Source: http://www.sra.org.uk/solicitors/handbook/practising/
Timestamp: 2018-07-18 08:41:49
Document Index: 509549161

Matched Legal Cases: ['art 1', 'art 2', 'art 3', 'art 4', 'art 2', 'art 5', 'art 3', 'arts 1', 'arts 1', 'art 4', 'art 5', 'art 4', 'art 4']

SRA | SRA Handbook - Practice Framework Rules - SRA Practice Framework Rules 2011 | Solicitors Regulation Authority
Rules dated 17 June 2011 commencing on 6 October 2011
made by the Solicitors Regulation Authority Board, under sections 31, 79 and 80 of the Solicitors Act 1974, sections 9 and 9A of the Administration of Justice Act 1985 and section 83 and Schedule 11 to the Legal Services Act 2007, with the approval of the Legal Services Board under paragraph 19 of Schedule 4 to the Legal Services Act 2007.
Part 1 of these rules sets out the types of business through which solicitors, RELs, RFLs and authorised bodies may practise. It restricts the types of business available in order to reflect statutory provisions and to ensure that clients and the public have the protections provided for by statute.
Part 2 permits authorised bodies, solicitors, RELs and RFLs to carry out certain types of work, including immigration work.
Part 3 governs the formation and practice requirements which must be satisfied by bodies and sole practitioners to be eligible for authorisation by the SRA, and is based on the requirements of sections 9 and 9A of the AJA and section 72 of the LSA.
Part 4 sets out certain requirements relating to compliance with these rules and the SRA's regulatory arrangements.
Part 2: Rights of practice
Rule 8: Reserved work and immigration work
As a solicitor, provided that you comply with Rule 9.1, you are authorised by the SRA:
to undertake the following reserved work:
the exercise of any right of audience which solicitors had immediately before 7 December 1989;
the exercise of any additional right of audience if you have a relevant higher courts advocacy qualification awarded by the SRA or another approved regulator;
the conduct of, and the preparation of documents in, court and immigration tribunal proceedings;
the preparation of trust deeds disposing of capital;
the administration of oaths and statutory declarations; and
to undertake immigration work not included under (a) above.
As an REL, you are authorised by the SRA:
the exercise of any additional right of audience provided that you have a relevant higher courts advocacy qualification awarded by the SRA or another approved regulator;
the preparation of instruments and the lodging of documents relating to the transfer or charge of land, provided you are a member of a profession listed under regulation 12 of the European Communities (Lawyer's Practice) Regulations 2000;
the preparation of papers on which to found or oppose a grant of probate or a grant of letters of administration, provided you are a member of a profession listed under regulation 13 of the European Communities (Lawyer's Practice) Regulations 2000;
When as an REL you exercise a right of audience before a court under 8.2(a)(i) or (ii), conduct court litigation under 8.2(a)(iii) or prepare court documents under 8.2(a)(iii) you must act in conjunction with a solicitor or barrister authorised to do that work.
As an RFL working within Rule 3 you are authorised by the SRA:
advocacy before immigration tribunals; and
the conduct of, and the preparation of documents in, immigration tribunal proceedings; and
to undertake immigration services which are not reserved work and are not included under (a) above, and to provide immigration advice.
A recognised body is authorised by the SRA to undertake the following reserved work:
advocacy before a court or immigration tribunal provided the manager or employee exercising the right of audience is authorised by the SRA, or otherwise entitled, to do so;
the conduct of proceedings in a court or immigration tribunal;
the preparation of documents in proceedings before a court or immigration tribunal;
the preparation of instruments and the lodging of documents relating to the transfer or charge of land, provided the body has a manager who is:
an individual who is authorised to do that work, or
a body corporate which has a manager who is authorised to do that work;
the preparation of papers on which to found or oppose a grant of probate or a grant of letters of administration, provided the body has a manager who is an individual authorised to do that work, or a body corporate with a manager who is authorised to do that work; and
the administration of oaths and statutory declarations.
A recognised body is authorised to undertake immigration services which are not within (a) above, and to provide immigration advice.
A licensed body is authorised by the SRA to undertake the reserved legal activities and immigration work specified in the authorisation granted to the body under Rule 6 of the SRA Authorisation Rules.
Recognised sole practices
A recognised sole practice in which the sole practitioner is a solicitor is authorised by the SRA:
to provide any reserved work which the sole practitioner is authorised to provide under Rule 8.1 above, and any other advocacy service through an employee of the recognised sole practice exercising a right of audience as authorised by the SRA, or otherwise entitled, to do; and
to undertake immigration services which are not within (i) above, and provide immigration advice.
