1. The SRA Standards and Regulations (StaRs) — Overview
The SRA Standards and Regulations ('StaRs') are the current foundation of the regulatory regime for solicitors in England and Wales. Before you can apply any conduct rule, you must understand what StaRs is, when it came into force, and what it contains.
The SRA Standards and Regulations (StaRs) came into force on 25 November 2019, marking a radical overhaul of the regulatory framework. StaRs replaced the SRA Handbook, which had accumulated numerous amendments, exceptions and qualifications over time. The new regime is deliberately shorter, more principles-based, and outcomes-focused. This represents a significant shift in regulatory philosophy: rather than prescribing detailed rules for every scenario, StaRs sets out the Principles and Codes of Conduct that must be followed, and expects authorised persons to exercise judgment in applying those standards to the facts of their particular situation.
(1) The SRA Principles — the seven overarching requirements that apply to all authorised persons in all regulated activities.
(2) The SRA Code of Conduct for Solicitors, RELs and RFLs — the detailed rules governing the conduct of individual solicitors and equivalent persons.
(3) The SRA Code of Conduct for Firms — the rules establishing the systems and governance requirements that firms must implement.
(4) The SRA Accounts Rules — the detailed rules governing the handling and safeguarding of client money and assets.
(5) The Authorisation of Individuals Regulations — the requirements for individual solicitors to be registered with the SRA.
(6) The Authorisation of Firms Regulations — the requirements for law firms to be authorised to carry on reserved legal activities.
StaRs applies to all solicitors practising in England and Wales, Registered European Lawyers ('RELs'), Registered Foreign Lawyers ('RFLs'), and all licensed and authorised firms. It represents the current regulatory standard and is the foundation of this chapter.
2. The Seven SRA Principles
The SRA Principles are the fundamental requirements that apply to ALL areas of legal practice. Unlike the detailed rules in the Codes of Conduct (which apply to specific situations), the Principles apply universally — inside regulated practice and outside it, in a solicitor's private and business life.
A solicitor who breaches a Principle in a private capacity — for example, by making discriminatory remarks on social media, or by acting dishonestly in a business dealing unrelated to law — may face SRA disciplinary action. This is a frequently examined point: do not assume that the Principles bite only on a solicitor's professional work.
Principle 2: Act in a way that upholds public trust and confidence in the profession (and in legal services provided by authorised persons).
Principle 3: Act with independence.
Principle 4: Act with honesty.
Principle 5: Act with integrity.
Principle 6: Act in a way that encourages equality, diversity and inclusion.
Principle 7: Act in the best interests of each client.
The overarching purpose of regulation — both the Principles and the detailed Codes — is to maintain public trust in the profession. In Bolton v Law Society [1994] 1 WLR 512, Lord Bingham stated that the most fundamental purpose of all is 'to maintain the reputation of the Solicitors' Profession as one in which every member of whatever standing may be trusted to the ends of the earth.' That statement, made over 30 years ago, remains the lodestar of regulatory practice.
2.2.1 Hierarchy of Principles
There is no formal hierarchy among the Principles. However, the SRA has made clear that in any conflict between Principles, those serving the wider interest take precedence over those protecting individual client interests. This means that a solicitor's duty to uphold the rule of law (Principle 1) or to uphold public trust (Principle 2) will override the duty to act in the client's best interests (Principle 7) where the two conflict.
2.2.2 Honesty and the Ivey v Genting Casinos test
Principle 4 requires all solicitors to act with honesty. The standard of honesty is determined by the common law test established by the Supreme Court in Ivey v Genting Casinos [2017] UKSC 67, in which Lord Hughes restated the test for dishonesty for both civil and criminal law.
(2) Objective stage: the tribunal must then determine whether the conduct was dishonest by the standards of ordinary decent people.
Critically, there is no requirement that the defendant appreciated or recognised that their conduct was dishonest.
