Ethics and Professional Conduct for the SQE

Ethics is the one SQE topic with no paper of its own, and the one that turns up in every question. This guide sets out how it is examined on SQE1 and SQE2, the SRA Principles and Code of Conduct, a decision tree for conflicts of interest, the 2026 money laundering changes and a method for spotting the issue the SRA will not flag.

Updated October 2026 · checked against SRA publications on 1 October 2026.

How ethics is examined on the SQE

No paper, and no warning.

Ethics and Professional Conduct is examined pervasively: it sits inside questions about other subjects, and the question will not tell you that it is about ethics.

The seven SRA Principles

The SRA calls them the fundamental tenets of ethical behaviour it expects of everyone it regulates.

Each Principle completes the same two words. You act:

1. in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice.
2. in a way that upholds public trust and confidence in the solicitors' profession and in legal services provided by authorised persons.
3. with independence.
4. with honesty.
5. with integrity.
6. in a way that encourages equality, diversity and inclusion.
7. in the best interests of each client.

From the introduction to the SRA Principles, which the SRA notes does not form part of the Principles. Our tip: honesty and integrity are two Principles, not one. Treat integrity as the wider standard: conduct can fall short of integrity without being dishonest.

The SRA Code of Conduct at a glance

Our one-line summary of each section of the Code of Conduct for Solicitors, RELs, RFLs and RSLs (called the “SRA Code of Conduct for Solicitors” in the assessments).

Conflicts of interest: can I act?

There are two kinds of conflict, and the Code treats them very differently. An own interest conflict has no exception at all. A conflict between clients has two narrow exceptions, and both come with strict conditions. Work through these questions in order:

1. Do you have an own interest conflict, or a significant risk of one? If yes, do not act. Paragraph 6.1 has no exception.
2. Is there a conflict between your clients, or a significant risk of one? If not, you may act, and keep checking as the matter develops.
3. Do the clients have a substantially common interest, or are they competing for the same objective? If neither, do not act for both.
4. Are all three conditions met? Every client has given informed consent, given or evidenced in writing; where appropriate, effective safeguards protect confidential information; and you are satisfied it is reasonable to act for all the clients. If any fails, do not act for all.

Confidentiality and disclosure

You keep a client’s affairs confidential (6.3), and you tell the client everything material to their matter (6.4). The duty of disclosure has four exceptions: disclosure prohibited by legal restrictions imposed in the interests of national security or the prevention of crime; the client’s informed consent, given or evidenced in writing; a reason to believe disclosure would cause serious physical or mental injury; and information in a privileged document you know about only because it was mistakenly disclosed.

Paragraph 6.5 stops you acting against a current or former client whose confidential information you hold, where it is material to the matter, unless effective measures leave no real risk of disclosure or that client gives informed consent, given or evidenced in writing.

Undertakings, the court and your clients

Undertakings

The SRA Glossary defines an undertaking as a statement, given orally or in writing, whether or not it includes the word “undertake” or “undertaking”, to someone who reasonably places reliance on it, that you or a third party will do something or cause something to be done, or refrain from doing something. You must perform every undertaking within the agreed timescale or, if none was agreed, within a reasonable amount of time (1.3). Our advice: only give undertakings within your control.

Your duty to the court

You must not mislead or attempt to mislead your clients, the court or others (1.4). You only put forward submissions that are properly arguable (2.4), and you draw the court’s attention to relevant cases, statutory provisions and procedural irregularities likely to have a material effect on the outcome (2.7), even when they hurt your client.

The classic scenario: a client privately admits the offence but wants to plead not guilty. You may still put the prosecution to proof, but you cannot advance a defence you know is false or call evidence you know is untrue. If the client insists on giving evidence denying guilt, or on running a defence you know is false, you must cease to act, and confidentiality means you do not tell the court why.

Complaints and the Legal Ombudsman

Money laundering on the SQE

Tested on SQE1 within Legal Services in FLK1, and on SQE2 within Business Law and Practice and, from 1 September 2026, Property Practice.

Report before you act. An authorised disclosure (s.338) plus the appropriate consent (s.335), which the National Crime Agency calls a DAML, is a defence to ss.327 to 329. The notice period is seven working days, starting the first working day after the disclosure. If consent is refused, a 31-day moratorium runs from the day you receive the refusal; a court can extend it, by no more than 186 days in total.

The SRA warning notices to know

Both specifications say questions can be based on situations in relevant SRA warning notices, such as those on non-disclosure agreements (NDAs) and strategic lawsuits against public participation (SLAPPs). The NDA notice says it does not prohibit NDAs, but they are improperly used if used to prevent or deter someone from co-operating with a criminal investigation, reporting an offence, or reporting misconduct to the SRA. The SLAPP notice describes SLAPPs as a misuse of the legal system to stifle lawful scrutiny and publication.

Other current notices cover the misuse of AI (August 2026), money laundering risk assessments and suspicious activity reports, high-volume consumer claims, marketing to the public, money missing from client account, using client account as a banking facility, offensive communications, tax avoidance and referral fees.

Answering ethics questions: the SPOT method

1. Scan the people. Who is the client (8.1)? Who else is involved: the other side, a third party paying or instructing, the court, the SRA?
2. Pinpoint the duty. Which Principle or part of the Code is engaged: conflict, confidentiality, disclosure, an undertaking, misleading, money, competence, costs?
3. Options and exceptions. Does an exception apply, and are its conditions met? Look for “informed consent, given or evidenced in writing”.
4. Take the action. Act, decline, cease to act, disclose, report or advise, then check the action itself breaches nothing.

The full guide adds a worked example, tips and a red-flag checklist you can run on every scenario.

Frequently asked questions

SRA material: This work is owned by and published under licence from the Solicitors Regulation Authority of The Cube, 199 Wharfside Street, Birmingham, B1 1RN which asserts its right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988 Sections 77 and 78. Sources: SRA Principles, Code of Conduct for Solicitors, Code of Conduct for Firms and Glossary, current version in effect from 11 April 2025, extracted 1 October 2026. Always check the SRA website to make sure you are relying on the correct and most up-to-date version.