Learning Outcomes
After studying this article, you will be able to identify and apply effective approaches for delivering accurate, tailored legal advice to clients while managing risk. You will recognise key methods for fact collection, legal analysis, advising on options and outcomes, and ensuring your written and oral advice meets the standards required for SQE2. You will also understand the significance of risk management within client care and professional practice.
SQE2 Syllabus
For SQE2, you are required to understand how to provide accurate, relevant, and appropriately tailored legal advice. In your revision, you should focus on:
- the principles of collecting and analysing all relevant facts before advising
- delivering advice suited to the client’s needs, objectives, risks, and constraints
- specific techniques for structuring advice (written and oral) in response to real or hypothetical client problems
- identifying legal, practical, and reputational risks arising from your advice or the client’s actions
- communicating clear next steps and managing client expectations
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- What should a solicitor do if a client insists on a course of action that carries legal risk or is outside their best interests?
- Why is it important to confirm a client’s objectives and constraints before giving formal advice?
- In advising a client, what steps should always be taken to reduce the risk of misunderstanding or potential complaint?
- Name one method for structuring your analysis and risk management when providing client advice.
Introduction
Providing effective legal advice is a core requirement of professional practice, tested in the SQE2 assessment. This means recognising the client’s individual objectives and circumstances, gathering all relevant facts, and giving advice that is both accurate and expressly tailored to them. You must identify and manage the legal and practical risks arising in each matter. The risk management process includes clear communication, appropriate documentation, and ensuring your client understands the next steps and any consequences.
Key Term: tailored advice
Tailored advice is legal guidance that addresses the client’s specific facts, objectives, needs, risks, and circumstances, rather than abstract or standard information.Key Term: risk management
Risk management is the systematic process of identifying, analysing, and mitigating legal, practical, and professional risks in the course of providing advice or handling a client matter.
Problem Diagnosis and Fact Gathering
Effective advice relies on understanding the client’s real problem and gathering all information relevant to it. This process involves investigating the client’s goals, constraints (such as cost, time, or confidentiality), and factual background. Assumptions must be avoided, and details confirmed wherever possible.
If there are uncertainties, unclear facts, or points on which your client or the other party may be mistaken, these should be explored and clarified before you commit to firm advice.
Structuring Legal Analysis
Once you hold all material facts, identify the relevant legal issues and ascertain any risks to the client or your practice. Analysis should be concise, solution-focused, and reflect the client’s aims, possible obstacles, and real-world limitations such as time, resources, and the client’s risk appetite.
Key Term: legal analysis
Legal analysis is the process of applying the law to facts in order to advise a client, including identifying relevant issues, options, risks, and preferred approaches.
Advising the Client: Options and Outcomes
It is rarely appropriate to give a client only one option. Instead, provide the available approaches, including advantages, disadvantages, risks, and potential costs of each. Always relate your advice back to the client’s objectives and constraints.
Advise the client on likely outcomes, including possible successes or failures, costs, timescales, and any negative consequences. Where outcomes depend on evidence or unpredictable factors (such as a judge’s discretion), this must also be explained clearly.
Worked Example 1.1
A client is considering whether to defend a claim that, if lost, could lead to bankruptcy. They want advice on prospects and strategy but also need to know about risk and options.
Answer:
After confirming all key facts, advise the client of both the realistic prospects of success and the risks (including costs, adverse costs, and the possibility of bankruptcy). Explain alternative options, e.g., defending, negotiating settlement, or seeking early legal protection. Clearly document and communicate the advice, risks, and next steps.
Risk Management in Client Advice
Managing risk does not mean eliminating all possible poor outcomes, but rather recognising hazards (legal, financial, reputational) and addressing them with the client before decisions are made. This includes:
- confirming complex or uncertain points with further research or specialist input
- warning the client clearly (in writing if significant) of foreseeable risks or consequences
- documenting the advice given and the client’s instructions, especially if the client proceeds against advice
Where a client insists on a high-risk course of action, you should record your advice, the risks identified, and the client’s decision in writing.
Exam Warning
If you fail to warn a client in writing about significant risk or consequences, you may be exposed to complaint or potential negligence claim. SQE2 assessment expects explicit communication and clear records.
Communication and Client Management
Advice must be delivered in a manner the client can understand—this is central to professionalism and risk management. Use accessible language and avoid legal jargon wherever possible. Ensure the client is aware of:
- recommended next steps
- required actions (by client or solicitor)
- the timeline for further work
- who to contact in your absence
Reiterate costs and the basis on which fees or disbursements are charged. Summarise your advice in writing, including all core points above.
Revision Tip
In the exam, always structure your written (or oral) advice by identifying key facts, the relevant law, options and risks, and clear next steps.
Worked Example 1.2
A client wishes to pursue a business venture but is unaware of possible regulatory hurdles and financial liabilities if they proceed hastily.
Answer:
After analysing the client’s plan, you should identify legal and regulatory barriers (e.g., licenses, capital requirements), financial risks (e.g., liability for unpaid debts), and alert the client in clear terms. Offer alternative approaches to manage these risks (e.g., phased approach, insurance, obtaining further financial advice). Document all advice and confirm understanding.
Ensuring Clarity and Reducing Complaints
Complaints often arise where risks were not identified, or clients are not warned about possible adverse outcomes. Good risk management and advice involves:
- ensuring the client fully understands any instructions or documents before signing or proceeding
- using checklists or ‘action plans’ to confirm the agreed steps
- promptly summarising all advice, warnings, and agreed decisions in writing
Key Point Checklist
This article has covered the following key knowledge points:
- Accurate, tailored client advice requires full fact gathering and problem identification.
- Options should be presented with clear explanation of benefits, risks, costs, and likely outcomes.
- Good risk management includes anticipating, communicating, and recording risks.
- Advice should be confirmed in writing, with next steps and costs specified.
- Clear communication reduces misunderstanding and helps meet SQE2 assessment criteria.
Key Terms and Concepts
- tailored advice
- risk management
- legal analysis