The old test, established in R v Ghosh [1982] QB 1053, required subjective dishonesty — that the defendant realised their conduct was dishonest. That requirement was abolished by Ivey. Now, a solicitor may genuinely believe their conduct was acceptable and proper, but if ordinary decent people would regard it as dishonest, a finding of dishonesty will be made. The Ivey test has been confirmed in criminal law by Barton & Booth v R [2020] EWCA Crim 575 and is extensively applied in SRA disciplinary cases involving breach of Principle 4 (honesty) or Principle 5 (integrity).
3. The SRA Code of Conduct for Solicitors, RELs and RFLs
The Code of Conduct for Solicitors, RELs and RFLs sets out in detail the conduct, behaviour and professional responsibility required of individual solicitors. It is organised into eight main areas, each comprising numbered rules. The Code is not a contract between solicitor and client and is not directly enforceable by clients, although a breach may found a complaint to the SRA or the Legal Ombudsman. It establishes the standards by which the SRA measures whether a solicitor has acted in accordance with the Principles.
2.3.1 Maintaining trust and acting fairly (Rules 1.1–1.4)
Rule 1.2 — Do not abuse your position. A solicitor must not take unfair advantage of their position as a solicitor (for example, using privileged access to a client's financial information to negotiate a personal favour).
Rule 1.3 — Perform undertakings. A solicitor must perform any undertaking made to a third party within the agreed timeframe or, if none is specified, within a reasonable timeframe (see Section 2.6).
Rule 1.4 — Do not mislead. A solicitor must not mislead clients, the court or anyone else. This includes misleading by omission (failing to disclose material information) and covers the substance of what is said, not merely its technical accuracy.
2.3.2 Dispute resolution and court proceedings (Rules 2.1–2.7)
The Code establishes strict rules for solicitors engaged in dispute resolution and proceedings, reflecting the solicitor's overriding duty to the court and the administration of justice.
Rule 2.4 — Properly arguable assertions. When making submissions, a solicitor must only advance arguments and assertions that are reasonably arguable on the facts and law.
Rule 2.5 — Comply with court orders. A solicitor must comply with any order of the court and must not encourage a client to breach such an order.
Rule 2.6 — Do not waste the court's time. Proceedings must be conducted efficiently.
Rule 2.7 — Advise the court of relevant law. A solicitor must inform the court of relevant statutory provisions, case law and procedural issues — including authority that is adverse to the client if it is binding or if the court would be unaware of it.
2.3.3 Service and competence (Rules 3.1–3.6)
Rules 3.2–3.6 — Competent and timely service. A solicitor must ensure that the service provided is competent and timely, and must maintain their knowledge of the relevant law. A solicitor must not accept or continue to act in a matter if they lack the competence or knowledge to do so. Supervised persons (trainees and junior lawyers) are accountable for their work, and the supervising lawyer remains responsible for ensuring compliance with this rule.
2.3.4 Client money (Rule 4)
Rule 4 — Safeguard money and assets. A solicitor must safeguard any money and assets entrusted to them by clients. This rule is amplified by the detailed SRA Accounts Rules, which govern the operation of client accounts, the segregation of client and firm money, reconciliation, and interest-bearing accounts. Client money protection is a cornerstone of public trust in solicitors.
2.3.5 Referrals, introductions and separate businesses (Rule 5)
Rule 5.1 — A solicitor may refer a client to another solicitor or specialist, but must ensure that the referral is to a competent person in good standing. Fee-sharing arrangements must be transparent and comply with the Code.
2.3.6 Conflict of interests and confidentiality (Rules 6.1–6.5)
The Code distinguishes two types of conflict: an own interest conflict and a client conflict.
Rule 6.4 — Duty of disclosure. A solicitor must tell the client all information material to the matter, UNLESS: (i) the law prohibits disclosure; (ii) the client consents to non-disclosure; (iii) there is a risk of serious injury; or (iv) the information is privileged and was disclosed to the solicitor by mistake.
