#1. The Transparency Rules 2018 form part of the SRA Standards and Regulations 2019 although they were released nearly a year before the Standards and Regulations. Why was this?

The SRA promised the Competition and Markets Authority that it would put something out before the end of 2018

The SRA needed to test the Standards and Regulations before they released them so the Transparency Rules were the test rules

The Law Society were pressuring the SRA to put out this price and service information

There were so many complaints to the Legal Ombudsman about prices that the SRA brought the Transparency Rules out early

#2. Rule 1.5 of the Transparency Rules states that certain costs information must be included in the information on the website. Which one of the following does not have to be included in that information?

The total costs, average costs or range of costs of the service

Whether fees or disbursements attract VAT

The experience and qualifications of the people carry out the work on the matter

The timescales for the bill of costs to be paid

#3. You have paid a disbursement from the business account and now have sufficient money held in the client account towards it.

Are you required to send the client a bill or other written notification of costs prior to transferring the money from the client account to the business account?

Yes

No

#4. A bill of costs must be signed by a partner/director or member?

True

False

#5. You have instructed an interpreter in order for your client to be able to communicate with you or to enable your client to understand Court proceedings. The cost of the interpreter is being passed on to the client. When billed, the cost is:

A Disbursement

A Recharge

#6. The Legal Omsbudsman has the power to award compensation when a client wins their case. What is the highest figure the Legal Ombudsman can award?

£10,000.00

£25,000.00

£50,000.00

£100,000.00

#7. How is the ‘Current Ratio’ (which is sometimes also called Working Capital Ratio) calculated?

Current assets divided by total liabilities

Current assets divided by current liabilities

Current liabilities divided by current assets

#8. The client bank reconciliation must be signed by:

COFA or manager

A non-owner solicitor

A legal cashier

Head of finance

#9. When does the Accountants Report (AR1) need to be sent to the SRA?

When the report is qualified

All reports should be sent to the SRA

Reports should be sent at the COFAs discretion

When firms hold client money

#10. A cash flow forecast is?

When income is earned and when costs are incurred

A plan that shows how much money a business expects to receive in, and pay out, over a specific period of time

A financial plan for a defined period, often one year

#11. Is it permissible to pass on the costs of conducting client due diligence as a disbursement under the AML under the money laundering regulations on to my client?

Yes

No

#12. A solicitor from ABC Law is acting for a farmer who is granting Company X with rights to put a wind farm on his land. The solicitor is advising on the contract/lease outlining the rights of the wind farm on the farmers’ land.

After the contract is completed ABC Law receive rental payments into client account each quarter.

Is this providing banking facilities?

Yes

No

#13. When dealing with residual balances that are £500 or less that are to be paid to a charity, your firm posts a journal from the business side of the client’s ledger and credits a nominal ledger in the name of the charity. You then transfer the residual balance from the client account to the business account.

Once a month, the payment to the charity is made from the charity nominal ledger. Is this permissible under the SRA Accounts Rules?

Yes

No

#14. Your firm acted for a client in the sale of commercial premises which is now completed. Your firm are in the process of accounting to him for the net proceeds of sale. Independently of this retainer, the client’s daughter has instructed another solicitor in your firm to act for her in buying a flat.

The father has asked the firm to retain enough money to cover his daughter’s legal fees and to send the balance to him.

Is this providing banking facilities?

Yes

No

#15. The COFA must report all breaches to the SRA.

True

False

#16. The Transparency Rules require all regulated firms, and individual freelance solicitors who publish as part of their usual business that they offer certain services, to publish information on the prices that they charge. Rule 1.3 list the services where you are required to publish the information. Which one of the following is not on the list?

Probate cases where all assets are in the UK

Immigration excluding asylum applications

Motoring offences – summary only offences

Divorce cases where all assets are in the UK

#17. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, disbursement?

Yes

No

#18. A cyber-attack cannot be reported by the COFA as it is not mentioned in the SRA Accounts Rules and is unlikely to result in a serious breach under the SRA Accounts Rules?

True

False

#19. The COFA is solely responsible for monitoring and controlling financial stability.

