Section B: Fundamental Principles and Client Care

Save when and to the extent engaged in cross-border practice you shall comply with the standards of conduct set out in this rule 1.

You must be trustworthy and act honestly at all times so that your personal integrity is beyond question.

You must give independent advice free from external influences or personal interests which are inconsistent with these standards.

You must act in the best interests of your clients subject to preserving your independence and complying with the law, these rules and the principles of good professional conduct.

You are the agent of your client and must have the authority of your client for your actings. You must not accept improper instructions

You must maintain client confidentiality.

You must not act for two or more clients in matters where there is a conflict of interest between the clients or for any client where there is a conflict between the interest of the client and your interest or that of your practice unit.

Where you are consulted about a matter in which you have, or your practice unit has, a personal or a financial interest, the position must be made clear to the client as soon as possible.

You must communicate effectively with your clients and others

You must only act in those matters where you are competent to do so.

The fees you charge must be fair and reasonable in all the circumstances.

You must not cease to act for clients without just cause and without giving reasonable notice, or in a manner which would prejudice the course of justice.

You must never knowingly give false or misleading information to the court. You must maintain due respect and courtesy towards the court while honourably pursuing the interests of your clients.

You must act with other regulated persons in a manner consistent with persons having mutual trust and confidence in each other.

You must not discriminate on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation in your professional dealings with other lawyers, clients, employees or others

Practice rule imposing duty to Co-operate with the Society

Practice rule on duty to co-operate with the SLCC

You should never attempt to prevent or discourage clients or others from making complaints to the Scottish Legal Complaints Commission whether by means of provisions in your Terms of Business, or by any other means. Any attempt to do so may call into question your compliance with the Standards of Conduct.

The standards of conduct contained in rule B1 do not apply when you are engaged in cross-border practice. Note that this term does not encompass transactions or activity between the constituent parts of the United Kingdom.

Outsourcers should give independent advice

Supervision of non-solicitor employees It is emphasised that the obligation in rule B1.4.1 (to "act in the best interests of your clients subject to preserving your independence and complying with the law, these rules and the principles of good professional conduct") extends to practice units as well as individual solicitors.

A solicitor must (a) have instructions from their client and (b) be satisfied when taking instructions that the client has the capacity to give instructions in relation to that matter.

Signature of Certificates on Powers of Attorney - Trainee Solicitors Sections 15, 16 and 16A of the Adults with Incapacity (Scotland) Act 2000 provide that a continuing power of attorney or a welfare power of attorney must incorporate a certificate by a practising solicitor or a doctor that the solicitor or doctor has interviewed the granter immediately before he or she signed the documents;

Vulnerable clients

Confidentiality is related to conflict of interest but is also a separate and distinct question. The position is set out in rule B1.6 which states "You must maintain client confidentiality. This duty is not terminated by the passage of time.

The law and the legal profession are of significant interest to the media and their readers, listeners and viewers.

You must maintain client confidentiality.

B1.7: Conflict of Interest in relation to Outsourcing

Obligation on outsourcers to disclose interests

Guidance for solicitors providing advice on dispute resolution procedures

Check the skills of outsourced providers

Contact from Opponent’s Client It has come to the attention of the Professional Practice Committee that there is an increasing tendency for Defenders to telephone Pursuers' agents direct to discuss active cases.

The Professional Practice Committee and the Council confirm that where money or deeds are sent to be held as undelivered pending purification of a condition, they should be so held if the condition is not purified. Settlement will not take place until they can be treated as delivered.

Diversity - Outsourcing

Data protection - good practice Note issued by the information commissioner

Consent Form produced by the British Medical Association

Ensuring fairness, creating opportunities. This is a practical guide for firms. It covers how firms can improve practice, broaden skills and develop new business by understanding the needs of different clients and staff. An additional supplement focuses on the specific of access for people with disabilities.

Advice and Information related to rule on duty to co-operate with the SLCC

You shall not act for two or more parties whose interests conflict.

You shall not knowingly act on instructions in relation to the preparation of testamentary writings which could reasonably be perceived to give unfair benefits to you or those connected with you by family or professional relationships.

Conflict of Interest Generally It is a well established principle that solicitors should not act for clients where there is a conflict of interest between them. This is codified in rule B2.1.2 which states that "You shall not act for two or more parties whose interests conflict."

The Society believes that a definition of a commercial security transaction is helpful: "A commercial security transaction relates to the secured lending to a customer of a bank or other lending institution where the purpose of the loan is clearly for the customer's business purposes".

Where there is a combination of solicitor and non-solicitor executors, a solicitor executor should not use his power as executor to secure the continuity of his acting as solicitor in the winding up of the estate.

From time to time the Law Society is asked to provide guidance to solicitors who have been asked to act as a director of a company which is also a client of the practice unit (and also where a company of which the solicitor is a director becomes a client of the practice unit).