Rule 6.5 — Former clients. A solicitor cannot act against a former client where the new work has an adverse interest and the solicitor holds material confidential information about the former client, unless effective measures prevent any real risk of disclosure and the former client gives informed consent in writing.
2.3.7 Cooperation and accountability (Rules 7.1–7.12)
Rules 7.2–7.4 — Cooperate with the SRA. Cooperate fully with the SRA's regulatory and investigation processes, providing information and documents on request.
Rule 7.6 — Report serious issues. Inform the SRA if you are charged with or convicted of a criminal offence, or become insolvent, and if you become aware that information provided to the SRA is inaccurate.
Rule 7.7 — Report serious breaches. Report to the SRA any facts or matters capable of constituting a serious breach of the SRA's regulatory arrangements by any person, including other solicitors. A failure to report is itself a serious breach.
Rule 7.9 — Whistleblower protection. A solicitor who reports (or is suspected of reporting) a breach must not be penalised or retaliated against.
Rule 7.11 — Honesty and openness with clients. When something goes wrong, a solicitor must be honest and open with the client about the nature and extent of the problem, including delays, errors and remedial steps.
Rule 7.12 — Compliance through the firm. The duty to report (Rules 7.6 and 7.7) may be satisfied by reporting through the firm's compliance officer (the COLP).
2.3.8 Complaints handling and client information (Rules 8.1–8.11)
Rule 8.4 — Unresolved complaints after 8 weeks. If a complaint is not resolved within 8 weeks, the firm must advise the client of their right to refer the complaint to the Legal Ombudsman and provide details of the relevant ADR body.
Rule 8.5 — Deal promptly and fairly. Handle complaints professionally, listen to the client's concerns and investigate properly.
Rules 8.6–8.8 — Best possible information. Give clients the best possible information about how their matter will be handled, including costs, interest on client money (if applicable) and the complaints procedure.
Rule 8.9 — Unsolicited approaches. A solicitor must not make unsolicited approaches to potential clients (marketing), except to existing or former clients where a relationship is already established.
Rules 8.10–8.11 — Explain regulation and protection. Tell clients that they are regulated by the SRA, what that means, and the client's right to complain to the Legal Ombudsman.
4. The SRA Code of Conduct for Firms
The Code of Conduct for Firms applies to all firms authorised to provide legal services. It establishes the systems, governance and compliance requirements that firms must implement. The SRA can take regulatory action against a firm for a serious breach, and also against the firm's managers, compliance officers and relevant employees. A 'serious breach' can be an isolated incident or a pattern of behaviour that is serious in nature or impact.
The Firms Code mirrors the Solicitors Code but is organised around firm-level responsibilities.
Rules 2.1–2.5 — Compliance and business systems: financial-stability monitoring, appropriate management systems, record-keeping, and controls over supervised staff.
Rules 3.1–3.9 — Cooperation and accountability: reporting financial difficulties to the SRA, allowing the SRA access to premises, and cooperating with investigations.
Rules 4.1–4.4 — Service and competence: ensuring the firm is run by competent people and that clients receive competent service.
Rules 5.1–5.2 — Client money and assets: safeguard client money, comply with the SRA Accounts Rules, and properly segregate client and firm money.
Rule 6 — Conflict, confidentiality and disclosure: mirrors the Solicitors Code but at firm level.
Rules 7–9 — Managers and compliance officers: personal responsibility on managers and on the COLP (Compliance Officer for Legal Practice) and COFA (Compliance Officer for Finance and Administration). The COLP oversees compliance with the Code and handles serious-breach reporting.
5. SRA Enforcement Strategy
The SRA's approach to enforcement is guided by its public interest purpose: 'to protect customers, set and enforce high professional standards, and support access to affordable legal services, the rule of law and the administration of justice.'
The SRA identifies three purposes of regulation: (i) ensuring a strong, competitive legal market; (ii) ensuring quality and client care; and (iii) promoting an ethical culture among legal professionals.