A recognised sole practice in which the sole practitioner is an REL is authorised by the SRA:
to provide any reserved work which the sole practitioner is authorised to provide under Rule 8.2 above, and any other advocacy service through an employee of the recognised sole practice exercising a right of audience as authorised by the SRA, or otherwise entitled, to do; and
to undertake immigration work which is not within (i) above.
Reserved work is work that is defined in Schedule 2 to the LSA as a "reserved legal activity". Certain categories of reserved work (rights of audience in chambers, reserved instrument activities and probate activities) can be done by an unqualified person under the supervision of a manager or fellow employee qualified to do that work - see Schedule 3 to the LSA.
Immigration work (immigration advice and immigration services) is restricted to certain persons under the Immigration and Asylum Act 1999. Immigration services relating to courts or immigration tribunals are reserved work - advocacy, the conduct of cases, and the preparation of papers. The court work is subject to the normal restriction on court work. Immigration Tribunal work can be done by RFLs who are practising as such. Other immigration work is not reserved work, but can only be done by an authorised person such as a solicitor, a barrister, a legal executive, a member of an Establishment Directive profession, or an RFL practising as such, or under the supervision of an authorised person, or under an exemption given by the Office of the Immigration Services Commissioner.
The Financial Services and Markets Act 2000 reserves the provision of "regulated activities" to persons authorised by the Financial Conduct Authority (FCA). Certain "regulated activities", ancillary to the provision of a professional service, are exempt from regulation by the FCA when carried out by firms authorised by the SRA - see the SRA Financial Services (Scope) Rules. For the definition of "regulated activity" see the activities specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544).
The SRA does not authorise notarial activities. This does not prevent individuals, in an SRA authorised firm, providing notarial services where personally authorised to do so by the Master of the Faculties within paragraph 7 of Schedule 2 to the LSA.
See also Rule 8.4 of the SRA Authorisation Rules which provides that an authorised body may not carry on an activity unless through a body and individual who is authorised to carry on that activity.
In the case of solicitors and RELs who undertake criminal advocacy, see also the SRA QASA Regulations.
Rule 10: Sole practitioners
If you are a solicitor or REL you must not practise as a sole practitioner unless:
the SRA has authorised your practice as a recognised sole practice, or
you are authorised to practise as a sole practitioner by an approved regulator other than the SRA.
If you are a solicitor or REL you will not be regarded as practising as a sole practitioner and you are exempt from the obligation for your practice to be a recognised sole practice if:
your practice is conducted entirely from an office or offices outside England and Wales;
your practice consists entirely of work as a temporary or permanent employee and any firm which employs you takes full responsibility for you as an employee; or
your practice consists entirely of:
providing professional services without remuneration for friends, relatives, companies wholly owned by you or your family, or registered charities; and/or
activities which could constitute practice but are done in the course of discharging the functions of any of the offices or appointments listed in paragraph (i)(E) of the definition of private practice.
Rule 12: Persons who must be "qualified to supervise"
The following persons must be "qualified to supervise":
one of the lawyer managers of an authorised body or of a body corporate which is a legally qualified body and which is a manager of the authorised body;
one of the solicitors or RELs employed by a law centre in England and Wales, unless the law centre is licensed under Part 5 of the LSA in which case the provisions in Rule 12.1(b) will apply; or
one in-house solicitor or in-house REL in any department in England and Wales where solicitors and/or RELs, as part of their employment:
do publicly funded work; or
do or supervise advocacy or the conduct of proceedings for members of the public before a court or immigration tribunal.
To be "qualified to supervise" for the purpose of 12.1 a person must:
have completed the training specified from time to time by the SRA for this purpose; and
be a practising lawyer, and have been entitled to practise as a lawyer for at least 36 months within the last ten years; and
must be able to demonstrate this if asked by the SRA.
The following persons must ensure that their firm has at least one manager who is practising as a lawyer and has been entitled to practise as a lawyer for a minimum of 36 months within the last 10 years:
a solicitor manager of a firm which is not an authorised body and which is practising from an office outside England and Wales, and solicitors control the firm, either directly as partners, members or interest holders, or indirectly by their ownership of bodies corporate which are partners, members or interest holders; and
a solicitor or REL manager of a firm which is not an authorised body and which is practising from an office in Scotland or Northern Ireland, and solicitors and/or RELs control the firm, either directly as partners, members or interest holders, or indirectly by their ownership of bodies corporate which are partners, members or interest holders.