After extensive discussion and consideration the view of the Society is that in general there is a clear conflict and the same solicitor should not advise both parties in relation to preparation of a cohabitation agreement

Guidance on conflict of interest issues in relation to guarantees.

Rule B2.2 is a restatement of The Solicitors (Scotland) (Drafting Wills) Practice Rules 2010 ("the 2010 Rules") with one amendment (the addition of the word "knowingly" before the word "act" in rule B2.2.2, added for clarity and consistency with B2.2.3).

All applications for waiver should be made on the relevant form (see the Forms and Fees related to Rule A5) and addressed to the Secretary of the Rules, Waivers and Guidance Sub-Committee.

All applications for waiver should be made on the relevant form (see the Forms and Fees related to Rule A5) and addressed to the Secretary of the Rules, Waivers and Guidance Sub-Committee.

Subject to rules 3.2 and 3.5, you shall be entitled to advertise and promote your services in any way you think fit.

Where your fees for your services are advertised either by you or by a third party and whether or not you are named in such an advertisement the advertisement must include mention of outlays and VAT with no less prominence than the fees.

It is difficult to draw lines between a response to advertising, competitive quoting and touting. It remains the case, however that you should not directly approach someone else's client.

All Mandates requesting the transfer of papers and legal aid relating to a criminal matter shall be completed and executed by the assisted person in the form agreed by the Scottish Legal Aid Board and the Law Society of Scotland.

When tendering for business or at the earliest practical opportunity upon receiving instructions to undertake any work on behalf of a client, you shall provide the following information to the client in writing:

This rule requires solicitors to provide information in writing to clients about certain specific matters namely

The Professional Practice Committee considers that it is unnecessary to provide written information as required by rule B4 at least in domestic security transactions, as lenders are setting out the terms of the relationship in their instructions to solicitors and fees will require to be paid by the borrower.

During October 2008 there was uncertainty about the stability of banks and the Society sought the opinion of the Dean of Faculty. That opinion can be summarised as follows::

Unless agreed otherwise and set out in Terms of Business or a separate letter which provides either that no interest will be earned because of current bank interest rates, or that some of the interest will be retained by the practice unit, then the matter is covered by Rule B6.10 (the Accounts etc rules).

FATCA applies to any financial institution that pays money to a US taxpayer anywhere in the world.

A well drafted letter of engagement is a useful risk management tool which can have real benefits for solicitors and their firms. Time spent considering and crafting a well-tailored terms of business letter at the outset of a transaction will help to minimise the risk of complaints at a future stage. Solicitors may therefore wish to consider the advice and information on our website when drafting terms of business letters:

By each date set out in rule 5.2.2 a practice unit shall designate one of its managers as its Client Relations Manager, who shall be responsible for dealing with complaints made to that practice unit.

1. Records to be kept (Rule B5.5.1) It is not intended that the record keeping exercise should simply be an administrative one.

Subject to the provisions of rule 6.6 every practice unit shall – (a) ensure that at all times the sum at the credit of the client account, or where there are more such accounts than one, the total of the sums at the credit of those accounts, shall not be less than the total of the clients’ money held by the practice unit;

Do I have to keep all my client funds in the client bank account? Yes. You must always have sufficient funds in the client bank account to cover all of the client credit balances.

This note looks at the case of Bowman v Fels decided by the Court of Appeal in England on 8 March 2005 [2005] EWCA Civ 226. This case overturns the decision of the High Court in P v P decided in 2003.

The recent slow down in the UK property market has exposed a rise in mortgage fraud by organised criminals and the potential vulnerability of professionals to be exploited by organised crime syndicates.

Advice & Information on revisions to Rule B6 (Accounts, Accounts Certificate, Professional Practice and Guarantee Fund) effective from 4 January 2023

There are three Accounts Certificate forms

The Society shall take out and maintain with authorised insurers to be determined from time to time by the Council a master policy in terms to be approved by the Council to provide indemnity against such classes of professional liability as the Council may decide

The Society shall manage and administer the contingency fund monies.

Under the Society's arrangements for the Master Policy for Professional Indemnity Insurance firms whose activities are restricted to criminal court work only throughout the practice year are entitled to a discount on their Master Policy premium.

Outsourcing – prof indemnity insurance

For further information, see Master Policy Information.

No agreement in writing between you and your client as to your fees in respect of any work done or to be done by you for your client

You shall neither authenticate, nor apply for registration in the Land Register of, a document created as an electronic communication within the ARTL System on behalf of any person unless you have obtained a mandate in your favour

Subject to rules 8.3.3 and 8.3.4, you may take industrial action.

Where in the course of advising a client you identify a situation which may require appearance in a Superior Court in circumstances where such appearance is restricted to a solicitor advocate or an advocate, you shall advise your client:

This guidance is designed as a reminder of the interlocking framework of rules that apply when advising a client on the choice of representation where appearance is required in the superior courts.

Practice Rules governing our members' anti-money laundering compliance

AML resources including Guidance related to Rule B9