Learning Outcomes
This article explains how to apply the SRA Principle to act in each client’s best interests within legal practice. You will learn what this duty requires, when it is limited by other duties, and how to identify and deal with both conflict of interest and own interest conflict issues. The article provides definitions, example scenarios, and clear revision points for SQE2 exam preparation.
SQE2 Syllabus
For SQE2, you are required to understand how and when the duty to act in the best interests of each client applies. Pay particular attention in your revision to:
- the SRA Principle requiring you to act in the best interests of each client and its meaning in various work contexts
- identifying and dealing with an own interest conflict or a conflict of interest between clients, including when you must refuse to act
- recognising when the duty to act in the best interests of the client is overridden by a higher duty (e.g. to the court or public interest)
- identifying and resolving practical examples of conflicts that commonly arise for solicitors
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.
- Which SRA Principle requires a solicitor to act in the best interests of each client?
- Can a solicitor act for two clients on opposite sides of the same dispute if both clients give informed consent?
- What is an "own interest conflict," and can it ever be waived by the client?
- What should you do if, during a matter, your personal interest comes into conflict with your client's?
Introduction
The SRA Principles set out the behaviours expected from solicitors and regulated law firms. One of the most important is the duty to act in the best interests of each client. This sits at the centre of client care and ethical legal practice. However, this duty is neither absolute nor takes priority over all others—in some situations, a conflicting duty (such as to the court or to uphold the rule of law) takes precedence.
This article focuses on what it means to act in the client's best interests, identifies typical situations when this duty is restricted, and provides practical guidance for handling common types of conflicts—especially those likely to be tested in SQE2 assessments.
Key Term: best interests
The obligation on a solicitor to take steps which further, protect, or advance the legal and personal interests of each client, within the law and regulatory rules.
Understanding the Principle
The duty to act in a client’s best interests means you must put the client's interests first—subject to law, the SRA Principles, and any overriding responsibilities. This obligation applies to current clients and, in some cases, to former or potential clients (especially concerning confidentiality).
You need to consider at every stage whether you can continue acting and whether your advice and actions help the client achieve their lawful aims.
Key Term: client
The individual, company, or entity to whom a solicitor owes contractual and ethical duties, including best interests, confidentiality, and care.
When the Principle is Limited
The best interests duty operates within the SRA’s wider system of Principles, which can conflict.
Key Term: conflict of interest
A situation where your separate duties to act in the best interests of two (or more) clients in the same or related matter conflict, or a significant risk of such conflict exists.Key Term: own interest conflict
A situation where your duty to act in the best interests of any client intersects or conflicts with your own interests (e.g., financial, personal, or reputational).
When this occurs, the Principles safeguarding the rule of law, justice, or the public interest override the duty to act in the best interests of the client. The classic example involves a solicitor’s duty not to mislead the court, even if the client pressures them to do so.
Worked Example 1.1
A solicitor is acting for a defendant in a criminal trial. The client tells the solicitor (in confidence) that they intend to lie to the court when giving evidence. The client instructs the solicitor to continue acting and do all possible for their acquittal.
Answer:
The solicitor cannot act in a way which would mislead the court, even if that is in the client's apparent best interests. Principles 1 (upholding justice) and 4 (acting honestly) take precedence. The solicitor must withdraw if the client insists on a dishonest defence.
Conflicts of Interest and Best Interests
You must not act where your duty to act for, or advance the interests of, a client conflicts (or risks conflicting) with the interests of another client, or your own interests. The SRA distinguishes:
- conflicts of interest (between two current clients in the same or a related matter)
- own interest conflicts (between your own interests and those of a client)
Acting Where Conflicts Arise
You must not act for clients where a conflict of interest exists or there is a significant risk. There are two limited exceptions, requiring all of the following conditions:
- The clients share a substantially common interest or are competing for the same objective
- All clients give informed written consent
- You implement appropriate safeguards for confidential information
- You are satisfied it is reasonable to act for all clients
Key Term: substantially common interest
A situation where different clients have a clear shared purpose in a matter and a strong consensus as to how to achieve it.Key Term: competing for the same objective
A scenario where clients seek to obtain an outcome such that if one succeeds, the others cannot, e.g., multiple bidders at an auction.
Worked Example 1.2
You are approached by two clients who wish to buy a company being sold at auction. They ask if your firm can represent both of them during the auction process.
Answer:
This is potentially permitted under the "competing for the same objective" exception, provided all four of the SRA’s conditions are met, and it is reasonable to act for both. Effective safeguards and informed consent are essential.
Exam Warning
In SQE2, you may see scenarios where both clients ask to proceed with a waivable conflict. Always check if the conflict fits the SRA's strict exceptions—if not, you must refuse to act, even if all clients consent.
Own Interest Conflicts—Never Permitted
You can never act where your own interests (or those of close associates, such as family members or your firm) conflict or risk conflicting with those of the client. There are no exceptions, even if the client waives the conflict or receives independent advice. Typical examples:
- Acting where you or a relative have a financial stake in the outcome
- Advising in a dispute involving your employer or another client of the firm, where personal interests are engaged
- Situations involving a solicitor receiving a significant gift or benefit from the client
Worked Example 1.3
A solicitor is asked to act for a client in a negligence claim against a company where the solicitor’s spouse is a director and shareholder.
Answer:
This is an own interest conflict. The solicitor may not act under any circumstances, as a significant risk exists that personal interests will affect their duty to the client.
Acting Competently—Capacity and Workload
The best interests duty includes only taking on work you are competent and resourced to handle. If you lack the requisite skill, authority, or time, you should decline instructions or seek additional help—otherwise, you risk providing inadequate service.
Revision Tip
For SQE2, always flag up instructions you are not competent to handle or for which you have insufficient capacity. Advising the client to seek another solicitor may be in their best interests.
Balancing Competing Principles
Where two SRA Principles come into conflict, those protecting public trust, the rule of law, or the proper administration of justice prevail, even if this may seem contrary to the client’s best interests.
Worked Example 1.4
You are acting for a client purchasing property. You become aware that you previously acted for the seller on another confidential matter, and possess information that would materially benefit your current client if disclosed.
Answer:
Your duty of confidentiality to the former client trumps your duty of disclosure to the present client. Unless the former client gives informed written consent, you cannot breach confidentiality, even if this is not in your current client’s best interests.
Key Point Checklist
This article has covered the following key knowledge points:
- The SRA Principle of acting in the best interests of each client is fundamental to legal practice, but not always overriding
- Conflicts of interest (between clients) restrict your ability to act, subject to very narrow exceptions
- Own interest conflicts (between yourself and your client) are strictly prohibited, with no exceptions
- Informed written consent and client safeguards are mandatory when exceptions to conflicts are permissible
- Best interests can require declining instructions if you lack the requisite skill, are overloaded, or cannot provide proper service
- Where Principles conflict, duties to the public, court, or justice take priority
Key Terms and Concepts
- best interests
- client
- conflict of interest
- own interest conflict
- substantially common interest
- competing for the same objective