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Complaints Handling and the Legal Ombudsman for SQE1

Part of our SQE1 Legal Services guide → View the full SQE1 Legal Services guide

19 Apr 2026

Revise complaints handling and the Legal Ombudsman for SQE1 Legal Services, including client complaints, redress and escalation routes.

Legal Services > Complaints Handling and the Legal Ombudsman

Every law firm must have a complaints procedure, and every SQE1 candidate must understand how complaints are handled—both internally and by the Legal Ombudsman. This topic tests your knowledge of the two-stage complaints process and the boundaries of the Legal Ombudsman's jurisdiction. A common trap is confusing which body handles which type of complaint.

What Is the Complaints Handling Framework in SQE1?

Candidates frequently lose marks on SQE1 by confusing the role of the Legal Ombudsman with the SRA — the LeO handles service complaints, while the SRA deals with professional conduct breaches. The complaints framework operates in two stages. First, the client complains to the law firm using its internal complaints procedure. If the complaint is not resolved satisfactorily (or within eight weeks), the client can escalate it to the Legal Ombudsman (LeO)—an independent body established by the Legal Services Act 2007 to resolve disputes between legal service providers and their clients. The Legal Ombudsman deals with service complaints (poor service, unreasonable fees, delays). It does not deal with professional misconduct—that is the SRA's role.

Understanding complaints handling is critical because it intersects with Professional Discipline and Enforcement and SRA Principles. SQE1 questions may test whether you can distinguish between service complaints (LeO's jurisdiction) and conduct complaints (SRA's jurisdiction).

Key Principles for SQE1

  • Internal Complaints Procedure: Every firm authorised by the SRA must have a written complaints procedure and inform clients about it at the outset of the retainer. This is not optional; it is a mandatory requirement.

  • First-Tier Complaint: The client must first use the firm's internal complaints procedure before approaching the Legal Ombudsman. The firm must provide a final response within eight weeks (or longer if the client agrees).

  • Legal Ombudsman Jurisdiction: The LeO covers complaints about the service provided by authorised legal service providers. The complainant must be an individual, a micro-enterprise, a charity, a trust, or a personal representative. Large commercial clients are generally excluded.

  • Service vs Conduct Complaints: The Legal Ombudsman deals with service complaints (delays, poor service, unreasonable fees). The SRA deals with conduct complaints (breaches of the SRA Principles and Code of Conduct). These are separate jurisdictions, though a complaint can engage both simultaneously.

  • Time Limits for the Legal Ombudsman: The complaint must be made within one year of the act or omission (or within one year of when the complainant should reasonably have known about it), and within one year of receiving a final response from the firm (or within one year of the expiry of the eight-week period if no final response is received).

  • Remedies Available: The Legal Ombudsman can award an apology, return of documents, a reduction or refund of fees, compensation for loss or distress (capped), or directing the firm to put things right.

Exam tip

The jurisdiction trap: the Legal Ombudsman deals with service complaints (delays, fees, poor service), not conduct breaches. The SRA deals with conduct breaches. A client can complain to both simultaneously, but you must identify which route applies to which issue. If it's "poor service," it's LeO. If it's "breach of SRA Principles," it's SRA.

How This Appears in SQE1 Questions

SQE1 questions test whether you can identify the correct complaints route. The common pitfall is directing a service complaint to the SRA or a conduct complaint to the Legal Ombudsman—each body has a distinct role. Questions also test the time limits and whether the client has completed the first-tier process before escalating. Watch for scenarios involving commercial clients that fall outside the Legal Ombudsman's jurisdiction (large businesses are generally excluded).

A client is dissatisfied with the slow progress of her personal injury claim. She has not received updates for three months. She contacts the Legal Ombudsman directly without first raising the issue with her solicitor's firm.

This is a common SQE1 pitfall.

Common Mistakes Students Make

  • Confusing the Legal Ombudsman (service complaints) with the SRA (conduct complaints).
  • Forgetting that the client must use the firm's internal complaints procedure first before escalating to the Legal Ombudsman.
  • Overlooking the time limits for making a complaint to the Legal Ombudsman.
  • Assuming all clients can complain to the Legal Ombudsman—large commercial clients are generally excluded.

