-SQA-SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION ETHICS AND CASH HANDLING IN THE LEGAL OFFICE ENVIRONMENT

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1 -SQA-SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION -Unit number- D33F 04 -Unit title- -Superclass category- -Date of publication- (month and year) -Originating centre for unit- ETHICS AND CASH HANDLING IN THE LEGAL OFFICE ENVIRONMENT EC JULY 1999 SQA DESCRIPTION- GENERAL COMPETENCE FOR UNIT: Using basic cash handling skills and explaining the need for and the methods employed in protecting the public in relation to the legal profession. OUTCOMES: 1. explain how the Law Society of Scotland fulfils its statutory role of protecting the public in relation to solicitors; 2. describe the main provisions of the Solicitors (Scotland) Accounts Rules and of the Money Laundering Regulations; 3 demonstrate how normal transactions are recorded in a legal office. CREDIT VALUE: 1 HN Credit. ACCESS STATEMENT: Access to this unit is at the discretion of the centre Additional copies of this unit can be obtained from: The Committee and Administration Unit, SQA, Hanover House, 24 Douglas Street, Glasgow G2 7NQ, (Tel: ). At the time of publication the cost is 1.50 per unit (minimum order 5.00).

2 HIGHER NATIONAL UNIT SPECIFICATION STATEMENT OF STANDARDS Unit number: D33F 04 Unit title: ETHICS AND CASH HANDLING IN THE LEGAL OFFICE ENVIRONMENT Acceptable performance in this Unit will be the satisfactory achievement of the standards set out in this part of the specification. All sections of the statement of standards are mandatory and cannot be altered without reference to SQA. OUTCOME 1. EXPLAIN HOW THE LAW SOCIETY OF SCOTLAND FULFILS ITS STATUTORY ROLE OF PROTECTING THE PUBLIC IN RELATION TO SOLICITORS PERFORMANCE CRITERIA (a) (b) (c) (d) The explanation of how the Society controls those who apply to become solicitors, and punishes or expels those guilty of professional misconduct is correct. The description of the function of the Scottish Solicitors Guarantee Fund and how it protects the public in their dealings with solicitors is correct. The description of the steps taken by the society to ensure the public can secure adequate compensation for professional negligence and inadequate professional services is correct. The purpose of the Solicitors (Scotland) Accounts Rules in protecting funds held by solicitors is correctly explained. RANGE STATEMENT Protecting the public: the difference between professional misconduct; negligence and inadequate professional services. Professional misconduct: client confidentiality; conflict of interest. EVIDENCE REQUIREMENTS Written and/or oral evidence is required which indicates that the candidate can explain how the Law Society of Scotland fulfils its statutory duty of protecting the public in relation to solicitors. Satisfactory achievement will be demonstrated by the candidate fulfilling the requirements of the performance criteria on a minimum of one occasion. 2

3 OUTCOME 2. DESCRIBE THE MAIN PROVISIONS OF THE SOLICITORS (SCOTLAND) ACCOUNTS RULES AND OF THE MONEY LAUNDERING REGULATIONS PERFORMANCE CRITERIA (a) (b) (c) The main requirements of the Solicitors (Scotland) Accounts Rules are correctly stated. The Law Society of Scotland s methods of monitoring compliance with the rules are correctly described. The need for the Money Laundering Regulations is adequately explained and the basic steps necessary to comply with them are correctly described. RANGE STATEMENT Solicitors (Scotland) Accounts Rules: clients money to be kept in separate account; solicitor to pay for outlays when client has no funds. Steps to comply with Money Laundering Regulations: Verify identify of client. The remainder of the range for this outcome is fully expressed within the performance criteria. EVIDENCE REQUIREMENTS Written and/or oral evidence is required which indicates that the candidate can describe the main provisions of the Solicitors (Scotland) Accounts Rules and of the Money Laundering Regulations. Satisfactory achievement will be demonstrated by the candidate fulfilling the requirements of the performance criteria on a minimum of one occasion. OUTCOME 3. DEMONSTRATE HOW NORMAL TRANSACTIONS ARE RECORDED IN A LEGAL OFFICE PERFORMANCE CRITERIA (a) (b) (c) Double entry book-keeping is accurately demonstrated. Use of the Cash Book, Clients Ledger and Firm s Ledger in a legal office accounting system is correctly demonstrated. Transactions are correctly recorded in a Cash Book and then posted accurately to the correct ledger accounts. 3

