Management

Question 1

When must an organisation by authorised by the SRA?

Answer 1

When it provides:
- Reserved legal services

• Immigration services
• Claims management services
• Regulated financial activities

Subject to exceptions

Question 2

What are reserved legal activities?

Answer 2

Can only be provided by someone authorised by an approved regulator:

• Rights of audience (appearing before and addressing the court)
• Conduct of litigation
• Reserved instrument activities (e.g preparing instruments of transfer or charge)
• Certain private activities
• Administration of oaths

Question 3

What are the three types of organisation capable of authorisation by the SRA?

Answer 3

• Sole practice
• Legal services body (all managers are lawyers)
• Licensable body (both lawyers and non-lawyers)

Question 4

What are the eligibility requirements for authorisation by the SRA?

Answer 4

1. Intend to deliver legal services
2. Be one of the following:
   
   • sole practice
   • legal services body
   • licensable body
3. Meet the practising address requirements:
   
   • licensable bodies: England and Wales
   • legal services bodies and sole practices: UK
4. If the business is a company, meet one of the SRA’s registration requirements

Question 5

What does a COLP have responsibility for?

Answer 5

• Ensuring the firm complies with all terms and conditions of authorisation by the SRA
• Ensuring the firm complies with its statutory obligations
• Recording any failures to comply and make records available to SRA
• Reporting any material failure to SRA

Question 6

What does a COFA have responsibility for?

Answer 6

• Ensuring the firm complies with SRA Accounts Rules 2019

- Reporting any serious breaches to the SRA

Question 7

Who is eligible to be a COLP or COFA?

Answer 7

• Manager or employee of authorised body;
• Consent to the designation;
• Not be disqualified from acting as Head of Legal Practice or Head of Finance and Admin
• For a COLP, be authorised to carry on reserved legal activities by approved regulator

Question 8

Who is eligible to manage the firm as a whole? 9.4

Answer 8

An authorised body must have at least one employee who:

• Is a lawyer and has practised for at least 3 years; and
• Supervises the work undertaken by the body

Question 9

What mechanisms must be in place for a law firm to be managed effectively?

Answer 9

• Compliance with the Code
• Compliance with Money Laundering Regulations 2017
• Compliance with regulatory requirements
• Identification of conflicts of interest
• Control of undertakings
• Safekeeping assets and documents
• Compliance with paragraph CCF 1.5
• Training to maintain competence
• Financial control
• Protection of client money