You must not set up as a solicitor sole practitioner outside England and Wales, or as an REL sole practitioner in Scotland or Northern Ireland, unless you have been entitled to practise as a lawyer for a minimum of 36 months within the last 10 years.
The person "qualified to supervise" under Rule 12.2 does not have to be personally entitled by law to supervise all work undertaken by the firm. Responsibility for the overall supervision framework, including compliance with legal supervisory requirements, rests with the authorised body and its managers, or the recognised sole practitioner.
In satisfying the requirement for 36 months entitlement to practise you can for example rely on a period as a lawyer of another jurisdiction. In calculating the 36 months, any period of entitlement to practise as a lawyer of another jurisdiction can be taken into account in addition to your time entitled to practise as a solicitor.
Waivers may be granted in individual cases. See Rule 21.
The training presently specified by the SRA is attendance at or participation in any course(s), or programme(s) of learning, on management skills involving attendance or participation for a minimum of 12 hours. The courses or programmes do not have to be CPD accredited in order to satisfy the requirement. It is not normally necessary to check with the SRA before undertaking a course or programme unless the course is unusual and outside the mainstream of management training. Advice may be sought from the Professional Ethics Guidance Team.
Controlling the firm in Rule 12.3 means constituting the largest (or equal largest) share of control of the firm either as individual managers or by their share in the control of bodies which are managers.
Part 3: Formation and eligibility criteria for recognised bodies, recognised sole practices and licensed bodies
Rule 13: Eligibility criteria and fundamental requirements for recognised bodies and recognised sole practices
To be eligible to be a recognised body, a body must be a legal services body namely a partnership, company or LLP of which:
(in the case of a partnership or LLP) a body corporate which is a legally qualified body with at least one manager who is a solicitor with a current practising certificate or an REL; and
Services requirement for a recognised body or recognised sole practice
The business of a recognised body or recognised sole practice may consist only of the provision of:
professional services of the sort provided by individuals practising as solicitors and/or lawyers of other jurisdictions; and
professional services of the sort provided by notaries public, but only if a notary public is a manager or employee of a recognised body; and
the following services (whether or not they are also included in paragraph (a))
other professional and specialist support services to business including human resources, recruitment, systems support, outsourcing, transcription and translating;
authorship, journalism and publishing.
A sole practitioner's practice is eligible to be a recognised sole practice if the sole practitioner:
is not, and is not about to be made, subject to a condition on his or her practising certificate or registration."
Although most organisations which involve non-lawyers as managers or interest holders must be licensed bodies, there is a limited exception under section 72(2) of the LSA which permits a small degree of non-lawyer involvement in recognised bodies. Where one or more bodies are involved in a firm as a manager or owner/interest holder, and in those bodies non-authorised persons have only a de minimis (less than 10%) control by way of voting rights, then the firm will remain a legal services body requiring recognition under the AJA. Where the control is 10% or more, the firm will be a licensable body.
Rule 13.2 lists the services that can be carried out within a recognised body or a recognised sole practice: either solicitor services, notary services, services of a lawyer or as exceptions to these services under section 9(1A) of the Administration of Justice Act 1985. Professional services 'of the sort that can be carried out by solicitors' include any legal activity under the LSA. Nothing in Rule 13.2 affects any requirements that may be imposed by legislation or non SRA-regulation in relation to the listed activities. See also the SRA Property Selling Rules 2011 in relation to estate agency services.
Rule 14: Eligibility criteria and fundamental requirements for licensed bodies
To be eligible to be a licensed body, a body must comply with the lawyer manager requirement set out in Rule 14.2 below and be a "licensable body", as defined under section 72 of the LSA, and as set out in Rule 14.3 to 14.6 below.
At all times at least one manager of a licensed body must be an individual who is:
a solicitor with a current practising certificate;
a lawyer of England and Wales and who is authorised by an approved regulator other than the SRA; or
registered with the BSB under regulation 17 of the European Communities (Lawyer's Practice) Regulations 2000 (SI 2000/1119).
A body ("B") is a licensable body if a non-authorised person:
is a manager of B, or
is an interest holder of B.
another body ("A") is a manager of B, or is an interest holder of B, and
A body may be a licensable body by virtue of both 14.3 and 14.4.
For the purposes of this rule, a non-authorised person has an indirect interest in a licensable body if the body is a licensable body by virtue of 14.4 and the non-authorised person is entitled to exercise, or control the exercise of, voting rights in A.
Rule 15: Formation, registered office and practising address
An authorised body which is a partnership may be formed under the law of any country and may be a legal person.