The Strategy acknowledges that error is unavoidable in professional practice. The SRA therefore focuses its enforcement resources on serious issues — breaches that risk significant harm to the public, damage to the profession's reputation, or undermining of the regulatory system. Minor technical breaches or isolated errors may result in gentle persuasion or informal resolution, while serious breaches result in investigation and formal discipline.
| Aggravating factors | Mitigating factors |
|---|---|
| Intent / deliberate conduct | Genuine regret and remorse |
| Dishonesty involved | Constructive engagement with the SRA investigation |
| Extent of harm or risk of harm caused | Evidence of remedial action |
| Number of victims affected | Cooperation with the regulatory process |
| Vulnerability of those affected | Prompt self-reporting of the breach |
| Seniority of the person; pattern of behaviour | Isolated incident; good prior record |
2.5.1 Purpose of regulation — Bolton v Law Society
The regulatory purpose identified in Bolton v Law Society [1994] 1 WLR 512 remains authoritative. Lord Bingham stated that the most fundamental purpose of all is 'to maintain the reputation of the Solicitors' Profession as one in which every member of whatever standing may be trusted to the ends of the earth.' Regulation is not primarily about punishment or retribution; it is about public protection and maintaining trust. A solicitor who has behaved dishonestly or incompetently may be disciplined not because they are wicked, but because their conduct undermines public confidence that solicitors can be trusted.
6. Undertakings
An undertaking is one of the most heavily examined topics in Legal Services, because it carries serious personal consequences for the solicitor who gives it. You must know its definition, why it is enforceable, who can give it, and what happens on breach.
(i) An undertaking is a legally enforceable promise.
(ii) It does NOT require consideration (unlike a contract).
(iii) It is enforceable by the court under its inherent (summary) jurisdiction over solicitors, and can also be enforced through the SRA's disciplinary process.
(iv) It may be given by any person within the firm, including trainee solicitors and paralegal staff — seniority is irrelevant.
(v) A promise to give an undertaking can itself constitute an undertaking.
In Udall v Capri Lighting Ltd [1988] QB 907, the court held that a solicitor is personally liable on an undertaking, even where the failure to perform is caused by the client's actions or by circumstances beyond the solicitor's control. This is a striking feature of undertaking law: the solicitor cannot escape liability by blaming the client or external events. If the solicitor gives an undertaking and fails to perform, the solicitor is in breach.
7. Price Transparency, the Digital Badge and Risk-Based Regulation
StaRs introduced a transparency agenda designed to help clients compare prices and services and to verify that a firm is genuinely regulated. This section covers the Price Transparency Rules, the SRA Digital Badge and the SRA's risk-based approach to regulation.
2.7 SRA Price Transparency Rules
The SRA Price Transparency Rules were introduced as part of StaRs (25 November 2019). They require regulated firms to publish price and service information on their websites for certain areas of work, enabling clients to compare prices and services across different legal service providers.
2.8 SRA Digital Badge
From 25 November 2019, all regulated firms have been required to display the SRA Digital Badge on their websites. The Badge is a clickable link that directs users to the firm's page on the SRA register, confirming the firm's regulated status. This is another element of the transparency agenda, giving clients and third parties a simple way to verify that a firm is genuinely regulated by the SRA.
2.9 Risk-Based Regulation
The SRA adopts a risk-based approach to regulation. Rather than treating all firms and activities as equally risky, the SRA prioritises its resources on the areas of greatest risk to the public. This involves proactive monitoring through thematic reviews (reviews of particular practice areas across multiple firms), visits, and data analysis.
