Commission received from an insurer on a policy arranged for an executor client (Code 4.1)

Paragraph 4.1 of the Code requires a solicitor to properly account to clients for any financial benefit received as a result of their instructions, except where the client has agreed otherwise. Paragraph 5.1 of the Code of Conduct for Firms imposes the same duty on the firm. The £150 commission is a financial benefit that the firm received only because it arranged the insurance on Ms Choi's instructions as executor, with the premium paid from the estate she is administering. It does not matter that the insurer, not Ms Choi, paid it. The firm must pay it to Ms Choi for the estate, for example by crediting it against the bill, unless she has agreed that the firm may keep it. Her agreement would need to be informed, so she would have to be told about the commission. The client care letter is silent and there is no such agreement, so the firm must account to her.

Why A is wrong: Para 4.1 covers any financial benefit received as a result of the client's instructions, whoever pays it.

Why C is wrong: Para 4.1 contains no de minimis threshold; the firm must account for any financial benefit unless the client has agreed otherwise.

Why D is wrong: The commission arose from Ms Choi's instructions as executor and the premium came from the estate; the broker is not the firm's client and has no claim to it.

Why E is wrong: Showing it on a bill after the event is not the client agreeing that the firm may keep it.