SQE2 ethics and professional conduct: how it is tested
SQE2 ethics and professional conduct is tested throughout the assessment without being flagged. From 1 September 2026 the SRA has added a separate Law criterion for ethics and professional conduct. Format and marking are otherwise unchanged.
Try a free SQE2 client interview
Talk to an AI client by voice or text, write the attendance note, and get estimated grades against the published criteria. No sign-up.
What the change means
From 1 September 2026 there is a separate criterion for ethics and professional conduct. Ethics questions were already unflagged, so the practical lesson is the same: a good answer on the main legal issue can still lose marks if you miss the conduct point.
The SRA has set out its guidance on the change in a news item on the SQE site (linked in sources). Read it. For the rest of this page we keep to the principles that candidates can rely on: the SRA Principles and the Code of Conduct for Solicitors.
The sources you need
You should know the seven SRA Principles in outline: the rule of law and the proper administration of justice, public trust and confidence, independence, honesty, integrity, equality, diversity and inclusion, and acting in each client's best interests. You should also know the main parts of the Code of Conduct for Solicitors. The paragraphs that appear most often in practical tasks are listed below.
| Issue | Rule to remember | What a competent solicitor does |
|---|---|---|
| Acting on instructions | Code para 3.1: act only on the client's instructions or someone properly authorised | Check who is giving instructions. Do not act on a third party's word alone. |
| Conflict of interest | Code paras 6.1 and 6.2: do not act where there is a conflict, or significant risk of one, between you and the client or between two clients, unless a narrow exception applies | Identify the conflict, explain it, and usually decline or stop acting for one or both. |
| Confidentiality and disclosure | Code paras 6.3 and 6.4 | Keep client information confidential, and disclose to the client all material information, subject to exceptions. |
| Misleading | Code para 1.4: do not mislead clients, the court or others | Correct mistakes at once. Never say what you know to be untrue. |
| Duty to the court | Code paras 2.4 and 2.7: submissions must be properly arguable; draw the court's attention to relevant authority and procedural irregularities | Argue honestly. Disclose relevant adverse authority. |
| Money laundering | Proceeds of Crime Act 2002, ss 327 to 329, 330 and 333A | Spot red flags, report internally, avoid tipping off, and do not proceed without the required consent. |
| Client money | SRA Accounts Rules | Do not use your client account as a banking facility. |
| Client care | Code paras 8.6 to 8.11, including 8.7 on costs | Give clear information about costs, the work and who is doing it. |
How to show it in your answer
A strong answer does three things: it spots the issue, names the rule or principle, and says what you would do. A single short paragraph can do all three.
Example. The client in a house purchase tells you the sellers have asked him to pay £20,000 of the price in cash outside the contract, to 'save tax'.
Weak: 'I would advise the client to be careful.'
Stronger: 'This raises a money laundering and tax evasion concern. A payment outside the contract could mean the true price is hidden, which risks the offences in the Proceeds of Crime Act 2002. I must not help with it (Code para 1.4 and the SRA Principles on honesty and integrity). I will not proceed on this basis. I will tell the client what I cannot do, raise my concern with our money laundering reporting officer, and take care not to tip off anyone. If we also act for the lender, I must tell the lender the true price, and if the client will not agree to that, I must stop acting.'
Where ethics hides
- In an interview, when the client asks you to keep something from the other side, the court or a lender.
- In advocacy, when your instructions would require you to say something you know is not true.
- In property and probate matters, when the client asks you to act for both sides or the lender, or when a family member is directing an elderly client.
- In business tasks, when a director's personal interests conflict with the company's, or when funds look unusual.
- In funding and costs, when the client has not been given clear costs information.
- In any task, when you spot your own mistake and must tell the client.
Common mistakes
- Not looking for an ethics point because the task did not name one.
- Naming a rule without saying what you would do.
- Over-citing paragraph numbers you are not sure of. A correct short statement of the rule is better than a wrong number.
- Treating ethics as an afterthought in the last line. Put it where it arises in the advice.
- Saying you would 'report the client to the police'. In most cases the correct route is internal reporting and, if needed, a report to the National Crime Agency by the right person, without tipping off.
Ethics checklist
- Who is my client and who is giving instructions?
- Is there a conflict or a significant risk of one?
- Is any information confidential, and do I owe a duty to disclose it to the client?
- Could I mislead the court, a lender or the other side?
- Are there money laundering red flags?
- Has client money been handled properly?
- Has the client been told about costs and the service?
- Is the client vulnerable or under pressure?
Our practice tasks include unflagged ethics points. Marking feedback is estimated against the published criteria.
Questions
Is ethics tested in SQE2?
Yes, throughout the assessment and without a flag. From 1 September 2026 there is also a separate Law criterion for ethics and professional conduct.
What changed in SQE2 ethics in September 2026?
The SRA added a separate Law criterion for ethics and professional conduct. The format of the assessment and the way it is marked are otherwise unchanged.
Which rules do I need for SQE2 ethics?
The SRA Principles and the SRA Code of Conduct for Solicitors, plus the basic rules on money laundering and client money. Know the main ideas and apply them to the facts.
Do I need to quote paragraph numbers?
It helps if you are sure of them, but a clear statement of the rule and what you would do matters more.
What is the most common SQE2 ethics point?
Conflict of interest and confidentiality come up often, with money laundering red flags in property and business tasks, and duty to the court in advocacy.
Related
- SQE2: what it tests and how to prepare
- SQE2 pass mark: how it works
- SQE2 client interview: how to structure it
- SQE2 advocacy: how to prepare and perform
- SQE1 Legal Services
Sources: SRA: Ethics and professional conduct changes for SQE2 after 1 September 2026; SRA Principles; SRA Code of Conduct for Solicitors, RELs and RFLs; SRA presentation: The SQE2 assessment; Proceeds of Crime Act 2002. Checked 10 November 2026.