8. Key Notes (Chapter Summary)
The following summary table consolidates every rule, authority and date examined in this chapter. Treat it as a revision checklist — you should be able to state each point and cite the relevant authority from memory.
| Point | Authority |
|---|---|
| StaRs replaced the SRA Handbook from 25 November 2019. | SRA Standards and Regulations 2019 |
| Seven SRA Principles apply to all areas of practice, including private life. | SRA Principles |
| Wider-interest Principles override individual client interests. | SRA Principle 1/2 vs 7 |
| Purpose of regulation is to maintain the reputation of the profession. | Bolton v Law Society [1994] 1 WLR 512 |
| Two-stage test for dishonesty (subjective knowledge + objective standards); Ghosh abolished. | Ivey v Genting Casinos [2017] UKSC 67; Barton & Booth v R [2020] EWCA Crim 575 |
| Two types of conflict: own interest conflict and client conflict. | Code of Conduct Rules 6.1–6.2 |
| Client conflict: may act only if substantially common interest / competing for same objective + informed consent in writing + safeguards + reasonable. | Rule 6.2 |
| Confidentiality of current and former clients is absolute unless exceptions apply; prevails over disclosure. | Rules 6.3–6.4 |
| Must report serious breaches to the SRA (or via the COLP). | Rules 7.7 / 7.12 |
| Complaints unresolved within 8 weeks → advise of the Legal Ombudsman. | Rule 8.4 |
| Undertaking: enforceable promise, no consideration needed, can be oral, binds the individual personally. | SRA Glossary; Udall v Capri Lighting Ltd [1988] QB 907 |
| Enforcement Strategy: focus on serious issues; aggravating / mitigating factors considered. | SRA Enforcement Strategy |
| Six Topic Guides: competence, criminal offences, drink-driving, transparency, social media, AML. | SRA Topic Guides |
| Price Transparency Rules cover seven areas (incl. conveyancing, probate, motoring). | SRA Transparency Rules |
| SRA Digital Badge required on all regulated firm websites from 25 November 2019. | SRA Standards and Regulations 2019 |
9. Revision Notes (Short-Answer Questions)
Use these short-answer questions to test your recall of the underlying principles. Attempt each question closed-book, write a full answer, then compare it against the model note provided.
Answer & explanation
Answer & explanation
Answer & explanation
Answer & explanation
Answer & explanation
10. MCQ Practice — Five SQE-Style Questions
Each of the following five questions mirrors the style, length and difficulty of the SQE1 FLK1 single best answer questions. Attempt each question closed-book, write down your answer, then turn to the answer key. The answer key explains why each option is correct or incorrect — read every explanation in full.
A. The solicitor may continue to act for both clients because they are competing for the same objective, which is permitted under Rule 6.2.
B. The solicitor may continue to act for both clients provided each client gives oral consent.
C. The solicitor cannot act for both clients because a client conflict exists, and the conditions for acting despite the conflict are not met — in particular, there is no informed consent in writing.
D. The solicitor cannot act because this is an own interest conflict under Rule 6.1.
E. The solicitor may continue to act provided effective information barriers are in place.
Answer & explanation
C is correct — the scenario involves a client conflict (Rule 6.2). The 'competing for the same objective' gateway is available, but all four conditions of Rule 6.2 must be met, and here neither client has given informed consent in writing, so the conditions are not satisfied.
A is incorrect — competing for the same objective is a necessary but not sufficient condition.
B is incorrect — consent must be evidenced in writing, not given orally.
D is incorrect — this is a client conflict, not an own interest conflict.
E is incorrect — information barriers alone do not satisfy the consent requirement. (See Section 2.3.6.)
A. The solicitor has no obligation to report the matter because it is the firm's responsibility, not the individual solicitor's.
B. The solicitor should report the matter to the firm's compliance officer (COLP), which satisfies the reporting obligation under Rule 7.7/7.12.
C. The solicitor must report the matter directly to the police but has no obligation to inform the SRA.
D. The solicitor should wait to see if the firm resolves the matter internally before taking any action.
E. The solicitor may choose whether or not to report the matter, as reporting is discretionary under the Code.
Answer & explanation
B is correct — under Rule 7.7 a solicitor must report to the SRA any facts or matters capable of being a serious breach by any person, and Rule 7.12 provides that this obligation may be satisfied through the firm's COLP. Misappropriation of client money is plainly a serious breach.
