation where there is a clear

interest common purpose between the clients and a
strong consensus on how it is to be achieved

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third party managed means an account held at a bank or building
account society in the name of a third party which is an
authorised payment institution, a small
payment institution that has chosen to
implement safeguarding arrangement in
accordance with the Payment Services
Regulations or an EEA authorised payment
institution (as each defined in the Payment
Services Regulations) regulated by the FCA, in
which monies are owned beneficially by the
third party, and which is operated upon terms
agreed between the third party, you and your
client as an escrow payment service

trainee means any person undertaking a period of

recognised training

training principal means a solicitor or barrister nominated by

an authorised training provider to oversee a
period of recognised training within that
organisation

transaction means the purchase, sale, subscription or

underwriting of a particular investment
specified in Part III of the Regulated Activities
Order

Tribunal means the Solicitors Disciplinary Tribunal

which is an independent statutory tribunal
constituted under section 46 of the SA

UK means United Kingdom, made up of: England,

Scotland, Wales, and Northern Ireland

undertaking means a statement, given orally or in writing,

whether or not it includes the word "undertake"
or "undertaking", to someone who reasonably
places reliance on it, that you or a third party
will do something or cause something to be
done, or refrain from doing something

vocational stage of training means:

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 (a) the Legal Practice Course;

(b) a required period of recognised training;

and

(c) the Professional Skills Course

voting rights in a body includes the right to vote in a

partners', members', directors' or shareholders'
meeting, or otherwise in relation to the body,
and "control the exercise of voting rights" shall
be interpreted as including de facto as well as
legal control over such rights

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