The SRA Principles - Acting with honesty

Learning Outcomes

By the end of this article, you will be able to identify and explain the SRA Principle of honesty, recognise how the objective test for dishonesty is applied, and understand the consequences of breaches for solicitors. You will be able to apply the law to practical scenarios and avoid typical errors in SQE2 assessment settings.

SQE2 Syllabus

For SQE2, you are required to understand the Principle that solicitors must act with honesty, how dishonesty is assessed, and the real-world implications of breaches. Make sure during revision that you focus on:

• the requirement to act with honesty as a core SRA Principle
• how the objective test for dishonesty applies to solicitors' conduct
• examples of conduct that may constitute dishonesty in legal practice
• the consequences of failing to act honestly and the disciplinary process

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.

1. What is the legal test for dishonesty in the context of solicitors' professional conduct?
2. Is it enough for a solicitor to avoid being found dishonest if they did not personally consider their conduct to be dishonest?
3. Which of the following is an example of acting dishonestly: (a) forgetting to pay a bill, (b) backdating documents, (c) inadequate cost estimation?
4. In the event a solicitor is found to have acted dishonestly, what sanctions may the SRA or SDT impose?

Introduction

The requirement to act with honesty is a fundamental SRA Principle for all solicitors in England and Wales. Dishonesty not only damages public trust but also has serious personal consequences for solicitors. For SQE2, you must understand how honesty is regulated, how dishonesty is assessed, and how to apply these rules in practice.

Honesty is required in all aspects of professional and personal life. Acting dishonestly will expose solicitors to disciplinary action, including being struck off the roll. Importantly, whether conduct is considered dishonest is not a matter of personal opinion but is assessed using an objective test.

Key Term: honesty
The quality of being truthful and straightforward in words and actions, as required by the SRA Principle for solicitors.

Key Term: dishonesty
Conduct that ordinary, decent people would consider dishonest, regardless of the solicitor’s subjective intentions.

Key Term: objective test for dishonesty
A two-stage assessment that first establishes the solicitor’s knowledge or belief about the facts, then asks whether their conduct was dishonest by the standards of ordinary decent people.

The SRA Principle: Act with Honesty

The SRA Principles require all those regulated to act with honesty at all times, both in practice and outside work. This Principle is at the centre of public trust in the profession.

Solicitors must not mislead or attempt to mislead clients, courts, regulators, or others. Breaches can occur in direct dealings, written statements, or omissions that result in false impressions.

The Objective Test for Dishonesty

Dishonesty is judged by a two-part objective test, originating from civil and criminal case law and used consistently by the SRA and the Solicitors Disciplinary Tribunal (SDT):

1. Ascertain the solicitor’s actual knowledge or belief about the facts at the relevant time. The belief does not need to be reasonable, but it must be genuinely held.
2. Decide, in light of that knowledge or belief, whether the solicitor’s conduct was dishonest by the standards of ordinary decent people.

The test is not concerned with whether the solicitor personally saw their actions as dishonest. It is how an informed observer would view the conduct that counts.

Typical Examples of Dishonesty

Common situations where dishonesty may arise include:

• lying to clients, colleagues, courts, or regulators about material facts;
• altering, fabricating, or backdating documents to mislead others;
• concealing errors or failures, especially if this prevents proper disclosure;
• taking client money without authority, or using it for improper purposes;
• misleading clients about the status or progress of their cases.

Conduct such as poor time management or overcharging is not in itself dishonest unless accompanied by a deliberate attempt to hide or mislead.

Worked Example 1.1

A solicitor discovers a critical deadline was missed in a client's matter. Rather than informing the client or the insurer, the solicitor fabricates correspondence to create the impression that proceedings were issued on time.

Answer:
This behaviour would be considered dishonest under the objective test. The solicitor knows the true facts and intentionally falsifies documents to create a misleading impression, which ordinary decent people would regard as dishonest.

Worked Example 1.2

A solicitor receives client money intended for completion of a transaction. Instead of using the money as instructed, the solicitor temporarily uses the funds to pay the firm's electricity bill, intending to replace the money before the client notices.

Answer:
This is dishonest. The solicitor is aware that the money is to be held for a specific purpose but uses it for other reasons. This misapplication of client funds would be seen as dishonest by ordinary decent people.

Exam Warning

Dishonesty is assessed on an objective test and the solicitor’s personal belief is irrelevant. If an SQE2 scenario asks whether a solicitor's conduct was dishonest, focus on what the solicitor knew about the facts and ask whether the conduct would be regarded as dishonest in society’s view.

Consequences of Dishonesty

The SRA treats proven dishonesty as extremely serious. The usual sanction is striking off the roll, regardless of seniority or mitigation. Lesser sanctions are reserved for truly exceptional circumstances.

Disciplinary actions following a finding of dishonesty can include:

• striking off (removal from the profession)
• suspension
• prohibitions on working in the sector
• significant financial penalties

Honesty issues can also arise out of acts in a solicitor's private life, not just professional practice.

Worked Example 1.3

A solicitor forgets to issue an invoice for disbursements and, fearing the client will refuse to pay after learning of the failure, creates a false invoice with an earlier date.

Answer:
This is dishonest. Creating a false document to cover up a mistake would be found dishonest under the objective standard.

Revision Tip

If in doubt about the honesty of conduct, always consider: What would ordinary people think if they knew all the facts? If the answer is negative, the conduct is likely to breach Principle 4.

Key Point Checklist

This article has covered the following key knowledge points:

• The SRA Principle of honesty applies to all regulated solicitors at all times.
• Dishonesty is determined by an objective test, not by the solicitor’s personal views.
• Examples of dishonesty include lying, creating or backdating documents, and misuse of client money.
• Serious sanctions, including striking off, are the usual outcome for proved dishonesty.
• The requirement to act honestly encompasses both professional and private conduct.

Key Terms and Concepts

• honesty
• dishonesty
• objective test for dishonesty