An authorised body which is an LLP must be incorporated and registered in England and Wales, Scotland or Northern Ireland under the Limited Liability Partnerships Act 2000.
An authorised body which is a company must be:
incorporated and registered in England and Wales, Scotland or Northern Ireland under Parts 1 and 2 of the Companies Act 2006;
An authorised body must have at least one practising address in England and Wales.
An authorised body must have its registered office at a practising address in England and Wales if the authorised body is registered in England and Wales:
under Parts 1 and 2 of the Companies Act 2006;
under the Limited Liability Partnerships Act 2000; or
See also the reporting requirements relating to the practising address and registered addresses of your overseas practices set out in:
Rule 4.4 of the SRA Authorisation Rules;
Rule 18.2 of the SRA Practice Framework Rules; and
Rule 3.2 of the SRA Overseas Rules.
See also the requirements relating to the practising address of a recognised sole practice in Rule 6 of the SRA Authorisation Rules.
Rule 16: Composition of a recognised body and a licensed body
Provided that the requirements for all recognised bodies and licensed bodies set out in Rule 13 or Rule 14, as appropriate, are met, a recognised body or an licensed body may have all or any of the following as a partner (if it is a partnership), a member (if it is an LLP), or a director, member or shareowner (if it is a company):
a lawyer of England and Wales (including a solicitor with a current practising certificate);
an EEL;
in the case of a partnership or an LLP, a body corporate which is a legally qualified body;
in the case of a company, a legally qualified body, save that only an individual may be a director of a recognised body which is a company;
provided that, where necessary, they comply with the approval requirements in Part 4 of the SRA Authorisation Rules.
If the authorised body is a licensed body, then the list of permitted partners, members of an LLP or, in the case of a company, directors, registered members or shareowners at 16.1(a) to (f) shall include:
a licensed body or another body licensed under Part 5 of the LSA by an approved regulator other than the SRA; and
any other individual or body corporate;
subject to any necessary approval as a manager or owner under Part 4 (Approval of managers, owners and compliance officers) of the SRA Authorisation Rules, save that only an individual may be a director of a licensed body which is a company.
An authorised body which is an LLP must have at least two members.
See 22.3 below regarding the position of firms which have non-lawyer managers prior to 6 October 2011.
Although a legal services body can have a variety of types of manager, only a solicitor or an REL may be a sole practitioner.
Where, in line with Rule 16, a firm has persons other than solicitors as managers (in particular where European lawyers are involved), any list of the managers will need to:
identify the jurisdiction(s) - local or national as appropriate - under whose professional title the lawyer or notary is practising;
if the lawyer is an REL, refer to that lawyer's registration with the SRA;
In addition, whenever an REL (whether or not a manager) is named on letterhead used in England and Wales by any firm or in-house practice, the firm or the employer will need to follow the guidance in (iii)(b) above.
Rule 17: Authorised bodies which are companies
Record of non-member shareowners
A recognised body which is a company with shares must keep a record of any non-member interest holders, and retain the record for at least three years after their interest ceases;
A licensed body which is a company with shares must keep a record of any non-member owners, and retain the record for at least three years after their ownership ceases.
A member who holds a share as nominee for a non-member shareowner in an authorised body must keep the authorised body informed of all facts necessary to keep an accurate and up-to-date record in accordance with Rule 17.1.
Part 4: Compliance with practice requirements
Rule 19: Compliance with practice requirements
An authorised body and its managers and employees must at all times ensure that they act in accordance with the requirements of the SRA's regulatory arrangements as they apply to them.
A solicitor, REL or RFL who is a member or shareowner of an authorised body which is a company must not cause, instigate or connive at any breach of the requirements imposed under the SRA's regulatory arrangements by the authorised body or any of its managers or employees.
An employee of an authorised body must not cause, instigate or connive at any breach of any requirements imposed under the SRA's regulatory arrangements.
The partners in an authorised body which is a partnership are responsible not only as managers but also, jointly and severally, as the authorised body.
Rule 20: [Deleted]
Rule 21: Waivers
Subject to provisions relating to any statutory obligations or the SRA's regulatory arrangements affecting its ability to waive any requirements, the SRA Board shall have power to waive in writing the provisions of these rules for a particular purpose or purposes expressed in such waiver, and to attach conditions to or revoke such waiver, at its own discretion.
An applicant for a waiver must satisfy the SRA that the circumstances are sufficiently exceptional to justify a departure from the requirements of the rule in question, bearing in mind its purpose. Applications should be made to the Professional Ethics Guidance Team.
Rule 23: Interpretation