True

False

#20. Your firm deals with estate matters and you incur and pay for probate court fees. You also pay for additional copies of the grant of probate. These copies are often sent out to third parties in order to speed up process. You pass the cost of the additional copies on to the estate.

How should you show them and treat them on your bill/invoice?

Recharge net cost plus VAT

Recharge net cost with no VAT

Disbursement net cost plus VAT

Disbursement net cost with no VAT

On Demand Workshop – COFA Compliance Masterclass

COFA Compliance Masterclass

Who is this training for?

Purpose of this training?

Results

#1. The Transparency Rules 2018 form part of the SRA Standards and Regulations 2019 although they were released nearly a year before the Standards and Regulations. Why was this?

#2. Rule 1.5 of the Transparency Rules states that certain costs information must be included in the information on the website. Which one of the following does not have to be included in that information?

#3. You have paid a disbursement from the business account and now have sufficient money held in the client account towards it.

Are you required to send the client a bill or other written notification of costs prior to transferring the money from the client account to the business account?

#4. A bill of costs must be signed by a partner/director or member?

#5. You have instructed an interpreter in order for your client to be able to communicate with you or to enable your client to understand Court proceedings. The cost of the interpreter is being passed on to the client. When billed, the cost is:

#6. The Legal Omsbudsman has the power to award compensation when a client wins their case. What is the highest figure the Legal Ombudsman can award?

#7. How is the ‘Current Ratio’ (which is sometimes also called Working Capital Ratio) calculated?

#8. The client bank reconciliation must be signed by:

#9. When does the Accountants Report (AR1) need to be sent to the SRA?

#10. A cash flow forecast is?

#11. Is it permissible to pass on the costs of conducting client due diligence as a disbursement under the AML under the money laundering regulations on to my client?

#15. The COFA must report all breaches to the SRA.

#17. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, disbursement?

#18. A cyber-attack cannot be reported by the COFA as it is not mentioned in the SRA Accounts Rules and is unlikely to result in a serious breach under the SRA Accounts Rules?

#19. The COFA is solely responsible for monitoring and controlling financial stability.

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On Demand Workshop – COFA Compliance Masterclass

COFA Compliance Masterclass

Who is this training for?

Purpose of this training?

Results

#1. The Transparency Rules 2018 form part of the SRA Standards and Regulations 2019 although they were released nearly a year before the Standards and Regulations. Why was this?

#2. Rule 1.5 of the Transparency Rules states that certain costs information must be included in the information on the website. Which one of the following does not have to be included in that information?

#3. You have paid a disbursement from the business account and now have sufficient money held in the client account towards it.Are you required to send the client a bill or other written notification of costs prior to transferring the money from the client account to the business account?

#4. A bill of costs must be signed by a partner/director or member?

#5. You have instructed an interpreter in order for your client to be able to communicate with you or to enable your client to understand Court proceedings. The cost of the interpreter is being passed on to the client. When billed, the cost is:

#6. The Legal Omsbudsman has the power to award compensation when a client wins their case. What is the highest figure the Legal Ombudsman can award?

#7. How is the ‘Current Ratio’ (which is sometimes also called Working Capital Ratio) calculated?

#8. The client bank reconciliation must be signed by:

#9. When does the Accountants Report (AR1) need to be sent to the SRA?

#10. A cash flow forecast is?

#11. Is it permissible to pass on the costs of conducting client due diligence as a disbursement under the AML under the money laundering regulations on to my client?

#15. The COFA must report all breaches to the SRA.

#17. Is it permissible to issue the client with a bill of costs for an unpaid, not yet incurred, disbursement?

#18. A cyber-attack cannot be reported by the COFA as it is not mentioned in the SRA Accounts Rules and is unlikely to result in a serious breach under the SRA Accounts Rules?

#19. The COFA is solely responsible for monitoring and controlling financial stability.

Further Information

Frequently Asked Questions

Why On Demand?

Why On Demand

Online – the Cons

How do I pose a question as a result of watching an On Demand training session?

Can I download the On Demand videos?

Recent Compli-Forum Topics

Recent Blogs

#3. You have paid a disbursement from the business account and now have sufficient money held in the client account towards it.

Are you required to send the client a bill or other written notification of costs prior to transferring the money from the client account to the business account?