← Back to blog

Regulation of Solicitors and Law Firms for SQE1

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

11 May 2026

Legal Services – Regulation of Solicitors and Law Firms...

Regulation of Solicitors and Law Firms

Legal Services > Regulation of Solicitors and Law Firms

The regulatory framework governing solicitors and law firms is the foundation of the entire Legal Services module in SQE1. You need to understand who regulates whom, which activities require authorisation, and where the boundaries lie - a distinction examiners test relentlessly through questions that ask what unqualified people can and cannot do.

What Is Regulation of Solicitors and Law Firms in SQE1?

The regulation of solicitors and law firms in England and Wales is established by the Legal Services Act 2007 (LSA 2007). The Act created a tiered system with an oversight regulator (the Legal Services Board), front-line regulators (including the SRA), and a set of reserved legal activities that can only be carried out by authorised persons. The purpose is to protect the public, maintain professional standards, and ensure access to justice. Without this framework, anyone could offer legal services regardless of competence or accountability.

Understanding regulation is essential because it underpins the entire Legal Services topic and connects to almost every professional conduct question you will face. The boundaries between authorised and unauthorised activities are frequently tested, particularly in the context of reserved legal activities and what non-lawyers can do.

Key Principles for SQE1

  • Legal Services Board (LSB): The oversight regulator created by the LSA 2007, supervising all approved regulators, including the SRA and the Bar Standards Board. The LSB does not directly regulate solicitors; it supervises the SRA.

  • Solicitors Regulation Authority (SRA): The front-line regulator for solicitors and law firms in England and Wales. The SRA sets standards, authorises firms, takes enforcement action, and issues practising certificates to individual solicitors.

  • Reserved Legal Activities: Six activities that only authorised persons may carry out: rights of audience, conduct of litigation, reserved instrument activities, probate activities, notarial activities, and administration of oaths. Giving legal advice is NOT reserved.

  • Authorisation Requirements: Solicitors must hold a current practising certificate issued by the SRA before practicing. Firms must be authorised by the SRA to carry on reserved legal activities. Authorisation is not just a formality; it is proof of meeting the SRA's standards.

  • Alternative Business Structures (ABS): The LSA 2007 introduced ABS, allowing non-lawyers to own or manage law firms. These entities are still regulated by the SRA and subject to the same professional standards, but they can have lay owners.

  • Regulatory Objectives: Section 1 of the LSA 2007 sets out the regulatory objectives, including protecting the public interest, supporting the rule of law, improving access to justice, promoting competition, encouraging strong independent legal professions, and promoting adherence to professional principles.

Exam tip

Reserved legal activities are the key—only six activities require authorisation. The trap: questions ask what a non-authorised person can and cannot do. If an activity is not reserved, any unqualified person can do it. Only authorised persons may conduct reserved activities. Giving legal advice is NOT reserved—anyone can give advice. The distinction between reserved and unreserved is where examiners catch candidates out.

How This Appears in SQE1 Questions

SQE1 questions test whether you can identify the correct regulator, distinguish between reserved and unreserved activities, and apply the regulatory hierarchy. A common trap is confusing the SRA with the LSB—the SRA regulates solicitors directly; the LSB oversees the SRA. Questions may also test whether a particular activity is reserved (requiring authorisation) or unreserved (open to anyone).

A former barrister sets up a consultancy offering legal advice on employment law. She does not hold a practising certificate. A client asks whether she is acting lawfully.

This is a classic SQE1 trap.

Common Mistakes Students Make

  • Confusing the SRA (regulates solicitors) with the LSB (oversees regulators)—the SRA is the front-line regulator; the LSB is the oversight body.
  • Assuming all legal work is reserved—only the six reserved legal activities require authorisation; giving advice is unreserved.
  • Forgetting that Alternative Business Structures allow non-lawyer ownership of law firms, subject to SRA regulation.
  • Overlooking that the regulatory objectives in section 1 of the LSA 2007 frame the entire regulatory framework and sometimes appear in exam distractors.

Quick Summary

  • The Legal Services Board (LSB) is the oversight regulator supervising approved regulators including the SRA.
  • The SRA is the front-line regulator for solicitors and law firms; it authorises firms and issues practising certificates.
  • Reserved legal activities (section 12, LSA 2007) are the six activities only authorised persons may carry out.
  • Giving legal advice is NOT a reserved legal activity; any unqualified person can give advice.
  • Alternative Business Structures allow non-lawyers to own or manage law firms, subject to SRA regulation and authorisation.
  • Chartered legal executives with litigation rights granted by CILEx are authorised persons entitled to conduct litigation.

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 client wishes to have a will prepared and is considering which type of legal services provider to instruct. The client has received quotes from a solicitors' firm regulated by the Solicitors Regulation Authority, a licensed conveyancer regulated by the Council for Licensed Conveyancers, a will-writing company that is not regulated by any approved regulator, and a chartered legal executive regulated by CILEx Regulation. The client is particularly concerned about the level of consumer protection available if something goes wrong with the will after it is executed. The client has been told that not all providers of legal services are subject to the same regulatory requirements. The client's estate is valued at approximately £1.8 million and includes several properties and a family trust. The client has no existing relationship with any of the providers and is making a decision based solely on regulatory protection. The client has also been told that the Legal Ombudsman may be available to handle complaints. The will is straightforward and does not involve any international element or complex tax planning. The client is in good health and is aged 62.

Which of the following most accurately describes the regulatory position regarding the will-writing company?

Question 2

Scenario

A woman is involved in a boundary dispute with her neighbour. She approaches a friend who works as a chartered surveyor and has some knowledge of property law, having previously studied law at university. The friend offers to draft a letter before action on her behalf and to represent her in any subsequent court proceedings if the dispute cannot be resolved. The friend does not hold a practising certificate and is not authorised by any approved regulator under the Legal Services Act 2007. The friend intends to charge the woman a reduced fee for the work as a favour. The woman is grateful for the offer and is keen to save money on legal costs. The friend has previously prepared informal witness statements for other acquaintances involved in minor disputes and has accompanied them to small claims hearings as a lay representative. The friend's surveying practice is located on the same business park as a firm of solicitors. The woman's boundary dispute involves a claim valued at approximately £35,000.

Which of the following best describes the legal position regarding the friend's proposed activities?

Question 3

Scenario

A solicitor's firm is advising a client on the dissolution of a business partnership. The partnership assets include a commercial lease, business equipment, and a portfolio of investments held in the partnership's name. The investments include listed shares, corporate bonds, and units in an authorised unit trust. The solicitor advises on the partnership dissolution process under the Partnership Act 1890, including the distribution of assets between the partners. The partners cannot agree on whether to sell the investment portfolio and distribute the cash proceeds, or to transfer the investments in specie to each partner according to their partnership shares. One partner wants to sell everything immediately, while the other wants to retain the bonds and unit trust holdings. The solicitor is asked to advise on which approach is legally preferable and to facilitate whichever option the partners choose. The firm operates under the Part 20 FSMA 2000 exemption. The solicitor notes that the partnership agreement is silent on the procedure for distributing investment assets on dissolution. The firm's compliance partner confirms that the firm has previously handled similar dissolutions involving investment portfolios.

Which of the following best describes the solicitor's regulatory position?

Practice with full exam-style questions

Try DemoView Pricing

Related Topics

Practise Regulation of Solicitors and Law Firms Questions for SQE1

Want to solidify your knowledge? ActusPrep provides realistic SQE1 questions tailored to this topic.

👉 Try our free demo: https://actusprep.com/demo 👉 View plans and pricing: https://actusprep.com/pricing