4 RANGE STATEMENT The range for this outcome is fully expressed within the performance criteria. EVIDENCE REQUIREMENTS Performance evidence is required which indicates that the candidate can demonstrate how normal transactions are carried out in a legal office. The candidate must produce a Cash Book recording at least 25 typical transactions and then post these to the correct accounts in the Firm and Clients ledger, showing whether the payments are made by cash, firm cheque, or clients cheque as appropriate. Fifteen of these transactions must be on behalf of clients. MERIT STATEMENT: To gain a pass in this unit, a candidate must meet the standards set out in the outcomes, performance criteria, range statements and evidence requirements. To achieve a merit in this unit, a candidate must demonstrate a superior or more sophisticated level of performance. In this unit this might be shown in the following ways: (a) (b) (c) (d) (e) clarity of expression and presentation; depth of underpinning knowledge; grasp of concepts; accuracy of information provided; skill in recording transactions. ASSESSMENT In order to achieve this unit, candidates are required to present sufficient evidence that they have met all the performance criteria for each outcome within the range specified. Details of these requirements are given for each outcome. The assessment instruments used should follow the general guidance offered by the Scottish Qualifications Authority (SQA) assessment model and an integrative approach to assessment is encouraged. (See references at the end of support notes). Accurate records should be made of the assessment instruments used showing how evidence is generated for each outcome and giving marking schemes and/or checklists, etc. Records of candidates achievements should be kept. These records will be available for external verification. SPECIAL NEEDS Proposals to modify outcomes, range statements or agreed assessment arrangements should be discussed in the first place with the external verifier. 4

5 Copyright SQA 2000 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 5

6 HIGHER NATIONAL UNIT SPECIFICATION SUPPORT NOTES Unit number: D33F 04 Unit title: ETHICS AND CASH HANDLING IN THE LEGAL OFFICE ENVIRONMENT SUPPORT NOTES: This part of the unit specification is offered as guidance. None of the sections of the support notes is mandatory. NOTIONAL DESIGN LENGTH: SQA allocates a notional design length to a unit on the basis of time estimated for achievement of the stated standards by a candidate whose starting point is as described in the access statement. The notional design length for this unit is 40 hours. The use of notional design length for programme design and timetabling is advisory only. PURPOSE The purpose of this unit is to make the candidate aware of the regulations imposed on the profession by the Law Society of Scotland, particularly with regard to clients money, and to enable the candidate to process straightforward recording of financial transactions. CONTENT/CONTEXT Increasingly complex and comprehensive regulations are being imposed on solicitors by the Law Society of Scotland, and it is important that candidates appreciate that these regulations are part of the Society s attempts to fulfil their statutory duty in terms of S.I of the Solicitors (Scotland) Act 1980 to promote the interests of the public in relation to the solicitors profession. Thus the Society regulates who can be admitted as a solicitor; operates a disciplinary tribunal which can have them struck off for professional misconduct; operates the Solicitors Guarantee Fund, which reimburses anyone who loses money as a result of a solicitor s dishonesty; and refuses to grant a practising certificate to any solicitor who is not adequately insured against professional negligence. Candidates should be aware of the difference between professional misconduct, where a claim may be made to the Society for compensation, and negligence, where the client must raise court proceedings against the solicitor involved, and the Society is not involved. Law Society leaflets may be helpful here. Candidates working in legal offices must particularly know about the main provisions of the Solicitors Account Rules and the Money Laundering Regulations. It is recommended that centres include in their courses at least the following points: all clients money should be paid into a separate account (known as the Clients Account) which cannot be attached by the solicitor s creditors should he go bankrupt. the credit balance in the Clients Account must always be sufficient to meet the sum of the credit balances on all individual client s accounts within the Clients Ledger. 6

7 if a payment is made on behalf of a client who has no funds, then the payment must be made using the solicitor s own funds. it is not permitted to use one client s money to make a payment for another client. proper books of account must be kept, so that they disclose all transactions the solicitor has made with clients money. the Clients Ledger must be balanced monthly to ensure the Clients bank account contains sufficient funds. This needs to be reconciled with the bank statement each month. if a solicitor holds funds for a client for any length of time he has a duty to place it on deposit, and credit the client with the interest earned. The need to obtain identification from new clients before any transactions involving money are made. Mention should also be made of the Society s right to audit any firm s books (currently they aim to do so every 2/3 years) and of the requirement of the Solicitors (Scotland) Accounts Certificate Rules to submit certificates every six months that the requirements of the Accounts Rules have been met. The third outcome is more practical in nature, as any candidate employed as a paralegal will be required to look after or transact with clients money. The candidates should be asked to operate a simple hand written system so that they can understand clearly how the system works, and so have a greater understanding of the processes computerised systems are using. The Law Society of Scotland will provide copies of the Accounts Rules and Money Laundering Regulations and any other regulations which apply. A charge may be made for this. The Society also regularly hold seminars on these topics, and the course papers may be obtained from the Society for a modest fee. APPROACHES TO GENERATING EVIDENCE If possible an integrated approach is recommended whereby candidates carry out the work protecting members of the public. Actual cases reported in the press can be used to demonstrate how the Law Society implements its statutory duty. ASSESSMENT PROCEDURES EXEMPLARS PROGRESSION RECOGNITION 7

8 REFERENCES 1. Guide to unit writing, SQA, 1993 (Code: A018). 2. Guide to assessment, SQA, 1993 (Code: B005). 3. Guide to certification, SQA, 1996 (Code: F025). 4. Notes for unit writers, SQA, 1995 (Code: A041). For details of other SQA publications, please contact staff in the Sales and Despatch section (Tel: ) who can supply you with a copy of the publication list (Code: X037). Copyright SQA 2000 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 8