Quick Summary

  • All firms must have a written complaints procedure and inform clients about it at the outset.
  • Clients must first exhaust the firm's internal complaints procedure (first-tier) before escalating to the Legal Ombudsman.
  • Legal Ombudsman deals with service complaints only (poor service, delays, unreasonable fees), not conduct complaints.
  • Time limits for Legal Ombudsman: complaint must be made within one year of the act/omission and within one year of receiving the firm's final response.
  • Jurisdiction of Legal Ombudsman limited to individuals, micro-enterprises, charities, trusts and personal representatives (not large commercial clients).
  • The SRA handles conduct complaints (breaches of SRA Principles/Code of Conduct); Legal Ombudsman handles service complaints—separate jurisdictions.

Want to test this now? Try a few SQE1-style questions below before moving on.

Test Yourself

Test yourself

Quick check questions based on this article.

Question 1

Scenario

A solicitor at a large commercial firm acts for a company in a complex shareholders' dispute. The matter has been running for 18 months and total fees have reached £145,000. The company's finance director writes to the firm's managing partner stating that the company is dissatisfied with the handling of the matter. The finance director identifies three specific concerns: delays in disclosure, failure to attend a without-prejudice meeting, and inadequate reporting on costs. The managing partner, who is also the designated complaints handler, acknowledges the complaint within 24 hours and begins investigating. During the investigation, the managing partner discovers that the solicitor with conduct of the matter had been on long-term sick leave for six weeks during a critical phase and that a newly qualified solicitor had taken over temporarily without the client's knowledge or consent. The managing partner provides a detailed final response within 12 working days, upholding two of the three complaints and offering a fee reduction of £12,000. The company rejects the offer, stating it considers the reduction insufficient. The company asks whether it can pursue both a complaint to the Legal Ombudsman and a professional negligence claim simultaneously. The matter is governed by a retainer letter that includes a binding arbitration clause for fee disputes.

What is the correct position regarding the company's ability to pursue a complaint to the Legal Ombudsman and a professional negligence claim at the same time?

Question 2

Scenario

A solicitor acts for a client in a residential conveyancing matter. The client is purchasing a house for £325,000. The solicitor carries out the usual searches and reports on title. The transaction completes without difficulty. Six weeks after completion, a neighbour contacts the solicitor's firm by telephone and states that he wishes to complain about the solicitor. The neighbour explains that during the transaction, the solicitor's client told the neighbour that the solicitor had confirmed there were no restrictive covenants affecting the property. The neighbour states that this is incorrect and that there is a restrictive covenant preventing commercial use of the property, which the neighbour relies upon. The neighbour is concerned that the new owner may attempt to use the property for commercial purposes. The neighbour has never been a client of the firm. The firm's receptionist takes the neighbour's details and passes them to the solicitor. The solicitor is unsure whether the neighbour has standing to complain. The firm's complaints procedure states that it applies to clients of the firm. The firm does not have a separate procedure for non-client complaints.

Should the firm deal with the neighbour's complaint?

Question 3

Scenario

A solicitor at a national firm acts for a client in a regulatory investigation by a financial services regulator. The client is the chief executive of a fund management company. The investigation has been ongoing for 14 months and the client has incurred significant legal fees. The client becomes dissatisfied with the pace of the work and writes to the firm complaining about delays. The firm's complaints procedure provides for acknowledgement within five working days and a final response within 20 working days. The firm acknowledges the complaint within three working days. During the investigation of the complaint, the complaints handler discovers that two fee earners have been working on the matter concurrently, sometimes duplicating work. The complaints handler also discovers that the solicitor charged travel time at the full hourly rate for a trip to attend a meeting that was cancelled on arrival. The client was not informed of the cancellation charge. The complaints handler provides a final response within 18 working days, upholding the complaint regarding duplicated work and the travel charge. The firm offers a credit of £3,200. The client asks the firm to confirm whether the response constitutes the firm's 'final response' for the purposes of accessing the Legal Ombudsman. The firm confirms that it is the final response. The client is unhappy but wants time to consider his options before deciding whether to contact the Legal Ombudsman.

What is the latest date by which the client must contact the Legal Ombudsman if he wishes to refer the complaint?

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