A is incorrect — individual solicitors have a personal reporting obligation.
C is incorrect — the obligation is to report to the SRA (or via the COLP); police involvement may also be appropriate but does not replace it.
D is incorrect — the obligation to report is immediate, not contingent on the firm acting first.
E is incorrect — reporting is mandatory, not discretionary; Rule 7.9 provides whistleblower protection. (See Section 2.3.7.)
A. The firm has no obligation to publish pricing information because conveyancing fees vary too much to be published in advance.
B. The firm is in breach of the SRA Price Transparency Rules, which require regulated firms to publish price and service information for residential conveyancing.
C. The firm is in breach of the SRA Accounts Rules for failing to disclose fee information.
D. The firm has no obligation to publish pricing information provided it gives individual clients a costs estimate at the start of the retainer.
E. The obligation to publish pricing information applies only to firms with more than 50 employees.
Answer & explanation
B is correct — the SRA Price Transparency Rules (part of StaRs) require regulated firms to publish price and service information on their websites for certain categories of work, including residential conveyancing. The information must include total cost or range, basis of charges, inclusions and exclusions, likely disbursements, and whether VAT applies.
A is incorrect — the Rules specifically cover conveyancing.
C is incorrect — this is a transparency issue, not an Accounts Rules issue.
D is incorrect — an individual estimate does not satisfy the obligation to publish.
E is incorrect — the Rules apply to all regulated firms regardless of size. (See Section 2.7.)
A. The undertaking is not binding because it was given orally, not in writing.
B. The solicitor is not personally liable because the failure was caused by the client's actions, not the solicitor's.
C. The solicitor is personally liable on the undertaking. An undertaking is enforceable regardless of whether it was given orally or in writing, and the solicitor's personal liability is not affected by the client's conduct.
D. The undertaking is unenforceable because no consideration was given for it.
E. The buyer's solicitor should pursue the client directly, as undertakings only bind the firm, not individual solicitors.
Answer & explanation
C is correct — an undertaking is a legally enforceable promise that can be given orally or in writing. Under Udall v Capri Lighting Ltd [1988] QB 907, a solicitor is personally liable on an undertaking even where the failure to perform is caused by the client's actions.
A is incorrect — oral undertakings are binding.
B is incorrect — the solicitor's liability is personal and independent of the client's actions.
D is incorrect — undertakings do not require consideration (they are enforceable under the court's summary jurisdiction).
E is incorrect — undertakings bind the individual solicitor who gives them (as well as the firm). (See Section 2.6.)
A. The solicitor should proceed with the advice because a solicitor is qualified to advise on all areas of law.
B. The solicitor should advise the client to the best of their ability, noting any areas of uncertainty, because refusing to act would breach Principle 7 (acting in the best interests of the client).
C. The solicitor should decline to advise on the matter and explain to the client that they do not have the competence to provide the advice, offering to arrange for a suitably qualified colleague or another firm to assist.
D. The solicitor should advise the client but charge a reduced fee to reflect their lack of experience.
E. The solicitor should give preliminary advice and then seek confirmation from a tax specialist later, without informing the client that the advice is preliminary.
Answer & explanation
C is correct — under Rule 3.2 of the Code, a solicitor must ensure that the service provided is competent and timely. A solicitor with no experience or training in tax law cannot provide competent advice on a complex tax matter; Principle 7 (best interests of the client) requires the solicitor to recognise their limitations and refer the client to someone who can advise competently.
A is incorrect — qualification does not confer competence in all areas.
B is incorrect — advising without competence does not serve the client's best interests.
D is incorrect — charging less does not cure incompetence.
E is incorrect — failing to tell the client that the advice is preliminary would breach Rule 7.11 (duty to be honest and open with clients). (See Section 2.3.3.)